Colin McAleenan, vice of marketing and business development at HAI Robotics, details the evolution in automation investment and where it's going over the next five years in both resources and leadership.

The appetite for venture capital money to back some of the investments behind robotics and artificial intelligence companies was very large in the last five years, McAleenan says, and the consumer base’s appetite for risk was higher than today. 

The landscape looks dramatically different now, he says. “Interest rates are a lot higher, credit conditions are tighter, careers are on the line. I think changing conditions have conditioned our supply chain leaders to think very cautiously about the investment in warehouse automation.

“In addition, they have to think not just of the distribution center but of the network, planning, delivery and logistics, and where they’re getting their inputs from. They’re fighting for that same capital budget every year. Going forward, I see there being a lot more scrutiny applied to these types of decisions in light of the things happening outside of the distribution center.” 

McAleenan believes leaders must invest in resources around data science and processes to guarantee that optimizing operations is done intentionally and intelligently. “Believe it or not, that includes an investment in their automation vendor. Don't assume that just because we've been around for 10 to 20 years or that your salesperson or engineers have been in the industry for a long time, that we understand your ‘why.’ Take the time and invest in your partners as well, so that you have mutually assured success.”

Project pain points seem never to go away. Reviewing data often reveals missing inputs and incorrect assumptions, he says. “If you can see what the data is telling you right in front of you on the shop floor, chances are you've got the right inputs and the right processes.”