How Are Companies Funding Robotic Automation
A report from industry magazine The Manufacturer completed just over three years ago shows the breakdown of how manufacturers were, at the time, funding their robotic automation systems investments.
The report shows that largely, manufacturers preferred to support investment themselves with 63% of the manufacturers funding automation systems from their own cash reserves. This is by far the largest piece of the puzzle as the report goes on to show that fewer than 10% made use of equity of external grant funding, while just over 7% took out a loan.
“That’s compelling evidence that the sector, in common with the rest of the economy, has yet to return fully to normal following the recession of 2008/09.” states the report.
It concludes by summarising that “If UK manufacturers are doing everything in their power to avoid using banks, but storing up cash on their balance sheets against rainy day investment needs, then they aren’t going to be spending money elsewhere, or increasing wage levels.”
This still rings true, particularly during a global pandemic in which investment is lower than it has been for some time, making recovery much slower.
The response? Making those manufacturers that don’t have the cash surplus for large automation systems aware that that doesn’t have to be the be all and end all, now more than ever, the government is making grants for companies available to enable them to invest in the future, increase productivity and make the manufacturing sector thrive once again.
Automation Grants For Companies
The government has tens of millions available for manufacturing companies in a drive to increase productivity and if robotic automation systems is something you’ve considered, but often dismissed due to cost or inexperience, working closely with a robotic systems integrator like us can help you get a slice of that pie.
Known as ‘manufacturing for the future’ the aim is to increase and improve digitisation and technology within the manufacturing field, with automation a key cornerstone of the fourth industrial revolution.
What’s more, based on an external review by Made Smarter in 2017 it was estimated that investment in these technologies could see productivity increases of around 25% or even more. We often see companies that invest in automation systems see productivity increases of upwards of 60% from the point of installation, a number that increases as familiarity grows. With grants for companies available, what’s stopping you from getting more productive?
All the information can be found here, and to start the ball rolling, all the grant providers need to know is the size of your business and a bit of information about the project the grant will be for. What’s more, as a robotic systems integrator, we can help you complete all the necessary paperwork and technical information that may be required for the acceptance stage.
Not Sure on Automation Grants? Try Robotic Finance.
As The Manufacturer shows, just 20% of companies used asset finance when investing in new equipment, and when compared with new vehicle financing - in which over 90% of new cars in Q1 2019 were financed - it seems dramatically low, so why don’t people look at robotic financing?
We think it’s simple. Because people don’t realise that you actually can finance a robotic system, but you can. And it makes payments much more manageable than a single lump sum payment.
Take BAURO-MATE for instance, for a standard iteration, you’ll be looking at around a £50-60,000 investment depending on a variety of factors, however, when you break it down and based on agreed terms and conditions, monthly payments could be around the £1,000 mark, or just over £250 per week.
It’s a far more manageable cost and for all the same benefits buying outright would provide. Increased productivity, efficiency, and quality. So next time you’re looking at renewing your financed car, why don't you consider the other options and help your business grow?