Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
In the early days of automated guided vehicles (AGVs), there typically was just one way the computer-controlled autonomous load carriers could find their way around the manufacturing plants where they initially were used: by following wires embedded in the floor. While revolutionary back then—load carriers could for the first time trundle around a facility without a human operator—that method was simply the first stage of a technological evolution that is not only changing the equipment itself but is also stretching the boundaries of where AGVs can go and how they're used.
In recent years, the number of navigation methods used by AGVs as they pick up, carry, and drop off their loads in factories, warehouses, and distribution centers has multiplied. But AGV manufacturers aren't done yet; they continue to tinker with existing guidance technologies and develop new ones. What follows is a brief overview of some of the navigation technologies in use today, along with a preview of what AGV users can expect in the future.
THE TRADITIONALISTS
Wires (also known as inductive guidance) and another early guidance method, magnetic tape, remain popular options, particularly for small and medium-sized operations, in part because they are relatively inexpensive and can offer a quick payback. With wire guidance, a continuous wire path is embedded in the floor. Antennas on the vehicle detect a radio signal from the wire, and encoders on the wheels calculate the distance traveled.
Magnetic tape, which also requires a continuous path, is attached to the floor with an adhesive and may require a protective coating. A sensor on the underside of the vehicle detects the magnetic field, leading the vehicle to follow the tape.
A variation on this theme is a magnetic grid, which uses magnets affixed to or embedded in the floor in a grid pattern. An onboard sensor detects the magnets, and the reference points are stored in the AGV's memory as X and Y coordinates. A gyroscope on the vehicle measures and maintains direction, and a wheel encoder calculates the distance traveled. In a magnetic grid, the guide paths can easily be changed.
Still another option is inertial navigation, where transponders are embedded in the floor. An onboard gyroscope detects slight directional changes and corrects the vehicle's travel path to keep it on course. Providers such as Daifuku's Jervis B. Webb division note that inertial guidance vehicles can operate in almost any environment, including tight aisles and extreme temperatures.
NEWER KIDS ON THE BLOCK
Who makes automated guided vehicles?
Just a few years ago, only a handful of companies were designing, making, and selling automated guided vehicles (AGVs). Today, there are quite a number of vendors and types of automated vehicles, including load carriers, load lifters, driverless forklifts, tuggers, low-profile carriers, and automated carts.
Interested in checking them out? This is by no means a comprehensive list, but the following are some of the AGV providers we've run across:
More recently developed guidance technologies rely on various ways of measuring distances, mapping, storing data, and decision making for navigation. All provide a degree of flexibility that earlier technologies couldn't offer—probably the biggest reason for the inroads AGVs are now making in warehouses and DCs. They all make it easy and fast to reprogram routes, require no (or, in the case of laser guidance, minimal) additional infrastructure, and can navigate on their own around obstacles.
Laser-guided vehicles map and store the facility layout in the vehicle's computer. A laser transmitter/receiver mounted on the vehicle detects reflective strips located at fixed reference points and measures both its distance and angle relative to the reflectors. By triangulating two reference points, the AGV can determine and update its location. AGV maker JBT Corp., for example, says its patented laser-guidance technology uses an eye-safe laser scanner that "strobes" the operating area and updates its position several times per second, resulting in highly accurate positioning. Transbotics, another AGV developer, touts laser guidance for its accuracy, reliability, security, dynamic traffic management, and short installation times.
Natural-feature guidance is a relative newcomer to the AGV scene. AGVs equipped with this type of technology record and store reference images as a map of the operating area. They then navigate by calculating their position relative to existing features—walls, racks, I-beams, doorways, stacks of pallets, and so forth—following the most efficient path, just as a human being would when walking through the facility. A major advantage of this technology is that it requires no markers, transponders, or reflectors. In addition, guide paths can easily be changed by retraining the AGV or by drawing a new route on the map. Sweden's Kollmorgen was one of the first to develop this capability, and others have followed. AutoGuide, for example, is about to introduce a low-profile AGV that measures the locations of natural features to use as reference points as it moves along its route, says Sarah Carlson, vice president of marketing and business development.
