Robotic Innovations Ignite OEM Opportunities

With robot investments by packaging and processing end users on the rise, OEMs are finding creative ways to address new demands. Here are the robotic trends that will influence the next wave of equipment orders.

Robotic innovation in packaging and processing 2019 OEM Magazine
Robotic innovation in packaging and processing 2019 OEM Magazine

Robots are more versatile than ever, and, as a result, the applications they address are expanding beyond the common palletizing and case packing operations into the handling of food. Once banned due to major sanitation and hygienic design barriers that prevented OEMs from implementing them into equipment lines, new versions of high protection class robots with wash down capabilities are becoming more prevalent in food processing environments for cutting, slicing, placing and portioning, for example. While there are still space, speed and safety limitations—as well as the robots’ inability to make decisions (which humans can provide)—when end-users can’t find the manpower to operate equipment, robots have helped OEMs win the order. 

 

According to PMMI’s 2018 Industrial Robot Opportunities in Food and Beverage Processing report, the industrial robot market in North and South America was estimated to be $3.5 billion in 2017, with the U.S. accounting for more than 70 percent of those sales. While the automotive industry still accounts for the largest portion of the market—at 34.2 percent, the food and beverage and personal care segments captured 13 percent of all industrial robots sold in the Americas. 

 

And what are food and beverage and CPG companies looking for from a robot? Speed, flexibility, reliability and ease of use. Collaborative systems are also high on the list, as are add-on technologies like unique end of arm tooling (EOAT) and artificial intelligence. But first and foremost, the robot must meet Food and Drug Administration (FDA) safety and sanitary requirements.

 

Hygienic robots are high on a processor’s wish list

Robot deployment in the food and beverage industry has been slower than other sectors due to the strict regulations these manufacturers have to abide by, specifically around direct contact with food. This has limited robot use to palletizing applications. But manufacturers are increasingly developing hygienic robots which is creating new opportunities for the direct and indirect handling of foods.

 

JLS Automation, an east coast OEM that manufacturers robotic-based equipment for washdown environments, has seen an increase in need and demand for sanitary robotics in the food industry, but also in the packaging industry, as well. 

 

“The desire for a higher sanitary solution and all stainless execution on a robot is pretty strong from the customer base,” says Craig Souser, Chairman and CEO of JLS Automation. “The all stainless execution is a premium and its more expensive, but a lot of customers will still opt for it even if they don’t need it because they know with the hygienic equipment, they could put it anywhere and not have to worry whether or not they are in compliance with sanitary regulations.”

 

Similarly, in 2018, Virginia-based food processing equipment machine builder F.R. Drake looked for hygienic robots to meet a growing customer demand. But when they discovered a lack of these systems available, the company embarked on developing its own PLC-controlled robot. The F.R. Drake robot design utilizes materials such as stainless steel and titanium that are fully compatible with food processing sanitary standards.

 

“Robotics allows us to become more versatile in our offerings,” says F.R. Drake president Tom Ivy. “They open up the market to smaller companies because these processors will have one machine loading big sausages and little sausages in different orientations. And when you’re loading products mechanically, you can’t do all that.”

 

JLS Automation, too, has seen how robotics can address multiple product formats. The company is also experiencing how this form of automation can save the day when it comes to the skills gap its end-user customers are facing. 

 

“Our business has exploded in the past two years,” Souser says. “Part of that is because the equipment is well suited to the applications we are pursuing, but the other part is that the market is very strong because of labor shortages.” 

 

Robots fill vacant jobs

While facing the skills gap themselves, OEMs know first-hand how the workforce shortage dilemma can affect productivity, and they are capitalizing on it. American-Newlong, an Indiana-based OEM that manufacturers bagging equipment, found itself selling its equipment to farmers once it began offering robotic palletizing in a small footprint. These farmers relied on local high school kids to lift and place heavy bags of feed onto a pallet, but as more rural areas became urbanized, the increasing availability of minimum wage jobs led to a shrinking worker pool.

 

“End users simply cannot find the workforce required to produce the volume of product they need to,” says Wesley Garrett, the pick/pack/palletizing authorized system integrator account manager for FANUC America. “They are always looking for an OEM to create equipment that requires minimal operator support.”

 

According to PMMI’s report, the cost of purchasing an industrial robot compared to the average annual manufacturing wage is divided, with manufacturing wages increasing as the cost of robots decline. The study also indicates that the cost of the robot refers to only the upfront sales price of the robot itself, noting that there are other factors such as integration, software, programming, repairs and electricity consumption that impact the total cost of ownership (TCO). Nevertheless, assuming an average 1,783-hour work year, the TCO benefit of introducing robots to replace some human jobs is becoming more advantageous, the study states. 

 

Aside from addressing the shrinking talent pool and skills gap, robots can also relieve human workers from jobs that are dull, dangerous or dirty, allowing those workers to retrain and “upskill” their jobs with more creative and higher value tasks, according to PMMI’s study.

F.R. Drake sells equipment into the Philippines and other areas of the world where food processing plants experience worker shortages daily, and employers have a difficult time finding employees who will show up to work consistently.

 

 “We view labor as being divided into two things: the cost of labor and the availability of labor,” Ivy says. “So, while it only costs a dollar per hour to pay someone to operate equipment in the Philippines, they can’t find anyone. In Australia, it costs $60 an hour to load anything. Robots are appealing to processors in both of these cases for those reasons.”

 

Collaborative robots (cobots) are also addressing worker safety and the skills gap as they become more popular and appealing to end users.

 

“Collaborative robots aren’t just for replacing humans on the floor, a lot of times they are used to replace mechanized devices that have a lot more force and speed, which required a build out of equipment around it, and prevent people from working nearby” says Stuart Shepherd, regional sales director at Universal Robots, a manufacturer of collaborative robotic arms. 

 

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