Warehouse Fire Risks Rise as Automation and Combustible Goods Challenge Protection Systems

Warehouse fire protection is struggling to keep pace with denser storage, automation and more combustible goods. The gap can mean larger property losses, costly system upgrades and greater exposure to smoke contamination.

“The modern technology in a warehouse is ahead of the testing of protection schemes,” said Bill Ingram, vice president of technical operations at Zurich Resilience Solutions in Sanger, Texas. Sprinklers may control a fire, but firefighters still need access to finish extinguishing it. Tall racks, restricted aisles and heavy smoke can make that difficult.

The stored goods matter, too. Products that once relied mainly on metal and glass increasingly contain plastics, aerosols and lithium-ion batteries. Plastic goods and reusable bins shed water instead of absorbing it, making it harder for sprinkler discharge to stop nearby materials from igniting, said Austin Elliott, district manager for fire practice at Global Risk Consultants, a Tüv Süd company, in Charlotte, North Carolina.

Denser storage complicates fire control

Narrow aisles, multi-row racks and automated retrieval systems let operators store more inventory in less space. But those layouts can block firefighters and keep sprinkler water from reaching a fire, said Matthew Daelhousen, vice president and manager of fire hazards and protection at FM in Johnston, Rhode Island. FM testing indicates that obstructed water flow can allow fires to grow larger. “It’s a lot harder to protect those types of arrangements,” he said.

Early suppression fast response sprinklers have supported ceiling-only protection in some warehouses. As storage layouts and combustible loads change, however, operators are returning to in-rack sprinklers, Elliott said. Sprinkler manufacturers are also developing larger, faster-operating heads, while FM is studying ways to distribute water more effectively within racks.

Other approaches under exploration include water mist, oxygen reduction systems and electronically operated sprinklers. Heat detectors could trigger some of these sprinklers before a fire produces enough heat to activate conventional systems, Daelhousen said.

Protection gaps affect losses and insurability

When a warehouse lacks a recognized fire protection solution, the estimated probable maximum loss rises because a fire could destroy the building or damage more of its contents, Ingram said. Smoke and humidity can deepen the financial hit: companies may discard exposed products to avoid risking damage to their brands, particularly in pharmaceuticals, electronics and other consumer goods.

Stored commodities and prevention measures can influence whether a business can obtain insurance, as well as the premium, said Richard Green, co-owner of Richard R. Green Insurance Agency in Hampden, Massachusetts, and chairman of the Massachusetts Association of Insurance Agents. Underwriters are asking more detailed questions about inventory, fire detection and loss prevention, he said.

Upgrading a sprinkler system can cost several hundred thousand dollars. Projects may exceed $1 million when they require larger fire pumps or water storage tanks, Elliott said; large warehouses may need several systems. These costs make the design and condition of existing protection a material part of warehouse risk.

Maintenance remains a major loss control

Advanced equipment won’t offset basic system failures. Missing or poorly maintained sprinklers remain a major source of fire losses, Daelhousen said, especially in obstructed areas. A fire pump that fails to start or a closed valve can also keep water from reaching sprinklers.

Operators should inspect and maintain forklifts, automated equipment and electrical systems, Ingram said. Infrared scans can help identify electrical hot spots, and aging rooftop solar panels need regular checks, including annual inspections. Early smoke detection and fire and smoke barriers, where practical, can further limit damage.

Inventory oversight matters, particularly in multi-tenant warehouses. Green urged operators to keep records current and inspect facilities periodically to confirm what is being stored.

A June 17 fire at a Lineage Logistics cold storage warehouse in Boyle Heights, Los Angeles, burned for eight days. City officials said the blaze sent smoke into nearby neighborhoods and left an estimated 85 million pounds of frozen food to rot. Residents have sued Lineage over alleged harm. The fire also prompted California legislation requiring a review of insurance coverage gaps and emergency response issues.

For operators, the practical test is whether protection still matches the warehouse’s current layout, inventory and equipment. As those conditions change, regular inspections and targeted system upgrades can help contain the gap between storage capacity and fire control.