"Bullishly skeptical" on Cuba: interview with Rob Kemp
There's great opportunity in supporting U.S. brands that will soon have access to 12 million stuff-starved people. But as Rob Kemp and his colleagues discovered during their Cuba trade mission in March, only the very patient need apply.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Robert Kemp founded DRT Transportation was part of a group that visited Cuba earlier this year.
The day before President Obama's historic March 21 visit to Cuba, a group of 18 U.S. logistics practitioners, accompanied by three executives of the Transportation Intermediaries Association (TIA), arrived on the island for a mission that, while not nearly as symbolic, may be more significant. The group spent five days observing Cuba's infrastructure and gauging the country's ability to handle the potential acceleration of logistics demand to support American businesses if the U.S. trade embargo with Cuba is fully lifted.
One member of the entourage was Robert Kemp, founder and president of DRT Transportation LLC, a third-party logistics service provider (3PL) based in Lebanon, Pa. A natural entrepreneur, Kemp seems right at home in a country where business risk-taking is a daily activity. But Kemp is also a pragmatic businessman responsible for his customers' lifeblood: their goods. Kemp sees the chance to get in on the ground floor of a market of 12 million, many of who will have access to U.S.-made goods for the first time. But he sees Cuba for what it is today: a nation with great potential and with a competitive seaport, but with little else, including the disposable income its consumers will need to buy U.S. exports.
In an interview with Mark B. Solomon, executive editor-news, Kemp talks about his experience, the opportunities, and why he is (in our words, not his) "bullishly skeptical."
Q: Cuba wants to be a cross-dock point for imports moving through the expanded Panama Canal and bound for U.S. markets, especially the New York metro area. That potentially means a lot of cargo headed for Havana. Is that doable?
A: It is, conceptually. The Port of Mariel is a modern facility that has on-dock rail capabilities. We were told it could scale up its capacity without physically expanding. Investors in the port envision it as a cross-dock location for imports coming through the canal and bound for the East Coast and Europe. Miami is the closest U.S. deepwater point, but it is too far from the Northeast's dense populations.
Q: Do you sense that DRT's customers are eager to do business in Cuba? Or is there a reluctance to step into the market?
A: "Eager" is a strong word. We have discussed this with some of our key customers, and the responses have been all over the board. The market opportunity exists. With a population of about 12 million, Cuba is as big as Greater Los Angeles. It would benefit from the modernization that can come with improved trade relations with the U.S. Solving the socioeconomic challenges seems improbable in the short term. Having cruise ships dock in Havana for a day is a long way from total trade.
Q: Virtually no U.S. transport and logistics practitioner has done business in Cuba. If a U.S. company makes the leap, what should it brace itself for?
A: Unfortunately, after Mariel, the infrastructure rapidly deteriorates. The preferred method to move goods across the island is port to port, which illustrates how poor the road infrastructure is. Most containers move on flatbed trucks because there are virtually no available chassis. Container dwell times can hit 21 days, unheard of in the U.S. Yet these challenges represent opportunities for the right companies. Port operator PSA International projected that Mariel could almost triple its current TEU (twenty-foot equivalent unit) capacity without needing to actually expand. We were told that Mariel handled close to 300,000 TEUs in 2015, and as noted earlier, the port was built with a plan to expand its TEU capacity.
Q: What else struck you, positively and negatively, about the condition of Cuba's transport system?
Cuba's famous 1950s-era cars are kept in operating condition with imported parts and metal fabricated on the island.
A: What surprised me was the state of the total infrastructure, not just as it related to freight and logistics movement. Most Cubans use public transportation. Import duties on automobiles make it virtually impossible to own a finished automobile. The classic 1950s cars that seem frozen in time and that many Americans associate with post-revolutionary Cuba are almost exclusively taxis now. They are maintained by an amazing system of imported parts and by metal "artists" that fabricate their own parts. The taxi owners are immensely proud of the condition of their cars. It is a highlight of Havana.
