FDA approval came too late for last year's flu season. But Wyeth Pharmaceuticals plans to make up for lost time with this year's launch of its nasal influenza vaccine, FluMist. It's banking on a high-tech cold chain distribution network to make it happen.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
For nearly half a century, Americans have coughed, hacked, wheezed and sneezed their way through flu season with no prospect of protection other than the traditional flu shot. That's about to change. This fall, as several new strains of flu threaten to attack nasal passages across the country, Wyeth Pharmaceuticals will launch a brand new weapon in the cold wars: a flu vaccine available in nasal spray form. The product, which is actually a live (though weakened) virus that is frozen at the point of manufacture, will be the first flu vaccine not administered by injection. That means that with some of their patients, physicians can drop the needle once and for all (at least where influenza is concerned).
Right now, rows of FluMist injectors sit frozen—not in time, but in the chilly (minus 22 degrees For minus 30 degrees Celsius) interior of a distribution center on the outskirts of Louisville, Ky. The spray received final regulatory approval from the FDA this spring, and it's now ready to emerge from the deep freeze.
The highly automated 86,000-square-foot facility was built last year in anticipation of FDA approval that didn't come in time for last year's flu season. But Jim Cafone, who leads the distribution and transportation function for Wyeth Pharmaceuticals, puts the best face on the delay: "It's true that the building has been a frozen asset for us," he says, "but the good news is the delay allowed us to stress-test the systems and make sure things were running smoothly."
Big chill
Though technological breakthroughs could someday ease the distribution challenges, right now, FluMist is definitely not ready to come in from the cold. Because the product is actually a live virus, it is stored prior to distribution at temperatures no higher than minus 22 degrees F. Exposure to ambient temperatures could affect product stability.
That meant starting from scratch where DC construction was concerned. "There was no real prototype DC out on the market," says Cafone. "If we were just building a typical DC, we could easily go out and look at material handling options and different labor strategies. You can benchmark freezer applications like ice cream storage, but there's no way to go out and benchmark deep frozen applications for pharmaceutical distribution. We've got very strict regulatory requirements to follow."
Given the absence of hard guidelines, it seemed prudent to call in the pros. The Wyeth team hired WEPCO, a Pittston, Pa.-based material handling integration firm, to design and implement many of the systems used in the DC. After testing prototypes at its own facility, WEPCO drew up the center's floor plan. Once the floor plan was set, the DC was essentially built around it.
The focus, of course, was on creating a fail-safe operation as well as accommodating the product's unique requirements, which meant much of the equipment had to be custom designed. When the vaccine (which is manufactured near Philadelphia) arrives at the Louisville DC in deep frozen tractor-trailers, the trucks back up to one of two specially designed dock doors,and an inflatable dock seal,custom made by Bondor Manufacturing, forms an airtight grip around the truck. Once the warehouse doors are opened, a vertically stored dock leveler made by Overhead Door Corp.'s McGuire division is lowered into the truck, and the narrow buffer area—or vestibule—between the truck and the warehouse is quickly cooled to minus 22 degrees F. At that point, product can be moved from the truck into the receiving freezer and ultimately into the storage freezers with no exposure to ambient temperatures.
The freezer dock door system "isn't rocket science," admits Christopher Paulsen, chief executive officer of WEPCO, "but to our knowledge it's never been done before. Basically we had to design something that would ensure that ambient temperatures never came in contact with the product."
Once unloaded and checked in, pallet loads of product are eased onto conveyors designed and manufactured by Hytrol Conveyor Co. and transported in freezer tunnels to one of two 13,500-square-foot main freezers, each capable of holding 1,200 pallets. Inside the main freezers,two ASRS cranes fromWoodson Inc. maneuver the pallets through the system. Once the shipping cycle begins, pallets are moved from the freezers on conveyors through the freezer tunnels to a depalletizing station, where a pair of hightech robots manufactured by Fanuc Robotics place individual cases of FluMist on a second conveyor system.
