robots and robotics report - fbicgroup and robotics report by fbic global...4 ! january 6, 2015...

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January 6, 2015 ROBOTS AND ROBOTICS Bob Kelly Guest Writer A new industrial revolution may be triggered by jobs done by robots. Advances in smartphone technology and programs lead advances in robots and robotics. Open source robots can be built to do whatever the creator wishes them to do. Surgical robotics could grow to $18 billion market by 2018. Exoskeletons help workers use hydraulics to lift and load heavier packages as well as help many paralyzed people walk again. Deborah Weinswig Executive Director – Head of Global Retail & Technology Fung Business Intelligence Centre [email protected] US: 646.839.7017 HK: 852.6119.1779 CHN: 86.186.1420.3016

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Page 1: Robots and Robotics Report - fbicgroup and Robotics Report by FBIC Global...4 ! january 6, 2015 deborah!weinswig,!executive!director–head!of!global!retail!&!technology! deborahweinswig@fung1937.com!!us:!917.655.6790!!hk:!852.6119.1779!!cn

 

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

 

ROBOTS AND ROBOTICS

Bob Kelly Guest Writer

• A  new  industrial  revolution  may  be  triggered  by  jobs  done  by  robots.  

• Advances  in  smartphone  technology  and  programs  lead  advances  in  robots  and  robotics.  

• Open  source  robots  can  be  built  to  do  whatever  the  creator  wishes  them  to  do.  

• Surgical  robotics  could  grow  to  $18  billion  market  by  2018.  

• Exoskeletons  help  workers  use  hydraulics  to  lift  and  load  heavier  packages    as  well  as  help  many  paralyzed  people  walk  again.  

Deborah Weinswig Executive Director – Head of Global Retail & Technology Fung Business Intelligence Centre [email protected] US: 646.839.7017 HK: 852.6119.1779 CHN: 86.186.1420.3016

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

THE  ROBOTS  ARE  COMING.    NAH.    THE  ROBOTS  ARE  HERE!  Like   it   or   not,   robots   are   part   of   your   life   –   and   will   play   an   increasingly  larger  role  in  the  years  to  come.  

Whether   it   is   in   the  medical   field,   in   industry   and   commerce,   in   retail,   in  personal   consumer   habits   or   in   the   defense   of   our   country,   automation,  robotics  and  robots  have  played  a  role   in  years  past  and  will  plan  an  even  larger  role  in  the  future.    Who  knows  (as  many  fear)  if  a  robot  may  even  be  doing  your  job?      

 A   record  14,232   robots,  valued  at  $840  million,  were  ordered   from  North  American   robotics   companies   in   the   first   half   of   2015,   an   increase   of   one  percent   in   units   and   seven   percent   in   revenue   compared   with   the   same  period   of   2014.     Companies   continue   to   recognize   robots   can   help   them  improve   productivity,   the   quality   of   their   products   and   flexibility   in  production.      

During   the   first   half   of   2015,   sales   of   robots   in   semiconductors   (+30%),  automotive  components  (+23%)  and  live  sciences  (+8%)  made  strong  gains  over   the   first  half  of   last  year.    However,  orders   to  automotive  companies  fell  18%  from  the  same  period  last  year.    The  Robotic  Industries  Association  estimates   there   are   some   232,000   robots   now   in   use   in   U.S.   factories,  placing  the  US  second  only  to  Japan  in  robot  use.  

For   companies   not   using   robots   or   having   experience   in   how   robotics   can  help  their  business,  the  challenge  of  determining  feasibility  of  using  robotics  can  be  daunting.    There  are  many  reasons  companies  hesitate.    Perhaps  it’s  the  perceived  cost  issue,  or  safety  concerns.    Some  may  not  have  staff  with  programming  capabilities.    For  those  companies,  specialty  consultants  solve  challenges   faced  by  clients  and  turn   their   fears   into  understanding  how  to  use  the  robotic  technology  to  their  advantage.    These  “integrators”  are  the  key   to   success   for   companies,   helping   them   support   and   service   their  robotic  equipment.    The  integrator  is  the  guide  –  from  choosing  the  proper  robot   for   the   job  and  then  working  with  the  company  all   the  way  through  post-­‐sale  service  and  training.      

Many  companies  don’t  have  a  need  for  robotics  or  for  automated  assembly  and  packaging.    Some  may  wish  to  dress  up  their  office  with  a  touch  of  the  latest   technology   and   have   a   robot   meet   customers   at   the   door,   bring  coffee   to   meetings   and   accompany   and   guide   guests   to   meeting   rooms.    Avoiding  the  initial  large  investment  might  be  solved  by  a  new  rental  robot  from  SoftBank  Robotics.     Pepper   for  Biz  will   have  a   variety  of   applications  allowing   it   to  handle  office   reception   tasks,   among  others.     It  will   rent   for  about  $445  (US)  monthly  from  its  Japanese  creators.  

One  of   the  biggest   fears  workers   face   in   the   age  of   robotics   is   the   loss  of  their   jobs.    Technological  advances  are   leading  to  more  and  more  workers  being  replaced  by  automated  machines.    One  Australian  study  predicts  that  almost   40%   of   Australian   jobs   –   some   five  million   –   have   a   “moderate   to  high”  likelihood  of  being  erased  over  the  next  10  to  15  years.    Researchers  liken  the  change  to  a  new  industrial  revolution  where  jobs  thought  to  have  “low   levels   of   social   interaction,   low   levels   of   creativity   or   low   levels   of  mobility   and   dexterity”   would   be   the   first   to   be   replaced.     Findings   from  focus  groups  have   shown   that  although   there   is   a  high   level  of  awareness  that  a  shift   is  coming  and  certain  job  families  are  under  immense  threat  in  

$840 MILLION

A  record  14,232  robots,  valued  at  $840  million,  were  

ordered  from  North  American  robotics  

companies  in  the  first  half  of  2015.  

Page 3: Robots and Robotics Report - fbicgroup and Robotics Report by FBIC Global...4 ! january 6, 2015 deborah!weinswig,!executive!director–head!of!global!retail!&!technology! deborahweinswig@fung1937.com!!us:!917.655.6790!!hk:!852.6119.1779!!cn

 

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

the   coming   years,   there   is   a   very   low   level   of   current   preparedness   or  willingness  to  take  action  today  to  prepare  for  the  coming  changes.    

