An unexpected consequence of President Trump’s relentless trade policies, which include multiple rounds of tariff announcements, has been an increase in demand for automation and robotics. As American companies cope with the uncertainty and potential increases in costs associated with the trade war, there is a growing reliance on robots to automate more processes to preserve margins.
Robots to the Rescue: Automation Amidst Uncertainty
Formic, a “robots-as-a-service” company, reports increased usage of robotics by clients this year. The firm services various sectors, such as automotive and food and consumer goods, by automating packing and palletizing and leasing out robots on a monthly, usage-based fee.
A February Frenzy: Growing Robot Demand Due to Tariff Anxiety
During the period from January to February, Formic reported an overall 17% spike in the usage of robots by its clients. The food and beverage sector experienced a 13% surge as well. Marketing chief Shawn Fitzgerald claims that “companies were trying to get ahead of any tariff-driven price hikes.” Notably, the surge in demand occurred alongside the first wave of tariffs announced by President Trump on February 1, which impacted China, Canada, and Mexico and their goods. This analysis precipitates, “Everyone convened and made the consensus that they would go full throttle in February. ” They produced as much as possible“for the price points we are at right now,” Fitzgerald said.
Robots offer cost predictability, especially during chaotic changes in supply and demand, as highlighted by Fitzgerald. Automation alongside staff is especially useful if a company needs extra help or furloughs. “Unfortunately, if you have to go into overtime, robots are loved first, second, and third shift and overtime all the same. They do not care,” he elaborated. As companies struggle to navigate ever-changing workloads and possible tariff-induced expenses, reliability in managing increased workloads is precious.
A Cheese Company’s Use of Automation Technology: Responding to Trade Problems
The Rumiano Cheese Company, which is a 106-year-old cheddar cheese maker, is adding automation like many other companies in an effort to reduce the burden of tariffs. The company imports and exports cheese, and to automate the transport of heavy cheese boxes, it is getting a Formic robot. This is one of many efforts in automation that the company is pursuing to remain competitive in the difficult trade climate.
Beyond Tariffs: A Broader Trend Towards Automation
Even as tariffs increase the adoption of robotics, automation has been on the rise for other reasons for several years. Forrester’s Paul Miller cites the pandemic as a major reason for companies to “shorten supply chains, increase resiliency, and enhance flexibility.” He adds, “If you’re trying to bring that manufacturing capacity to California or Germany or Japan, the people are not cheap. You need to use automation to fill in some of the gaps.”
A Skilled Workforce for a Robotic Future: Government Support
This is also echoed by Commerce Secretary Howard Lutnick, who says that the drive toward domestic manufacturing due to tariffs will lead to an increased need for “government-sponsored tradecraft—teaching folks how to be robotics, mechanics, engineers, and electricians for high-tech factories.”
Conclusion: Robots Fill the Gap in a Tariff-Driven Market
Trump’s trade war has—somewhat paradoxically—led to greater reliance on robotics and automation. With greater costs, volatility, and competition in the market, businesses are restructuring their operations around technology. These trends indicate that the future of American manufacturing will be even more reliant on robots.
