Turn the clock back to the start of the century. Robotic technology was an emerging concept, underpinned by a very high price of production, limited market knowledge and a reluctance to change current practices. While most business leaders appreciated that this technology existed, many were discouraged because of the extreme cost of implementation – how times have changed.
Robotics are an investment, this is true, but a cost that is now more manageable than ever for New Zealand manufacturers. In fact, to put this in context, think about the price of LED widescreen televisions.
Watching prices drop
When LED widescreen televisions first hit the market in the mid-2000s, the prices were pretty high. As a result, adoption was slow and only people in a certain wage bracket could afford them. According to Statista, Sony was one of the biggest brands with 13.7 per cent of the market share in 2008. Over the following seven years, this share dropped to just 5.54 per cent as more competitors entered the industry.
With the market segmenting, consumers have enjoyed lower prices consistently with manufacturers incentivised to innovate better technology and reduce their overall running costs. Of course, while you aren’t going to implement robotic technology for the cost of a 40-inch television, this highlights the same trend that we are seeing in automated production. So, why is this the case?
Reason 1: Worldwide uptake
Based on insight from the International Federation of Robotics, the number of newly installed industrial robots is expected to increase by 14 per cent in 2016, compared to previous years. This represents an additional 290,000 units, with further growth predicted. As we know from the data on television sales, more demand for businesses encouraging market growth, innovation and most importantly, lower implementation costs across the board.
As the trend of robotic technology expands, the cost of adoption will only decrease.
Reason 2: Scale of production
There is another factor impacting dropping robotic technology prices – the scale of production. With robotic businesses becomes busier than ever, there is a need to complete tasks with more efficiency, often through increasing size or speed of operation. Essentially, low production forces high costs on the client something that switches over once production increases.
Over the last 12 months, robotic technology has become a mainstream investment – what is stopping your business from taking advantage of these conditions?
For further information, contact the team at Design Energy today.