The   robotics   industry   represents   a   profound   shift   in  modern   technology  –  mixing   achievements   in   artificial   intelligence   (AI),   natural   language  processing   (NLP)   and   software  with   sensors   and   other   parts.     The   cost   of  many  of   the  parts  has  been  driven  down  by  advances   in  smartphones  and  the   availability   of   those   programs   and   technological   advances.     The   costs  will  continue  to  fall,  encouraging  more  research  and  development.  

The  fact  is  that  although  we  may  be  on  the  “edge  of  the  wedge”  right  now,  the   robots   are   coming   and   each   day   seems   to   bring   an   announcement   of  another   step   closer   to   that   time.     So   what   are   some   of   the   most   recent  applications  of  robotics  and  robots?  

SOCIAL  AND  CONSUMER  ROBOTS  

First  came  Pepper  from  Aldebearan  and  SoftBank,  the  social  robot  that  sold  out   its   initial   production   offering   of   1,000  with   a   $1,600   price   tag   in  ONE  MINUTE.     Next   in   line   is   Intel’s   Jimmy,   to   begin   availability   next   month  (September.)   Jimmy   is   a   3D-­‐printed   robot   capable   of   walking,   talking,  moving  his  arms,  dancing  and  even  tweeting,  and  it's  the  key  to  Intel's  vision  of  the  future  of  robotics.  Starting  later  this  year,  the  company  will  make  an  open   source   robot   kit   with   3D-­‐printed   parts   available   to   consumers   for  $1,600,   with   a   research   version   for   $16,000.   The   former  will   run   on   Intel  Edison,  the  company's  computer-­‐on-­‐a-­‐chip,  while  the  latter  will  be  powered  by  a  Core  i5  processor.  

 How   is   the   kit   set   up?   The   hardware   designs   will   be   available   online   for  anyone   to   build   the   basic   parts   using   a   3D   printer,   but   the   kit   itself   will  contain   all   of   the   other   parts  which   you   can't   print:   The  motor,   batteries,  processor  and  wires  are  the  primary  items  you'll  need  to  get  started.    

The  robotics  industry  represents  a  profound  shift  in  modern  

technology  –  mixing  achievements  in  artificial  intelligence  (AI),  natural  

language  processing  (NLP)  and  software  with  sensors  and  other  

parts.      

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

Because  the  robot   is  open  source,  the  door  is  open  to  download  whatever  you  want  use  to  customize  your  new  creation.    It  also  allows  developers  to  build  apps  for  the  same  purpose.  The  bottom  line  is  that  your  Jimmy  can  be  personalized  to  do  what  you  want  him  to  do.    It  will  be  possible  for  Jimmy  to  get  a  drink  for  you,  sing  along,  translate,  etc.  

Then   comes   Jibo,   a   non-­‐humanoid   robot   that   developer   Cynthia   Breaseal  says  will   act  more   like   a  personal   assistant   than  a  moving,   fetching   robot.    Jibo   sits   on   a   counter   and   features   two   high   –resolution   cameras   to  recognize   and   track   faces,   capture   photos   and   enable   immersive   video  calling.     Microphones   functioning   all   360   degrees   and   natural   language  processing   let   you   talk   to   Jibo   from   anywhere   in   the   room.     Designed   to  make   everyday   life   easier,   Jibo   makes   tasks   easier,   provides   hands-­‐free  reminders  and  messages.  

 Also  working  from  an  open  platform,  Jibo  is  envisioned  as  a  robot  that  can  provide   parents   with   a   high   quality   partner   in   education,   provide   a   life  coach   for   people   with   chronic   health   issues   and   provide   a   watchful  companion  for  the  elderly  that  behaves  like  a  friend  and  not  a  surveillance  system  or  monitor.    Jibo  will  be  available  via  pre-­‐order  ($500)  with  “Holiday  2015”  delivery.  

The   market   for   robots   to   assist   consumers   in   various   parts   of   their   lives  continues  to  grow.    In  2012  the  market  size  was  $1.2  billion  and  is  expected  to  continue  to  grow  to  $6.5  billion  in  2016.    Manufacturers  and  developers  are   still   battling   hesitancy   from   consumers   to   adopt   “robotic”   technology  and   have   learned   that   consumers   don’t   want   gadgets   –   but   rather  something   that   shows   return   on   investment,   has   true   lifetime   value   and  actually   facilitates   life   tasks   rather   than   creating   a   different   routine   or  lifestyle  to  implement  the  robot.          

One  intriguing  robot  under  development  is  Budgee,  a  rolling  carrying  basket  that   can   hold   up   to   50   pounds   of   luggage,   books,   groceries   or   other  belongings.     Users   wear   a   small   transmitter   and   Budgee   follows   at   a  constant  range  wherever  its  owner  goes.    It  is  equipped  with  bump  sensors  to  bring   it   to  a  stop  when   it  hits  an  object.    Users  can  also  control  Budgee  using  a  smartphone  or  tablet.    The  final  design  is  being  determined  by  Five  Elements.  

Japan’s  AIST  has  developed  an  interactive  therapeutic  robot  named  Paro  for  treatment   of   elderly   patients.     It   resembles   a   baby   seal   and   interacts   by  

$6.5 BILLION

In  2012  the  market  size  was  $1.2  billion  and  is  expected  to  continue  to  grow  to  $6.5  

billion  in  2016.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

moving   its   head   and   legs,  making   sounds   and   showing   learned   behaviors.    Paro   can   recognize   the   direction   of   voice   and   words   such   as   its   name,  greeting  and  praise  via  audio  sensors.    The  interactive  seal  has  been  used  by  nursing   facilities   in   Japan,  Germany   and   the  Netherlands   for   treatment   of  Alzheimer’s   and   dementia   and   has   recently   been   cleared   as   a   Class   2  medical  device  in  the  U.S.    It  retails  for  $6,000.  

