Inbound Logistics | January 2023

TAKEAWAYS

Robotics Demand Skyrockets Robots are seeing a population growth. By 2027, more than 4 million robots will be installed and operating in warehouses and distribution centers. Shipments of mobile robots jumped 53% in 2022 when compared with 2021, driven by increasing e-commerce, labor shortages, and shifting manufacturing methods, nds research from Interact Analysis. The market will experience compounded annual growth rate of around 50% until 2027, the report says, and cites material transport automation, and more specically conveying

South of the Border Imports Boom Driven by demand for boats, vehicles, vehicle parts, computer parts, and oil, Mexican imports to the United States rose 19.5% year-over-year in 2022 to reach $479.6 billion according to Mexico’s National Institute of Statistics, Geography, and Informatics. Some segments, such as motor vehicle parts, are returning to pre-pandemic levels. Additionally, data from project44 shows that TEU vessel capacity sent to East Coast ports rose 98% in six months—from 97,674 TEUs in April 2022 to 193,420 TEUs in October 2022. This same period saw imports to Mexico from the United States rise by 22.8%. Mexico, home to assembly plants for GM, Toyota, BMW, Honda, and others, is the top importer of motor vehicle parts made in the United States. Auto parts alone accounted for more than $30 billion of imports. Trade between the countries might begin to cool in 2023 due to weakened economies, warns the Banorte nancial group of Mexico. Despite these warnings, the World Bank expects the Mexican economy to grow by 2.1% in 2023. WALMART TAKES TO THE SKIES Retailers continue to look for new ways to meet consumer demand for fast delivery. Many, including Walmart, are banking on drones. For a cool $3.99, Walmart customers who live within one mile of a participating store can now have thousands of eligible products delivered to their home via same-day drone delivery. Walmart expanded its DroneUp delivery to the Tampa, Orlando, Phoenix, and Dallas areas, bringing its total to 36 stores that o‚er same-day drone delivery. Operating in a 12-hour window between 8 a.m. and 8 p.m., shoppers can order up to 10 pounds of product for same-day drone delivery—and it is often delivered in 30 minutes or less. The retailer completed more than 6,000 drone deliveries in seven states in 2022. Here’s how it works: Participating stores house a DroneUp delivery hub— which includes certified pilots operating within FAA guidelines—that manages flight operations for deliveries. Orders are fulfilled from the store, packaged, loaded, and delivered to customers using a cable that lowers the package.

solutions, as a key revenue driver. Automated guided vehicles and

autonomous mobile robot (AMR) revenues will jump from $3 billion in 2022 to $8.5 billion by 2027, the report predicts. Market penetration, however, will be slower to come. But Ash Sharma, managing director at Interact Analysis, remains bullish on the technology. “The potential is boosted further considering how limited overall mobile robot market penetration rates will be by 2027, despite the sector’s strong growth,” says Sharma. “Only 2% of all forklifts shipped in 2027 will be automated and only 14% of warehouses will have deployed at least one order fulllment AMR.” FORECAST FOR MOBILE ROBOT REVENUES

12000 10000 8000 6000 4000 2000 0

Logistics

Manufacturing

2021

2022

2023

2024

2025

2026

2027

Source: Interact Analysis

January 2023 • Inbound Logistics 35

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