The U.S. Robotics Renaissance: Can America Regain Manufacturing Ground?
As manufacturers increasingly turn to robotics and automation, the vast majority of products are still made overseas in more cost-competitive regions, such as China and Japan. But a shift may be underway, driven by a growing recognition of the need to bolster U.S. Manufacturing competitiveness. Lawmakers are exploring ways to help domestic companies catch up, and industry leaders are offering solutions.
The Current Landscape: A Global Robotics Divide
China has emerged as the world’s largest user of industrial robots, accounting for around 40 percent of the global market. In 2019, China installed 140,500 new robots, more than double the number sold in 2014. Despite the pandemic, robot installations in China increased by 20.7 percent in 2020. China now boasts the largest operational stock of industrial robots globally, reaching approximately 783,000 units in 2019, surpassing Japan’s 355,000 units.
However, robot density – the number of robots per 10,000 workers – tells a different story. Even as China’s density was 187 in 2019, Japan’s stood at 364 and South Korea’s at a significantly higher 855. This indicates substantial potential for further robot adoption in China, but too highlights a gap in the U.S. Position.
Evan Beard, co-founder and CEO of Standard Bots
Permission granted by Standard Bots
The U.S. Response: A Call for National Strategy
Evan Beard, co-founder and CEO of Standard Bots, a New York-based robotic arm manufacturer, recently participated in a roundtable discussion with the U.S. Department of Commerce’s National Telecommunications and Information Administration about robotics and industrial policy. Standard Bots, backed by investors like Samsung Next and Amazon Industrial Fund, is focused on a new approach to robot training – teaching robots by demonstration.
“We’re moving to be fully made in America, hopefully within the next year,” Beard stated. “We’re focused on this new way to train robots, where you show them what to do. And just by showing them, it’s learning and it’s training the robot.” This approach aims to simplify robot deployment and address the variability inherent in manufacturing processes.
Vertical Integration and Cost Competitiveness
Currently, Standard Bots sources some parts from outside the U.S., but is actively working to vertically integrate its manufacturing processes. The company designs most of its components in-house, with the exception of bearings, chips, and parts with gear teeth. Beard believes that by bringing more manufacturing in-house – including casting, heat treating, milling, and powder coating – Standard Bots can achieve cost parity with Chinese manufacturers.
“Job shops here can be brutal,” Beard explained. “But what we do believe is that by vertically integrating the manufacturer, by bringing these things in house, we’re going to be casting our own metal parts and heat treating and milling and powder coating all in our facility. And so by vertically integrating, we actually think we can be cheaper than China.”
Why the U.S. Fell Behind – and How to Catch Up
The U.S. Robotics industry’s current position is partly attributed to a lack of sustained national strategy. In the 1980s, Japan implemented a national robotics strategy that propelled its industry to global dominance, with Fanuc becoming the world’s largest robotics company. More recently, China adopted a similar strategy, leading to a tenfold increase in robot installations compared to the U.S. Over the past year.
“Countries are interfering with the free market, saying that This represents a foundational technology that’s really important in the future of our country, and we’re going to really incentivize this behavior,” Beard noted. “It’s created us falling behind.”
Policy Recommendations: A Multi-Pronged Approach
Beard outlined several policy recommendations to revitalize the U.S. Robotics industry:
- Centers of Excellence: Establishing regional centers of excellence to facilitate knowledge sharing and provide training in advanced manufacturing techniques.
- Manufacturing Extension Partnership Enhancement: Strengthening the Manufacturing Extension Partnership program to provide better support and resources to small and medium-sized manufacturers.
- Funding and Loan Programs: Creating loan programs similar to those used by the Department of Energy to support the establishment of new manufacturing facilities.
- Demand Signals: Utilizing government procurement to create demand for American-made robots through offtake agreements.
- Tax Incentives: Offering tax credits for the purchase of American-made robots.
- Depreciation as a Service: Allowing robots to be depreciated as a service, rather than as a capital asset.
The Future of Robotics: Training by Demonstration
Beard highlighted “training through demonstration” as a key emerging trend in robotics. This technology allows robots to be taught tasks by simply showing them what to do, eliminating the need for complex programming. Standard Bots is developing a handheld device that records a user’s movements, which the robot then learns and replicates.
“You’re not having to write code,” Beard explained. “You don’t have to figure out a rule-based way to express what to do. It can handle and do these tasks. It reduces the barriers to automate and the cost to automate as well.”
FAQ
- What is Standard Bots? Standard Bots is a New York-based company that designs and manufactures robotic arms for industrial applications.
- What is the biggest challenge facing the U.S. Robotics industry? The lack of a sustained national strategy and cost competitiveness compared to countries like China.
- What is “training through demonstration”? A new approach to robot programming that allows robots to learn tasks by observing human demonstrations.
- What policy changes are needed to support the U.S. Robotics industry? Increased funding, tax incentives, and the establishment of centers of excellence.
Pro Tip: Investing in workforce development programs focused on robotics and automation is crucial for ensuring that the U.S. Has a skilled workforce capable of operating and maintaining these advanced technologies.
Did you know? China installed ten times more robots than the U.S. In the last year, highlighting the urgency of addressing the competitiveness gap.
Want to learn more about the future of manufacturing? Explore our other articles on automation and industrial policy.