 If   you   are   on   the   cutting   edge   of   robots   and   technology,   it’s   possible   you  have  one  or  more  of  these  robots  in  your  home  already:  

• Looj   –Created   by   iRobot,   this   tool   does   the   most   tedious   of   jobs   –  cleaning   the   gutters   of   your   home.     It   is   operated   by   using   a   remote  control.  

• ConnectR  –  iRobot  has  another  device  that  allows  you  to  interact  with  family   members   while   you   are   away.     ConnectR   features   a  speakerphone   and   a   camera   that   allows   communication   with   users  offsite.    Remote  users  can  manipulate  the  camera  and  steer  the  robot  through  their  computers.      

• LG  V-­‐R4000  –  LG’s  robot  vacuum  cleaner  battles   iRobot's  Roomba  and  offers  four  different  cleaning  options.  

• Robomow   –   Friendly   Robotics   has   four   different   models   of  rechargeable   battery-­‐powered   automatic   lawn  mowers.     The  mowers  are  equipped  with  anti-­‐theft  systems.  

• Agent   007   –   The   robot   is   equipped   with   a   security   camera   and  announces   “POLICE!     FREEZE!   if   an   intruder   opens   a   window.     It   is  offered   by   MobileRobots   Inc.   and   the   company   uses   the   same  technology   for   its   Jeeves   and   BrewskiBot   models   which   can   shuttle  drinks  to  party  guests.  

• Nanda  Clocky  –  If  your  alarm  clock  is  failing  to  get  you  out  of  bed,  you  might   look   into   Nanda   Cocky,   a   clock   that   gives   users   one   chance   to  snooze  before   it  drives  away,   forcing   the  user   to  get  up  and   find   it   to  turn  off  the  alarm.      

Japan’s  AIST  has  developed  an  interactive  therapeutic  robot  named  Paro  for  treatment  of  elderly  patients.    It  resembles  a  

baby  seal  and  interacts  by  moving  its  head  and  legs,  making  sounds  and  showing  learned  behaviors.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

• Dressman   –   The   German   conglomerate   Siemens   introduced   a   robot  designed  to   iron  shirts  using  hot  air.    The  device  didn’t  make   it   to   the  U.S.,  but   those   in  America  with  wrinkled  shirts  hope  a   similar  product  will  become  available.  

• Litter-­‐Robot  –  If  you  own  a  cat,  you  want  this.    Litter-­‐Bot  sifts  through  kitty  litter,  removing  clumps  automatically  and  storing  them  in  a  bag.  

There   are   many   others   too   numerous   to   mention   in   development   stages  and  some  being  given  test  trials  among  focus  groups  to  determine  how  to  market   to   the  correct   segment  of   the  consumer  world.    Price   is  always  an  issue,  but  as  consumers   find   the   right   robot   to  help  make   their   life  a   little  simpler  or  easier,  the  market  will  continue  to  grow  for  robots  and  robotics.  

THE  EVER-­‐CHANGING  FACE  OF  MEDICINE  

Hardly  a  week  goes  by  without  the  announcement  of  the  newest  innovation  in   medical   devices   and   creative   solutions   which   will   seem   miraculous   to  some  –  and  trigger  another  generation  of  devices  that  will  make  the  current  ones  look  like  Model  As  in  the  not  too  distant  future.  

From   bladder   reconstruction   to   open   heart   operations,   robots   are   now  giving  doctors  more  precision,  dexterity  and  visualization  than  ever  before.    This   superior   performance   via   robotic   procedures   -­‐-­‐   resulting   in   reduced  blood  loss,  lower  post-­‐operational  pain  and  shorter  hospital  stays.    Because  of   the   return  on   investment   (ROI)  hospitals   are  pouring  billions   into   these  systems.     Although   only   a   $4   billion   market   today,   surgical   robotics   is  expected   to   grow   at   an   annual   rate   of   12%   for   the   foreseeable   future,  reaching  an  expected  $18  billion  by  2018.      

Intuitive   Surgical   is   perhaps   the   largest   name   in   robot-­‐assisted   surgery,  operating   in  more  than  2,000  hospitals   throughout  the  world.     Its  da  Vinci  Surgical   Systems   records   the   natural   hand   movement   of   physicians   at   a  console   station   and   converts   the   movements   to   micro-­‐movements   of  instruments  inside  patients’  bodies.    The  system  allows  for  range  of  motion,  natural   control   and   fine   tissue  manipulation   via   high-­‐definition   and   three-­‐dimensional   imaging   during   surgery.     The   system   is   so   precise   it   allows  surgeons  to  literally  peel  the  skin  off  a  grape.      

 

$18 BILLION

Although  only  a  $4  billion  market  today,  surgical  robotics  is  expected  to  grow  at  an  annual  rate  of  12%  for  the  foreseeable  future,  reaching  an  expected  

$18  billion  by  2018.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

The  da  Vinci  system  is  at  work  in  more  than  2,600  hospitals  and  is  used  to  perform  more   than   500,000  minimally   invasive   procedures   annually   from  lung  cancer  tumor  removal   to  prostate  surgery  to  hysterectomy  and  other  procedures.  

Mazor   Robotics   specializes   in   spine   surgery   and   its   Renaissance   Guidance  System  was  used   in   the   first   successful   lumbar   spine   fusion  surgery  at   the  Department   of   Neurosurgery   at   the   University   of   California.     Although   its  systems   are   very   expensive,   its   technology   has   been   used   in   tens   of  thousands   of   implants   throughout   the   U.S.   and   Europe.     It   is   the   only  provider   of   robotic   technology   for   spine   surgery,   and   recently   received   a  purchase  order  from  the  Oncology  Research  Center  in  Russia.      

Prior   to   1990,   vascular   disease   was   treated   only   with   open   surgical  procedures,  but  today,  approximately  70  percent  of  vascular  procedures  are  performed  using  catheters  inserted  through  small  incisions.  Hansen  Medical  is  the  leader  in  robotics  that  allow  for  precision  in  positioning  and  control  of  catheter-­‐based   technologies.     The   company   produces   Sensei   Robotic  Catheter  Systems   including  Artisan  Control  Catheters  and  Sensei  X  Robotic  Catheter  Systems.      

