New Legislation Makes Cobots an Even Bigger Financial Advantage for Owners and Manufacturers

On July 4, 2025, new legislation was enacted, offering manufacturers a larger financial incentive to embrace automation. This bill is designed to help businesses tackle labor shortages and rising operational costs. For many companies, adopting collaborative robots (cobots) has just become one of the most effective—and quickest—ways to cut expenses and improve return on investment (ROI).

Across industries, business owners and plant managers are facing similar challenges:

• How can we keep production moving with a shrinking workforce?
• What impact does employee turnover have on our production schedules?
• Can automation be a cost-effective solution for mid-sized companies, or is it only viable for large enterprises?

The new legislation reinforces a critical insight: cobots are no longer a distant concept—they’re an immediate solution to address labor gaps in today’s operations.

Why Cobots Are Gaining Popularity in Manufacturing

Labor shortages continue to be a pressing issue, with job vacancies in factory positions growing while demand for production increases. Cobots offer a solution that human workers cannot match—they don’t take sick days, vacations, or quit unexpectedly.

Cobots are designed specifically for smaller operations. Unlike traditional robots, they are compact, safe to work beside human workers, and don’t require expensive enclosures or specialized engineering teams to set up.

The ROI is clear and fast. A typical cobot installation costs between $35K–$75K, yet it pays for itself within 6–12 months by saving $65K–$75K annually in labor costs.

Cobots: Empowering Workers, Not Replacing Them

A common misconception is that cobots replace human workers. In reality, cobots take over the tedious, repetitive tasks that often lead to worker fatigue and dissatisfaction:

• Repetitive palletizing, which causes physical strain
• Late-night machine tending shifts that are hard to fill
• Constant packaging and labeling tasks that lead to burnout

When cobots take over these mundane tasks, employees are freed up to focus on more complex and rewarding aspects of their work, such as quality control, problem-solving, and innovation. It’s not about replacing workers—it’s about reinforcing the workforce and enabling workers to add greater value.

What Plant Managers Should Know About the New Legislation

The message is unmistakable: automation is no longer a luxury or something reserved for large corporations. The barrier to entry has lowered, making it accessible for small and mid-sized manufacturers. Companies that wait until labor challenges escalate into crises risk falling behind their competitors.

Start small. Focus on one task, one cobot, and one shift at a time. You’ll quickly see results that compound across your operation.

Key Takeaway for Owners/Manufacturers

If you’re grappling with labor shortages, missed production deadlines, or increasing overtime costs, now is the time to consider how cobots can improve your operation. Don’t wait for the problem to worsen—start exploring the potential of cobots today and see how they can boost your productivity and ROI.