In Burgos, a province in central Spain better known for archaeological digs and blood-sausages than for innovation, engineer Veronica Pascual is building automated vehicles. Not cars though, but forklifts, stackers and pallet trucks.
Pascual, a 38-year-old aeronautical engineer, owns Asti S.A.U., a company that produces so-called AGVs, or automated guided vehicles — mobile robots used in factories and warehouses that do not require human intervention to move.
While tech companies from Alphabet Inc to Uber Technologies Inc are scrambling to make self-driving cars, far less attention is paid to other, less sexy types of vehicles, opening a niche for companies like Asti, whose vehicles are used for moving a range of goods, from large packs of food boxes to 30 tonne airplane parts.
Photo: Bloomberg
The robotics service market is growing fast. Bank of America Merrill Lynch expects robots to be performing 45 percent of all manufacturing tasks by 2025, compared with 10 percent in 2015.
The bank also estimates the industrial logistics, packaging and materials market will be valued at US$31 billion by 2020.
Despite the opportunity, there are few firms trying to take over the factory floor.
“Most robotics investments still go on industrial equipment,” said Mehdi El Alami, a partner at consultancy Roland Berger LLC, adding that only 2 percent is spent on logistics.
Caterpillar Inc and General Electric Co are among the few that have invested, having both backed Clearpath Robotics, a Canadian start-up focused on developing autonomous vehicles that move goods around factories.
Nissan Motor Co and BMW AG are among the automakers testing and using autonomous vehicles in their factories.
The ever-growing competition for the ultra-fast delivery of goods will speed up the emergence of robotization as the only means to capture more profitable revenue, El Alami said.
Asti hopes to cash in on the trend. Operating in 15 countries, it counts the likes of PSA Group Ltd, the manufacturer of Peugeot and Citroen cars, drugmaker GlaxoSmithKline PLC and Spanish foodmaker Campofrio Food Group SA among its clients.
Asti’s sales jumped five-fold between 2012 and last year to 20 million euros (US$23 million), with plans to hit 100 million euros by 2020. Last year, the company sold a total of 956 vehicles.
“The US is a big market for growth, because there aren’t many people doing these type of projects there,” Pascual said in an interview in her factory.
PepsiCo Inc and Procter & Gamble Co are among its clients, as is Mexican breadmaking giant Grupo Bimbo SAB, which uses Asti’s vehicles to move pallets with bread from its plastic wrapping station to the warehouse at one of its Spanish plants.
Founded by Pascual’s parents in 1982, the company is housed in a 5,500m2 building at the end of a shabby road. About 150 employees clad in red jackets and black T-shirts build automated vehicles with names like RoboFasts, Easybots and Hardbots.
On one side of the factory, engineers and other employees hunch over tables working with the patented technology that allows the vehicles to rely on sensors and lasers to guide their movements.
Much of the space is given up to testing, some vehicles moving freely while others trundle down predesigned corridors.
One project is focused on automated battery-changing modules, where vehicles can have their low-charge batteries replaced automatically, without human intervention.
One business model Pascual hopes to change is the traditional factory line, swapping fixed robots for moving ones.
“Rather than taking parts to assembly lines, as has been always done, with automated vehicles you have the chance to move parts around, so a carmaker doesn’t have to be tied to the assembly lines anymore,” Pascual said.
Asti sells more than 60 percent of its vehicles abroad, with France as its main market.
In 2015, installations of industrial robots surged in Spain by 63 percent, according to the most recent data compiled by the International Federation of Robotics.
There is also room to grow. In the same year, there were 150 robots per 10,000 employees in Spain’s manufacturing industry while France had about 127 per 10,000, compared with 301 in Germany.
Confronted with the question about fears over job loss to automation, Pascual said it is a question of preparing people for different types of jobs.
“New job opportunities are created. There is a need to make more people employable. You can see destruction when instead of us leading the transition to automation we simply live with its consequences,” she said.
Pascual pinpoints her company’s own academy and education programs, aimed at both university and high-school students, that seek to foster job experience as well as young students interest in hard science.
Not everyone is so enthusiastic.
“We are analyzing the impact automatization will have and seeing it with concern,” Carmelo Ruiz de la Hermosa, industrial policies secretary at the UGT-FICA union group, said in a telephone interview. “Progress cannot be stopped and there will be more production and productivity, but there will be a lot of workers who are likely to be excluded, mainly in manual jobs.”
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle