The right balance between automated systems and lift trucks depends upon three factors: the need for flexibility, the cost of labor and the relative cost of equipment. A facility with high labor costs can use automated equipment for routine predictable operations whereas lift trucks can handle the unpredictable sides of an operation. The right mix of trucks and automation is a matter of labor and equipment costs. Operating expenses are incurred when a lift truck is leased or rented but installing an automated system draw capital expenses for a company.