The balance rings are made on an automated assembly line and then loaded on a truck and moved to the washer and dryer plant, which is located in the same corporate campus. Due to the size and weight of the balance rings and ergonomic concerns, GE Appliances can’t maximize loading. However, using a robot to load the balance rings to a shipping rack mitigates many challenges. An AMR then picks up the racks and transports them to the shipping dock for delivery to a sister plant. API calls between the systems carry out the interoperability. Compared to a more manual operation, “the automation enables us to use fewer trucks and cut down on the number of trips,” Chase says. In fact, the robots can load four times more onto the truck when compared to humans, maximizing time and schedule efficiency. Synchronizing the flow of material provides better inventory control and levels the utilization of equipment. Interoperability also allows separate systems to work together and helps to eliminate dull jobs, Chase adds. HUMANS STILL RELEVANT Looking ahead, augmented reality, computer vision, and/or AI will be used to enhance robots’ capabilities. Amazon has pushed this technology forward and its adoption will continue, Higgins says. Some companies provide unique grippers, like multi-finger grippers, as well as having a robotic arm easily switch between grippers based on the items being picked. Yet even with advances, humans can out-perform robots in some situations, like handling varied products. Stevens uses the example of a feather, bowling ball, and marble. “Humans can adjust to pick up each, but it’s hard to train a robot,” he says, although he notes the technology is advancing. Similarly, it might appear that more traditional automation solutions, like automated storage and retrieval systems (ASRS), are going the way of
WAREHOUSE AUTOMATION SHORT-TERM PAIN, LONG-TERM GAIN The global warehouse automation market was valued at $36 billion in 2021 and forecast to grow to $77 billion by 2027, according to the fourth edition of Interact Analysis’ Warehouse Automation Report . In 2022, the industry experienced a series of shocks that resulted in a slight decline in orders. However, in the mid- to long-term, Interact Analysis predicts a return to healthy growth between 2021 and 2027. Four major factors impact the warehouse automation market in the short term: the Ukraine-Russia war, lower investment by Amazon, changes to commodity prices, and rising inflation rates. The war in Ukraine is having a negative impact on all of Europe, but in particular durable manufacturing in Eastern Europe. Investments in warehouse automation from manufacturing facilities in Eastern Europe have seen an uptick in recent years, especially with the trend toward near- shoring. Many companies, however, have reportedly postponed their investments as a result of the ongoing conflict. Europe invested heavily in automation in the wake of the pandemic and subsequent labor shortages. But since the war in Ukraine, this trend has started to slow in some parts of the continent. In the long term out to 2027, however, growth is still expected to remain high for the warehouse automation market. The conflict has also indirectly influenced rising interest rates and inflation. As consumer spending slows, retailers will likely tighten their purse strings and potentially postpone large-scale automation projects until the economy is more stable. Amazon is also having a negative impact on the market after announcing a slowdown in its fulfillment center expansion, which directly impacts the company’s warehouse automation spending activity. Amazon's spending on automation projects dropped by 30% in 2022, and will fall 20% in 2023. Given how much of the market Amazon drives, a slowdown in its investments reduces overall revenue growth.
GLOBAL WAREHOUSE AUTOMATION FORECAST
100 90 80 70 60 50 40 30 20 10 0
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Source: Interact Analysis
32 Inbound Logistics • February 2023
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