Cobots: The Game-Changer for Small Businesses Seeking Automation

You’re already aware of our coffee shop chain, Roasters, in Dubai, where my partners and I utilize a collaborative robot—cobot—in our production. My longstanding interest in cobots led me to delve into the challenges and opportunities they present for small and medium-sized businesses, a topic I’ve recently explored with guidance from the Harvard Business Review. Here are some of the key points summarized

☑ Time. The reluctance of small and medium-sized companies to embrace automation stems from multiple factors. Primarily, the dominance of large, complex machines in the robotics industry demands substantial initial investments and specialized maintenance expertise. Another less recognized challenge lies in the difficulty of transitioning robots between tasks in small quantities, often requiring days or weeks of reprogramming. This trade-off between efficiency and flexibility creates a zero-sum game, particularly challenging for businesses thriving on diversity.

☑ Possibilities. Cobots find diverse applications, ranging from machine maintenance and welding to packaging, palletizing, and screw driving. With adaptable software enabling swift part configuration changes, automation becomes an exciting prospect for both high-volume and low-volume manufacturers. This development is especially timely given the current personnel shortage in manufacturing. The industry faces significant challenges in recruiting and retaining employees, with the United States projected to lose over 2 million manufacturing jobs by the end of the decade. European companies already grapple with a 75% hiring struggle. To address talent needs and enhance productivity while curbing turnover, manufacturers must navigate a complex macro-economy with tight profit margins, supply chain issues, and rapidly shifting consumer preferences. Against this backdrop, viewing technology as a luxury is no longer viable; remaining idle is not just detrimental but potentially fatal for businesses, as it involves leveraging human potential alongside robotic precision. Notably, the physical strain is a factor prompting many individuals over 50 to opt for early retirement. Creating new roles with lower physical labor intensity becomes an opportunity to retain valuable expertise.

Here’s what should be factored in:

▶ Processes overall. To truly transform through automation, it’s essential not to view it merely as a technical upgrade—it’s more than replacing human hands with robotic counterparts. Substantial changes are needed in the smallest details of processes, particularly those initially tailored for manual operators.
▶ Starting small. A gradual approach is often the most effective strategy. Start with easily attainable tasks, securing even a few additional hours of daily production—a substantial gain for many small and medium-sized businesses. Identify a specific task for the initial automation phase, complete it, and then apply the knowledge gained to the next project.
▶ People. Gradual automation not only cultivates technical know-how but also fosters team unity. Consider automation as a process of change management. When one part of your system adopts automation, it sparks interest in other segments. This is crucial as sustaining employee engagement holds paramount significance.
▶ Advanced training. It goes beyond staff readiness to work alongside robots; it’s about generating appealing tech jobs for the next generation of businesses. Online training modules make robots less “intimidating” and position them as allies within the team, a role further emphasized in face-to-face training. Embracing collaborative automation translates into adopting a business mentality.