Hansen’s   newest   product   is   the   Magellan   System   that   reduces   radiation  exposure   for   physicians   by   allowing   them   to   operate   in   an   outside   room,  away  from  the  radiation  source.    It  increases  efficiency  during  intra-­‐vascular  procedures,  cutting  operations  times  by  67%.  

The   CyberKnife   Robotic   Radiosurgery   System,   designed   and  manufactured  by  Accuray  Inc.,  is  a  non-­‐invasive  alternative  to  surgery  for  the  treatment  of  cancerous  and  non-­‐cancerous  tumors.      The  CyberKnife  can  target  tumors  in  any  area  of  the  body,  including  the  lungs,  spine,  liver,  prostate  and  brain.    

 The   first   robotic   system  on   the  market   to   treat   tumors  non-­‐invasively,   the  system  is  really  a  misnomer.    There  is  no  cutting  involved  and  CyberKnife  is  able   to   minimize   damage   to   unaffected   areas   by   delivering   beams   of  radiation  from  multiple  angles  to  concentrate  on  a  single  point.    Alone,  the  

70% Prior  to  1990,  vascular  disease  was  treated  only  with  open  

surgical  procedures,  but  today,  approximately  70  percent  of  vascular  procedures  are  

performed  using  catheters  inserted  through  small  incisions.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

beams   are  not   powerful,   but  when   they   cross   at   a   center   point,   radiation  levels  are  high  enough  to  destroy  tumors.      

The   CyberKnife   system   is   also   constantly   able   to   track   tumors   that  move  during   surgery   and   can   respond   in   real   time.     This   is   particularly   useful   in  respiratory  and  cardiovascular  systems  because  the  lungs  and  the  heart  are  in  constant  motion.        Along  with  accuracy  and  safety,  the  CyberKnife  has  a  significant  impact  on  hospital  visits.    Use  of  the  CyberKnife  takes  only  one  to  five  visits,  while  conventional  radiotherapy  can  take  up  to  45  treatments.  

A   development   of   CyberKnife   technology   is   the   company’s   TomoTherapy  system,   which   is   able   to   break   radiation   beams   into   a   collection   of   even  smaller   beams,   allowing   for   more   precise   targeting   of   tumors.     These  technologies  are  being  used  in  European  and  Asian  markets  with  centers  in  Germany,  France  and  Japan,  in  addition  to  the  U.S.  

 

Medrobotics   Corporation   has   received   FDA   clearance   to   market   its   Flex  Robotic  System  in  the  U.S.    The  minimally   invasive  system  enables  surgical  access  and  visualization  in  hard  to  reach  locations  via  high  definition  vision  system  and  operate  in  hard  to  access  areas  of  the  oropharynx,  hypopharynx  and  larynx.  

The   latest   in   robotics-­‐assisted   technology   for   partial   knee   replacement  procedures   is   the  Navio   system  marketed  by  Blue  Belt   Technologies.     The  Navio   System   uses   patented   technology   to   provide   precise   control   to  surgeons  via  an  intelligent,  hand-­‐held,  computer-­‐assisted  bone-­‐cutting  tool.    It  provides  robotic  assistance  to  the  surgeon  while  performing  bone-­‐shaping  tasks  through  minimally  invasive  incisions.    At  some  orthopedic  centers,  up  to  80%  of  all  joint  replacements,  both  full  and  partial,  are  being  done  on  an  outpatient  basis,   and   the  Navio  System   is   the   latest   “assistant”   to  provide  advanced  technology  through  minimally  invasive  procedures.  

Virtual  Incision  Company  has  just  received  $11.2  million  of  equity  funding  to  continue  developing   robotically   assisted   surgical  devices.     The   funding  will  be   used   for   a   feasibility   study   of   the   use   of   the   company’s   miniature  robotically  assisted  surgical  technology  for  colon  resection.    The  procedure  is   used   to   treat   patients   with   lower   gastrointestinal   diseases   such  diverticulitis,  Crohn’s  disease,  inflammatory  bowel  disease  and  coloncancer.    

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

 

Assisting  surgeons  is  merely  one  area  of  progress  for  robots  and  robotics.    In  other  medical   areas,   some   innovations   are   providing  what  many   consider  miraculous  assistance  for  people  to  live  fuller  lives.  

ReWalk  is  a  robotic  exoskeleton  that  allows  many  paralyzed  people  to  walk  again.    Designed  to  help  those  who  are  paralyzed  from  the  waist  down,  the  battery-­‐operated  system  features  a  light,  wearable  exoskeleton  with  motors  at  the  hip  and  knee   joints.    The  ReWalker  controls  movement  using  subtle  changes   in   his/her   center   of   gravity.     A   forward   tilt   of   the   upper   body   is  sensed  by  the  system,  which  initiates  the  first  step.    Repeated  body  shifting  generates  a  sequence  of  steps  which  mimics  a  functional  natural  gait  of  the  legs.     The   new  ReWalk   Personal   6.0   System   is   designed   for   all   day   use   at  home  and  in  the  community.    It  is  the  most  customizable  exoskeleton  and  is  configured  for  each  user.     It  enables  the  wearer,  through  a  wristwatch-­‐like  controller,   to   switch  between   sit,   stand,  walk  and   stair   climb  and  descend  modes.    The  unit  is  priced  at  about  $70,000.    

 

Another  exoskeleton  manufacturer  has  created  the  Ekso,  a  wearable  bionic  suit   which   enables   individuals   with   any   amount   of   lower   extremity  weakness   to   stand   up   and   walk   over   ground   with   a   natural,   full   weight  

Assisting  surgeons  is  merely  one  area  of  progress  for  robots  and  robotics.    In  other  medical  areas,  some  innovations  are  providing  what  many  consider  

miraculous  assistance  for  people  to  live  fuller  lives.  

