Factories around the world want automation. However, 70% of these factories have not seen success with automation, due to non-value added costs, skills and labor issues, systems that are outdated and employees that are resistant to change. Many factories are working without clear data, ROI, or other quantifiable ratios, which can make the idea of automation reasonable in their eyes because they don’t yet understand its value. These obstacles make it difficult to move forward, and they inhibit long-term success. The optimistic news is that these obstacles can all be removed. Of course, this would require a strategy and great partners. Still, these obstacles are fixable, and you can practically guarantee true automation success. We will discuss it in this blog to emphasize the value of automation in productivity.
Despite all of the obstacles in the way of automation, the need for automation has never been greater. The demands of the modern marketplace require factories to be faster, produce higher quality products and keep costs down. As a rule, you cannot do all of this while relying on manual procedures. Automation will help a factory improve efficiency, get rid of errors, and remain competitive in today’s marketplace by pushing repetitive work away from the employee (such as accounting or reporting) and allowing them to focus on roles that require their unique and skilled expertise. As a trend, automation is showing growth as rapidly advancing technical capabilities (digital tools, AI, and smart machines) risk being completely ignored because of a lack of affordability or availability. Automation is not an option; factories in KSA need automation to survive and grow.
The Rising Automation Trend in Saudi Factories
Automation is on the rise and has quickly become an essential part of the future of industrial development, especially in Saudi Arabia. With Vision 2030 driving factories to utilize smart technologies to help increase productive capacity and move from manual to automated processes, several factors have contributed to the need for such change, such as increasing labor costs, growing global competition, and ultimately improved productivity efforts. Nonetheless, many factories have begun to purchase robotic machinery, AI-powered systems or Digital Platforms to help automate and upgrade how fabricating works at the plant. While there are still challenges to overcome, it is clear that factories in KSA are beginning to consider automation in their respective journeys. In addition, they are also making necessary changes to provide a more competitive operating environment in their facility.
Why do 70% of factories fail in automation?
Many factories invest in automation, but very few see results. The reasons are complex – some are strategic, others are organizational and capability. When organizations fail to align technology with people and processes, often their automation journey dies before it really begins. Many times, factories misjudge actual costs, misunderstand the actual capabilities of their people, or rely on a future competency to happen at an unspecified time in the future. This leads to poor investments and aggravation because many organizations are now struggling with partial adoption to enable them to realize the full benefits of automation.
High Automation Costs Holding Back Adoption
The high up-front cost of automation is still one of the biggest issues for factories. The way you pay for robotics, sensors, and software is all expensive up front – a massive investment for smaller, mid-sized manufacturers to budget for all at once. Even if factories manage to secure financing, the upgrades or maintenance will require additional financing. Ultimately, because there are no easily established and accessible options, factories don’t move with speed because they fear a large financial investment and zero returns, waiting for timelines in which to see results.
Skill Shortages in the Manufacturing Workforce
In order for factories to reap the benefits of automation, they must also cultivate a workforce that knows how to operate, operate, and maintain the systems used for automated manufacturing. Unfortunately, many factories are challenged by talent shortages. A shortage of training in robots or data analysis could cause this traffic jam of workers. Alternatively, it could be that some factories perceive their workers can move from software platform to software platform without additional training. The shortage of skills lasts too long for deployments of those processes, and many factories are too reliant on external expertise to be grandfathered in. If factories don’t invest in the reskilling and upskilling of their employees, they continue to buy expensive tools to do basic tasks, and significantly detract from operational efficiency.
Legacy Systems Creating Integration Challenges
Older factories have limited capabilities to upgrade to automation technologies. Legacy machines were not built to integrate with a sensor or digital platform. The old machines also required a higher lift to be compatible with the automation. Additionally, data is stored in silos and affected by coverage that inhibits consistency in operations and insights in real time. If an organization is using legacy equipment, there may be a constant state of disruptions and wasted time without modern infrastructure in place. Once organizational leaders understand the potential for value to be generated with automation, it becomes increasingly important to focus on converting legacy systems or replacing older systems altogether.
Employee Resistance to Automation Change
Even when technology is ready, people might not be ready for the new. “Automations” can represent a threat to employment. Workers can become suspicious of new technologies and often fear that automation will replace jobs or undermine their authority. Managers may also push back on an implementation, noting the potential operational disruption made to existing workflows. Like anywhere, but especially in new automation systems, employees develop their workflows and become invested through reliance and routine. Their pushback can affect adoption and ultimately limit the potential value of the new systems. Converting employees’ push back to a culture of innovative potential will require transparency, ownership, and an effective change management plan that reinforces automation as a catalyst for improvement, change, and growth rather than a reduction in people’s employment.