All of this automation is aimed at minimizing human exposure to the harsh storage environment. "We didn't want to put a human into this environment for a prolonged period," explains Cafone. "OSHA will allow limited exposure to such extreme temperatures, but we tried to engineer the human out of the deep frozen conditions as much as possible by using AS/RS, robots, conveyor systems and a patented pick module." In fact, the cold environment is too harsh for even the robots to handle; they sport space-age parkas that keep them 50 degrees warmer than the actual interior temperatures.
After leaving the robots, the cases of product move to one of eight custom-designed airlocks, which were made by Tinsley Design & Fabricating Inc. The airlocks give order pickers working in an ambient pick/pack room access to the cases of FluMist, which must be kept at freezer temperature while indivi dual orders are picked and packed . Though the pick/pack room's temperature is a constant 65 degrees, the humidity levels cannot go above 50 percent to avoid frost buildup on the equipment. (Wyeth's warehouse management system monitors temperatures here and throughout the building.)
"Pick/pack is the most critical phase of the operation," says Dennis Gniazdowski, FluMist distribution center project director. "We have less than 90 seconds to complete the pack-out process, including picking the doses, packing them in a special expanded polystyrene (EPS) foam shipping box with dry ice and dunnage,and sealing the lid. All of the steps are automatically measured by timers, scales, photo eyes and bar-code scanners so we can monitor the process for compliance." (All of those controls were provided by Dynamic Automation Ltd., which also provided the user interface software.)
Once the lid is applied to the shipping carton, the carton is dispatched to another Hytrol conveyor for a five-minute ride to the dock door, where it goes through a final manifesting process before being loaded onto a truck.
The ice men goeth
Once product is ready to be shipped, the clock again starts to tick. Shipments of FluMist must reach their final destination— physicians' offices and pharmacies across the country—within 30 hours of the time they're packed.
To manage the critical transportation segment, Wyeth partnered with UPS Supply Chain Solutions and Total Quality Logistics. Total Quality Logistics built three specialty trailers with satellite tracking systems that let Wyeth monitor environmental conditions during the inbound shipping process."If we notice that a temperature is veering outside of our limits, a variety of people are notified immediately via satellite beeper so that someone can rectify the situation," says Cafone. "This is another activity that is unique to this logistics process."
UPS Supply Chain Solutions, which also handles order fulfillment for the Louisville facility, carries out the actual next-morning deliveries to Wyeth's customers. FluMist is over-packed in dry ice and shipped in a specialized shipping container. But dry ice, which gives off carbon dioxide, is considered a hazardous material. Therefore, if shipments reach a certain volume, Wyeth risks exceeding the dry ice hazmat "shipping budget" for UPS's nightly air sortation and delivery process. Staying within those limits adds another daily logistical challenge.
Before Wyeth and UPS start the daily picking and packing process, all daily order volume is mapped against a hazmat budget for the destination delivery ZIP code. Then, orders that are slated for delivery the next morning are batched and sent in waves to the floor for picking. "We want to make sure that if an order is picked, it absolutely arrives at the customer's doorstep by 10: 30 a.m. the following day," says Mark Hale, director of UPS-SCS Health Care Operations. "If the order volume exceeds the nightly dry ice airlift budget, then shipments could be rerouted."
Double or nothing
Losing a day's worth of shipments to spoilage would be a problem. But losing a DC's worth of inventory would be a catastrophe. Early in the planning process, the Wyeth and WEPCO executives found themselves brainstorming ways to prevent product spoilage resulting from an equipment failure, power failure or other natural disaster. Given the high value of the items being stored, they opted to build in redundant equipment at all phases of the operation.
As a result, the DC today features double conveyor lines, double freezers, double picking zones—even doubles of all the material handling equipment. Electricity is supplied via two separate power feeds from two different substations. The redundancy drove up construction costs considerably, but the team felt the investment was justified given the value of the inventory involved.
"We wanted the highest level of customer service,"Cafone recalls with obvious pride. "[Building this DC] was definitely a highlight for our team. Most people don't get projects like this in their entire careers. Some people might say 'I built three DCs,' and although that's always a monumental undertaking, they generally had benchmarks to guide them. That wasn't the case here. We were pretty fortunate to be part of it. Not many people can put this type of thing in their dossiers."
