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The smart way to invest in robots

03 August 2023

Neli Ivanova explains how smart finance can help bridge the gap between what a manufacturer can invest, and what is needed to see meaningful return-on-investment in robotics.

According to the British Automation and Robot Association (BARA), the food and beverage manufacturing sector is one of the largest purchasers of automation technology in the UK.  Sales of individual robots sold to domestic manufacturers in the sector have been steadily on the rise, the industry saw a 21% increase between 2020 and 2021.

Things have moved beyond the days of just end-of-line palletising, picking and packing. Food manufacturers are now also making use of more advanced robotics earlier in the production process  to support more efficient, precise and flexible processes.

However, the UK lags well behind the rest of the G7 nations in the adoption of robots, with installations down 7% which contrasts poorly against the whole of Europe which saw a 24% increase in installations led by Germany (28%), Italy (17%) and France (7%). 

Given the UK’s longstanding and robust manufacturing presence, manufacturers must consider the risks of delaying investment in robotic automation technology. If the gap continues to widen, UK businesses may lose the edge to their European competitors. 

A report from the UK government identified that the application of automation and robotics in UK industry could contribute £6.4 billion to the UK economy by 2035. However, even greater take-up of the technology would encourage further growth and contribute to improved industrial resilience, the creation of new roles along the supply chain and international competitiveness. 

One barrier to investment, particularly for SME food and beverage manufacturers is the sheer scale of capital expenditure required to adopt new technologies, and that is why smart financing solutions will be essential to accelerating this transformation and helping food and beverage manufacturers move forward in their digitalisation journeys. 

Bridging the gap
Such techniques can step in and help bridge the gap between what a manufacturer can invest, and what is needed to see meaningful return on investment.

Smart financing is offered by specialist financiers who have a good understanding and knowledge of the industry and can enable the acquisition of technology and equipment for competitive advantage in a financially sustainable way, tailored to an organisation’s business and cash-flow needs. Specifically, smart finance makes investments possible and affordable by aligning costs with revenues. 

Additionally, it offers three major advantages over generalist finance – technology expertise which understands real business outcomes; a breadth of financing solutions which can meet the organisation’s exact needs; and smooth, sophisticated processes which make the use of smart finance seamless and easy. 

Robotics are already a staple of the F&B manufacturing space, making processes faster, more efficient, and more agile. For the UK to remain at the forefront of industrial production further investment in robotic automation technologies is not only essential but urgent. While the initial costs of investment may be off-putting to some, smart finance is available to bridge the gap. With the help of specialist financiers, manufacturers can acquire new technology and maintain their competitive edge. 

Neli Ivanova is Head of Sales, Asset Finance at Siemens Financial Services.


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