Q: U.S. businesses are lagging behind their counterparts from other countries that never imposed a trade embargo on Cuba. Will U.S. companies find it difficult to dislodge established non-U.S. providers?
A: I don't believe U.S. firms will have difficulty competing in Cuba if the embargo is lifted. The U.S. has a huge nearshoring advantage. It seems that most countries currently trading with Cuba do not have a large presence there. Our collective capabilities should serve us well given that Cuba's energy, civil engineering, and telecommunications ecosystems are stuck in the 1950s.
Q: What advice would you give a U.S. logistics provider that's interested in doing business there?
A: Align yourself with local asset-based partners serving the island. The reason is that there are still countless legal and regulatory questions about doing business there. For example, can U.S. logistics companies open offices in Cuba, or will they be required to use one of the three current government-owned freight forwarders like Transcargo? That's just one of many questions. You want to partner with someone who knows the local ways and means.
U.S. companies also need to understand how the currency works. Foreign companies would deal with the Cuban convertible peso (CUC), while locals would still transact in Cuban pesos. Foreign companies would pay the government in CUC currency, and the government would then pay the employees in Cuban pesos. Essentially, the currency conversion is a tax kept by the government. I know that as the landscape changes, logistics associations like TIA will play an important role in facilitating such an important endeavor.
Q: In your discussions with Cuban officials, did you get any clarity on when the country could be ready to hit the regional or global trade stage?
A: Cuba feels it's ready now. The investments in Mariel and the passing of the "Law of Foreign Investment," which opened up Cuba to foreign investors, are the catalysts. The newly established Mariel Special Development Zone (ZEDM) already has established businesses that have 100 percent foreign investment. A Belgian logistics company handles shipments at the port. We also saw a few warehouses going up that were being built exclusively with foreign capital. Previously, foreign companies looking to serve Cuba had to partner with the government to gain a foothold.
Q: Given the impoverished state of the Cuban economy, how can the Cuban people afford to pay for Western-style goods?
A: With all Cuba's potential, nothing economically sustainable can occur until the income question is addressed. We were told the average Cuban earns about 540 Cuban pesos per month, which is equivalent to about US$20. Prices of most foodstuffs are kept artificially low. But disposable income for consumables is a luxury.
Q: Fidel Castro is an aging figurehead, while his brother, President Raul Castro, is also up in years and has said he will step down in 2018. Do you foresee a liberalization of trade activity once they are gone from the scene and a younger generation of leaders takes their place?
A: Regardless of what government is in power, the key policy issue is and will continue to be how Cuba's debt obligations are served and how its credit standing is addressed. Can the current Cuban government, or its future governments, improve the country's creditworthiness? That issue as well as others that go beyond transportation and logistics are for the governments and international organizations to address. My focus is to understand Cuba's changing landscape and to be prepared to serve DRT's customers if and when the time comes.
Sean Webb’s background is in finance, not package engineering, but he sees that as a plus—particularly when it comes to explaining the financial benefits of automated packaging to clients. Webb is currently vice president of national accounts at Sparck Technologies, a company that manufactures automated solutions that produce right-sized packaging, where he is responsible for the sales and operational teams. Prior to joining Sparck, he worked in the financial sector for PEAK6, E*Trade, and ATD, including experience as an equity trader.
Webb holds a bachelor’s degree from Michigan State and an MBA in finance from Western Michigan University.
Q: How would you describe the current state of the packaging industry?
A: The packaging and e-commerce industries are rapidly evolving, driven by shifting consumer preferences, technological advancements, and a heightened focus on sustainability. The packaging sector is increasingly prioritizing eco-friendly materials to reduce waste, while integrating smart technologies and customizable solutions to enhance brand engagement.
The e-commerce industry continues to expand, fueled by the convenience of online shopping and accelerated by the pandemic. Advances in artificial intelligence and augmented reality are enhancing the online shopping experience, while consumer expectations for fast delivery and seamless transactions are reshaping logistics and operations.
