Vacations cast doubt on payback calculations
I consider payback calculations to be very reasonable, if not mandatory, but I always question the reasoning associated with them. More often I hear that the customer demands amortization within one to two years. This is quite astonishing to me, since hardly anything in companies pays for itself in such a short time. Not the building anyway, but also not a machining center or other major investment.
Travel forms
We have a motor home and sometimes take vacations with it that we would not otherwise take or could not afford. In the fall vacations we were among other things in the Czech Karlovy Vary, a spa more noble than Baden-Baden, but just in the Czech Republic. Over carnival we were once again in Davos, Switzerland. Without a camper simply unaffordable. Between the two trips were four months and 600 km.
On an axis of 600 km the labor costs differ by a factor of 3
Karlovy Vary is 300 km northeast of our home near Munich, Davos 300 km southwest. In Karlovy Vary, we paid less than 9 euros in a normal restaurant for the goulash that is popular there. In Switzerland, a comparable meal with meat costs around 45 francs upwards, i.e. over 45 euros (the franc has long been stronger than the euro). This relation can probably be transferred to wages in a weakened form: A Swiss earns about three times as much as a Czech. Wages represent the classic basis for an amortization calculation. Of course, robots and their integration are more expensive in Switzerland than in the Czech Republic, but certainly not by a factor of 3. In other words, a robot is significantly more expensive in relative terms in the East.
Robot density is high in the Czech Republic
As can be seen from the above graph, robot density (i.e. number of robots per 10,000 employees) in our eastern neighbor is lower than in Switzerland, but not seriously so. That of neighboring Slovakia is almost as high as that in high-wage Canada. Canada probably lies between Switzerland and Germany in terms of wage costs. I.e. a multiple wage does not lead to a corresponding robot employment. Certainly there is far less in the way of large-scale repetitive work in Switzerland than in the Czech Republic, and the overview is based primarily on industrial robots. (The Czech Republic is home to a lot of automotive, Switzerland to little.) On the other hand, the shortage of skilled workers in Switzerland is likely to be much higher. Actually a rational reason to use robots even temporarily. But it is not known that cobots are booming in Switzerland or that service robotics is booming in the Swiss gastronomy. By the way, the last time I saw a service robot was in a restaurant in Prague.
In general, a comparison of Spain or France with the Czech Republic would perhaps make more sense, since the industrial structure is more similar here than in the comparison with Switzerland. Here, too, it could be noted that wages in France are significantly higher than in the East, but this is not reflected in the robot density.
Impressions from Karlovy Vary
Example gastronomy: bar robot
The Swiss robot manufacturer F & P Robotics already presented its bar robot "Barney" in 2019. It caused a sensation when it was presented and probably sold a few times. Nevertheless, it is not a success. In 2022, a Barney could even go on tour through large Migros supermarkets and offer non-alcoholic drinks. But even this is unlikely to have led to any significant sales. Well, a bar is only open a few hours in the evening, so that an investment of presumed 100 T€ would not be earned within a few months, but a good amortization should still be given. Above all, the restaurant industry in Switzerland is desperately looking for employees.
In Prague, on the other hand, where wages are known to be significantly lower, there is a robot bar directly on Charles Bridge. According to my information, a Kuka is used.
Conclusion: Mindset first, amortization second
My interpretation: The purchase of robots depends to a considerable extent on the mindset of the buyer. This is the basic prerequisite for a purchase consideration. Then the amortization calculation is carried out. Those who are mentally open and have a problem that they can credibly solve with a robot will then also accept three years or more of amortization.
Are we networking? LinkedIn
-> To the Cobot group on LinkedIn (Link)
In my own business/ advertising
The author of this blog answers companies the question if and how a robot could be used in your company (initial analysis including recommendation). This in the greater areas of Trier and Lüneburg as well as Eastern Germany without Leipzig/ Berlin for 700 € net, in the rest of Germany for an all-inclusive price of 1,750 € net (incl. travel). The low price is possible thanks to promotion. Permanently looking for interesting solutions, he has already seen hundreds of applications. For this reason, his customers also include large companies that have know-how but do not know the entire market. For companies with 250 employees or more or those based in Austria or Switzerland, the flat rate does not apply. You can find more about him here.