 

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

bearing   gait.   Walking   is  achieved   by   the   user’s   weight   shifts   to   activate  sensors  in  the  device  which  initiate  steps.  Battery-­‐powered  motors  drive  the  legs,   replacing   deficient   neuromuscular   function.     It   provides   a  means   for  people  with  as  much  as  complete  paralysis,  and  minimal  forearm  strength,  to   stand   and   walk.     It   is   also   intended   to   help   victims   with   neurological  conditions   such   as   stroke,   spinal  cord   injury   or   disease,   traumatic   brain  injury  and  more.  The  system  is  currently  being  sold  to  rehabilitation  centers  and  individuals  for  $140,000.  

Second  Sight  uses  visual  images  from  miniature  cameras  usually  used  in  cell  phones  but   in   this   case  mounted   to   special   eyeglasses   to  help  people   see  again.     The   information   received   from   the   camera   is   converted   into  electrical   impulses   transmitted   wirelessly   to   electrodes   attached   to   the  eye’s  retina,  stimulating  the  retina’s  remaining  cells  to  send  information  to  the  brain.    This   system   is   showing  positive   results   for  many  suffering   from  Macular  Degeneration  and  retinitis  pigmentosa.    

Plans  are  available  on  the  internet  for  users  to  make  prosthetic  hands  on  3-­‐D   printers,   while   one   of   the  most   advanced   hands   in   the   field   of   robotic  prosthetics   is   available   from   RSL   Steeper.     The   Bebionic   3   is   a   multi-­‐articulating  myoelectric  hand  featuring  14  different  grip  patterns  and  hand  positions,   including   the   unique   mouse   grip   for   using   a   computer   mouse;  trigger  grip  for  using  spray  bottles;  and  precision  grip  for  securely  handling  small  items.  

 

Powerful  microprocessors  continuously  monitor  the  position  of  each  finger,  providing   precise   and   reliable   control   over   hand  movements.   The   thumb,  which   has   selectable   thumb   positions,   has   been   changed   to   provide  increased   strength.     Individual   motors   in   each   finger   are   positioned   to  optimize   weight   distribution   and   make   the   hand   feel   lighter   and   more  comfortable.     Able   to   carry   up   to   99   pounds,   the   Bebionic   3   has   almost  doubled   its   grip   strength   over   earlier   versions   of   the   hand.  A  selectable  auto-­‐grip   feature   also   senses   when   a   gripped   item   is   slipping   and  automatically  tightens  the  grip  for  a  secure  and  safe  hold.    

 

14 The  Bebionic  3  is  a  multi-­‐

articulating  myoelectric  hand  featuring  14  different  grip  patterns  and  hand  positions,  including  the  unique  mouse  grip  for  using  a  

computer  mouse.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

ARE  ROBOTS  READY  FOR  RETAIL?  OR  IS  THE  QUESTION  WHETHER  RETAIL  IS  READY  FOR  ROBOTS?  

There  are  many  who  believe  that  retail  workers  are  among  the  most  at-­‐risk  for  being  replaced  by  robots.    So,   is   the  automated  store  only  a   few  years  away?      

Advances   in   artificial   intelligence   has   led   to   Hointer,   a   Seattle-­‐based  company,  to  develop  robots  that  bring  items  to  and  from  fitting  rooms  –  but  it’s   hard   to   think   that   robots   would   provide   the   same   kind   of   customer  service   that   the   likes   of   Nordstrom   and   Neiman   Marcus   have   built   their  reputations  on.      

Still,   in   this   age  of   instant   information,   customers  want   to   know  where   to  find  items  in  the  stores  without  an  employee  vaguely  pointing  in  a  direction  and   saying,   “Well,   it’s   over   there   somewhere   on   Aisle   12   or   14,   I   think.”    Home  Depot’s  cell  phone  app   tells   the  user  what  aisle   the   items  sought   is  located   on,   but   Lowe’s   is   going   one   step   further   in   trial   stores.   OSHbot  incorporates  the  ability  to  communicate  with  customers  to  know  what  they  need  and  then  navigate  through  the  store  to  the  location.      

 Although  there  are  only  two  OSHbots   in  existence,  a  successful   trial   in   the  California   store   could   lead   to   many   more.     The   robot   understands   and  speaks   both   English   and   Spanish,   can   recognize   any   item   in   the   store’s  inventory   and   knows   what   the   store   has   in   stock   on   a   second-­‐to-­‐second  basis.    The  field  testing  for  the  robots   includes  whether  the  OSHbot  voices  should  be  male  or  female,  electronic  or  human,  whether  they  should  have  a  face  or  not  and  how  fast  they  should  move  through  the  store.  

Another   tool   consumers   are   beginning   to   find   at   Do-­‐It-­‐Yourself   big   box  stores   is   a   Findbox,   a   fixture   mounted   screen   with   a   camera   and   image  recognition   software.     Shoppers   put   their   item   on   a   platform   under   the  camera  and  the  system  does  and  image  search  for  the  item  on  the  platform.    It  then  displays  a  photo,  name  and  product  ID  of  the  item  if  it  is  available  in  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

the  store.    The  system  can  also  provide  a  shelf  tag  that  can  flash  a  light  on  the   shelf   to   indicate   where   the   hardware   item   is   located   in   the   aisle.    Ideally,   this   system   benefits   the   retailer   and   the   shopper.     It   provides   a  higher  level  of  service  to  the  shopper  with  no  change  in  staff  and  helps  the  customer  find  what  he  needs  quickly  in  the  store.  

 

Carnegie  Mellon  University   researchers  are  hard  at  work  on  AndyVision,  a  robotic  inventory  system  that  takes  the  form  of  an  autonomous  robot  that  roams   a   store   and   scans   the   aisles   and   shelves   to   perform   a   thorough  inventory  and  can  tell  a  store  staff  when  an  item  is  running  low  in  stock  or  if  merchandise  is  out  of  place.      

Malls   in   Abu   Dhabi   use   robots   as   service   ambassadors.     The   humanoid  robots  built  by  Barcelona-­‐based  PAL  Products  have  a  touch  screen  built  into  their   chests,   cameras   in   their  heads   to   allow   them   to   recognize  users   and  wheels   to   allow   them   to   drive   around.     Instead   of   pointing   to   a   spot   or  printing  a  map,  the  robots  lead  you  to  your  destination.    