Seventeen innovative products and solutions from eleven providers have reached the nomination round of the IFOY Award 2025, an international competition that brings together the best new material handling products for warehouses and distribution center operations.
The nominees this year come from six different countries and will compete head-to-head during a Test Camp that will be held March 26 and 27 in Dortmund, Germany. The Test Camp allows hands-on evaluation and testing of products based on engineering and operational design. In contrast to the usual display of products at a trade show, The Test Camp also allows end-users and visitors to the event the opportunity to experience these technologies hands-on as they would operate in a facility.
Award categories include integrated solutions, counter-balanced forklifts, warehouse forklifts, mobile robotic solutions, other warehouse robotics, intralogistics software, and specialized solutions for controlling operations. A startup of the year is also recognized.
The finalists include entries from aluco, EP Equipment Germany, Exotec, Geekplus Europe, HUBTEX, Interroll, Jungheinrich, Logitrans, PLANCISE, STILL and Verity.
In the “IFOY Start-up of the Year” spin-off award, Blickfeld, ecoro, enabl and Filics are in the running. These finalists were selected from all entries following six weeks of intensive work by the IFOY organization, test teams, and a jury composed of journalists who cover the logistics market. DC Velocity’s David Maloney is one of the jurors, representing the United States. Winners will be recognized at a gala to be held July 3 in Dortmund's Phoenix des Lumières.
While Christmas is always my favorite time of the year, I have always been something of a Scrooge when it comes to celebrating the New Year. It is traditionally a time of reflection, where we take stock of our lives and make resolutions to do better. I’ve always felt that I really didn’t need a calendar to remind me to kick my bad habits in favor of healthier routines. If I was not already doing something that was good for me, then making promises I probably won’t keep after a few weeks is not really helpful.
But as we turn the calendar to 2025, there is a lot to consider this new year. The election is behind us, and it will be interesting to see how supply chains react to the new administration. We’ve been told to expect sharp increases in tariffs, like those the president-elect issued in his first term. Will these cause the desired shift away from goods made in China?
What we have actually seen so far is a temporary surge in imports that began in late fall in anticipation of higher tariffs. This bump will be short-lived, however, unless consumer confidence remains unusually high.
Of course, the new administration’s aim with tariffs is to encourage companies to bring production back to America. Will we see manufacturing surge at home? Probably not. It took us decades to send our manufacturing to parts of the world where production was cheaper. I imagine it will take decades to bring it back, if it can ever really be fully brought back. We’ve become accustomed to those lower labor costs. So take your pick—higher tariffs or higher labor costs. Regardless of which route businesses choose, it will probably drive prices higher.
Labor itself will be interesting to watch this year. As I write this, the three-month extension of the master agreement between dock workers and East and Gulf Coast ports is due to expire in a few weeks—on Jan. 15, to be precise. While the two sides have resolved their wage disputes, the issue of automation remains a major sticking point, with the workers resisting the widescale implementation of automated systems.
And of course, we still have two wars raging overseas that have disrupted supply chains. Will we see peace this year, or will other trouble spots flare up?
And here at home, we’ve now been in a trucking recession for two years. What will happen in that sector in 2025? Hopefully, better days are ahead, but only ifconsumers keep spending, demand increases, fuel prices continue to drop, and capacity levels out. That’s a lot to ask.
Whatever this year holds for our supply chains, it is definitely setting up to be very interesting, to say the least.
Shannon Curtis – Raymond: Consumers are clamoring for innovation in the food supply chain sphere in 2025. From a greater emphasis on convenience to a renewed desire for operational efficiency and security, new preferences call for a shift from tried-and-true procedures to innovative business models that champion modernization—the adoption of which can help organizations stand out as technological and cultural leaders in the new year and beyond.
