1. 2012 Northwest Ohio Manufacturing Forum and Expo
Re-Shoring America with Robotics and Flexible Automation
Tim Ellenberger Vice President MCRI
1984 GMF

2. Who is MCRI Located in Fremont Incorporated 1995 47 employees
500+ installed base
45+ per annually since 2009
$10M sales
FANUC exclusive

3. Robot Manufacturers ABB FANUC Kuka Motoman Adept DENSO Epson Kawasaki
Nachi
Okura
Reis
Staubli
MCRI is fanuc exclusive…other manufacturers
Big 4
Others
None manufactured in North America

4. Save Your Factory
Manufacturing Paradigm – We need to off-shore to low-cost labor markets to be competative
Facing the challenge to re-shore
What steps can be taken to enable North American manufactures to be globally competitive

5. Importance of Manufacturing in America
Leads in GDP Growth & Productivity
Leads in Innovation:
70% of Total Private Sector R&D
90% of Patents
U.S. Manufacturers have added 495,000 American jobs since 2010
Workers earn pay and benefits about 17% higher than other workers
Backbone of Defense Industrial-Technology Base
Workers earn pay and benefits about 17% higher than other workers
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
Between 2002 and 2006 China created 11 M manufacturing jobs…as many as exist in America

6. Why Invest in Robotics? Robots Create Jobs:
"In world terms three to five million of jobs would not exist if automation and robotics had not been developed to enable cost effective production of millions of electronic products, from Phones to Playstations." - "Positive Impact of Industrial Robots on Employment" by Metra Martech November 2011
Robots Improve Work Conditions:
RIA estimates that some 225,000 robots are now at use in United States factories, placing the US second only to Japan in robot use.  “Many observers believe that only about 10% of the US companies that could benefit from robots have installed any so far,” Burnstein said, “and among those that have the most to gain from robots are small and medium sized companies.”
Studies suggest that for every robot deployed it creates 3.1 jobs in the industry
robots carry out work in areas that would be unsafe for humans
robots carry out work that would not be economically viable in a high wage economy
robots carry out work that would be impossible for humans.

7. Re-Shoring Paradigms N.A. - Higher costs - Labor - Healthcare
Legal - Tax Rates
Environmental laws
Offshore
- Low cost labor

8. Traditional Cost Comparison
Start with the piece part cost for a domestic product
Compare this with the piece part cost for the same item in China or India (It will almost always be lower)
Add the cost of freight to get it to your customer

9. Realistic Cost Comparison
Shipping
Inventory
Insurance
Quality
Travel
Vendor Selection
Infrastructure Risk
Material
Labor
Other

10. Other Considerations Legal Issues Theft/Piracy
Cost of additional paperwork
Cost of employee morale
Cultural/Communication difficulties
Loss of manufacturing control and flexibility
Training costs
Lead Time, QC, Inventory
Underestimation of startup costs
Increasing labor costs once a vendor relationship is established
Cost of transition
Cost of layoffs and severance
Cost of inventory carry due to shipping
Cost of managing offshore
Cost of bringing a project back to the U.S.

11. Using the North American Option
The Real Long Term Winner?
North America
Offshore
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today
Lean Manufacturing
Robots & Automation
Quality Programs
Just in time Inventory
Capitalize on culture, laws & standards

12. Keys to Manufacturing Success
Manufacturing will go to the countries whose companies
Embrace automation
Use lean manufacturing processes
Reduce production costs while improving quality
North America is in the best position to win the race
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

13. Case Study Re-shore Packaging Operation
Considerations
Labor cost rising
Quality concerns
Damage during shipping
Inventory regulation
Changing packaging/product
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

14. Case Study Re-shore Packaging Operation
Challenges
Running multiple sku’s simultaneously
Floor space
Amount of equipment required
Available labor
Throughput
Varying product and production needs
Changing inventory
Maintenance
Ability to grow
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

15. Case Study Re-shore Packaging Operation
Packing/lidding area
Challenges
Erect 3 sizes of case
Random sizes can be processed
Traffic control
Maintenance
Data acquisition
3 case erectors, conveying, controls, integration 700 to 900k
1 robot 4 magazines all capabilities of hard automation with simple product changes <300k

16. Case Erecting Lidding Development
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

17. Case Erecting Lidding Development
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

18. Case Erecting Lidding Development
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

19. Installed System By 2020: 30M gap of available workers !
Workers earn pay and benefits about 17% higher than other workers
Japan and India automating at near the highest rates
US robots per worker among the lowest of indurtrialized nations. Fanuc at 10 per employee in their plants
By 2020:
70M baby boomers will retire
40M new workers will enter the workforce
30M gap of available workers !
Only 15M people are employed in manufacturing in the U.S. today

20. Re-Shoring Results Successes Flexibility for scheduling
2 operators for packaging
Future automation of RF sealing
Reduced inventory
Total inventory tracking
Data gathering
Remote diagnostics
Local support
Shipping cost
Damaged product
New product additions
Future efficiency
Reliability
Currently adding new line to double through
put

21. Questions and Contact Information
Motion Controls Robotics, Inc.
1500 Walter Ave
Fremont, Ohio 43420
Tim Ellenberger VP
(419)