The modern, global economy is complex and interdependent, so when recessions come around, they cause pain for a lot of businesses. For manufacturers, warehouse operators, and third-party logistics providers (3PLs), economic downturns can be devastating and especially tough to recover from.
Businesses in these sectors often operate on razor-thin margins. That makes them especially vulnerable to volatility. A downturn in consumer spending or a supply chain disruption can quickly escalate into a crisis. Even small hiccups can have a ripple effect on markets.
But by introducing automated manufacturing processes and warehousing automation technologies, even smaller businesses can build more resilient, adaptable operations that can survive and even thrive through the next downturn.
And let’s be clear: there’s always a next recession to worry about. Better to have the knowledge in advance, so let’s take a closer look right now.
To understand how warehouse automation and automated manufacturing can improve business resilience, it helps to examine the top five ways economic downturns often impact operations:
Implementing automation within manufacturing and warehouse operations can effectively transform recession-triggered challenges into opportunities for resilience and growth.
Material moving technologies like automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) can reduce reliance on human workers to perform redundant, tedious, and injury-prone tasks. RFID-enabled and IoT-connected systems monitor, track, and trace materials and products as they move through operations. They enable often tedious, time-consuming, and error-prone inventory management tasks to be automated, too.
Collectively, these automation technologies are like an arsenal to combat recession-induced obstacles to productivity and profitability. They can empower businesses to survive the inevitable downturn and even emerge stronger and more agile, thanks to automation’s operational benefits:
Reduced mis-ships from errors in picking and packing. By reducing human error in the picking and packing process, they can significantly lower mis-ship rates, saving costs while enhancing customer experience and satisfaction, which is crucial to help maintain customer loyalty during economic downturns.
Lowered risk of product damage. AMRs, AGVs, and other automation technologies can be programmed to move goods optimally. This can be especially beneficial for handling high-value and fragile products. They can minimize waste and loss while ensuring damaged goods don’t end up in customers’ hands.
Fast picking and packing. Time is money, especially during a recession. Automation can help teams fulfill more orders in less time—a game-changer when dealing with unanticipated spikes in demand.
Significantly reduced downtime. People need work breaks, sick days, and vacations. AGVs and AMRs, on the other hand, can operate continuously. So your production and distribution don’t suffer the trickle-down effects of time off.
Round-the-clock operation. Similarly, human workers can usually work just one shift each day. Automation enables continuous, 24/7 operation. This can be key when supply chain disruptions create order backlogs, or when peak season coincides with an acute labor shortage.
Preventing on-the-job accidents. Besides the obvious risk to employees, lost-time injuries and near-misses can have wide-ranging negative impacts on business. When staff are stretched thin, they sometimes take inordinate risks to get work done. Automated solutions have to meet safe standards for design. Integrating them into operations can significantly reduce the risk of workplace accidents.
Avoiding shutdowns. The ability to keep operating smoothly and profitably, even amid worker shortages, can make the difference between recession survival and its alternative.
Attracting and retaining more workers. Investing in state-of-the-art equipment can help distinguish an operation from competitors and attract more skilled employees. Having the best available staff sets a business up for success when the rebound comes.
Data insights. Automated systems generate and capture troves of valuable business data. The insights derived from operational data can be vital for optimizing operations, remaining competitive, and planning for a post-recession future.
When you embrace automated manufacturing and warehousing, you’re not just investing in a new technology; you’re investing in your business’s future resilience. But before you dive in, it can be helpful to envision the ways automated solutions like AMRs can transform your operations.
Explore use cases, safety, employee experience, how to calculate anticipated ROI for an AMR system, and more when you download our free infographic on AMRs.
Don’t let the next recession catch you off guard—see how easy it can be to start automating today, to help achieve a more secure tomorrow for your business.