In addition, with the growth in environmental and sustainability regulatory initiatives—like Extended Producer Responsibility (EPR) laws and a New Jersey bill that would require retailers to use right-sized shipping boxes—right-sized packaging is playing a crucial role in reducing packaging waste and box volume.
Q: You came from the financial and equity markets. How has that been an advantage in your work as an executive at Sparck?
A: My background has allowed me to effectively communicate the incredible ROI [return on investment] and value that right-size automated packaging provides in a way that financial teams understand. Investment in this technology provides significant labor, transportation, and material savings that typically deliver a positive ROI in six to 18 months.
Q: What are the advantages to using automated right-sized packaging equipment?
A: By automating the packaging process to create right-sized boxes, facilities can boost productivity by streamlining operations and reducing manual handling. This leads to greater operational efficiency as automated systems handle tasks with precision and speed, minimizing downtime.
The use of right-sized packaging also results in substantial labor savings, as less labor is required for packaging tasks. In addition, these systems support scalability, allowing facilities to easily adapt to increased order volumes and evolving needs without compromising performance.
Q: How can automation help ease the labor problems associated with time-consuming pack-out operations?
A: Not only has the cost of labor increased dramatically, but finding a consistent labor force to keep up with the constant fluctuations around peak seasons is very challenging. Typically, one manual laborer can pack at a rate of 20 to 35 packages per hour. Our CVP automated packaging solution can pack up to 1,100 orders per hour utilizing a fully integrated system. This system not only creates a right-sized box, but also accurately weighs it, captures its dimensions, and adds the necessary carrier information.
Q: Beyond material savings, are there other advantages for transportation and warehouse functions in using right-sized packaging?
A: Yes. By creating smaller boxes, right-sizing enables more parcels to fit on a truck, leading to significant shipping and transportation savings. This also results in reduced CO2 emissions, as fewer truckloads are required. In addition, parcels with right-sized packaging are less prone to damage, and automation helps minimize errors.
In a warehouse setting, smaller packages are easier to convey and sort. Using a fully integrated system that combines multiple functions into a smaller footprint can also lead to operational space savings.
Q: Can you share any details on the typical ROI and the savings associated with packaging automation?
A: Three-dimensional right-sized packaging automation boosts productivity significantly, leading to increased overall revenue. Labor savings average 88%, and transportation savings accrue with each right-sized box. In addition, material savings from less wasteful use of corrugated packaging enhance the return on investment for companies. Together, these typically deliver returns in under 18 months, with some projects achieving ROI in as little as six months. These savings can total millions of dollars for businesses.
Q: How can facility managers convince corporate executives that automated packaging technology is a good investment for their operation?
A: We like to take a data-driven approach and utilize the actual data from the customer to understand the right fit. Using those results, we utilize our ROI tool to accurately project the savings, ROI, IRR (internal rate of return), and NPV (net present value) that facility managers can then use to [elicit] the support needed to make a good investment for their operation.
Q: Could you talk a little about the enhancements you’ve recently made to your automated solutions?
A: Sparck has introduced a number of enhancements to its packaging solutions, including fluting corrugate that supports packages of various weights and sizes, allowing the production of ultra-slim boxes with a minimum height of 28mm (1.1 inches). This innovation revolutionizes e-commerce packaging by enabling smaller parcels to fit through most European mailboxes, optimizing space in transit and increasing throughput rates for automated orders.
In addition, Sparck’s new real-time data monitoring tools provide detailed machine performance insights through various software solutions, allowing businesses to manage and optimize their packaging operations. These developments offer significant delivery performance improvements and cost savings globally.
Mid-marketorganizations are confident that adopting AI applications can deliver up to fourfold returns within 12 months, but first they have to get over obstacles like gaps in workforce readiness, data governance, and tech infrastructure, according to a study from Seattle consulting firm Avanade.
The report found that 85% of businesses are expressing concern over losing competitive ground without rapid AI adoption, and 53% of them expect to increase their budgets for gen AI projects by up to 25%. But despite that enthusiasm, nearly half are stuck at business case (48%) or proof of concept (44%) stage.
