Harry Norman's predictions for 2020
As we look to the start of a new decade, we’re taking some time to speak with our founder, Harry Norman, to discuss what he thinks are the key trends in 2020.
Harry, what are your top trends for 2020?
I think main focus in the food industry in 2020 is a continued focus on improving productivity. This will be achieved through a variety of initiatives as well as the growth in adoption of tools like robotics and machine learning.
It seems like productivity is a permanent concern for food & beverage manufacturers. How can they make a material difference to their productivity levels in 2020?
Productivity has been a major concern for businesses around the world for over a decade but we don’t seem to be able to find the right answer. Latest figures from the ONS showed that productivity in the UK fell at its fastest annual pace in five years in during the April-to-June quarter of 2019, so arguably the problem is getting worse rather than better. Productivity in the food industry has been dropping due to increased product complexity, which requires more production staff to achieve the same volume. This has also led to further erosion of margin as labour costs continue to increase. In April 2019 the national living wage for those aged 25 and over in the UK increased by 4.9%, from £7.83 to £8.21, and it’s set to rise further. The same trend can be seen across the globe so manufacturers need to think outside the box in terms of their productivity.
We know that this is a real priority for our customers but we find that the solution is often in overlooked areas of manufacturers’ operations and that small savings can really add up. For example, if you’re carrying out offline printing on your packaging line, the time taken for a changeover for a new supplier code can quickly mount up. We’ve been able to save customers typically 1-2% of line manning hours by automating the changeover, allowing them to increase production time and reduce labour costs as fewer personnel are needed on the line. By working with experts to review their operations, food manufacturers can find many examples like this and boost their productivity levels by increasing efficiencies.
Robots are another way for manufacturers to boost their productivity – do you think adoption in the food industry will grow in 2020?
Absolutely! As an industry we have generally been slower to adopt robotics than others such as automotive. But the barriers are starting to be broken down and we’ve already seen growth of 50% in robot adoption over the past five years, primarily due to retailer pressure for larger volumes at lower prices combined with consumer demand for safer and more sustainable production. However, we know that this growth has primarily been driven by robotics on the packaging line. I believe that 2020 will be the year that we achieve significant growth in robotics upstream in the processing stage of food and beverage production.
In 2018, we began to see reference sites piloting our robotics technology, and now as we enter 2020 this technology is really taking off. Food and beverage manufacturers are eager to take advantage of the proven results that APRIL Robotics can bring. Our robot chef and automated ingredient handling system allow manufacturers to move to unmanned production, boosting productivity, cutting labour costs and improving product safety – three priorities for manufacturers all over the world. We’re able to achieve payback within two years on our systems so automation of your processing stages needn’t be a pipe dream!
Closely related to robotics is the trend of machine learning. What do you think the impact of this technology will be on the industry?
Machine learning has the potential to transform the food industry. Many companies in Asia have already adopted AI in their food safety processes and it can be used in all areas of the food industry to aid continuous improvement & process optimisation, forecasting, the speed and accuracy of operations, and of course, productivity. A 2017 study by PWC found that global GDP will be 14% higher by 2030 as a result of AI adoption, which will contribute an additional $15.7 trillion to the global economy.
I believe AI will play an even bigger role in 2020. However, it can be really difficult for food manufacturers to know where to start. At OAL we help manufacturers to incorporate AI into their packaging lines to boost productivity by scanning over 1000 packs per minute inline much more accurately than human operators every could. Our AI-based label & verification systems also allow manufacturers to keep up with changing packaging formats without the need to re-programme the system – saving time and increasing throughputs. And because you have machine vision with a brain, you can switch to unmanned operations, further supporting your bottom line by reducing labour costs, all the while preventing product recalls and reducing waste. It’s a great first step for manufacturers looking to take advantage of the benefits of AI.