Loren Swakow – Noblelift: I think it is still a strong and viable market—[there are] always new opportunities. When the new additional tariffs come in, we shall see how that affects the total market. I think the demand for used equipment will go up. Users will have X amount of dollars to invest in equipment, and if the Chinese, Canadian, and/or Mexican product [costs] gets pushed higher, the user does not necessarily have more money available. I am not sure sales of American-made lift trucks will increase.
Martin Boyd – Big Joe: It’s safe to say the industrial lift truck market has been somewhat volatile the last five years, with the market reaching all-time highs during the pandemic years, [then experiencing] massive swings downward these past two. While most lift truck OEMs enjoyed the spike in sales, the enormous demand put a significant strain on the supply chain, pushing leadtimes out to unprecedented levels while simultaneously driving up costs. The significant market decline is something no CEO in this industry would boast about. The fall we are experiencing today is better viewed as a normalization or correction to a market that was way overinflated.
With all the pent-up demand from the excessive orders due to the elongated pandemic leadtimes, we are now experiencing an abundance of stock on hand at both the OEM and distribution levels. On the surface, a market that’s quickly becoming half of what it was two years ago looks catastrophic. However, when you compare it to what’s happened over the past 15 years, today’s market still looks relatively healthy.
Q: WILL 2025 AND THE HOPES OF LOWER INTEREST RATES SPUR INVESTMENTS IN NEW INDUSTRIAL TRUCKS?
Loren Swakow – Noblelift: It will not hurt, but I do not think interest rates hinder sales. One point [in the interest rate] in either direction has a small impact on the payment. A rate reduction can be used as a marketing tool, though. If rates decline, dealers can go back over their outstanding quotes, refigure the payments, and present a new monthly cost to the user.
Martin Boyd – Big Joe: There are many factors, including interest rates, that play a role in the level of investment in industrial truck fleets. Most significant of those factors is consumer confidence. Logically, when consumers are confident, they buy more, which means manufacturers will have to make more and lift trucks will have to move more.
While inflation and high interest rates have surely stifled consumer confidence these past four years, there are signs that a new, more business-friendly administration will work in conjunction with lower interest rates to help drive up consumer confidence. Lower interest rates will work hand in hand with that resurgence in consumer confidence to help drive more investment in industrial equipment.
Q: WILL THE NEW ADMINISTRATION’S PROPOSED TARIFFS HURT OR HELP YOUR BRANDS?
Martin Boyd – Big Joe: The industrial lift truck market is one that is very global in nature, with a complex supply chain and operations scattered throughout the world. The tariffs that are being proposed on countries like Canada, Mexico, and China will undoubtedly have an impact on the industrial market, depending on the manufacturer. All lift truck manufacturers will experience varying levels of impact due to the tariffs, but tariffs are designed to incentivize companies to re-evaluate their supply chains and bring more manufacturing capacity back to the United States, which is a good thing.
Loren Swakow – Noblelift: As we represent a Chinese manufacturer, the tariff increase will have an effect. We are currently paying 25%. An additional 10% (as of the last reports) is manageable. It is a world economy. Adding the tariff just adds cost to the product here in the U.S. China does not pay it; the dealers do. We have no choice but to pass on this added cost. To reduce the costs of tariffs, manufacturers will move production to a country that does not have a tariff. Even though labor costs will be higher, it will not add more than the proposed tariff to the cost of the machine.
The factory will look for new countries to manufacture in as well. If tariffs had come in at 60% per campaign promises, it would have been disastrous. We probably would have moved manufacturing to Vietnam or another Asian country immediately.
Q: THE MARKET HAS BEEN MOVING TO ELECTRIC VEHICLES IN RECENT YEARS. DO YOU THINK THIS WILL CONTINUE, OR WILL THE ADVENT OF A MORE FOSSIL FUEL-FRIENDLY ADMINISTRATION DRIVE MORE DEMAND FOR INTERNAL COMBUSTION (IC) TRUCKS?
Loren Swakow – Noblelift: The states have a bigger say in this than the federal government. Look at California as an example. With the advent of lithium as a safe and effective power solution, and with the price of lithium batteries coming down, I think [the use of] electric vehicles will continue to expand. Total cost of ownership is already much lower on electric when compared to IC product.
