Illustration: Eniola Odetunde/Axios
The massive disruption caused by COVID-19 could lead companies to tap automation to manufacture products much closer to home.
Why it matters: The pandemic is revealing that the globalized supply chain that brings us many of our products is shockingly fragile. Easily programmable industrial robots could make it simpler to produce what we use here in the U.S., reducing that vulnerability.
Even before the novel coronavirus reached the U.S., the supply chain disruptions caused by the virus' spread in China were damaging the American economy.
- On Feb. 17, when there were just 15 confirmed cases of COVID-19 in the U.S., Apple issued an earnings warning because of the impact of the virus on its Chinese suppliers.
- China made half the world's respiratory masks before COVID-19 hit and restricted exports once the pandemic was in full force, leaving other countries, including the U.S., with dwindling supplies.
Context: Obviously, the U.S. needs stronger domestic manufacturing capability, especially right now. But it's not just that American companies have grown dependent on international supply chains.
- As of last fall, U.S. manufacturers reported more than 500,000 unfilled jobs, due in large part to a gap between the skills companies needed and the skills workers had.
If workers aren't available, one option might be robots.
- Ready Robotics, a startup spun out of Johns Hopkins University, provides simple software to power industrial robots. The software allows workers with little to no experience in robotics to program industrial robots for manufacturing work.
- With robots that are more easily customizable, manufacturers can employ them for short and custom runs, mixing up what they can produce. "If you do it today, it takes 4 to 8 weeks of setup time," says Ben Gibbs, Ready Robotics CEO. "With our software, it's 4 to 8 hours for a run."
These changes were already underway before the pandemic, but COVID-19 may accelerate them.
- "The future of supply chain infrastructure will be focused on improving resiliency through onshoring and automation," says Rayfe Gaspar-Asaoka, a venture capitalist at Canaan. "It's the Zoom + Slack of manufacturing."
The bottom line: The first response in a pandemic is to stick close to home. That may prove true for manufacturing as well.