Have you come across any robots in the manufacturing industry? According to Steve Jurvetson, director at Tesla and SpaceX, many people will come into contact with robots within five years, he told the Financial Times in May 2016.
Recent technological advances pushed the global robotics industry to a value of $780 million in 2015 - significantly higher than the $325 million it was worth just a year earlier. By 2019, it is expected to be worth over $175 billion. Why this major growth? Manufacturing robotics in particular could help your business to either keep up with competitors, or to lead your industry within Australia. To implement the technology, you need to invest.
Investment requires working capital, and if your business doesn't have sufficient cash reserves, we recommend debtor finance.
How could robotics increase manufacturing efficiency in your Australian business?
Robotics can improve your operating costs over time, according to Asea Brown Boveri (ABB). A report from the technology giant suggests that with robots running the business floor, you can save as much as 20 per cent on lighting costs. You can also save as much as 8 per cent on heating costs per 1 degree Celsius drop in warehouse temperature - robots don't need the same working conditions as humans.
With robots in your workforce, you can also reduce your wage costs and benefit payments. Your bottom line will improve thanks to your initial investment in technology. Further, if your business has struggled with producing consistent products or services, robots will help. They can be programmed to repeat the exact same movements over and over, so you won't have mistakes or unfinished products packed up and sent to your clients.
Planning your initial investment in robotics
As many as 75 per cent of all manufacturing businesses in Australia plan to invest in robotics.
As many as 75 per cent of all manufacturing businesses in Australia plan to invest in robotics, according to an article from Australian Manufacturing News on January 27. In order to keep up with your competitors, you will need to do the same.
While other businesses are improving their products and reducing their operating costs, those who do not invest in robotics will be left behind. They won't have sufficient productivity, and they will be spending far more on overheads, which will result in more expensive goods, or lower profitability.
To make the investment in robotics, and keep up with the changing face of manufacturing in Australia, we recommend you use debtor finance. Earlypay can provide you with up to 80 per cent of the total value of your unpaid invoices within five days, so you don't have to wait around for clients to pay you for work or goods you've already delivered.
You'll have the freedom to do what you want with your money, including expanding or investing in robotics. For more information, contact the team at Earlypay today.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].