We continue to see electric product increasing every year. It is more sustainable, and it has now reached a point where cost is not a barrier to entry. Power and force have been overcome; we produce an electric rough-terrain lift truck that has a 50-degree gradeability.
Users will look at their own requirements, costs, etc., before deciding on IC or electric. I do not think the new administration will be able to justify the additional cost needed to use IC products. Electric is the future of material handling.
Martin Boyd – Big Joe: As anyone involved with the industrial lift truck market knows, California has been the driving force behind the electrification of the market, forcing organizations that operate in that state away from lift trucks that run on fossil fuels. While there have been no changes in the stringent regulations being imposed by the California Zero Emission Forklift Initiative, which essentially prohibits the sale of most spark-ignited internal combustion forklifts starting in 2026, there are many that expect an easing of such regulations.
Yet, aside from the legislative pressures, there continues to be a strong value proposition for making the switch to electric. Technological advancements in lift truck systems, battery technology, and charging platforms have all combined to make moving to electric more feasible than ever before; we are one of the only westernized nations who still use combustion engine equipment indoors. This is a welcome change for both warehouse employees and the environment.
Shannon Curtis – Raymond: The industry is embracing alternative fuel and energy sources. One viable option is lithium-ion batteries (LIBs) with certification from Underwriters Laboratories. While lithium-ion technology is already a proven solution in the industry, offering superior performance and longer life spans than traditional lead-acid batteries, The Raymond Corporation sees UL-compliant LIBs playing a pivotal role in meeting new regulatory standards. These batteries not only help reduce emissions but also improve the operational efficiency of the material handling, manufacturing, and warehousing industries.
Q: LIFT TRUCKS ARE USED FOR MANY TASKS, BUT ARE THERE ANY APPLICATIONS THAT ARE OF PARTICULAR INTEREST TO CUSTOMERS?
Shannon Curtis – Raymond: Today, organizations are aiming innovations in lift truck technologies to increase uptime, improve speed and mobility, streamline diagnostic procedures, and lower operating and energy costs—dramatically cutting consumption without reducing productivity. And it’s not just the forklift technologies that are evolving. The systems that warehouse managers rely on to manage and maintain their trucks—including operator-assist and data collection technologies—are also growing increasingly advanced.
Loren Swakow – Noblelift: E-commerce has fueled growth in the last few years. I believe it is here to stay. If anything, it will expand. All these products come from warehouses that need material handling machines. Every product we touch, including food, is probably moved at one point by a lift truck. We need to move products from one location to another, and trucks must be loaded and then unloaded at their destination. Lift trucks perform this function.
We are seeing continued expansion of Class III product [electric hand trucks and hand/rider trucks]. Walkie products move material but cannot stack it. Companies are realizing most of their need is for movement. For example, [a company may] have always used three lift trucks [that can both move and stack product] in its warehouse, when it only needs to have one truck [that’s capable of both moving and stacking product] along with two trucks [that just] move material, which includes loading and unloading at the dock.
Martin Boyd – Big Joe: Labor constraints today have been a significant challenge for operations that require the use of lift trucks. With the massive movement to e-commerce, there is a much higher need for lift truck operators in warehousing and distribution environments. The lack of skilled labor has really pressured companies to invest in technologies that help operations accomplish more with less. As a result, more and more operations are looking to [incorporate] various levels of automation into their industrial lift truck fleets.
Q: DO YOU SEE ROBOTICS SOLUTIONS AS COMPETITIVE WITH FORKLIFTS OR COMPLEMENTARY TO THEM?
Martin Boyd – Big Joe: For many years, the industrial lift truck manufacturers viewed automation and AGV [automatic guided vehicle] companies as competitors, but we’ve experienced a significant change in thinking over the past decade. What was a threat has now become a strength for the lift truck manufacturers. Almost all lift truck manufacturers today have expanded their technology capabilities to such a level that they are now able to offer automated versions of their standard equipment with improved ROI [return on investment] calculations.
