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The Rise of the Warehouse Machine – Exotec and the Future of Warehouse Robotics

In 2014, the global warehouse robotics industry generated over $2.7 billion in revenues. Likewise, over the next five years, the expected annual growth is projected to be 8.4 percent. As the demand for greater warehouse automation and efficiency grows, so does the interest in warehouse robotics. Therefore, it’s not surprising that a number of new startups are making headlines with new innovations in this sector. And one of the most intriguing companies to enter this burgeoning field is Exotec, a French startup based on Lille.

Of course, Exotec is not the only company in this sector. However, it has received attention lately because of its capacity to allow warehouses to scale to their expanding needs. Understanding that technology in this area is rapidly changing, adaptability is key. Warehouse automation systems that facilitate this need are among the ones likely to excel. And combined with major shifts in social behaviors, the potential for business success is tremendous.

“In logistics warehouses, they are supplementing their workforce with robots that sort and transport items to different areas of the warehouse. This helps alleviate worker density and follow social distancing guidelines. This not only helps with worker’s well-being but ultimately improves capacity to support the increased volume.” – Jeff Linnell, CEO of Formant

A Push for Warehouse Automation

The appeal of warehouse automation is not something that just appeared. For well over a decade, warehouses have sought to enhance their logistics and operational capacities. For example, Amazon has been utilizing its Kiva robotics system for roughly a decade. But since then, several other drivers are advancing the level of interest in warehouse robotics. There is a notable shortage of skilled labor, which makes warehouse robotics attractive. Likewise, new technological developments like AI, machine learning, and the Internet-of-Things (IoT) have similarly advanced the field.

A bunch of robots handling packages in a warehouse
The prevailing theory of warehouse automation is that robots will always be better at Tetris than humans. Always.

Certainly, these developments are ample to increase the demand for warehouse automation. However, consumer shifts have been more powerful as of late. Consumer use of e-commerce has fueled tremendous demand for delivery systems. Also, consumer expectations of rapid delivery times from the time of order push warehouse systems to be highly efficient. And with COVID, these already present trends accelerated to an even greater degree. In essence, this has ushered in the “Come-to-Me Economy”.  All of these drivers have created a perfect tsunami making warehouse robotics and automation extremely attractive.

“There is a global need for robotics solutions in warehouses, but logisticians are often concerned about investing in traditional fixed automation in this fast-changing world. We offer a new generation of warehouse robotics.” – Romain Moulin, Co-founder and CEO, Exotec

A Demand for Scalable and Safe Warehouse Robotics

While these drivers should encourage warehouses to invest heavily in robotics systems, there has been hesitation. A major drawback has been investing substantial funds into a robotic system that only meets present needs. Many such systems are poorly adaptable. Even Amazon, which has been an innovator in supply chain automation, struggles with scalability at times. It now employs over 100,000 robots. But when additional infrastructure and robots are required, this can take months to realize. This has been even more challenging for other warehouses and businesses.

That is where Exotec offers a notable advantage in warehouse robotics. Exotec’s small robots, called Skypods, operate in 3-dimentions while using laser scanner navigation. Their navigation is guided by logistics software that optimizes route efficiency. Skypods then travel up to 4 meters/second along tall racks of standardized bins where they collect orders. The bins are then taken to a packaging station where employees complete the order. And if expansion is needed, all is required is a quick addition of more racks, bins and robots.

Naturally, the major advantages of Exotec’s warehouse robotics is its efficiency and scalability. But it also offers other benefits. The Skypods operate in their own portion of the warehouse where employees do not work. This markedly improves worker safety in the process. Given that other warehouses like Amazon continue to struggle with robotics safety issue, this is a huge plus. This explains why Exotec has recently expanded operations throughout North America and Asia. It also explains why they recently received another $90 million in Series C funding.

“Brands and retailers are seeing tremendous surge in e-commerce, accelerated by the current pandemic. They must now transform their supply chain to gain competitive advantage.” – Rudi Lueg, Managing Director of North America, Exotec

The Warehouse of Tomorrow

Recent shifts in consumer behaviors are expected to continue toward e-commerce. This will continue to drive a need for greater warehouse automation to improve efficiencies in both operations and logistics. Warehouse robotics are well positioned to serve this need. However, one of the concerns continues to be human labor displacement in the process. With more robots performing various tasks, some suspect that the need for human labor will diminish. However, it appears this view is a bit shortsighted.

