Travel restrictions have prevented robotics companies from going out to customers' sites to install their equipment. So now they're finding creative workarounds.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Under pressure from exploding e-commerce demand, labor shortages, and Covid-19 health restrictions, retailers have increasingly turned to warehouse robotics as a way to safely carry out order fulfillment tasks.
However, plans to install new fleets of autonomous mobile robots (AMRs) have been snarled in 2020 by travel restrictions and occupancy limits imposed to slow the spread of the coronavirus. In some cases, robot vendors have been forced to cancel plans to send technicians out to install equipment at customers' sites, which is their normal operating procedure.
But that's not to say those installs have been put on hold. Rather than bow to the obstacles, warehouse robotics companies have stepped up to the challenge, finding creative ways to launch their equipment in distant DCs without ever setting foot on the premises.
MAKE YOUR OWN MAP
One such company is Westlake Village, California-based inVia Robotics, which announced in June that it had landed a contract to supply its AMRs to Kantsu, a Japanese logistics and warehousing service provider. With the Asia Pacific region experiencing red-hot e-commerce growth—online sales jumped 25% in 2019 and are forecast to reach $3 trillion by 2021—Kantsu was looking to automate fulfillment operations in its primary DC in Osaka, the vendor said in the announcement. As part of the deal, it added, inVia would provide 200 of its "Picker" robots along with its "Logic" warehouse optimization software.
In normal times, inVia would have sent a field technician to Japan to oversee the receipt and deployment of the robots as well as the software integration. As part of the process, the technician would also have "driven" a robot around the facility to create the digital map that would allow it to navigate autonomously.
But that wouldn't be possible in this case. The Japanese government had closed its borders to foreign travelers in March, ruling out a site visit. With travel off the table, inVia had to find a way to automate Kantsu's warehouse from thousands of miles away.
In the end, the process turned out to be surprisingly straightforward, according to inVia CEO Lior Elazary, who notes that in many cases, it was a simple matter of relaying instructions to staff on the ground in Japan. He cites the prep work required to enable the navigation system as an example. The bots, which are outfitted with visual sensors, navigate by scanning quick response (QR)-type bar-code stickers placed around a warehouse, Elazary says. Since it couldn't prepare the site itself, inVia simply provided Kantsu with the appropriate stickers along with instructions for posting them on walls throughout the DC.
InVia then shipped "an army" of nearly 100 AMRs to Japan, Elazary says. When the units arrived, the client simply opened the crates and freed the robots to "randomly walk around the warehouse" and create a digital map of the facility, he adds. Any problems that arose, such as warehouse workers loading overweight totes onto an AMR, were reported to inVia's robotics operations center (ROC), where technicians diagnosed solutions remotely.
Today, the system is up and running, with the Picker bots swiftly and efficiently selecting products and ferrying them around the facility. As demand and other operating conditions fluctuate, the integrated Logic software will automatically adjust the system's processes and paths accordingly.
"We needed to fly an installation technician to Germany from the U.S. to install the vehicles. However, due to Covid-19 travel restrictions, this was not possible, as he was denied departure at the airport," AutoGuide President and CEO Robert Sullivan said in a blog post.
In order to complete the project on time, AutoGuide turned to a local systems integrator, ST-IR, which is based in nearby Ingolstadt, Germany. Using wearable headsets from RealWear Inc., AutoGuide virtually taught ST-IR employees how to install an AutoGuide MAX-N Pallet Stacker and a MAX-N Tugger using equipment it had sent to an ST-IR facility. Armed with that knowledge, the integrator was able to complete the job at the DHL site on schedule, Sullivan said.
According to Jan Nicolay, AutoGuide's European sales director, the installation process went smoothly. "We learned how to use the technologies efficiently and also how to adjust communication when working with remote support," he said in an email.
AutoGuide has since used the headset technology in other installations, allowing the manufacturer to stay connected to customers despite travel bans. "This technology can be applicable for addressing issues that arise that require immediate attention where the necessary knowledge is remote but face-to-face contact with the customer—and the long-term relationship-building benefits that accompany those interactions—holds immense value to both parties," Nicolay said.
Staffers at DHL's innovation center agree, noting that the two companies were able to overcome the travel challenge through a combination of technology and local expertise. "Regarding the remote installation, it was a pretty straightforward exercise: Instead of their engineers, we used a local integrator and had one of their experts remotely supporting via laptop," a DHL spokesperson said via email. "They are currently [deploying] two of their robots here for an expected timeframe of one year."
INCREASINGLY REMOTE CONTROL
Once found mostly in specialty applications and pilot projects, warehouse robots are fast becoming standard equipment in the modern e-commerce fulfillment center. But that newfound popularity also comes with some associated risks: The higher the number of deployments, the greater the likelihood that AMR vendors will face installation-related challenges. That's particularly true in an age when customers may be halfway around the world, and anything from politics to a pandemic can disrupt the flow of travel.
As a result, many robotics vendors are starting to design their machines with more than just fulfillment performance in mind. These days, they're also looking to build units that can roll into a site and get down to work without a lot of site prep or human supervision.
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.