Robotic picking market is expected to reach a value of $6.8 billion by 2030
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The market for robotic picking is expected to experience significant growth, reaching $6.8 billion by 2030, according to research from Interact Analysis. Factors driving this growth include rising labor costs, supply chain constraints, and the increasing adoption of automation in industries such as e-commerce and warehouse management. Currently, there are a limited number of suppliers in the market, but the report predicts that the landscape will change drastically over the next decade with the entry of new vendors. The expansion of warehouse automation and the need to streamline operational efficiency will contribute to the growth of the robotic picking sector. The United States leads the market, driven by high labor costs and significant investment in the sector.
Check out today’s featured article from MH&L to read about what the market for robotic picking has grown so much in the last couple months, and how much it will grow in the next 7 years. Will the rising labor costs and supply chain constraints really help the market grow by 6 billion? Can the market grow from $236 million to $6.8 billion in less than 10 years?
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Robotic Picking Market Worth $6.8 Billion by 2030 | MH&L
“Rising labor costs and supply chain constraints are key drivers for growth, says a report from Interact Analysis.”
Manufacturing & Labor Issues 🚗
Production at Toyota Indus has been temporarily halted
Toyota Indus, a subsidiary of Toyota operating in Pakistan, has announced the complete shutdown of its production plant in Karachi from June 3 to June 8, 2023. The company cited supply chain disruptions as the primary reason for the temporary closure. Challenges in importing raw materials and obtaining clearance for consignments have impacted the company's supply chain, leading to insufficient inventory levels, and hindering vehicle production. This marks the fourth time in 2023 that Toyota Indus has halted production due to supply chain issues.
Furthermore, the company's stock has experienced a decline over the past year. Over the last 12 months, Toyota Indus' stock has fallen by almost 23.5%. On June 7, 2022, one share of Toyota Indus stock was valued at Rs 1227.20 ($14.87). However, as of 9:00 AM EDT June 6, 2023, one share of Toyota Indus stock is now worth Rs 938.88 ($11.38). The combination of supply chain disruptions and the decline in stock value poses significant challenges for Toyota Indus and its operations in Pakistan.
Driver Issues & Safety 🚛
A recent study has shown more truck drivers are dying from not using seat belts
The lack of seat belt use among truck drivers is a growing concern for federal regulators, evident from the recent fatality data. In 2021, a staggering 64% of truck drivers killed in crashes involving large trucks were not wearing seat belts, marking a significant increase from 59% in 2019 and 44% in 2020. The data also emphasize that 42.6% of large truck occupants who died in crashes were wearing seat belts, underscoring the critical importance of seat belt usage for safety. Alarmingly, nearly 75% of those who did not use seat belts were completely ejected from the truck during the accidents.
In response to this alarming trend, the Federal Motor Carrier Safety Administration is integrating it into its strategic plan, focusing on proactive measures such as outreach programs, and educational campaigns, and gaining a deeper understanding of the factors contributing to drivers' decisions not to use seat belts. Furthermore, fatal crashes involving large trucks witnessed a 16% increase in 2021, surpassing 1,000 occupant fatalities for the first time since at least 2005. These concerning statistics highlight the urgent need for concerted efforts to improve seat belt usage and enhance road safety in the trucking industry.
Let’s Get Global 🌎
🇦🇪 In the UAE plans are underway to establish a massive freight grid.
Swedish electric and autonomous trucking company, Einride, has signed a Memorandum of Understanding (MOU) with the United Arab Emirates (UAE) to develop a freight mobility grid called Falcon Rise. This ambitious project will cover 341 miles and involve 2,000 electric vehicles (EVs), 200 autonomous vehicles (AVs), eight charging stations, and over 500 charging points.
🚢 Low container shipping freight rates are not viable in the long term, says the CEO. Hapag-Lloyd, the world's fifth-largest container shipping operator, has warned that current low freight rates in the industry are unsustainable and must increase. CEO Rolf Habben Jansen stated that there are spot rates below cost, which is not viable in the long run. He believes that when rates become cash-negative, measures will be taken to settle rates slightly above cost. The Shanghai containerized freight index hit a low point in the second quarter but has since remained stagnant.
🛢️ OPEC+ partners urge for clarity; Russian crude exports remain at high levels. Russian crude oil exports continue at high levels with no significant evidence of output cuts, raising concerns among OPEC+ partners. Seaborne shipments of Russian crude oil have remained elevated, surpassing 1.4 million barrels per day compared to the end of last year. The increased exports cannot be attributed solely to the diversion of pipeline flows or reduced refinery runs.
iLevel With You 🏡
More topics for the average American household to consider…
🔋 We may not need EVs to lower carbon emissions. Toyota has released a study suggesting that electric vehicles (EVs) may not be necessary to significantly reduce carbon emissions. According to the study, implementing a fuel economy (eco) mode component in cars can achieve substantial fuel savings and emissions reduction. By covering 400,000 miles in eco mode, Toyota demonstrated savings of over 5,000 gallons of gasoline and $18,000 in fuel costs, with a 26% reduction in carbon dioxide emissions.
💰 Automated tax compliance has the potential to enhance supply chains. The digitization of commerce and the growth of cross-channel selling have increased friction points in the buying process. Tax calculation is a critical source of friction that is often overlooked. Automated tax compliance solutions help address these challenges and relieve pressure on the supply chain.
🏆 CH Robinson, a leading logistics company, has chosen a Ford executive as its new CEO. Bozeman, who most recently served as the vice president of Ford's customer service division, will assume the role on June 26. Scott Anderson, who had been serving as the interim CEO since January, will continue in the role until Bozeman takes over but will remain on the company's board. The appointment of Bozeman comes after a search for a new CEO since the departure of Bob Biesterfeld earlier this year. Bozeman brings over 30 years of executive-level experience, including roles at Ford, Amazon, Caterpillar, and Harley-Davidson.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
👟 Nike, McCormick, and several other companies are actively addressing supply chain emissions. Tracking and reducing Scope 3 emissions in supply chains is a major focus for companies like Nike, McCormick, and The Estée Lauder Companies. These companies recognize the significant impact of indirect emissions throughout the value chain and are implementing strategies to address them. Collaboration among brands and industries is crucial, allowing collective demand signals for renewable energy in manufacturing countries like Vietnam and Indonesia. Supplier partnerships play a vital role in reducing Scope 3 emissions, with programs like the Supplier Leadership on Climate Transition supporting vendors in developing emission reduction strategies.
🚢 Container terminals at the Port of Los Angeles have resumed operations following work stoppages. Container terminals at the Port of Los Angeles have reopened after work stoppages caused by labor disputes. Other ports in the region, including Long Beach, Oakland, and Seattle, have also been affected by the slowdown. The resumption of operations comes as retail groups express concerns about potential disruptions to the flow of goods, particularly ahead of the back-to-school and winter peak retail shipping seasons.
🎥 Ticket camera regulations are being discussed in legislative sessions across 11 states. Ticket camera regulations are currently a hot topic in 11 statehouses across the United States. Following federal guidance that allows states to allocate funds for roadway safety programs, lawmakers are adopting and pursuing legislation related to automated ticket cameras. The use of ticket cameras, which are utilized to catch traffic violations, is being discussed in relation to their legality, privacy concerns, and transparency in the ticketing process.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.