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In today's economic climate, businesses are facing a number of significant challenges, including rising costs and labour shortages. These challenges are leading to higher prices for consumers, slower economic growth, and even the potential of job cuts.

When the Chancellor of the Exchequer, Rachel Reeves, outlined the Government’s financial plans for the next five years, the focus was on raising £40 billion for public finances. While the plans set out aim to “restore economic stability" and put “more pounds in people’s pockets”, they have left many businesses uneasy about what the future holds. 

Now more than ever, SMEs are looking at the impact of the plans to their bottom line, with many acutely focused on the employer National Insurance contributions increasing to 15% from April 2025. Rising labour costs are placing increasing pressure on businesses to find efficient, cost-effective solutions that will reduce the financial impact they’re facing. The good news? Collaborative robots are here to provide an accessible and affordable solution to solve a wealth of manufacturing challenges. 

Businesses Bracing for Rising Costs

The British Chambers of Commerce (BCC) released a concerning report earlier this month, highlighting the mounting pressure businesses are facing due to increased costs and taxes. The survey of nearly 5,000 businesses, 91% of whom are SMEs, revealed a significant drop in confidence, with many anticipating price hikes in the coming months.

A staggering 55% of businesses plan to increase their prices within the next three months, up from 39% in the previous quarter. Furthermore, the survey found that 63% of businesses are deeply concerned about the tax burden they’re set to face, compared with 43% in Q3, the highest level since 2017 when the BCC began recording data. Labour costs continue to be a major concern for businesses, with 75% of respondents citing it as a significant issue. 

These alarming figures are attributed to a "pressure cooker of rising costs and taxes," primarily driven by factors such as the increase in employer National Insurance contributions (rising from 13.8% to 15%) and the higher National Living Wage (increasing from £11.44 to £12.21). The BCC report paints a bleak picture for UK businesses, with potential consequences including job cuts, price rises and further inflationary pressures. 

Shevaun Haviland, the BCC's Director General, told the BBC that in the face of higher costs, “There's only so many things you can do. You've got to think about putting up prices... or you've got to take that hit in your margin, which means you have less money to invest in the future, or you've got to look at your recruitment and staff costs. So it's really, really tough."

Manufacturers are already dealing with the consequences of severe labour shortages due to an ageing workforce and skills shortages, and these rises in labour costs are only set to exacerbate problems. Facing these demanding conditions, which will cost many businesses hundreds of thousands of pounds, many businesses are already opting to curtail hiring staff and delay backfilling roles. Therefore, the focus must now lie on boosting productivity, driving efficiencies, and utilising existing workforces for higher value tasks that will allow your business to grow.

Boosting Profits and Efficiency with Collaborative Robots 

Finding skilled workers, meeting rising wages, and ensuring employee retention are constant challenges. In today's challenging and competitive manufacturing landscape, embracing automation is no longer a luxury, but a necessity.

Collaborative robots provide a practical and cost-effective path to increased productivity, improved quality, and enhanced competitiveness. By leveraging the power of cobots, manufacturers can navigate rising labour costs, unlocking new levels of efficiency to secure a strong future for their businesses.

At first glance, the investment in manufacturing automation may seem expensive, but cobots are designed to make automation accessible and cost-effective. Providing a robust productivity tool to handle repetitive tasks, improve efficiency, and free up existing workforces for higher value activities, cobots are set to ease the burden associated with rising labour costs. 

Low levels of efficiency make it incredibly difficult to achieve high levels of profitability, something which cobots are primed to tackle. Allowing manufactures to reduce costs while increasing profits, cobots: 

Replace repetitive tasks: With cobots efficiently handling monotonous and repetitive tasks, utilise human workers to drive innovation and focus on more complex tasks and strategic roles. This leads to more efficient use of human capital and lower labour costs in the long run.

Address labour shortages: Cobots can fill critical roles to deliver consistent production, prevent unnecessary downtime and meet demand, without relying solely on human workers. By taking on repetitive and dangerous tasks, cobots can contribute significantly to employee satisfaction, leading to increased employee retention. 

Reduced operational costs: Consuming less energy and requiring less maintenance than industrial robots, cobots contribute to lower operating costs. They are also generally less expensive than traditional robots, with a lower initial investment to budget for. 

Rapid integration: Designed to work in existing production lines with minimal disruption, cobots are easy to program and implement meaning manufactures can reap their benefits without long implementation times. 

Increase productivity: Cobots can work continuously 24/7 without fatigue or the need for breaks, leading to a significant uplift in productivity. With the integration of cobots, many manufacturers are able to implement a fully automated third shift without increasing labour costs. 

Enhanced flexibility: Due to their adaptability, cobots can be utilised for different processes and quickly reprogrammed for different tasks. Perfect for small batch production and varied workflows, cobots can be quickly switched between production lines to respond to changing market demands or labour shortages in production.  This flexibility translates to less time spent on training operators for each application, saving time and reducing costs on learning and development.

Improved quality: It is natural for humans to make mistakes, with human error a leading cause of faults and product recalls. Unlike humans, cobots work continuously with consistent accuracy to help maintain high-quality production standards.

Delivering Manufacturing Success

Cobots are a win-win for businesses and workers. Capable of performing a wide range of applications, manufacturers can use cobots to reduce costs and improve productivity, while workers can benefit from safer and more engaging jobs. Utilising cobots and existing resources in a more efficient way ensures resources are allocated and used where they add the most value. Your automation investment becomes a workforce multiple to grow your business. 

At Cobots Online, our team of engineers and automation experts are here to help you unlock your businesses' most valuable resources: your employees' time and their expertise. We design bespoke cobot automation solutions aligned to your business goals and manufacturing requirements, addressing unique workflows and operations considerations to deliver ROI on your investment from day one. By streamlining processes, eliminating bottlenecks and reducing downtime, cobots will become the most valuable and cost effective investment your business will make in 2025. 

Contact Cobots Online for Robust Cobot Solutions

Doing nothing simply isn’t an option. If manufacturers and the economy are to grow and be more productive, automation is a key way of getting there. With labour costs set to rise again this April, automation with cobots is becoming more affordable than ever. Providing a smart, scalable solution to stay competitive in rapidly changing and challenging markets, cobots effectively empower your existing workforce while boosting your bottom line. 

It may seem like a daunting task embarking on cobot integration, but Cobots Online is here to simplify the process and support you with your automation needs. We see the benefits of cobots in action every day and help businesses across the UK implement this innovative technology for maximum ROI. Whether you’re a small business looking to undertake your first automation venture, or a large manufacturer looking to optimise and grow your existing systems, Cobots Online will ensure cobots are a game changer to your manufacturing processes and most importantly, your bottom line. Contact our team for a live demonstration or indepth consultation to discuss your requirements.