The results come from “Avanade Trendlines: AI Value Report 2025,” which includes two surveys conducted by the market research firms McGuire Research Services and Vanson Bourne. Conducted in in August and September 2024, they encompass responses from a total of 4,100 IT decision makers and senior business decision makers across Australia, Brazil, France, Germany, Italy, Japan, Netherlands, Spain, UK, and US.
Additional results showed that 76% of respondents state that poor data quality and governance inhibits their AI progress. To overcome that, companies are stepping up investments in that area, with 44% planning to implement new data platforms and 41% setting governance standards. And to support the scaling of AI, budgets will focus on data and analytics (27%), automation (17%), and security and cyber resilience (15%).
"Mid-market leaders are at a defining moment with AI—where investments must not only boost efficiency but ignite future innovation and sustainable growth," Rodrigo Caserta, CEO of Avanade, said in a release. "The tension between cost-cutting and growth ambitions shows the AI value equation is still being worked out. Productivity with AI isn't just about doing things faster; it's about reimagining work itself. People are central to this shift, requiring workforce alignment, clear communication, and new training. Leaders must rethink how they support collaboration, measure productivity, and ultimately, assess the true value AI brings to their organizations."
Editor's note:This article was revised on November 13 to correct the site of Avanade's headquarters; it is located in Seattle.
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."
Ocean freight liner Hapag-Lloyd has ordered 24 new container ships through $4 billion in contracts with two Chinese shipyards, saying the investment will continue to modernize and decarbonize its fleet.
Half the order will include 12 vessels with a capacity of 16,800 twenty-foot equivalent units (TEU) to be built by Yangzijiang Shipbuilding Group, and will expand the Dutch company’s capacity. The other 12 ships with a capacity of 9,200 TEU each will be made by New Times Shipbuilding Company Ltd. and will replace aging vessels. Hapag-Lloyd’s current fleet includes 287 container ships with a total transport capacity of 2.2 million TEU.
Set for delivery between 2027 and 2029, the ships will all feature low-emission, high-pressure liquefied gas dual-fuel engines that are extremely fuel-efficient, the company said. In addition, these vessels can be operated with ammonia fuel or with biomethane, which can reduce CO2e emissions by up to 95% compared to conventional propulsion systems.
“This investment is one of the largest in the recent history of Hapag-Lloyd, and it represents a significant milestone for our company as it pursues the goals of its Strategy 2030, such as to grow while also modernizing and decarbonizing our fleet. Operating a fleet of more efficient vessels will also enhance our competitive position, and thanks to the increase in capacity, we will continue to offer our customers a global, high-quality product,” Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said in a release.
The company says its Strategy 2030 follows the direction of the 1.5-degree target of the Paris Agreement. It plans to reduce absolute greenhouse gas emissions from fleet operations by around one third by 2030 compared to 2022, and to reach net-zero fleet operation by 2045.
2024 has been a bumpy ride for many parts of the material handling equipment industry. It’s not necessarily that orders have been weak; it’s just that they aren’t up to the levels seen during the heyday of the pandemic-induced warehouse expansions. One of the brighter spots has been the robotics and automation sector, which has benefited from warehouse leaders’ continuing struggles with worker shortages and increased labor costs—both of which can be addressed through the judicious application of automated systems.
As we do every year, we recently gathered experts from the robotics and automation industry to weigh in on both the challenges facing the market and the opportunities that lie ahead. Here’s what they said.
Participants (in alphabetical order):
BART CERA President & Chief Executive Officer Vargo
Q: WHAT DOES 2025 LOOK LIKE FOR THE AUTOMATION INDUSTRY?
Stanislas Normand – Exotec: I expect to see growth in automation investments in 2025 relative to 2024. The reality is that, despite the challenging economic environment, the underlying pressure to automate is still there. Businesses are still challenged by the overreliance on manual labor and growing customer expectations. For many, it is becoming a bottleneck for growth that can no longer be ignored. While it’s true that a lot of 2024 projects ended up being pushed [out], the need for automation is still very high, and we are currently seeing a really strong pipeline of projects in 2025.