Loren Swakow – Noblelift: They are complementary. Most AGV solutions are based on a forklift of some type. We will just be building different types of forklifts. The goal of robotics is to take out the labor cost of the driver. The operator is by far the most expensive component of material handling.
Support of your AGV will determine the success of the project. Dealer networks will be the key here. There are more and more companies getting into the AGV market, but can they support it after the sale?
Repetitive moves or long distances are the easiest [places] to remove the driver from the equation. If the unit goes down because of programming or mechanics, you must be able to get it back up operating as soon as possible. Dealer network and aftersales support should be a major component of the decision to take advantage of the benefits of AGV material handling.
Shannon Curtis – Raymond: Robots have been used in warehouses for decades, but in recent years, “cobots” have become even more complementary in the warehouse and instrumental in providing great levels of efficiency. From improved security and increased productivity to increased accuracy and lower costs, cobots are becoming an increasingly important part of warehouse operations.
Q: TODAY’S INDUSTRIAL TRUCKS OFFER MORE SAFETY FEATURES THAN EVER BEFORE. WHAT DO YOU SEE AS THE MOST SIGNIFICANT SAFETY DEVELOPMENTS OF THE PAST FIVE YEARS?
Shannon Curtis – Raymond: One of the most significant advancements in warehouse operations involves the implementation of virtual reality (VR) simulators. The technology can help new forklift operators develop the skills they need to succeed on the warehouse floor without impacting day-to-day operations, while also serving as a reinforcement tool for experienced operators. VR simulators serve as flexible, scalable teaching tools that rely on advanced technology to help workforces become more efficient and expand operator skills, creating optimized conditions for all employees.
In addition, training reinforcement offerings—like integrated equipment detection and notification systems and operator tether systems—can similarly help warehouse operators improve their work environment. Systems like these use intelligent speed limitations, real-time object detection, operator notifications, and more to improve employee awareness of their environment even in high-traffic areas.
Martin Boyd – Big Joe: With advancements in technology, all lift truck manufacturers are playing their part in developing new technologies that allow for the safe operation of their equipment. While there are various means in which manufacturers have applied these technologies, there is no substitute for a sound operator safety training program. [Ensuring that your operators receive the proper training] will always be the number-one way to reduce the likelihood of workplace incidents involving lift trucks. In addition to having fully trained operators, many manufacturers offer optional operator-assistance systems that may improve workplace safety for both the operator and those working around lift trucks.
Loren Swakow – Noblelift: When I started in this business, we were selling used trucks without overhead guards. They were produced without them. The load backrest was not a given. Seat belts were nonexistent.
There have been so many great advancements in safety, it is hard to pick just one. We are incorporating AI [artificial intelligence] into our equipment now. This will recognize a person in the area and warn the driver. Besides changing the physical attributes of the lift truck to make it safer for the operator, we will see more and more technology and AI in the pursuit of making it safer for the pedestrian.
Q: WHAT ARE THE ADVANTAGES OF LEASING VERSUS BUYING FOR COMPANIES LOOKING TO ACQUIRE NEW TRUCKS?
Loren Swakow – Noblelift: This is an age-old question. It really depends on the user. It is a function of cash flow and cash balances in each company. Leases can be expensed, while purchases need to be capitalized. Not only are we looking at the cash position, but we also now need to review our profit position. The user needs a lift truck, but does he need to capitalize it because profit is low, or does he need to expense it to decrease his profit and reduce the taxes on the company?
Every company is different, [but either way,] you will have outflow of cash and a new lift truck on the floor producing for you. The question is which method benefits the organization the most.
Shannon Curtis – Raymond: Today’s electric forklifts offer performance that meets the needs of the most common lift truck applications, but with dramatically reduced maintenance requirements and with data collection capabilities that are quickly becoming essential to facility and resource optimization. Although the total cost of ownership of electric products is typically lower than for internal combustion products, the higher upfront initial purchase cost of switching to electric-powered equipment may have been a barrier in the past. Currently available governmental incentives and supplier programs, like leasing, make battery power—specifically, the traditionally more expensive lithium-ion power—even easier to justify.