Most experts in warehouse automation actually anticipate the demand for human labor will increase not decrease. The specific skills required are likely to change in terms of these positions. However, the incredible growth in volume of warehouse operations supports the perspective that jobs will increase. This has been the case for Amazon, which had to hire large numbers of individuals when the pandemic struck. The large increase in fulfillment requests necessitated more human labor, not less. Therefore, it’s likely the warehouse of tomorrow may be much larger in size or number. But they probably won’t have fewer employees.

At the present time, most of the growing demand for warehouse robotics appears to be in North America and Asia. These regions have the geographic capacity for developing warehouse networks for global distribution networks. But in the future, these networks will likely expand into other continents. Developing a template of warehouse automation will make this expansion more practical. And scalable warehouse robotics that are easily integrated into distribution workflows will facilitate these efforts further. Exotec just happens to be one of the companies leading the way toward this rather intriguing future.

 

Looking for some inspiration in your goals? Notes From Ed has the answers! And don’t forget to check out PROJECT BOLD LIFE: The Proven Formula to Take on Challenges and Achieve Happiness and Success.

How About a Nice Lab-Cooked Meal? – The Promise (and Challenges) of Clean Meats

In 2013, the first clean meats were introduced to the world. A burger, cultivated in from cell cultures, showed that it was possible to bypass traditional meat processing. Since then, roughly 55 companies are exploring lab-grown foods and their future potential. Notably, there are many advantages to these products, which include environmental benefits. But at the same time, there are some major challenges. Seemingly, however, a number of these startups are making headway in their ability to bring their products to the market.

A variety of clean meats are now being produced in the lab. These include fish, beef, chicken, as well as some unique offerings and delicacies. But now of these lab-grown foods have made it to market just yet. Several questions remain, including whether consumers will embrace these offerings once labelled “Frankenfoods.” But based on the millions of dollars being invested in these products, it would seem most investors think this is inevitable. Therefore, it’s a great time to take a look at where the clean meats’ industry is at this time.

“We’re still at the prototype stage, showing proof of concept and proof of value.” – William Chen, the Michael Fam Chair Professor and Director of Food Science and Technology at Nanyang Technological University Singapore

The Process of Lab-Grown Foods

The basic process of producing clean meats involve taking single cell cultures and allowing them to grow in the lab. Nutrients are provided that enable the cells to replicate and grow. Some replicate themselves as many as a trillion times before lab-grown foods are realized. Different companies are exploring different types of meats, each with varied success. This includes shrimp being produced in Singapore and steaks being cultivated in Israel. Combined with other technologies, like 3D printing, tremendous opportunities exist for these goods in the future.

A very paltry shrimp salad
Lab-grown foods may not sound appealing yet, but when it comes to truly clean food, they are the future.

Unfortunately, it’s not as easy as simply pouring some nutrients over a petri dish of cells. Unlike tissues in animals, clean meats do not grow linearly or in recognizable meat structures without help. In order to achieve this, some type of scaffolding structures must be provided. Likewise, for steaks to have fatty streaks, like a nice ribeye, other tissue cells besides meat must be added. This makes the process of lab-grown foods much more difficult than simply growing cells in a dish. But new technologies are allowing many of these startups to overcome these initial barriers.

Overcoming the Challenges of Clean Meat

The difficulties associated with lab-grown foods extend beyond the actual process itself. In trying to create a lab-to-table experience, the industry is tasked with overcoming other challenges as well. One of the most notable ones involves the cost of production. For example, Shiok Meats in Singapore continues to struggle with pricing despite making some headway. Its cell-cultured shrimp meat has gone from $2,268 per pound to $1,588 per pound. In order to be attractive in a market setting, this will need to drop by a factor of 100. Mosa Meats has nearly achieved this with their beef patty, which Is just over $10. So, it does seem that startups are finding ways to resolve these issues.