 The  Aloft  hotel  across  the  street  from  Apple’s  headquarters  in  Cupertino  is  experimenting  with  robotic  bellhops.    The  robots,  deliver  basic   items   from  the  front  desk  to  your  room,  finding  their  way  by  themselves  via  elevators  and  hallways.    When  they  arrive  at  your  door  with  your  order,  they  call  your  

Malls  in  Abu  Dhabi  use  robots  as  service  ambassadors.    The  humanoid  robots  built  by  

Barcelona-­‐based  PAL  Products  have  a  touch  screen  built  into  

their  chests.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

room  phone   to  announce   their   arrival.    Open   the   lid,   take  your  order  and  give   them   a   friendly   thanks   and   they   are   on   their   way   back   to   the   front  desk.    Best  thing?    No  tipping!  

Purchasing  clothing  online  can  be  a  convenient  thing,  but  the  fit  is  always  a  factor.     Sizes   can   vary  widely   and   retailers   are   finding   customers   buy   the  same  item  in  two  or  more  sizes  –  and  then  return  the  ones  that  don’t  fit  to  their  liking.    It’s  convenient  for  the  shopper,  but  is  an  overhead  cost  for  the  retailer.    An  Estonian  company  named  Fits.me  has  developed  a  robot  which  can  change  its  shape  to  fit  clothing  and  then  provide  measurements  across  thousands   of   points   for   each   garment.     When   a   customer   enters   their  measurements  and  selects  a  garment,  it  shows  how  the  item  would  fit  their  body.     It  allows  online  shoppers   to  have  a  better   idea  of  how  clothing  will  look  and  fit  on  their  body,  hopefully  reducing  the  number  of  returns.  

In   Japan,   a   hotel   recently   opened   with   robots   in   reception   areas   helping  guests   register.     In   the  rooms,  a   robot  shaped   like  a  ping  tulip   lamp  called  Tuly   answers   simple   time,   date   and   weather   questions   and   turns   room  lights  on  and  off  via  voice  commands.     In  China,  robots  are  used  to  deliver  food   to   tables   in   restaurants,   rather   than   serving   staff.     Robot   chefs   are  being  developed  to  prepare  meals  in  homes  with  glorified  crockpot  finesse.  

While   the   use   of   robots   in   the   front   of   retail   stores   is   still   under  development,   they   are   already   performing   the   more   menial,   behind-­‐the-­‐scenes   roles   such   as   pickers   and   packers   in   retail   distribution   centers.    There’s  no  question   there   is   a   role   for   robots   and   robotics   in   retail,   but   it  may  be  some  time  before  that  role  is  truly  defined.  

One  of  the  pressing  issues  is  also  the  cost.    If  the  robots  were  coming  from  a  manufacturing   source   instead   of   prototype   shops,   there   would   be   an  enormous   price   reduction.     But   in   order   for   products   to   be   built   on   that  scale,   there  must   be   awareness   and   familiarity,   as  well   as   having   a   robot  that  truly  accomplishes  what  it  is  needed  for.      

Another  of  the  issues  is  that  the  rate  of  technological  change  and  the  range  of   capabilities   is   so   short   that   what   is   cutting   edge   –   or   beyond   –   today,  becomes   outdated   and   antiquated   in   just   a   few   years.     Retailers   have   to  

A  robot  shaped  like  a  ping  tulip  lamp  called  Tuly  answers  simple  time,  date  and  weather  questions  and  turns  room  lights  on  and  off  

via  voice  commands  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

weigh   the   “out   of   style”   and   “up   to   date”   by   determining   if   investment  dollars  are  recovered  before  the  payback  on  investment  is  complete,      

Retail   has   always   been   about   getting   inventory   from   its   place   of  manufacture  to  customers.    The  many  steps  along  the  way  –  from  packing,  transporting,   unpacking   and   merchandising   the   product   –   are   using  automation  and  robotics  to  their  current  limits,  in  many  cases.    Changes  and  new   opportunities   for   robotics   will   take   place   in   the   coming   years   –  probably  before  robots  become  commonplace  in  the  sales  floor.  

ROBOTS  IN  INDUSTRY  

For   decades,   robots   have   been   a   part   of   the   manufacturing   world.    Expensive,  big,  unable   to  move  but  able   to  perform  highly   repetitive   tasks  involving   heavy   objects,   the   robots   did   what   they  were   designed   to   do   –  lower   the   cost   of   manufacturing   and   increase   productivity.     While   the  robots   have   performed   fearlessly   and   flawlessly,   the   world   has   begun   to  change.   Technology   changes   almost   daily   and   the   consumer   appetite   is  whetted   by   varying   promotional   campaigns   and   the   consumer   desire   for  customization—whether  it  is  a  cell  phone  or  a  luxury  car.  

Fortunately,   advances   in   robotics   technology   have   allowed   the  development  of  a  new  breed  of  robot  that  provides  entirely  different  ways  to   accomplish   the   physical   tasks   that   have   been   outside   the   reach   of  traditional   robots.     These   collaborative   robots   are   already   being   used   by  manufacturers  in  electronics,  industrial  equipment  and  white  goods,  as  well  as  in  sheet  metal  fabrication,  home  furnishings  and  plastics.  

For  years,  Boeing  has  been  secretly  working  on  a  way  to  change  the  building  of  the  fuselage  on  its  777  planes.  That  formerly  secret  process  is  now  in  its  final  phase  of  testing  and        production.    Working  with  KUKA  Robotics,  the  two   companies   have   developed   the   Fuselage   Automated   Upright   Build  process   that   allows   fuselage   sections   to   be   built   using   automated,   guided  robots  that  will  fasten  the  panels  of  the  fuselage  together,  drilling  and  filling  the  more  than  60,000  fasteners  that  have  been  installed  by  hand.  

 The  FAUB  system  does  more  than  just  make  every  rivet  perfect.    The  drilling  and  filling  makes  it  an  ideal  job  for  an  automated  solution  and  is  a  safer  one  for   employees.    More   than   half   of   the   injuries   on   the   777   program   have  occurred   during   the   phase   of   production   that   is   being   automated.     The  automated  system  is  also  expected  to  reduce  build  times  and   improve  the  

66,000

The  Fuselage  Automated  Upright  Build  process  that  allows  fuselage  

sections  to  be  built  using  automated,  guided  robots  that  will  fasten  the  panels  of  the  

fuselage  together,  drilling  and  filling  the  more  than  60,000  

fasteners  that  have  been  installed  by  hand.  