Martin Boyd – Big Joe: When it comes to the lease vs. buy decision, each organization needs to evaluate several factors when considering what’s right for their application and company.
In leasing, you enjoy a lower cost per month and can be flexible on the terms of the lease. If you have a high-use environment, where you may need to renew equipment more often, leasing clearly has its advantages. In addition, a lease is often treated as an operating expense on the income statement, while a financed forklift is considered an asset on the balance sheet with depreciation expense recorded each period.
On the other hand, if you are using the asset less often and plan to keep it over the life of a typical lease (five years), then the benefits of a straight purchase or finance would outweigh those of a lease.
That is important because the increased use of robots has the potential to significantly reduce the impact of labor shortages in manufacturing, IFR said. That will happen when robots automate dirty, dull, dangerous or delicate tasks – such as visual quality inspection, hazardous painting, or heavy lifting—thus freeing up human workers to focus on more interesting and higher-value tasks.
To reach those goals, robots will grow through five trends in the new year, the report said:
1 – Artificial Intelligence. By leveraging diverse AI technologies, such as physical, analytical, and generative, robotics can perform a wide range of tasks more efficiently. Analytical AI enables robots to process and analyze the large amounts of data collected by their sensors. This helps to manage variability and unpredictability in the external environment, in “high mix/low-volume” production, and in public environments. Physical AI, which is created through the development of dedicated hardware and software that simulate real-world environments, allows robots to train themselves in virtual environments and operate by experience, rather than programming. And Generative AI projects aim to create a “ChatGPT moment” for Physical AI, allowing this AI-driven robotics simulation technology to advance in traditional industrial environments as well as in service robotics applications.
2 – Humanoids.
Robots in the shape of human bodies have received a lot of media attention, due to their vision where robots will become general-purpose tools that can load a dishwasher on their own and work on an assembly line elsewhere. Start-ups today are working on these humanoid general-purpose robots, with an eye toward new applications in logistics and warehousing. However, it remains to be seen whether humanoid robots can represent an economically viable and scalable business case for industrial applications, especially when compared to existing solutions. So for the time being, industrial manufacturers are still focused on humanoids performing single-purpose tasks only, with a focus on the automotive industry.
3 – Sustainability – Energy Efficiency.
Compliance with the UN's environmental sustainability goals and corresponding regulations around the world is becoming an important requirement for inclusion on supplier whitelists, and robots play a key role in helping manufacturers achieve these goals. In general, their ability to perform tasks with high precision reduces material waste and improves the output-input ratio of a manufacturing process. These automated systems ensure consistent quality, which is essential for products designed to have long lifespans and minimal maintenance. In the production of green energy technologies such as solar panels, batteries for electric cars or recycling equipment, robots are critical to cost-effective production. At the same time, robot technology is being improved to make the robots themselves more energy-efficient. For example, the lightweight construction of moving robot components reduces their energy consumption. Different levels of sleep mode put the hardware in an energy saving parking position. Advances in gripper technology use bionics to achieve high grip strength with almost no energy consumption.
4 – New Fields of Business.
The general manufacturing industry still has a lot of potential for robotic automation. But most manufacturing companies are small and medium-sized enterprises (SMEs), which means the adoption of industrial robots by SMEs is still hampered by high initial investment and total cost of ownership. To address that hurdle, Robot-as-a-Service (RaaS) business models allow enterprises to benefit from robotic automation with no fixed capital involved. Another option is using low-cost robotics to provide a “good enough” product for applications that have low requirements in terms of precision, payload, and service life. Powered by the those approaches, new customer segments beyond manufacturing include construction, laboratory automation, and warehousing.
5 – Addressing Labor Shortage.
The global manufacturing sector continues to suffer from labor shortages, according to the International Labour Organisation (ILO). One of the main drivers is demographic change, which is already burdening labor markets in leading economies such as the United States, Japan, China, the Republic of Korea, or Germany. Although the impact varies from country to country, the cumulative effect on the supply chain is a concern almost everywhere.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.