Advanced robotics is key in today’s manufacturing and logistics world. But, many businesses think these technologies are too expensive. I’m here to show you how to save money on advanced robotics without losing quality or performance.
Automation is more than just a trend; it’s a game-changer. It can help your business succeed, even when times are tough. Gartner says robotic process automation can save finance teams up to 25,000 hours, which is about US$878,0001. Also, 85% of leaders in infrastructure and operations plan to increase automation over three years1.
This means investing in robotics now can lead to big benefits later. It makes your business more efficient and resilient.
Key Takeaways
- Embrace automation to boost efficiency and reduce costly errors
- Leverage robotics to enhance your business’s resilience during economic downturns
- Identify low-hanging automation opportunities for quick wins
- Foster competition among suppliers to optimize pricing on advanced robotics
- Explore alternative financing options to make automation more accessible
Embrace Automation During Economic Downturns
When the economy is uncertain, many think it’s wise to pause investments in advanced robotics and automation. But, the truth is, investing in these technologies can actually help manufacturers come out stronger2.
The Counterintuitive Wisdom of Investing in Robotics
Looking back at past recessions, those who invested smartly before a downturn recovered faster and grew more2. Automation and robotics boost productivity, making companies run smoother and cut costs when times are tough3.
Today, labor shortages and plans to bring jobs back home are pushing more investment in automation4. By investing in advanced robotics and AI, companies can boost productivity and make jobs better for workers2. Despite worries about job loss, tech has always created more jobs than it has cut2.
Past Recessions Shed Light on Strategic Capital Investments
History shows that boosting capital investments before recessions makes companies stronger and more competitive2. For instance, Batesville Tool & Die wanted to hire 70 workers but only got 40, showing the big labor shortage2. Automation can help fill this gap and keep productivity up, even with fewer workers.
Automation and AI also bring big productivity gains. For example, one Fortune 500 company saw their customer-support agents work 14% better with a generative AI tool2. At Reata Engineering & Machine Works, AI tools made training easier and less time-consuming, making workers happier and more productive2.
By going for automation and robotics during tough times, manufacturers can set themselves up for long-term success. The numbers show that smart investments in these areas can pay off big, even when the market is down243.
Identify Low-Hanging Automation Opportunities
Many businesses find it hard to spot the easy automation wins that bring quick returns5. Often, they don’t have a clear plan to find affordable and impactful automation chances in their operations5. This leads to random automation tries that often end in cost overruns and failures.
To get past this, making an automation roadmap is key. It’s a strategic plan that highlights the best automation spots for your business. With the help of robotic and automation advisors, you can focus on low-risk projects that promise a quick ROI5. These experts can do a deep check to find the low-hanging automation opportunities that are easy to see.
| Automation Opportunity | Potential Savings |
|---|---|
| Automating a $350,000 process | $87,000 in savings by choosing the most affordable option5 |
| Leasing automation equipment | Over $1,000 per month in immediate savings, compared to a 3+ year payback period for an upfront investment of $200,0005 |
Record robot sales in the US hit $2 billion in 2021, showing a big interest in automation5. But, manufacturers can cut costs by 15-25% on automation projects by shopping around on sites like HowToRobot.com5. Also, automation projects used to take 1 to 5 years to pay off5, but now leasing and other financing options are easier to find as of 20235.
Creating an Automation Roadmap for Quick Wins
When making an automation roadmap, aim for the low-complexity, high-impact projects that bring a quick return on investment6. Start with the tasks that are simple, don’t use human resources well, slow down production, or are dull, dirty, or dangerous6.
Start automating step by step to get an 80% solution that adds value and gives a good ROI at first, with more to improve6. Sharing your automation wins in the company can help spread the benefits to other tasks6.
“Don’t wait for a master plan – start your automation journey promptly with easily automatable projects for quicker successes.”6
Companies that put 20% of their IT budget into automation saved 17% in costs, while those spending less than 5% saved only 7%7. Using complex automation tech led to 18% in savings, more than twice the savings of simple automation7. By choosing a strategic, data-based way to find and go after automation chances, you can greatly cut costs and boost efficiency for your business.
How to Save Money on Advanced Robotics
The construction industry is looking for ways to boost productivity. Advanced robotics seem like a great answer. But, these high-tech tools can be expensive upfront. Luckily, you can use some strategies to cut costs and get more value from your investment8.
Foster Competition Among Suppliers for Better Pricing
One way to lower the cost of advanced robotics is to make suppliers compete with each other. Research shows that prices for similar automation solutions can differ by 15-25%8. By asking for several quotes, you can use this competition to get a better deal. This approach saves you money and makes sure you’re getting a good deal.
Shift Performance Responsibility to Suppliers
Another way to save is to make suppliers responsible for the performance. Instead of telling them exactly what to do, give them a list of what you need to achieve. This lets them come up with the best solution and ensures they deliver as promised. Focusing on the end results can lead to innovative solutions that are more affordable.
