Boosting Factory Utilization: The Key to Reviving US Manufacturing?
Thu Oct 31 2024
In this episode, I spoke with Saman Farid, founder and CEO of Formic, about transforming American manufacturing through accessible robotics. Formic is tackling a crucial problem: most US factories run at just 30% utilization, while facing severe labor shortages. Their solution? Making robots accessible through a robots-as-a-service model that's already deployed in over 100 manufacturing facilities.
3 Ideas from the Interview
- Most American factories only run one shift per day, leaving expensive equipment idle 75% of the time - robots can run 24/7, dramatically improving utilization.
- 90% of US factories don't have a single robot, mainly due to deployment complexity and costs, not technology limitations.
- By automating deployment processes with AI, Formic has reduced installation time from 6 months to 2 weeks while cutting costs by 70%.
2 Quotes that Stood Out
"For America to have a manufacturing base that sustains through the 21st century and is competitive, we are drastically under-tooled." - Saman Farid
"About 70% of our customers never had robots before Formic." - Saman Farid
1 Opportunity
While Formic focuses on robot deployment and operation, there's a clear opportunity for a company to develop specialized financing solutions for small manufacturers adopting automation. Traditional lenders often struggle to assess the risk and value of robotics investments, creating a gap for a fintech company that understands both manufacturing and robotics to provide targeted financial products.