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ARTICLE: Beyond the Factory Floor: Cobots as the Ultimate Growth Hack for Small and Medium-sized Enterprises (SMEs)

POSTED: 04 Dec, 2024

Automation has long been the domain of large enterprises with deep pockets and extensive resources. However, the landscape is undergoing a transformation, with collaborative robots, often referred to as cobots, leading the way in driving this change. Designed to work seamlessly alongside humans, cobots are making automation accessible, even for Small and Medium-sized Enterprises (SMEs). According to a recent report[1], the global cobot market is projected to grow from $1.2 billion in 2023 to close to $3 billion by 2028, reflecting their rising adoption across industries.

For SMEs, staying competitive often requires overcoming unique challenges such as limited budgets, smaller teams, and the need for operational agility. According to the Australian Chamber of Commerce and Industry’s 2024 Small Business Condition Survey[2], labour shortages and rising costs are among the most significant obstacles that small businesses face. While traditional automation systems can help address labour shortages, they are often rigid, complex, and prohibitively expensive, making them unsuitable for many SMEs. Enter cobots, a revolutionary solution that combines affordability, flexibility, and ease of deployment.

  • What Are Cobots, and How Do They Differ from Traditional Robots?

Collaborative robots, or cobots, are a new generation of robotic systems designed to work directly with humans in shared workspaces. Unlike traditional industrial robots, which often require physical barriers for safety, cobots are equipped with advanced sensors and programming that allow them to detect and adapt to human presence. This makes them inherently safer and more versatile in environments where people and machines need to work side by side.

  • Why Cobots Are the Perfect Growth Hack for SMEs?

Cobots have the potential to transform SMEs by providing solutions that deliver a wide range of benefits. These include:

  • Cost-Effectiveness

Cobots are significantly more affordable than traditional industrial robots. Unlike industrial robots, which require heavy structures and safety cages, cobots can often be mounted with simple tools like a G-clamp, saving on installation costs and space. In contrast, industrial robots demand extensive safety measures and infrastructure, which not only consume space but also incur additional expenses. This cost difference is critical for SMEs operating on tight budgets.

  • Flexibility and Adaptability

Unlike traditional robots, which are designed to fully automate a task or leave it to manual labour, cobots offer a middle ground, semi-automation. This capability is invaluable for SMEs, where automating the complete workflows are complex or expensive.

For example, a furniture manufacturing SME can program a cobot to assist with sanding tasks. While the cobot performs the repetitive sanding, workers can focus on more intricate assembly tasks, significantly boosting overall productivity. This shared workspace model eliminates the rigidity of traditional automation, allowing SMEs to adapt quickly to changing demands.

  • Ease of Use

Cobots are designed with user-friendliness in mind, often featuring intuitive interfaces that require minimal training. Employees without technical expertise can quickly learn to program and operate these robots, reducing downtime. Blocky programming uses a drag-and-drop interface where users create workflows by connecting pre-designed blocks that represent commands or actions. This visual approach eliminates the need for complex coding knowledge, making it ideal for SMEs that may not have dedicated robotics experts on staff. For instance, programming a cobot to pick and place items can be as simple as dragging blocks for “move,” “grip,” and “release,” and arranging them in sequence.

  • Real-World Examples

Cobots have demonstrated significant value in real-world SME environments, offering practical solutions to common operational challenges. KUKA, a leading cobot manufacturer, has highlighted numerous cases[3] where SMEs have successfully implemented their collaborative robots. These include applications in quality inspection in plastics manufacturing, machine loading in metal industries, and assembly tasks in the automotive sector. Similarly, Universal Robots (UR), another leading cobot manufacturer, has documented a wide range of SME applications[4], such as palletizing in food production, welding in small-scale metal fabrication, and material handling in manufacturing environments. For example, the SME Bob’s Red Mill utilized UR cobots to automate palletizing tasks, effectively addressing labour shortages and boosting productivity. These examples illustrate how cobots are enabling SMEs to enhance their operations through flexible and scalable automation solutions tailored to their specific needs.

  • Start small, Scale smart !

By embracing cobots today, SMEs can secure the future of their operations and position themselves for sustained success in a world that is becoming more competitive. The key to successfully integrating cobots is to start with a focused approach by introducing them into one or two specific processes. As businesses gain confidence and expertise, they can gradually expand their use. This method helps organisations reduce risks, control costs, and tailor the technology to fit their specific requirements.

References

[1] T. Haworth, “Global cobot market exceeds $1bn in 2023, with strong growth forecast 2024-28,” Interact Analysis. Accessed: Nov. 21, 2024. [Online]. Available: https://interactanalysis.com/global-cobot-market-exceeds-1bn-in-2023-with-strong-growth-forecast-2024-28/

 [2] Australian Chamber of Commerce and Industry, Small Business Conditions Survey 2024, Australian Chamber of Commerce and Industry, Canberra, ACT, 2024. [Online]. Available: https://www.australianchamber.com.au/wp-content/uploads/2024/07/ACCI-Small-Business-Conditions-Survey-2024.pdf

[3] “Successful automation in small and medium-sized enterprises,” KUKA AG. Accessed: Nov. 21, 2024. [Online]. Available: https://www.kuka.com/en-de/company/iimagazine/2023/05/kmu-erfolgsgeschichten

[4] “Customer Success Stories – collaborative robots.” Accessed: Nov. 21, 2024. [Online]. Available: https://www.universal-robots.com/case-stories

 

 

 

About the author

Mariadas Capsran Roshan is a Postdoctoral Researcher at Swinburne University of Technology in the Quality Assurance and Compliance research program and is currently involved in an industrial-based cobot automation project. He completed his PhD research at Swinburne University, where he proposed an a ... more