Other challenges for clean meats have also involved scaling to site and in attaining regulatory approvals. In order to produce the volumes of lab-grown foods that will be in demand, serious scaling is needed. But this is not easily achieved overnight. Likewise, few countries have developed a structured regulatory process for these foods. And of course, how consumers will respond to these clean meats remains to be seen. In some surveys, a majority polled had little interest in such foods, particularly younger generations. Thus, in addition to startup funding to help advance production volumes, marketing and lobbying activities will also be needed.

“Imagine when you can tailor the taste of any piece of meat. What does pork with salmon fat taste like? What does a mix between Wagyu beef and other heritage beef steak lines taste like? What about meat that tastes both sweet and sour?” – Ryan Bethencourt, Cofounder of IndieBio, Investor in Shiok

The Benefits of Lab-to-Table

Lab-grown foods offer a number of benefits that may not be readily apparent at first. Naturally, if challenges can be effectively addressed, then clean meats could help address food scarcity. As the population grows, and resources are depleted, this is a noteworthy benefit. But likewise, cell-cultured foods offer environmental advantages. For example, cell-cultured beef reduces land use by 95 percent compared to traditional cattle farm requirements. It also reduces carbon emissions by nearly 75 percent. And it likewise might be quite attractive to vegans who support animal rights and oppose animal use for food production.

For many of the companies involved in lab-grown foods, their products offer basic meat products. In essence, they are like ground meats that might be used as flavorings in dishes or basic foods like nuggets or burgers. But clean meats also invite new opportunities for creativity. For instance, cell cultures could blend different meat types to produce new protein options. From a culinary perspective, this could open the door for many new interesting offerings. In addition, some companies are going for top-notch quality. Aleph Farms uses 3D technology and co-cultures to create high quality steaks. Finless Foods is trying to cell culture Bluefin tuna, which is highly preferred but also an endangered species. Companies are only beginning to see the vast potential that lab-grown foods offer.

A Market Waiting to Boom

It’s notable that the lab-grown foods market has attracted many major investors. Companies like Tyson and Cargill, which are major meat industry players, have invested in some of these startups. Likewise, billionaires such as Richard Branson and Bill Gates have as well. The fact that plant-based food companies have grown tremendously support these perspectives. In fact, Beyond Meats’ share price has increased 500 percent since they went public. If clean meats have the same potential, then investing in these companies will be a wise move for investors. It’s certainly the reason many have already received millions in seed funding.

 

Looking for some inspiration in your goals? Notes From Ed has the answers! And don’t forget to check out PROJECT BOLD LIFE: The Proven Formula to Take on Challenges and Achieve Happiness and Success.

BOLD OPINION: Self-Flying Planes Are a Sure Thing… So Get Ready!

Artificial intelligence and machine learning have affected nearly every industry. Likewise, sensor technology has similarly advanced, and the Internet-of-Things is expands constantly. Soon, there will be driverless taxis, trucking lines, and buses in major cities across the country. So why not autonomous planes? Self-flying planes utilize these same technologies with the same level of precision. But when it comes to wrapping our heads around pilotless planes, we have some difficulty. There’s something about being 30,000 feet in the air without a human pilot that makes us nervous.

Whether it makes you anxious or not, autonomous planes are in the works. Not only are innovative startups exploring this space but so are major aviation corporations. Several developments have helped fuel interest in self-flying planes resulting in millions of dollars being invested. And several aviation test flights are demonstrating that pilotless planes are not just feasible but safe and economical. For many in the industry, this disruptive innovation in aviation is not simply a pipe dream but reality waiting to happen.

“The future of air transportation is autonomous. We believe the path to full autonomy begins with the air cargo market, and involves remote operators supervising fleets of unmanned aircraft.” – Marc Piette, CEO and founder of Xwing

A Path to Autonomous Planes

When you envision a pilotless plane, you might assume on-board instruments and sensors manage the entire flight. In nearly all cases, self-flying planes do not operate this way. Typically, an autonomous plane does utilize these technologies as part of the flight. But at the same time, centralized operators are monitoring operations from the ground. In the future, these operators will work in coordination with air traffic controllers to ensure safety and accuracy. This type of system is not only practical but one that many will accept as reasonable when embarking on self-flying planes.

