It’s widely recognised that automation in manufacturing can enhance efficiency, boost productivity, and drive overall business growth. Since the early 2010s, organisations have been advocating the transformative potential of automated systems in the manufacturing sector. Leading consultancies such as Deloitte, McKinsey, and Forbes have all highlighted the benefits of automation, emphasising its capacity to revolutionise the industry.
Despite the significant progress in manufacturing automation in recent years, some businesses remain unconvinced—and are falling behind as a result. A 2023 report by the Manufacturing Technology Centre found that UK manufacturers’ reluctance to invest in automation and robotics has had a marked effect on the nation’s productivity gains.
Meanwhile, although the US is often seen as a global leader in factory automation—particularly in the automotive industry—errors caused by inefficient manual processes remain a challenge. In 2023, labelling errors linked to undeclared allergens accounted for half of all food and beverage recalls in the US.
What, then, is causing the hesitation to embrace automation in manufacturing? We’ve identified seven key misconceptions about factory automation that we believe are unfounded and need to be addressed. In this blog, we aim to dispel these myths and show why, if you’ve been delaying your automation journey, now is the time to act.
Let’s tackle the most common misconception first.
No matter how you view it, manual processes are a major source of errors and, consequently, lead to unnecessary waste and costs for manufacturers.
As a general rule, the average error rate in manual data entry is around 1%. If workers on a production line are manually entering data as part of a coding and marking process, it won’t be long before one of these errors appears on your products. If your quality control processes are also manual, there’s a significant chance the error will only be identified after it has already caused thousands of items to become waste or require rework.
Should a product labelling error make its way into the supply chain, the resulting cost and waste are even more severe. The average cost of a product recall stands at $10 million – and that’s before factoring in the long-term financial impact of brand damage.
Myth #2: Automation isn’t suitable for my business because it’s too unpredictable
A common argument from contract packers is that their business’s unpredictability makes automation unfeasible.
Contract packers often manage products for multiple brands, handle frequent product changeovers, and adjust production levels to account for seasonal demand. Many believe this level of variability is incompatible with automation—however, the reality is quite the opposite.
Straightforward automated solutions can eliminate the need for manual data entry. For instance, barcode scanners can automatically populate product labels based on existing production orders, or printers can be configured to fill label templates directly from a central database.
In facilities with multiple production lines, coding automation software simplifies this further by allowing printers to be networked and product label data to be automatically populated from a central source, such as a production office, SCADA, MES, or ERP system. This can also be paired with automated machine vision solutions for real-time quality control, making automation a powerful ally in managing unpredictability.
Myth #3: Automation eliminates jobs
While certain tasks—such as code creation and data entry—are better suited to automation than manual labour, these roles are often repetitive and unfulfilling, and increasingly difficult for manufacturers to staff.
The reality is that the manufacturing industry is facing a labour shortage. A recent report by Deloitte and the Manufacturing Institute indicates that the US manufacturing sector could need up to 3.8 million new workers by 2033, with as many as 1.9 million of these positions potentially going unfilled.
Rather than replacing workers, the true purpose of robotics and automation in manufacturing is to complement them. By handling routine, monotonous, or hazardous tasks, automation enables the already stretched workforce to dedicate their time to value-added activities, such as strategic planning and project execution.
Many believe that automation is only within reach of large corporations with the resources to make substantial investments in capital and expertise.
In reality, automation can be highly advantageous for small and medium-sized enterprises (SMEs). By automating routine, low-skilled tasks such as manual data entry, SMEs can optimise their limited workforce and allocate resources more efficiently.
For smaller companies, the stakes are often higher than for their larger counterparts. A $10 million product recall, for example, could spell financial disaster for a small business, making automation an invaluable tool for reducing such risks.
Cost concerns are understandably a key issue for smaller organisations, which leads us to Myth #5.
Cost remains a significant barrier to automation adoption, with 81% of industry workers in Automate UK’s Industry Insights Survey 2024 identifying it as a primary concern in 2023.
While this concern may have been valid in the past, the landscape has changed. The benefits of automation in terms of cost savings and risk reduction are becoming increasingly apparent, and solutions are now more affordable than ever.
Using data from Domino’s Waste Calculator, it’s estimated that waste caused by manual label creation can cost the average manufacturer over $100,000 annually—a substantial loss that can be easily mitigated through simple coding automation.
Furthermore, the cost of automation technologies is steadily decreasing. EY reports that the average price of an industrial robot has halved in the past decade and is expected to continue falling. Companies that invest in automation also see significant savings on operational expenditure; a recent Bain survey revealed that organisations allocating at least 20% of their IT budgets to automation in the past two years achieved average savings of 22%.
For those still concerned about upfront costs, many providers, including Domino, offer options to upgrade production lines and implement new technologies without capital expenditure. Flexible finance plans and contracts allow businesses to spread the cost as part of operational expenditure, making automation more accessible for smaller companies.
Importantly, transitioning to automation doesn’t need to happen all at once. Small, incremental upgrades not only spread costs but also demonstrate the value of automation, paving the way for further investment—a point we’ll explore in Myth #6.
There’s an old saying: the best way to eat an elephant is one bite at a time. The same applies to automation.
Transitioning directly from manual processes to fully automated, lights-out manufacturing can be disruptive, but automation doesn’t have to be an ‘all or nothing’ approach. Businesses can start small by targeting specific areas where automation can address production challenges.
One quick win we’ve frequently observed is improving product changeovers. For instance, an automated monitoring solution can provide real-time product counts and alerts to inform production staff when a production run is nearing its end, enabling them to prepare in advance.
This straightforward upgrade allowed one Domino customer to cut their changeover time from 30 minutes to just 15, creating capacity for two additional production runs each day. Automating a single process like this can deliver immediate performance improvements and a strong return on investment, building the case for further automation down the line.
A common misconception about automation is the belief that businesses need specialised in-house skills to manage the transition. While this may have been a concern in the past, the reality today is quite different.
Many automation providers now offer comprehensive services to manage retrofits and implementations, removing the burden of implementation from your team.
Once automation systems are in place, they typically require fewer in-house skills to operate and maintain efficiently. This allows your workforce to focus on more value-added tasks, helping to address concerns about labour allocation while making your business more appealing to prospective employees.
What are you waiting for?
While manufacturers may have concerns and misconceptions about adopting automation, the landscape has shifted. With declining costs, clear financial benefits, and increasing support from automation partners offering flexible financing and implementation services, the real question is: can you afford not to embrace factory automation?
