Formic’s automated palletizer operates within a facility. The ongoing trade war initiated by FormicTrump has led to an increased demand for robotics and automation. A robots-as-a-service company called Formic has reported a rise in robot usage among its customers this year as a result of uncertainties in the market. The company’s automation solutions help businesses in various industries, including automotive, industrial, food, beverage, and consumer packaged goods, to save costs. Customers lease Formic’s robots under a “robots-as-a-service” model and pay a monthly rate based on their usage. With operations in over 100 US factories, Formic’s robots have handled more than 1.2 billion products.
During January and February, Formic’s customers boosted their robot usage by over 17% on average, with a 13% increase seen among food and beverage clients. This uptick was significant given the shorter business days in February. Increased robot usage during that period may have been a strategic move by companies to mitigate potential tariff-related price hikes. Following a decrease in robot usage in March, Formic has observed a rebound in April. The company’s collaboration provides businesses with cost predictability in times of uncertainty.
One of Formic’s customers, Rumiano Cheese Company, based in California, is implementing automation solutions to streamline its operations, especially in light of the tariff challenges affecting its profits. Rumiano is incorporating a Formic robot to handle 30-pound cheese boxes, moving them from the production line to pallets for shipping. Additionally, Rumiano has explored other automation options, such as a machine that organizes cheese stacks for packaging. The company has seen an increase in discussions around AI and robotics in recent months. Employees who previously handled manual tasks have been reassigned to different roles within the facility.
“Collaborating with robotics and data partners is crucial for the small, family-owned company,” said David Wolper, director of planning at Rumiano. “We may not have dedicated teams of data scientists, but we are seeking partnerships to leverage AI tools that enable us to delve deep into data. This allows us to ensure that our expenditures are optimized, our product offerings are aligned, and our operations are running efficiently to drive cost savings.”
Facing challenges posed by tariffs, brands are increasingly focusing on supply chain optimization, a trend that has been gaining momentum for some time now. According to Forrester analyst Paul Miller, robotics and software solutions play a key role in this area. “Since the onset of Covid-19, there has been a widespread push to shorten supply chains, enhance resilience, and boost adaptability. Part of this strategy involves relocating manufacturing facilities closer to consumers,” Miller noted. “However, if you aim to establish manufacturing plants in regions like California, Germany, or Japan, labor costs can be prohibitive. Automation becomes imperative to bridge these gaps.”
Commerce Secretary Howard Lutnick echoed similar sentiments in TV interviews following the announcement of tariff measures by President Trump in April. Speaking on CNBC, Lutnick highlighted the need for enhanced training programs in the US to prepare individuals for roles in robotics, mechanics, engineering, and electrical work in advanced manufacturing settings.
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