A pilot's cap resting on the dashboard of a cockpit
Whether you’re ready or not, self-flying planes will soon be landing.

In essence, all the aviation companies developing autonomous planes plan to start in regional markets carrying cargo. For example, Xwing already has a modified Cessna 208B Grand Caravan being tested for regional transport. Likewise, Reliable Robotics, launched by engineers previously at Tesla and SpaceX, has similar self-flying planes that will be used by FedEx. By demonstrating that pilotless planes are safe and efficient in these markets, it will be easier to expand. Thus, by making autonomous cargo planes routine, self-flying planes for passenger travel will be more palatable.

“The disruption in design concepts is not going to come from Airbus or Boeing. I think it is going to come from smaller, innovative players.” Steven Udvar-Haz, Executive Chairman of Air Lease

Resource Pressures for Self-Flying Planes

Without question, self-flying planes are cool. But there is much more than this driving these new technologies. It’s no secret that the airline industry has been hit hard by the coronavirus pandemic. Prior to this, smaller regional flights were often subsidized by larger commercial flights. But with larger flights reduced in numbers and with fewer travelers, these smaller routes may be the first to go. That may be fine in some cases. But COVID has also triggered an ever-increasing demand for package deliveries that makes these regional flights more important. Autonomous planes offer a practical and smart solution to this logistics and fulfillment problem.

Advancing cargo demands and economics are not the only drivers encouraging the adoption of autonomous planes. Over the last 30 years, the number of qualified pilots has fallen by 30 percent despite rising needs. Naturally, self-flying planes would relieve these current pressures. Pilotless planes can also operate at 20-30 percent less cost, which is certainly attractive to a highly competitive industry. And many of the smaller regional autonomous planes can operate at zero emissions. This helps address environmental pressures aviation companies are facing. Each of these pressures add up making pilotless planes more and more appealing.

“Other companies were sidestepping or ignoring the issue. That strategy – of doing it in another country and bringing it to the US – is not going to work. You have to [develop autonomous planes] in the US and under FAA regulation.” – Robert Rose, CEO of Reliable Robotics

Paving the Regulatory Path Forward

Naturally, one of the major hurdles for self-flying planes involves regulatory oversight. This has been a struggle for the drone industry. So. It’s not surprising that this is a priority issue for autonomous aviation companies as well. In essence, the industry is utilizing three key strategies to facilitate regulatory approval of pilotless planes. The first involves extensive testing. The second strategy uses central operational oversight. And the third pursues approval for cargo transport using autonomous planes as a first step. Thus far, regulatory agencies like the FAA appear to like this plan.

All of the companies pursuing self-flying planes are spending millions on testing their innovations. Airbus has done a series of successful tests of its self-flying A350-1000XWB involving taxiing, takeoff and landing. Boeing and Britain-based Britten-Norman have done the same. And Xwing and Reliable Robotics are pursuing FAA approvals of their pilotless planes for regional cargo transport. In each case, these companies have demonstrated autonomous planes can function safely and efficiently. And regulatory agencies are progressively coming around to the idea.

The Final Challenge – Convincing the Consumer

It’s clear that the technology and pressures behind self-flying planes are tremendous. But will consumers buy-in to pilotless planes as well? In surveys, mixed responses have been seen. In one, nearly two-thirds said they would be unlikely to fly a pilotless plane. But in another, over 70 percent said they would be ready for autonomous planes in the future. The reason for these mixed messages is likely a lack of information. Many passengers may fear self-flying planes are not safe or cannot handle an emergency. But with central operational oversight, FAA approval, and a proven track record in the cargo industry, this will change. It’s therefore not if pilotless planes for passenger travel will become a reality, it’s when. And based on experts in the field, this reality will occur within the next decade.

 

Looking for some inspiration in your goals? Notes From Ed has the answers! And don’t forget to check out PROJECT BOLD LIFE: The Proven Formula to Take on Challenges and Achieve Happiness and Success.