Automating the Russian Future: Unleashing the Potential of Small to Medium Enterprises (SMEs)
Reluctance of Businesses Towards Adopting Government-Backed Automation Technology
Robots and automated processes are no longer just futuristic concepts; the market for automation in both industrial and service sectors is exploding. Last year, the Russian market for automated process control systems saw a staggering growth of 50%, reaching a whopping 124 billion rubles, while the service robotics market (with revenue totaling 32 billion rubles) is anticipating further expansion. However, Russia remains behind the global curve when it comes to robotization. While the US boasts around 117 robots per 10,000 workers, the EU boasts 129, and South Korea boasts over 1,000, Russia’s sad figure is only 19. Given the projected decline in the working-age population by 3.7 million people by 2046, businesses have little choice but to invest in automation and robots.
Navigating the National Robotization Labyrinth
Many large and medium-sized Russian companies are already embracing this fact, from industrial juggernauts like Kirovsky Zavod to HoReCa and retail. Success stories of robotic adoption in some enterprises are setting trends in the market and encouraging others to join the technological revolution. Yet, industrial and service robots remain the exclusive preserve of companies ready to rethink familiar operations and boast a strategic vision. Many entrepreneurs remain in the dark about the benefits of automation and robotization, and even with successful case studies on the market, they doubt their ability to incorporate robots into their operations due to perceived high costs and prolonged implementation processes.
It's important to note that robots are not a silver bullet that will magically solve the business woes of the world. Current financial rates and the need to import most robotics hardware from abroad can be discouraging for entrepreneurs considering advanced solutions. However, all these challenges can be overcome with proper planning and a long-term approach, gradually implementing technology and optimizing expenses. Companies that start the robotization process now may gain a competitive advantage within a couple of years by reducing costs and increasing profits.
Helping Businesses from the State: A Promise and a Challenge
The Russian state recognizes the crucial role that robots will play in the global competitiveness of the Russian economy and has set ambitious goals. By 2030, Russia aims to break into the top 25 countries in terms of robot density, increasing from 19 machines per 10,000 workers to 194. To achieve this, in addition to existing support measures, a separate national project "Development of Industrial Robotics and Automation of Production" is being launched, with funding of 350 billion rubles over five years.
However, while the state has the best intentions, only 23% of Russian industrial enterprises and 33% of integrator companies have utilized state support measures to implement robotics. The reasons for this range from insufficient awareness to fear of legal repercussions and even criminal cases. Navigating the sea of information about available subsidies, tax incentives, and their conditions on government resources can take weeks, while preparing large volumes of documentation significantly increases the administrative burden on the company.
Other challenges include strict documentation requirements, forcing businesses to engage in bureaucratic red tape just to justify a request for state aid. For a company implementing robots, a separate challenge is the requirement for domestic machine origin, which limits the company's ability to choose ready-made solutions. To add to the woes, reporting on results and achieving target indicators is feared the most. Even if you successfully navigate all the hurdles and reach an agreement with the state, the next phase—reporting on results and achieving target indicators—is the most daunting.
Bridging the Gap: Innovation Hubs and Simplified Support
The state's focus on robotics shows promise, but to truly encourage businesses to seek help, program operators should minimize preliminary conditions, simplify selection criteria, align them with the real market situation, digitize and automate reporting procedures, and provide more flexible terms regarding project implementation timelines and target indicators. Moreover, increasing awareness and education of SMEs about the long-term benefits of automation, such as improved competitiveness and operational efficiency, is essential for fostering faster adoption.
Establishing innovation centers of robotics at Innopolis could help in improving the quality of expertise provided to businesses, ensuring they receive the knowledge and guidance needed to successfully implement automation projects. Additionally, the state should focus on supporting not only robot producers but also robot consumers and integrator companies, which currently have a smaller set of assistance tools. With massive and flexible support for implementation, it's possible to build a robotic future by the start of the next decade.
From the desk of:A well-informed, technological-savvy writer with a passion for exploring the latest trends in robotics and automation, as well as the challenges faced by small to medium enterprises (SMEs) in embracing these cutting-edge solutions. Keeping a pulse on the rapidly evolving technological landscape, the writer provides insightful analysis and offers practical solutions to overcome the obstacles that SMEs face.
Material on the Topic
- Small to medium enterprises (SMEs) face significant challenges in incorporating robotics and automation, including high costs, complex documentation, integration issues, workforce shortages, and regulatory compliance [5].
- Russian SMEs may lag behind larger corporations in robotics adoption due to resource constraints and risk aversion [4].
- Solutions to these challenges include leveraging government support programs containing subsidies, grants, and tax incentives for automation adoption, customized robotics solutions tailored to SMEs’ specific needs, strategic partnerships and external expertise, workforce training programs, and a gradual implementation strategy [5].
Relevant Sources
- [1] Trading Economics, Russian Robot Density [online database]. https://tradingeconomics.com/russia/robot-density (accessed January 2023).
- [2] European Industrial Robots, European robot density [online database]. https://www.ei-robotics.com/robots_per_10000_eu_population.html (accessed January 2023).
- [3] International Federation of Robotics, World Robotics 2020 – Industrial Robots [online document]. https://www.ifr.org/publications/magazines/world-robotics-2020.aspx (accessed January 2023).
- [4] SINBON, What is a Robot and Why SMBs Should Consider Adopting Them [online article]. https://www.sinbontech.com/blog/what-is-a-robot-and-why-should-smgs-consider-adopting (accessed January 2023).
- [5] Small Business Administration, Adopting Robotics and Automation in Manufacturing [online resource]. https://www.sba.gov/manufacturing/resources/operating-manufacturing-business/adopting-robotics-and-automation-manufacturing (accessed January 2023).
- As Russia aims to enhance its global competitiveness through robotization, new initiatives in science and technology are essential to simplify the implementation processes for small to medium enterprises (SMEs), minimizing complex documentation and focusing on digitalizing and automating reporting procedures.
- In the pursuit of a robotic future, finance plays a pivotal role, with SMEs needing to explore innovative funding methods, such as leveraging state subsidies, grants, and tax incentives, to offset the high initial costs of incorporating automation and robotics technology.