 

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

quality   of   the   build   process.    When   all   of   the   issues   are   worked   out,   the  technology  is  expected  to  be  implemented  in  the  next  few  years  and  will  be  used  on  the  777  and  the  777X.  

In  Australia,  riding  lawn  mower  manufacturer  Cox  Industries  employed  160  people   a   decade   ago.     The   number   is   now   60,   as   the   manufacturer   has  turned   to   robotic   welding   machinery   to   stay   in   the   fight   for   consumers  against   importers   like   John   Deere,   Husqvarna   and   MTD.     Fighting   for  survival,  the  company  imported  three  robotic  welders  at  a  cost  of  $150,000  each.     It  meant   that   the   company  needed  only  one  person   for   every  nine  before,  and  the  investment  paid  for  itself  quickly.  

According  to  co-­‐owner  Ken  McColl,  the  Australian  economy  can’t  afford  to  have   businesses   like   his   to   disappear.     “We   have   400   separate   suppliers,  almost  all  of   them   local   small  businesses.    From  the  makers  of  a  specialist  washer,   to   the  electricians  and  plumbers  and  maintenance  people  here  at  the  factory  to  our  bank,  insurers,  and  the  sandwich  shop  around  the  corner  –  all  are  part  of  our  business.    People  need  to  think  about  that  when  they  are  comparing  a  Cox  mower  to  an  import.”  

One  of  the  world’s  largest  freight  and  package  moving  and  delivery  services  is   experimenting  with   a   variety  of   robotic   and   technological  ways   to   load,  unload,   track   and   trace   packages   within   its   system.     High   marks   have  resulted  in  some  –  and  others  are  still  in  the  developmental  stage.    

 Technological   breakthroughs  on   trucks  have   resulted   in   automatic  braking  and   anti-­‐collision   and   turnover   systems   installed   fleet-­‐wide.     Great   gains  have   been   made   in   convoy   braking   systems   and   location-­‐monitoring  technology.    One  particular  system  is  Sensaware,  available  to  the  consumer  for   either   sale   or   rent,   which   is   a   device   that   goes   inside   a   package.     It  senses   light,   temperature   and   through   a  GPS   sensor,   provides   online,   live  tracking.     It  can  also  be  monitored  and  if   it  goes  outside  a  certain  area,  an  alarm  goes  off.  

Presently,  the  company  is  using  automated  scanning  systems  to  scan  all  six  sides  of  a  parcel,  allowing  it  to  be  traced  almost  instantly.    The  greatest  way  robotics   and   robots   could   assist   the   company   is   two-­‐fold,   and   early  

60 In  Australia,  riding  lawn  mower  manufacturer  Cox  Industries  

employed  160  people  a  decade  ago.    The  number  is  now  60,  as  the  

manufacturer  has  turned  to  robotic  welding  machinery  to  stay  in  the  

fight  for  consumers  against  importers  like  John  Deere,  Husqvarna  and  MTD.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

experimentation   with   both   has   led   to   short-­‐lived   trials   and   back-­‐to-­‐the  drawing  board  results.    

The  greatest  asset  in  time  and  money  saved  would  be  robotic  unloading  and  loading  of  trailer  trucks.    The  use  of  robots  of  this  mind-­‐numbing  task  would  save  untold  hours  –  but  after  -­‐two  weeks  the  robot  trial  was  scrapped  until  a   better   design   could   be   tested.   The   robotic   arm,   picking   up   and  moving  packages  by  suction  pickup,  left  much  to  be  desired.  

The  second  use  of  robots  that  would  be  of  great  use  would  be  moving  non-­‐conveyable  packages  from  one  place  to  another  within  the  distribution  hub.    Early  efforts  at  this  were  unsuccessful  as  well.  

One   area   showing   promise   is   the   use   of   exoskeletons.     Workers   are  outfitted   in   an   exoskeleton   system   and   with   the   use   of   some   hydraulic  forces,   are   able   to   pick   up,   scan   and   move   heavier   packages   than   they  would  normally  be  able  to  lift.  

The   package   moving   and   delivery   company   has   not   done   much  experimentation   with   drones   yet   –   but   one   company   has   found   a   highly  unique  use  of  the  manually-­‐operated  flying  machines.  

One  of  the  most  dangerous  jobs  on  an  oil  rig  is  the  inspection  of  wear  and  tear   on   the   girders   that   form   the   spider-­‐like   structures.     In   the   past,  roughnecks  dangled  from  cables,   in  high  winds  if  necessary,  to  inspect  and  log  problems  like  cracks  and  physical  damage  from  waves.    Metal  structures  in   salt   water   rust   a   lot   and   rigs   continuously   need   to   be   repaired   and  refurbished.      

Sky  Futures,  headquartered  in  London,  has  built  a  drone  inspection  business  specializing   in   the   oil   and   gas   industry.     Inspections   involve   sending   one  drone  operator  and  an  engineer  out  to  a  rig  to  fly  a  small  drone  around  the  platform,  building  a  3D  model  of  the  structure.    In  five  days,  the  drone  can  do  the  work  of  what  might  take  eight  weeks  with  human  inspectors.    Using  high  definition  and  thermal  cameras,  the  drone  collects  data  which  is  then  analyzed  and  flagged  as  red,  amber  or  green,  depending  on  the  needs  to  be  addressed.     Using   lasers,   drones   can   also   track   cracks   and   corrosion   and  map  how  they  evolve  over  time.  

 

In  Australia,  riding  lawn  mower  manufacturer  Cox  Industries  

employed  160  people  a  decade  ago.    The  number  is  now  60,  as  the  

manufacturer  has  turned  to  robotic  welding  machinery  to  stay  in  the  

fight  for  consumers  against  importers  like  John  Deere,  Husqvarna  and  MTD.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

If  robots  can  help  solve  issues  in  the  oilfields  of  the  North  Sea  and  the  Gulf  of  Mexico  and  help  solve  the  back-­‐breaking   issues  of  hand-­‐riveting  aircraft  fuselages,  why  can’t   sewing  machines  be  designed  to  cut  and  sew  apparel  without  the  touch  of  human  hands?  