Bart Cera – Vargo: 2024 was a “weird” year in that many companies struggled to make decisions to proceed with their investment plans even though the stock market was doing well and corporate earnings were generally up, with positive forecasts for the future. I think the looming inflationary pressures and uncertainty around monetary policy [and] changes to interest rates left a lot of folks sitting on cash and on the sidelines. It’s not too different from the consumer side—it is tough to buy when prices are up, and borrowing is expensive. With inflation softening and seemingly under control and the Fed’s recent interest rate cut, which should be expansionary, our industry should see a significant uptick in automation and larger CapEx project spends for 2025.
Andrea Pongolini – E80: We are seeing robust growth fueled by a strong foundation of repeat customers who continue to trust and rely on our solutions. One of the most prominent trends is the increasing demand for fully integrated end-to-end automation solutions. This demand is not just a North American phenomenon; it is also gaining traction across Europe and other markets. Companies are looking for ways to enhance their supply chain resilience, improve efficiency, and reduce environmental impact—and automation is at the core of these efforts.
Q: HOW WILL LOWER INTEREST RATES HELP SPUR INVESTMENTS IN AUTOMATION?
Ben Gaegauf – Agilox: This will surely help, though it’s not necessarily at the core of our conversations. Productivity, safety, and predictability are still the main conversation drivers. Of course, lower interest rates will help speed up the payback time for capital investments. And overall, just as with most other industries, we expect to benefit from a more favorable business environment in general, which should drive the economy higher.
Robert Humphrey – Element Logic: With the reduced cost of borrowing, we expect more companies will leverage and continue leveraging financing for these investments. Even with higher-than-average interest rates, we’ve still observed a large percentage of companies leveraging financing on automation projects to help preserve capital for investment in other areas of their business to maintain growth.
Chris Coote – Dexory: When interest rates are lower, businesses generally feel more confident about the economy and future profitability. This encourages firms to take on projects such as automation, which are designed to improve operational efficiencies.
For businesses that have already started their automation journeys, lower borrowing costs mean that businesses are able to scale their projects further and look at other areas they can invest in. This can include things like bringing in hardware and software solutions that enhance overall productivity. These projects are easier for businesses to initiate as cheaper debt financing becomes available.
Q: HOW CAN WAREHOUSE LEADERS SELL THEIR COMPANY’S DECISION-MAKERS ON THE ADVANTAGES OF ROBOTIC SOLUTIONS?
Nathan Richter – Movu: The key to convincing decision-makers lies in showing how warehouse automation directly addresses labor shortages and operational bottlenecks, and can thereby increase warehouse performance. With robotics solutions, companies can streamline material handling, improve order accuracy, and scale their operations. A clear ROI [return on investment] analysis that highlights faster throughput, reduced labor costs, and the ability to meet growing demand often seals the deal.
Rick DeFiesta – GeekPlus: When it comes to whether or not to automate, the real question posed to decision-makers should be, “What if we continue to carry on as we have?” You will still continue to struggle with [a shortage of] labor, and the cost of labor will continue to go up. So how will you get products to customers rapidly without making some investments that will offset the lack of labor and higher labor costs?
Ben Gaegauf – Agilox: The market is already well aware of the industry’s shift toward automation and robotics. Our challenge lies in showing customers that they can benefit from participating in this trend now—“What’s in it for me today rather than tomorrow?" We believe that at its core, there are essentially two main drivers that support robotics adoption: increased productivity (operational and financial) and risk reduction (predictability, safety, etc.). Robotic solutions help on both fronts, and the latest technological developments have made it much easier to demonstrate that to the customer.
Q: WHAT DO YOUR CUSTOMERS CONSIDER TO BE AN ACCEPTABLE ROI, AND DOES THAT VARY BY THE TYPE OF PROJECT?
