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After two record years in a row during the height of the COVID-19 pandemic, sales of industrial robots have crashed back into reality, especially in North America. According to industry association A3, sales of industrial robots in North America will decrease by 30% in 2023. North America sales during Q1 2024 were down 6% compared to Q1 2023.
While many analysts agree that industrial robots will eventually become ubiquitous, the time frame for when that will happen remains unknown. The slowdown is partly responsible for several robotics companies going out of business or laying off employees. Mark Chiappetta, president and CEO of soft tentacle maker Soft Robotics Inc., was determined not to fall into that category.
Soft Robotics has today sold its soft robotic gripper business to J. Schmalz GmbH for an undisclosed sum. Based in Glatten, Germany, Schmalz is a leading developer of vacuum technology, producing everything from suction cups and vacuum generators to complete gripping and clamping systems.
Chiappetta said Report on robots that Schmalz is acquiring Soft Robotics’ intellectual property as well as numerous employees and facilities.
“When COVID was happening, the talk was, ‘We have no choice. (Robot installation) is a matter of keeping up with demand,” he said. “We all fully expected these buying habits to remain, leading to a tectonic shift in robotics. But these customs did not remain.”
Soft Robotics was founded in 2012 by Dr. George M. Whitesides of Harvard University. He envisioned the use of soft materials and microfluidics to change the way robots are made and open the door to new markets and applications. Keynote was the inaugural Robotics Summit & Expo, produced Report on robotsin 2018.
Oxipital AI is diversifying the business
While Soft Robotics’ grippers are now under the Schmalz umbrella, the company is no longer. It has spun off its mGripAI 3D vision and artificial intelligence technology into a new company called Oxipital AI, for which Chiappetta has the same job title.
Oxipital AI will focus on visual inspection tasks such as defect detection, volume estimation, SKU classification, attribute segmentation and conveyor counting. It will also focus on robotic picking in various industries, starting primarily in the food industry, where Soft Robotics has built its reputation.
The company plans to create basic object models that are pre-trained using 100% synthetic data, according to Chiappetto. He added that Oxipital AI requires zero image collection, nor does it need human labeling.
The no-code feature allows customers to set rules for what constitutes a good product or a bad product for inspection tasks, and a cloud-based dashboard collects and analyzes real-world data, he explained. Oxipital AI technology is connected to all existing industrial robot arms as well as conventional automation systems such as conveyors, Chiappetta said.
The food industry is forcing Soft Robotics to change focus
Besides not selling robotic tentacles, the main difference from the former company is that Oxipital AI will place a strong emphasis on non-robot applications, he noted. In the food industry, for example, AI-based vision technologies can improve yield, increase throughput and reduce waste, Chiapetta said.
“Food processors are not ready to rip out human assembly lines and replace them with robotic lines,” Chiappetta said. “They’re willing to turn on the camera to discover how to optimize their current processes.”
Chiappetta said floor space is the biggest reason food processors aren’t adopting robotics. According to him, most larger organizations are built by acquiring smaller manufacturers. This makes every manufacturing plant different and floor space is at a premium.
Another big problem, according to Chiappetta, is that food companies are reluctant to take the initial leap of faith in robotics.
“(The food industry) has not been a strong adopter of robotics yet,” he said. “Processors need to allocate capital at high interest rates, select bidders, develop a solution, remove the existing line, put the solution in place, have acceptance and quality done, and then know if the investment has paid off. .”
“Once you remove people, it’s hard to come back,” Chiappetta said.
He said on LinkedIn that Soft Robotics has nearly 1,000 soft tentacles deployed in the field.
OnRobot is another well-known developer of soft robotic tentacles. Founded in 2015, the Odense-based Danish company initially offered a variety of robotic end-effectors.
However, it too has diversified its business by introducing various sensors, tool changers and software packages for applications such as palletizing, packaging, CNC machining and more.
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The former Soft Robotics has dived into AI
The Bedford, Mass.-based company updated its website to reflect the new direction. One page details how “a leading producer of sweet corn in the United States” recently implemented artificial intelligence vision technology to check its products for defects.
This system looks for various defects such as missing cores and deformed or undersized products. This information is then forwarded to the quality control team to take the necessary action.
Why did Soft Robotics get rid of its tentacle business instead of just increasing its focus on 3D vision and artificial intelligence?
Chiappetta responded that it’s not an “adapt-or-die” situation, but that the increased cash from the sale certainly helps. According to him, the main benefit is to keep the company focused.
“Robotic picking is really hard, and grippers are a specialized activity,” Chiappetta said. “The visual artificial intelligence needed to do these things is the common denominator of all these applications. And we have the technology for it.”
“Without focus, it’s hard to survive,” he added. “I’ve had many conversations with strategic partners and others who didn’t know how to look at a company that has eyes (vision), hands (catchers) and brains (AI.”
It is not 100% dependent on bot sales
December 2022 was Soft Robotics’ best month financially, Chiappetta said Report on robots. January is usually a slow month as companies figure out their budgets, but January 2023 was terrible and February was no better, he said.
“Our partners saw the same thing,” Chiappetta recalled.
Soft Robotics last raised $26 million in November 2022. Since its inception, it has raised $86 million, according to Crunchbase.
Soft Robotics’ business was 100% dependent on selling robots, but Oxipital will not be, Chiappetta argued.
“The Schmalz transaction is the beginning of what we hope is a strategic partnership,” he said. “They have a great reputation and global distribution. It’s natural for us. We need a company like Schmalz to grow soft robotic tentacles. And the more soft grip becomes standard, the more opportunities we’ll have for our AI vision technology.”