Talent shortages aren’t going away anytime soon. To fill in the gap, it’s important to consider alternative options, such as investing in robotics. According to our recent Industry Pulse survey, one in three manufacturers are likely to invest in automation to replace a portion of their workforce in the next 12 months.
Our friends at Acieta, a leader in automation technology integration, joined us at our latest executive roundtable to provide insight into evaluating automation and understanding the hidden factors in calculating a robot’s ROI. Below, we highlight three common misconceptions executives in the roundtable had about implementing robotics.
Myth 1: Robots are faster than a human operator
Efficiencies are gained over time with a robot. While a human operator may be able to perform a single task faster than a robot, looking at total throughput for a shift, a week, or a year, the robot will prove to drastically increase output over that of a human counterpart. Acieta even remarked that it sees about a 36% productivity increase per week for a robotic operator.
Myth 2: Robots require a huge initial investment
Acieta leaders recommend businesses start small and look at a part of a process to automate first. Cost-wise, this is much more manageable, but it is also a great way to introduce your workforce to automation so they can be excited about it instead of overwhelmed. Plus, it allows employers to demonstrate to employees that automation is not intended to replace them but to make room for them to have more elevated responsibilities.
Myth 3: Robots have short lives or costly repairs
Like your car, a robot should routinely get maintenance to prolong its useful life. Acieta experts say some robots can produce for 20 to 30 years if properly maintained and that you’ll see a return on your investment within the first one to three years of a robot’s life.
While robotic automation is not the only way to combat labor shortages, it’s worth considering. Watch Acieta’s full presentation here, and join us for our next roundtable in June!
About our authors
Jerry Murphy
Jerry Murphy, CPA, CMA, CGMA, has more than 32 years of experience and is the Partner-in-Charge of Sikich’s Manufacturing and Distribution Services team. He specializes in assurance services and provides business advisory services in areas such as operations improvement, strategic planning and mergers and acquisitions.
Jason Tuma
Jason Tuma, CPA, has more than 20 years of experience in accounting and audit advisory services. He has specialized knowledge of the manufacturing and distribution industry, serving as the Ohio market’s manufacturing and distribution vertical leader. Jason is also adept at implementing strategies and managing accounting and auditing engagement activities.