Cody Upp – Zebra Robotics: Our automation solutions are quick to implement and scale as your needs evolve, delivering ROI. They allow you to achieve real-time visibility into workflow progress across your facility, optimizing operations, identifying bottlenecks, and driving continuous improvements—all guided by advanced insights and reporting.
It’s also important to note that for companies opting for the Robots-as-a-Service (RaaS) model, customers should not solely focus on traditional ROI metrics. Instead, they should consider how much free cash flow the investment is creating. The goal is to maximize their internal rates of return, ensuring that the investment contributes positively to their overall financial health and operational efficiency.
Chris Coote – Dexory: ROI can mean different things to people at different levels of the organization. Those in the C-suite might be looking at ROI from the point of view of cost savings, while those working on the warehouse floor might look at it from the perspective of time saved or accuracy improvements. Generally, each ROI case is as unique as each business is. Where the issues they are looking to solve through automation might be similar, the end goals and objectives of each business are going to be vastly different.
Rick DeFiesta – GeekPlus: Today, customers are not as rigid in their thinking about the ROI aspect of a project—meaning they’re not using strictly headcount or using metrics like, say, a two-year payback. They are considering many other factors, like being able to deliver to their growing ranks of customers and to meet their expectations. And in this day and age, if customers don’t receive a product in two days, they’re buying someplace else. So really, it’s a matter of meeting customer demand more than a justification for pure ROI.
Q: FOR A COMPANY WITHOUT ANY ROBOTS, UNDER WHAT CONDITIONS DOES IT MAKE SENSE TO INVEST IN ROBOTICS, AND WHAT IS A GOOD ENTRY POINT?
Robert Humphrey – Element Logic: In most cases, the conditions that make sense for robotics are factors such as labor shortages, high order volumes, the need for improving accuracy, etc. For the robotics systems we offer, we usually find that any company that has at least 5,000 storage locations and at least seven associates working as pickers in their warehouse is large enough to benefit from automation.
Chris Coote – Dexory: An entry point is entirely dependent on the business and its objectives. Generally, we would advise businesses to start by ensuring that they have the necessary intelligence available to them from their warehouses. This can include things like inventory accuracy all the way to optimizing warehouse layout. If you start to deploy picking robots in the first instance but they are going to the wrong locations because of discrepancies in the system, you may have deployed robotics but the solution is unlikely to have the desired impact if you failed to first address the visibility challenges in your operation.
Cody Upp – Zebra Robotics: It makes sense when you can create monthly free cash flow using a more efficient labor force as a saving category on the investment when robotics are used to drive labor efficiency and cost savings. Our automation enables you to achieve real-time visibility across your facility, connect isolated islands of automation, and [free up] employees to perform higher-value tasks, all with the flexibility to automate however you need.
Q: HOW HAS THE ADVENT OF THE ROBOTS-AS-A-SERVICE BUSINESS MODEL AFFECTED ROBOTICS ADOPTION?
Bart Cera – Vargo: One of the major ways RaaS has affected robotics adoption is by reducing the required capital purchase entry point and providing a bundled cost of use. In addition, many RaaS subscription providers offer flexibility to scale robotic operations up or down based on demand, whereas a traditional CapEx robotic purchase would require overinvestment to handle short-term peak operating demand or the deployment of some other work process to [handle the overflow]. Another positive that comes to mind is the ability to conduct an in-facility pilot to prove out the robots’ functionality. And because the robots tend to be quick to deploy, you can realize the benefits of the technology sooner.
Stanislas Normand – Exotec: I think that overall, RaaS will benefit the adoption of robotics. The model effectively brings down the financial barriers to trying out robotics, which can be particularly appealing to smaller or risk-averse organizations. We have even started seeing some early signs that RaaS can help move prospects toward higher-performance CapEx solutions.
Robert Humphrey – Element Logic: RaaS has drastically increased adoption of robotics systems for the industry as a whole. It allows the end-user to greatly improve the ROI timing because it [eliminates the need for a large upfront capital investment] yet typically provides immediate benefits. It has greatly reduced the barrier to entry for many companies. It also provides a flexible approach, which makes growing and/or changing the system to align with the underlying business needs easier.
