Investing in Automated Palletizing: A Strategic Move for 2024

As we navigate through 2024, forward-thinking manufacturers are setting their sights on the horizon, anticipating the economic upswing projected for 2025. In this context, investing in automation emerges as a strategic decision that can position companies for success when market conditions improve. 

Automation: the competitive edge in manufacturing

Deloitte's 2024 manufacturing industry outlook [1]  further supports this view, highlighting the critical need for manufacturers to embrace digital transformation and smart factory solutions to stay competitive. The report reveals that an overwhelming 86% of surveyed manufacturing executives believe smart factory solutions will be the primary drivers of competitiveness in the next five years [1]. 

Economist Alan Beaulieu, president of ITR Economics, strongly advocates for this proactive approach. He emphasizes the importance of preparing for future growth by investing in automation and robotics now, warning that "companies that do not invest in automation now will find themselves playing catch-up when economic conditions improve in 2025" [2]. This expert insight reinforces the urgency of adopting automated solutions like palletizing systems in the current economic climate.

Labor shortage is expected to worsen

Studies show that in addition to anticipating an economic recovery, the labor shortage manufacturers currently face is not likely to diminish; in fact, it is expected to worsen.  According to Deloitte [3], even if every skilled worker in America was employed, there would still be 35% more unfilled job openings in the durable goods manufacturing sector than skilled workers capable of filling them.  It predicts a shortage of more than two million American manufacturing workers by 2030.

The labor shortage is expected to worsen. Currently, around 40 million Baby Boomers remain in the workforce, making up 25% of the total workforce, with many occupying traditional manufacturing roles. As these Boomers retire, younger workers are increasingly opting for jobs with better working conditions and compensation, steering clear of manufacturing positions.

Cobots bring automation within reach

Recent innovations in automation have made this transition more accessible than ever before. Collaborative robot (cobot) palletizers, in particular, have seen significant advancements, becoming more performant, flexible, and easier to integrate than their predecessors. These developments have democratized automation, making it no longer the exclusive domain of large manufacturers. Small and medium-sized enterprises can now leverage these technologies to compete effectively in the global market.

A prime example of this new wave of accessible automation are the Robotiq Lean Cobot palletizers, solutions designed with ease of use and flexibility in mind. These systems embody the principles of lean manufacturing, offering a cost-effective (a ROI of less than a year), space-efficient, and rapidly deployable solution for businesses of all sizes. The Robotiq cobot palletizers demonstrate how modern automation can be tailored to the specific needs of each manufacturer, regardless of their scale of operations.

By embracing these innovative solutions, manufacturers can not only prepare for the economic upturn but also cultivate a culture of continuous improvement and adaptability. As we look towards 2025 and beyond, those who invest in smart, flexible automation solutions like cobot palletizers will be well-positioned to thrive in the evolving manufacturing landscape, turning the challenges of today into the competitive advantages of tomorrow.

References

[1] Deloitte. "2024 Manufacturing Industry Outlook." https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-outlook.html

[2] Control Engineering. "Manufacturing, global economy 2024-2025: Short-term pain, then growth." https://www.controleng.com/articles/manufacturing-global-economy-2024-2025-short-term-pain-then-growth/

[3] Creating pathways for tomorrow’s workforce today
https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-diversity.html/#the-future