Solution-Focused (How to fix it)
Reducing Automation Costs with Scalable Tools
Factories are addressing high costs through scalable and modular automation solutions. Rather than big upfront costs, factories can start small and move up slowly. Cloud and internet-based platforms, coupled with flexible systems (like modular components), reduce hardware cost and improve return on investment. This better payment structure incites factories to only pay for what they will maintain. Scalable solutions also lower financial risk for factories. Most scalable solutions provide affordability toward automation and allow small and medium manufacturers to adopt automation quicker to respond to a fast-moving market.
Closing the Skills Gap with Targeted Training
A big potential fast way to close the skills gap for automation is to invest in your employees’ upskilling and reskilling training. Factories should ensure their workforce has experiential learning in robotics, data analytics, and digital platforms. Upskilling training benefits lower employee resistance, builds confidence, and leads to success in adoption. If employees feel prepared and trained, the resistance to adopting an automation project goes down, and the productivity level goes up. Further, training will help ensure that factories can operate, maintain, and optimize their systems and equipment autonomously and not just rely on project experts. Finding, developing, and keeping a skilled workforce that is ready to develop future automation skills is critical for sustaining future growth.
Integrating Legacy Systems with Modern Platforms
The presence of legacy equipment does not have to stifle automation. With the help of today’s integration platforms, organizations can expertly bridge the gap between old machines and new technology. By enabling the connection of data flows between different devices while standardizing their communication, factories can achieve real-time visibility without retiring all of their assets. This means organizations can opt to spend less on their technology while gaining the opportunity to advance their corporate digital transformation. The ability to modernize over time, with integration tools providing a way forward, can also provide a pathway for organizations to modernize step-by-step. By upgrading, organizations can keep their existing systems relevant while finding value in automation.
Building a Pro-Automation Workplace Culture
Automation requires buy-in from people, and getting the employee base on board often requires a culture shift. Factories need to foster a culture that encourages their workers to view automation as an opportunity, as opposed to a threat. Proper communication about the advantages of their automation initiatives will lessen any fear workers may have with respect to their jobs, job security, and training. Leading organizations also need to work with employees to co-create a team working environment that will build trust and collective responsibility. By ensuring that automation aligns with workforce objectives, organizations can create a collective outcome that supports the growth of both people and technology for sustainable growth.
Tulip Technologies as a Partner for Automation Success
Tulip Technologies assists factories in streamlining and speeding up their automation journey, without having to start from scratch or with any upfront capital. No-code, cloud-based Tulip requires companies to invest less by removing cost hurdles and ultimately, complexity. Tulip allows Saudi factories to start small, integrates with existing systems and automates more easily than ever, scaling with ease. We are revolutionizing the employee experience by bridging the gap through our straightforward, simple user interface for digital workplace tools. We provide a clear view into factory operations with real-time visibility, flexible and simple automation deployments supported by experts, and are committed to successful automation projects. Partnering with Tulip turns barriers to success into opportunities to maximize operational efficiency.
Maximize Your Factory’s Productivity with Tulip Technologies in Saudi Arabia
Still battling old, outdated legacy systems or manual labor? Tulip Technologies brings automation to your site, ready to integrate plug-and-play automation into your workplace. Produced in Saudi Arabia, leveraging European technology, we provide ready-to-enter field-ready solutions like SAED for packaging, SABEG for painting, BARIQ for welding, and the AZM robotic arm. Plug-and-play means easy install, integration, and growth without the need to write code. Our teams support yours, along with Industry 4.0 Consulting, SIRI assessments and robotics hands-on training. Ready to optimize efficiency, reduce costs, and grow in the Saudi Market? Schedule your FREE consultation today. We provide solutions for any-sized factory looking for robotics automation. It does not matter if you are a small workshop or a large manufacturing plant; we have smart systems that support improved efficiencies, reduced costs, and faster growth across Saudi Arabia’s industrial landscape.
Frequently Asked Questions
Can small factories use robotics automation from Tulip Technologies?
Yes, Tulip Technologies offers scalable solutions for every size of factory, from small workshops to large plants.
What industries in factory automation robotics does Tulip Technologies serve?
We have robotics automation solutions for packaging, welding, painting, assembly, and many other manufacturing industries.
Does Tulip Technologies provide training and support?
Yes, we provide all training, consultation and ongoing support to ensure a smooth transition to automation.
Why work with Tulip Technologies for factory automation in KSA?
Tulip Technologies is the trusted partner for Vision 2030. We are a recognized and reliable factor when it comes to cost-effective and innovative robotics automation solutions.
