Most warehouse leaders already know where their operation struggles. These aren’t surprises. What holds many warehouses back from automating is the same mix of timing, cost, and the fear of disrupting work that can’t afford to slow down. Endpoint Automation Solutions emphasizes that most operators don’t need massive, overengineered systems. They need practical automation that’s right-sized, fast to deploy, and scalable as their business grows. Their mission is to make that first step toward modernization easier, not harder.

And for the first time in a long time, the conditions around warehouse modernization are shifting. For warehouse leaders who’ve been waiting for the right moment to upgrade, this might be the year the math finally works in their favor.

Where Section 179 Changes the Equation for Warehouse Automation

That hesitation to automate warehouses is widespread. At least 75% of U.S. warehouses still operate without automation. And for small to mid-sized operations, the barriers of large upfront investments, rigid systems, and long deployment timelines can feel even more insurmountable.

Endpoint facilitates something rare in the warehouse world: a financial incentive to automate.  Kurt Heusner, CEO of Endpoint Automation Solutions, shares, “We’re trying to remove the barriers to customers making that initial investment and being able to start their journey towards automation.” 

The recent expansion of Section 179 means many small and mid-sized companies can deduct up to 100% of their purchases, including hardware, software, and services, with Endpoint providing an itemized tax kit so operators can hand everything directly to their CPA.

Put simply, Section 179 lets businesses deduct qualifying equipment and implementation services in the year they’re placed into service. No long depreciation schedules. No waiting years to see the impact. Software eligibility varies based on licensing structure, so operators should verify what qualifies with their tax advisor.

As long as the equipment is installed and ready to use by year-end, the deduction applies immediately. The current IRS limit of $2.5 million per year begins to phase out once total qualifying purchases exceed $4 million.

For warehouses, the list of qualifying assets is huge:

• Robotics and automated picking systems

• Conveyors and sortation equipment

• Racking and storage infrastructure

• Sensors and scanners

• Warehouse software

• IT and visibility systems

• Material handling equipment

These are precisely the types of investments warehouse operations put off due to cost. However, it’s also the type of warehouse automation solution that delivers the greatest benefits in terms of throughput, training, and accuracy. As Heusner put it plainly, “the objective is to kind of remove some of the barriers to entry… so people can take advantage of the tax code that’s been put in place.”

Section 179 doesn’t eliminate the investment, but it does dramatically change the cash flow conversation. Upgrades that look unreachable become realistic when the tax impact lands in the same year.

Section 179 doesn’t eliminate the investment, but it does dramatically change the cash flow conversation. Upgrades that look unreachable become realistic when tax benefits align with capital equipment investments.

Important Note: While hardware, implementation services, and certain software components may be deductible under Section 179, tax treatment varies based on individual circumstances and licensing structures. Every business situation is unique. Operators should work with their CPA or tax professional to verify what qualifies for their specific purchase.

Listen to the full episode from Endpoint Automation Solutions: Warehouse Digital Transformation: Bridging ERP and the Warehouse Floor

Inside “The Great Warehouse Upgrade”

Even with tax advantages and more flexible financing options, many warehouse operations may still feel stuck at the starting line. They see the need for warehouse automation, but the leap from manual processes to automation feels too big to justify in one move. Endpoint calls this the digital divide. It’s not a lack of interest in technology, but a lack of accessible, low-friction ways to adopt it.

That’s the idea behind what they’re calling The Great Warehouse Upgrade. It’s not a flashy rebrand or a push toward large capital projects. It’s a shift toward making automation truly attainable for the mid-market.

Kurt Heusner described the challenge clearly: many customers are “perplexed by the CapEx investment to invest in technology… and how do I approach that?” For years, the answer was to delay, stretch budgets, or keep working around limitations. But in the podcast conversation, he emphasized that this moment is different. Companies now have ways to “finance and take advantage of tax laws and combine those two things into the ability to accelerate your purchasing into warehouse technologies.”

The Great Warehouse Upgrade aims to remove the barriers that have historically held back automation upgrades. To do that, they’re offering 90 days with no payments and 0% financing for the first 36 months, subject to credit approval. Instead of requiring significant upfront commitments, Endpoint is packaging automation in ways that spread payments over time, reduce the initial cash pressure, and help customers explore Section 179 benefits before year-end.

A Rare Window for Warehouse Leaders

For years, mid-market warehouses have known exactly where their operations needed support — but the cost, complexity, and disruption of automation kept modernization out of reach. What’s different now is that the most significant barriers are finally starting to move. Section 179 creates potential tax benefits for qualifying purchases. Right-sized automation reduces the operational lift. And the Great Warehouse Upgrade gives operators a structured way to take the first step.

None of these forces alone would be enough. But together, they create a moment the industry hasn’t had in a long time — one where the math, the technology, and the timing all line up. Upgrades that once felt unrealistic now feel possible. The question for warehouse leaders is no longer if they should modernize, but whether they’re ready to take advantage of the opportunity while it’s here.

For more information, listen to the full episode from Endpoint Automation Solutions here. 

Contact Endpoint Automation Solutions for your Section 179 tax kit and more information about The Great Warehouse Upgrade.

Consult your tax advisor for more information on how you can leverage Section 179 for your business.