In somewhat similar fashion, the Otto Motors division of Clearpath Robotics uses simultaneous localization and mapping (SLAM) technology for its self-driving material handling vehicles—the same underlying technology used in self-driving highway vehicles, says Simon Drexler, director of industrial solutions. Otto uses laser-based "lidar" (from "light" and "radar") scanning to gather data and construct a highly detailed map of the facility floor. Once it has the reference map, it can navigate any route without a defined path or line. The vehicle is intelligent enough to plan and follow its own route, Drexler says. Once the reference map is in place, users can drag and drop location pins on the map to instruct the vehicle where to stop for pickups and dropoffs.
Vehicles that use vision-based navigation come closest to processing visual information the way a human being does. AGVs built by Seegrid, which pioneered this technology, use five pairs of stereo cameras to record the surrounding environment as an operator "trains" them by walking them through their route. The cameras take two images simultaneously, achieving binocular vision with depth perception that's similar to a human being's. This information is used to create a three-dimensional map of the surroundings every few centimeters; the images are then tied together to create a route, explains Jeff Christensen, Seegrid's vice president of products. The AGVs replay the route from their memory and follow it precisely. Changing the route is a simple matter of taking them on another "walk" with an operator.
While each navigation method has its advantages, each has some drawbacks, too. For wire guidance, the principal drawback is that paths are fixed and cannot be easily changed, since they require cutting into the floor. Magnetic tape paths are also fixed but can be changed with comparatively little time and expense. And magnetic grids can be expanded without making major alterations to the facility, though extensive layouts can get complicated.
The more technologically complex navigation systems also have some constraints. Vision-guided AGVs, for instance, need a certain level of ambient light, and their cameras and lenses aren't suited for cold environments. As with human vision, the farther away an object is, the harder it is to judge that distance. Laser and lidar users praise their accuracy, but if lasers from two vehicles point at each other, they can in effect blind each other's sensors, a phenomenon known as dazzling interference, Christensen says. Similarly, bright sunlight has been known to interrupt the images and compromise data gathering in natural-feature and vision guidance systems, Carlson says. Plus, natural-feature technology would be ineffective in environments where there are frequent changes or few permanent features or structures to navigate off of, she adds.
BLAZING NEW TRAILS
Can AGVs get any more sophisticated than they already are? The vendors we spoke with for this story believe that more advances in navigation technology are just over the horizon. For example, innovations in image-sensing technology for consumer applications will benefit AGV design, says Seegrid's Christensen. The availability of more-sensitive image sensors that provide exceptionally high-quality images in less-than-ideal conditions continues to grow. His company's vehicles, for instance, will soon be able to take high-resolution pictures in lower light because of such advances.
New developments in navigation are one reason AGVs are moving more deeply into warehousing, distribution, and supply chain applications, AutoGuide's Carlson says. She also predicts that navigation systems that allow users to control a small fleet of AGVs through an app on a tablet, mobile phone, or laptop without a large-scale traffic management software installation will make these vehicles affordable and feasible for smaller companies.
The new navigation technologies will help customers participate in and take advantage of Industry 4.0, the "fourth industrial revolution," characterized by the acquisition, analysis, and consumption of real-time operational data, says Drexler of Clearpath Robotics. "That's where I see the industry going—moving more away from the focus on hard goods and more toward the utilization of real-time data."
Advances in autonomous cars and trucks are likely to influence material handling AGVs in the future, all agree. "AGVs have been around a lot longer, but autonomous cars are a really big story in a much bigger sphere than warehousing, so there will continue to be a lot more discoveries and development in that area," Christensen says. "[Automakers] can learn something from autonomous industrial vehicles, and we can learn some things from what they're doing."
Drexler, for one, believes AGVs will have an edge over autonomous highway vehicles. "We believe the adoption rate for self-driving vehicles will accelerate faster indoors than outdoors," he says. Otto Motors, he adds, is currently on track to surpass Google's self-driving car in the number of autonomous miles driven by the end of next year.
Related story: Starting over. Read about how Calsonic Kansei North America eliminated local drayage, built a brand-new DC, and installed custom-designed automatic guided carts. The award-winning project achieved ROI well ahead of schedule.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.