Why would a company use robots?

This is a valid question.  The main benefits of installing robots are the following:

• Avoid shortages of labour.  As the population in developing countries ages, this could be a major concern.  If you have robots installed and on your production line, this could potentially be mitigated.
• High cost of human labour.  When labour wages rise as they do over time, this could potentially mean a loss in profit, or the difference between a company staying afloat versus going under.
• Increased productivity.  Get more out of the assets you do have.  Robots don’t need a break (except of maintenance).  Keep those production lines running and operations moving smoothly, and execute tasks more quickly.
• Lower costs.  Robots can decrease the amount of scrap material, lower the amount of inventory that is being processed (move things along more quickly), and allow for tighter, smaller production lines – which would take up less costly space.
• Quality.  On many repetitive tasks, robots can offer constant precise and accuracy, so overall quality improves.
• Reduce lead time.  It takes time to set up a production line for a new or changed part.  Depending on the application, robots can improve flexibility and can respond more quickly to changes, allowing companies to respond quickly to changing customer needs or allow them to offer a new product more quickly – and getting to the market first can be a huge advantage (a so called ‘first mover’ advantage).

Any one of these may not seem like a huge advantage on it’s own.  But you start to see a picture that emerges in terms of the overall system: having robots to automate manufacturing and services can result in a better product, that is less expensive to make, and is quicker to make.  This all translates to more profit.  A bit of an intangible benefit is a better image.  All else being equal, who is a customer more likely to choose: an antiquated company that still does everything by hand, or a company that has adopted advanced technology and employs robots?  The latter company is likely to have a better overall image, potentially leading to increased business.

We haven’t mentioned a main benefit: that robots are intended to perform dull, dirty and dangerous jobs.  Depending on the application, having a robot perform a job in a manufacturing setting could be safer.  The robot itself may pose dangers too, which need to be considered.