To really save on advanced robotics, think about your sourcing strategy. Use competition, your buying power, and make suppliers responsible for performance. Doing this will not only save you money but also make sure you’re getting great value from your robotic investments.
“Investing in advanced robotics can be a game-changer for construction companies, but it’s crucial to approach the sourcing process with a strategic mindset. By fostering competition and shifting performance responsibility to suppliers, you can unlock substantial cost savings and maximize the return on your robotic investments.”
Build a Solid Business Case
Investing in advanced robotics requires a strong, data-driven business case for success. Many manufacturers make mistakes by guessing instead of using real market insights9. To avoid these mistakes, use advisors who are not tied to vendors and online tools. These can help you plan your automation investments wisely, considering market prices, staffing, and other important factors9.
Recent research found that manufacturers are getting better at collecting and analyzing data, but they still lack the tools to really improve their performance9. The main problems they face are delays, defects, and deviations, which hurt productivity and efficiency9. By embracing Industry 4.0, companies can make their operations much better9.
A study showed that using advanced robotics improved asset availability by more than 50%. This proves the value of a solid business case that looks at the real benefits of automation, not just guesses9.
Leverage Real Market Knowledge and Independent Advisors
It’s key to use real market insights and independent robotic advisors when making your automation business case. These experts can help you understand the costs, benefits, and risks of your automation plans. This ensures your case is based on solid data, not just guesses10.
A recent survey found that the high cost of robots and a lack of automation experience are big hurdles for many companies10. About 60% of those in retail and consumer goods see knowledge and return on investment as major obstacles to using robotics and automation10.
To beat these challenges, think about using online ROI calculators and other tools. These can help you see the financial effects of your automation plans9. By removing guesswork, you boost your chances of getting a good return on your automation investments. This makes your business case stronger and more convincing to others.
A good automation business case relies on real market insights, not just assumptions. With the help of independent advisors and online tools, you can create a strong case. This shows the true value and return on investment of your automation efforts10.
“Automation providers that can move towards robotics as a service and act as a single point of contact for maintenance are seen to have a distinctive competitive advantage, according to survey respondents.”10
Explore Alternative Financing Options
Investing in advanced robotics can be costly upfront, but it offers big benefits over time11. Luckily, there are ways to finance your purchase that can save you money and help you see savings from automation right away.
Robotic equipment leasing is a popular choice. It lets you pay for your robots in monthly installments instead of all at once11. This way, you can get the tech you need without using all your cash. Plus, many leasing companies offer robot-specific leasing options designed for automation.
There are also new ways to finance automation, like alternative automation financing12. These options can give you the funds you need to automate while offering immediate cost savings from the start. For instance, some lenders have special plans for contractors, and fintech platforms offer financing based on your income.
Looking into these new financing options can help you get the most out of robotics without the usual financial hurdles13. Whether you want to automate your production, streamline your office, or use the latest tech, there are flexible funding solutions out there to support you.
The key is to think outside the box and consider innovative financing options to save money and speed up your automation plans. With the right financing, you can change your business for the better and stay ahead with advanced robotics111213.
Conclusion
In this article, we looked at ways to save money on advanced robotics. By using automation when the economy is down14, you can get ahead and set your business up for success. It’s important to find easy ways to automate and plan for quick wins that save money right away.
Creating competition among suppliers15 and making them responsible for performance can lead to better prices and deals. Building a strong case for automation15 and using expert advice can also help. Plus, looking into different ways to finance automation can give you the money you need without breaking the bank.
Starting these changes might take some work, but the benefits last a long time. Robotics and automation can make your business grow, make workers more productive15, and make the workplace safer14. By managing your robotics costs well, you can save a lot of money and make your investment pay off faster. This puts your business on a path to lasting growth.
FAQ
How can manufacturers embrace automation during economic downturns?
What is the importance of identifying low-hanging automation opportunities?
How can manufacturers save money on advanced robotics investments?
Why is it important to build a solid business case for advanced robotics investments?
What alternative financing options are available for advanced robotics investments?
Source Links
- Here’s How Business Automation Saves You Time and Money
- Robots and AI are saving the American economy with a boom in productivity, the ‘magic beanstalk beans’ that allow higher wages without inflation
- AI, automation, and the future of work: Ten things to solve for
- A New Generation of Robots Can Help Small Manufacturers
- Five strategies to make automation affordable in cost-cutting times
- Council Post: Five Steps To Get Started With Robotic Automation
- Automation Scorecard: How Companies That Invest Heavily Gain an Edge in Speed and Cost
- How construction companies can save money, boost revenue with robots
- Building the Business Case for M4.0
- Unlocking the industrial potential of robotics and automation
- The Ultimate Guide to Finance Automation in 2024
- 50 Top Fintech Lending & Loan Companies To Know 2024 | Built In
- These Startups Are Helping Us To Connect With Others Who Have Similar Interests – FasterCapital
- 5 Advanced Robotics And Industrial Automation Technologies
- Robotics and the Future of Production and Work