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One automation cell changes the math
Successful automation begins with choosing the right problem and examining the workflow around it. Rimeco Products, a family-owned machine shop outside Cleveland, Ohio, wanted to increase capacity but lacked the internal resources to manage an automation project alone. Company president John Ribic put the urgency plainly:“ Automation is something we know we need to be doing in order to remain competitive in today’ s manufacturing world.”
After evaluating several applications, Rimeco selected a repetitive machinetending process. The resulting system loaded and unloaded parts automatically, reducing manual work and allowing employees to focus elsewhere on the production floor. Rimeco later purchased two additional robots for other machines.
We saw the importance of workflow redesign with another manufacturer whose employees moved heavy parts across several machines. Before installing a robot, the company eliminated an unnecessary production step. The change made the planned automation cell faster and more reliable while freeing employees from repetitive lifting.
The technical work behind projects like these may also be relevant when evaluating eligibility for the Research and Development( R & D) tax credit.
Where tax incentives fit
Manufacturers often evaluate automation based only on equipment cost, labor savings and expected output. That misses a major line item: tax strategy. Bonus depreciation, Section 174A treatment and federal and state R & D tax credits can lower ownership
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