The combined effects of Brexit and COVID-19 have dragged UK businesses into a ‘sink or swim’ style scenario. Many businesses have folded, thousands of jobs have been lost, but many have managed to ride the wave and come out the other side with a stronger, more resilient business model that will drive them forward despite uncertain times. Dr Paul Rivers, CEO of Guidance Automation, looks back at lessons learned from 2021 and outlines his predictions for 2022 and beyond.
This year we have seen intralogistics automation and autonomous mobile robots (AMRs) become fairly commonplace as awareness of its benefits have grown. In our 2021 research, we found that 25% of companies said the pandemic had accelerated their plans to deploy automation, with three quarters planning to invest within 12 months in a bid to protect themselves from further disruption.
The pandemic has seen many businesses transitioning to a more flexible, remote working model. However, the results of our survey prove automation has benefitted workers and has helped shift their often negative perspective to a more positive outlook that has helped businesses make change more quickly and successfully. Particularly in manufacturing and warehouse environments, 54% of businesses believe automation has had a positive impact on employees, including less repetitive and strenuous manual work (49%), offering workers the chance to upskill (39%) providing relief for overworked staff (40%).
So, what does 2022 hold for businesses?Organisations are now reaching a more comfortable position where there is some knowledge of the requirements and challenges of running a business during and after a pandemic – meaning they are able to make clearer decisions with confidence. Here are five reasons why global automation will shape business moving forward:
Reaching the C-Suite
Automation is beginning to reach the board room table and the C-suite who are now embracing its potential for driving their business forward. In their predictions 2022 blog, Forrester predicts that those fully embracing automation will ‘obliterate the competition’.
Global automation
Automation technology providers are vying to create a unified, enterprise-wide platform that combines technology, robot and human data and processes – taking the global industrial automation market to new heights. By the end of 2022, the automation industry is estimated to be worth $207bn, with the UK taking a $2bn share of this, according to Statista.
Leading the way with AMRs
The logistics industry is predicted to be the fastest growing sector for AMRs and Automated Guided Vehicles (AGVs) this year. Research by Interact Analysis shows that robotics and software products accounted for 51% of all new product launches in 2021, with piece picking robots predicted to have an annual growth rate of 90% by 2025. This is not surprising considering the continued pressure on supply chains to guarantee next-day or same-day delivery in response to the acceleration of e-commerce.
Work Shortage
The worker shortage we are currently enduring will be here for a while yet, and many industry critics believe it will get worse before it improves. Service-led and manual roles, including warehouse jobs, will be harder to fill due to their physically intensive nature and lower wage, therefore, more companies will invest in automation to address this. A hybrid workforce model will achieve the best out of the human and robot relationship, using resources more efficiently, speeding up workflow while reducing human error. The most advanced robot workers – referred to as ‘Cobots’, have enabling technologies such as machine intelligence and superior mobility, and we will hear more about these throughout the year as word spreads of the business improvements they offer.
Centralised Location
Many industries, including manufacturing and logistics, require employees to work from a central location. This will have a lasting impact on workspace design, with future layouts being considerably different from pre-pandemic formats, which will impact demand for commercial premises and drive up prices going forward as we learn to work within a changeable environment.
Conclusion
It’s clear that 2022 will be a year of innovation, with automation rising to the top of the business agenda. There are still many hurdles ahead but if we can negotiate these, businesses can be confident they can endure another pandemic with structure and defence. But what about those that are reluctant to join the journey towards automation? If Forrester is right, they will fall behind.