Q: WHAT CAN TODAY’S ROBOTICS SYSTEMS DO THAT PREPANDEMIC SYSTEMS COULD NOT?
Rick DeFiesta – GeekPlus: Industrial automation is the fastest-growing segment technology-wise. Robotics companies were pushed to solve problems to meet demand at a much faster rate than if the pandemic hadn’t happened. As customer demand for speedier deliveries continues to increase, robotics companies are always working to create smarter and faster automated warehouses.
Nathan Richter – Movu: Postpandemic robotics systems are far more advanced in terms of flexibility, scalability, and intelligence. Today’s robots can integrate seamlessly with warehouse management systems, work alongside human workers in collaborative environments, and adapt to changing workflows in real time. Our robots can now handle a broader range of tasks, from pallet and bin storage, to pallet transport, to bin/eaches picking.
Andrea Pongolini – E80: The capabilities of robotic systems have evolved significantly since the prepandemic era. Today, robotic systems offer advanced integration with digital infrastructures, providing real-time data analysis that enhances decision-making and operational efficiency. They now handle more complex tasks with precision, such as using vision systems for intricate product handling. In addition, modern systems are more adaptable and scalable, allowing businesses to respond to sudden fluctuations in demand more effectively.
Q: HOW WILL ADVANCES IN ARTIFICIAL INTELLIGENCE (AI) AFFECT TOMORROW’S ROBOTICS?
Nathan Richter – Movu: AI will enhance warehouse robotics by making systems more adaptive, predictive, and efficient. Our company is already exploring AI-driven optimization in our robots, enabling smarter decision-making, such as dynamic route planning and predictive maintenance. These advancements will allow tomorrow’s warehouses to operate with even greater efficiency and minimal downtime, driving further innovation in the sector.
Cody Upp – Zebra Robotics: We look for advancements in AI to enable the use of machine learning instead of algorithmic decision-making around order allocation.
Bart Cera – Vargo: Wow, that is a great question—and one that’s hard to answer given the significant AI advances we’ve seen in a relatively short time. I think robotics (with the help of continued increases in computing power) will continue to make stair-step increases in performance speed and the ability to perceive the environment around them, while further expanding their autonomy and possibly even increasing their cognitive abilities to apply reason, plan, and solve problems. Hopefully, it stops, though, before they become self-aware and take over the world (ha ha).
Q: WHAT ONE PROBLEM DO CUSTOMERS MOST WISH TO SOLVE WITH ROBOTICS?
Ben Gaegauf – Agilox: Our customers want to improve their ability to serve their own customers while at the same time improving their productivity and profitability. Efficiency is the name of the game. Our customers want predictability, improved workplace safety, traceability, and, above all, the flexibility to adapt to changes in the market quickly, easily, and independently.
Andrea Pongolini – E80: I’d say the one problem our customers most wish to solve with robotics is improving operational efficiency while reducing costs. Across industries, companies are constantly looking for ways to streamline their production processes, increase throughput, and optimize resource utilization—all without compromising quality or safety. Robotics plays a critical role in addressing these challenges by automating repetitive tasks, improving accuracy, and minimizing the inefficiencies associated with manual work.
Stanislas Normand – Exotec: I would say it’s a blend of two problems: reaching a high level of performance while maintaining operational flexibility. Traditionally, warehouse automation focused purely on performance, which is why many legacy automation solutions leveraged monolithic systems optimized for high throughput. The problem with these systems is that you need to have the ability to accurately forecast your needs years in advance because once these systems are installed, there is no easy way to scale them up or down. This means that most of these projects either overshoot or undershoot with respect to capacity.
That’s where robotics fits in. Because robotic systems are generally lighter weight, have shorter installation times, and can scale after the initial installation, they offer the best of both worlds in terms of their ability to reach high performance without sacrificing the flexibility to grow your operations down the line.