Now  there’s  a  challenge.      

Such  a  computer-­‐controlled  sewing  machine  must  be  able  to  precisely  move  fabric  under  the  needle  “stitch  by  stitch”  and  carefully  track  threads  –  a  job  normally   done   with   human   hands   and   eyesight.     If   it   could   be   done,  automated  factories  could  produce  garments  with  no  direct  labor.      

The   Pentagon   has   given   a   $1.2   million   grant   to   a   Georgia   Tech   spinoff  company,  Softwear  Automation  to  develop  the  “no-­‐hands”  system  it  could  then   incorporate   into   the   manufacture   of   uniforms   for   the   U.S.   Armed  Forces.  

If   successful,   the   SAM-­‐1000   sewing   machine   could   also   change   the   way  clothing  is  made  and  where  it  is  made.    The  sewing  machine  is  designed  to  cut   fabric,   assemble   parts   and   stitch   them   into   a   complete   garment.     The  U.S.  currently   imports  about  $100  billion  worth  of  clothes  and  sewn   items  each  year,  so  success  with  the  sewing  machine  project  could  mean  anything  from  lower  costs  to  returning  the  manufacturing  of  clothing  to  America.  

 

There   are   plusses   and   minuses   for   such   an   automated   system.     Initial  investment   costs   will   be   very   high   and   some  manufacturers   will   be   hard-­‐pressed  to  afford  it.    Tens,  if  not  hundreds  of  thousands  of  jobs  will  be  lost  and  what  becomes  of  those  workers  and  their  ability  to  earn  any  kind  of  a  living.     Engineers   and   staff   with   necessary   IT   skills   to   design   and   run   the  machines  will  be  needed.    The  machines  will  need  to  work  with  all  kinds  of  fibers,  materials,  yarns  and  fabrics.        

And  those  are  just  a  few  of  the  negatives.  

From  a  positive  standpoint,   it’s  possible  that  manufacturing  could  be  done  here   in   America,   reducing   shipping   costs   and   reducing   the   price   of   the  finished   garment.     Speed   to   market   is   faster,   with   response   times   for  

$1.2 MILLION

The  Pentagon  has  given  a  $1.2  million  grant  to  a  Georgia  Tech  spinoff  company,  Softwear  

Automation  to  develop  the  “no-­‐hands”  system  it  could  then  

incorporate  into  the  manufacture  of  uniforms  for  the  

U.S.  Armed  Forces.  

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

changing   consumer   demands   accelerated.     Output   quantity   can   be   more  standardized  because  of  less  need  for  human  error  and  less  wastage.  

THE  EDGE  OF  THE  ROBOTIC  WEDGE  

Whether   or   not   the   completely   automatic   sewing   machine   becomes   a  reality  or  not,  one  thing  is  very  clear.    An  ageing  workforce  exists  and  many  younger   workers   currently   view   manufacturing   as   a   demoralizing   job   of  drudgery  and  monotony.      

The  demands  on   automation   already  outweigh   the   supply   of  workers   and  the  need  for  qualified  employees  is  only  going  to  increase.    With  a  growing  skills  gap,   it   is  anticipated  that  more  than  3.4  million   jobs  will  be  available  during   the   next   decade   –   but   there   are   currently   only   about   1.1   million  qualified  workers.      

A  large  number  of  the  jobs  will  not  need  a  four-­‐year  degree  and  personnel  from  the  leading  “tech”  and  engineering  colleges  like  Carnegie  Mellon,  MIT,  Stanford   and   Cal   Tech.     Instead,   jobs   will   be   for   qualified   personnel   to  oversee   and   understand   the   computerized   robotics   in   factories   and   other  industries.    Those   jobs  need  skills  –  but  not  necessarily   the  ones   taught  at  the   prestigious   engineering   universities.     A   variety   of   programs   are   now  underway   to   create   community   college   degree   programs   and   training   to  develop   the   new   crop   of   workers   skilled   at   overseeing   robotic  machinery  and  the  maintenance  of  those  machines.    These  two-­‐year  degree  programs  will  provide  well  trained  workers  for  these  critical,  well-­‐paying  jobs.  

Looking  down  the  robotic  road  at  the  future  opportunities,  providing  well-­‐trained  workers  for  new  positions  is  critical.    The  road  will  continue  to  make  turns  and  have  hills  and  valleys  as  technology  continues  to  change.    Money  continues   to   pour   into   robotics.     Startup   companies   begin   daily   and   the  future   is   limited   only   by   imagination,   technological   changes   and   funding.    The  global  robotics  market  is  anticipated  to  grow  to  more  than  $44.5  billion  by  the  end  of  this  decade  –  up  from  the  $28.3  billion  in  2013.    What  we  are  seeing  now  is  merely  the  “edge  of  the  robotic  wedge.”  

   

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January 6, 2015

DEBORAH  WEINSWIG,  EXECUTIVE  DIRECTOR–HEAD  OF  GLOBAL  RETAIL  &  TECHNOLOGY  [email protected]    US:  917.655.6790    HK:  852.6119.1779    CN:  86.186.1420.3016  Copyright  ©  2016  The  Fung  Group.  All  rights  reserved.  

 Deborah  Weinswig,  CPA  Executive  Director—Head  of  Global  Retail  &  Technology  Fung  Business  Intelligence  Centre  New  York:  917.655.6790    Hong  Kong:  852  6119  1779  China:  86  186  1420  3016  [email protected]    Filippo  Battaini  [email protected]  

Marie  Driscoll,  CFA  [email protected]  

John  Harmon,  CFA  [email protected]  

Aragorn  Ho  [email protected]  

John  Mercer  [email protected]  

Shoshana  Pollack  [email protected]    

Kiril  Popov  [email protected]  

Jing  Wang    [email protected]  

Steven  Winnick  [email protected]  

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