• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Automated Warehousing Is Outstripping Growth of Bots in Manufacturing

Automated Warehousing Is Outstripping Growth of Bots in Manufacturing

February 6, 2019
Jim Serstad, SCB Contributor

As end-user education expands for best-practice robotics, adoption for warehousing — beyond transportation — will become a top driver of growth.

Warehouse robotics is growing at a faster pace than the more mature market of manufacturing robotics; by some measures it is a 12 percent CAGR compared to a 10 percent CAGR, respectively. This trend is expected to accelerate as we see improvement in robotic skills such as optical recognition and autonomous navigation. Such skills are essential in warehouse environments where SKU proliferation is a growing concern and where navigation through unpredictable environments is common.

Transportation robots, which include AGVs and AMRs, is the category with the strongest growth among warehouse robotics. Sortation and order consolidation robots are typically a category of mobile robots and are therefore also in high growth mode. The relatively complicated tasks of picking and packing are slightly behind on the adoption curve, but the rapid advances in AI and deep learning means those tasks will see increasing robotic opportunities in 2019. 

The rate of adoption of new technologies is not limited only by the pace of development, end users are hesitant to adopt because of risk avoidance and lack of a clear ROI. 

Risk Avoidance

Many end users are using pilot projects with new technology but are hesitant to make a capital investment in live systems. Some have had negative experiences with new technology in the past and are hesitant with unproven solutions. In response, robotic solution providers are now introducing more flexible solutions which future-proof their technology by allowing for reconfiguration, scalability, and human collaboration.

Unclear ROI

This is due to both the cost of robots and uncertainty about efficiency. Robot cost in general is decreasing due to the availability of cheaper technology despite increased tariffs. However, even at lower price points, most robots still only generate adequate ROI in a limited range of applications. Companies that have not depreciated recent investments in traditional material handling equipment are often unwilling to consider robotics even if the ROI is positive.

End users are currently on a steep learning curve to improve their understanding of the range of capabilities of robots and the applications for which they are suited. Improvements in product handling capabilities and what is detectable by machine vision has broadened the range of products for which there is a suitable application and positive ROI. Human-assist robots and robot systems that can be easily augmented by human labor are growing in acceptance and provide highly flexible solutions. 

By helping end users to future-proof their technology with flexibility and learning capability, robot makers will find that end users are ready and willing to invest.

The Outlook

Manufacturing robots achieved rapid adoption in the 1980s on the heels of end users who took the lead to employ them in the automotive industry. A similar effect is being staged in warehouse robotics by the myriad of end-user pilot projects which are poised to turn into significant investments in live systems.

Jim Serstad is vice president of product development for Tompkins Robotics.

RELATED CONTENT

RELATED VIDEOS

Technology All Warehouse Services Robotics Industrial Manufacturing
KEYWORDS All Warehouse Services Automation & Robotics Industrial Manufacturing robotics Technology warehouse robotics
  • Related Articles

    Warehousing's Next Challenge Is Teaching Bots to Communicate

    Industry 4.0: The Future of Productivity, Growth in Manufacturing

    Is Growth in Services Hampering Chinese Manufacturing?

Jim Serstad, SCB Contributor

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A PERSON HOLDS UP A TABLET COMPUTER IN A WAREHOUSE, SUPER-IMPOSED BY A GRAPHIC SHOWING A COMPLEX WEB OF SUPPLY CHAIN ELEMENTS

    Three Post-Pandemic Actions for Repairing Global Supply Chains

    Data Management (Big Data/IoT/Blockchain)
  • A MAN IN A SUIT SHAKES HANDS WITH A WOMAN IN A HARD HAT, NEXT TO A STACK OF CONTAINERS

    Three Procurement Technology Evolutions for 2023

    Sourcing/Procurement/SRM
  • DOCUMENTS BEARING THE INSIGNIA OF US CUSTOMS AND BORDER PROTECTION LIE ON A TABLE

    New CBP Regs Call for Greater Diligence by Brokers in Reporting Security Breaches

    Freight Forwarding/Customs Brokerage
  • The blank stare of a child's eye who is standing behind what appears to be a wooden frame

    The Alarming Continued Rise of Modern Slavery in Supply Chains: How Procurement Can Help Reverse the Trend

    Sourcing/Procurement/SRM
  • A GROUP OF WORKERS RANGED IN AN OFFICE, OF DIVERSE RACE, GENDER, AGE AND PHYSICAL ABILITY

    Podcast | The Supply Chain Workforce of the Future Is Already Here

    HR & Labor Management

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing