Application Update: What’s the cost, ROI, of a robotic cell?

Thinking of robotics? Here are the metrics needed to make a smart return-on-investment decision about a robot purchase.


In rough numbers, what does a robot cell cost?  What’s the total cost of ownership?  How do you justify it?  What’s the return on investment (ROI)?  What’s the internal rate of return (IRR)?

Here are some rules of thumb. Companies automate for a combination of the following three reasons, to:

1.  Save money. Labor savings is the most obvious reason.  Labor costs range greatly depending on the industry, geography, if it’s a unionized environment, and other factors.

Typically, labor costs per operator range from a low-end of $20,000 per year to a high-end of $80,000 (all-in costs including wages and benefits).  Besides direct labor savings, other benefits of automating often include improved quality reduced scrap, and less rework. These costs are often tougher to quantify but can play a big role in certain applications.

2. Make more money. Existing production equipment is either starved or bottle-necked because people aren’t fast enough to load or unload it.  In some cases, a manufacturer could sell more product with the capacity to make it.  By using robotics, you can operate faster.  This increase in throughput (and revenue) comes at a low cost in relation to new production equipment.  In other instances, manufacturers are outsourcing the overflow production to meet demands.  By automating the loading and unloading, they reduce or eliminate the need to outsource. (See reason number 1.)

3. Comply with government, regulations, laws, or requirements. In most cases these are ergonomic issues—stresses and strains from high-speed, repetitive tasks or lifting of heavy objects.  They result in workers’ compensation claims, lost time injuries, added rotations through strenuous jobs, etc.  Usually ergonomics doesn’t make or break the business decision to automate, but it can be an important factor.  From my experience, ergonomic costs can range from 5% to 20% of the direct labor costs.

Other times, the risks are more serious than stresses or strains.  Sometimes, the sole motivation is to get people out of hazardous jobs.  A robot is a lot easier to replace than a human life.

What does a robot cell cost?

A typical, single robot cell is $300,000, plus or minus 50%.  Obviously, this is an order of magnitude estimate and will vary depending on the complexity of the process, but generally most single-robot systems will fall into this cost range.

This will include:

  • Mid-sized robot
  • Robot end-of-arm-tooling or gripper
  • Control panel including PLC, operator interface screen (HMI), safety circuits, motor starters, and the like
  • Cell guarding
  • Customized engineering for the system to complete the desired process
  • Some auxiliary equipment, such as conveyors or deburring equipment
  • Fabrication, assembly, setup, and runoff at the system integrator’s facility
  • Shipping to the site
  • Rigging and installation
  • Integration with your existing equipment, and
  • System-specific operator and maintenance training.

 What about ongoing costs?







Initial spare parts


$5000 to $20,000


One-time purchase with system


Yearly service and maintenance


$2k to $5k




Yearly replacement and wear items


$2k to $5k




Typical costs outside of the main purchase will include spare parts, yearly service, and maintenance, including yearly replacement and wear items.

Return on investment?

Any ROI between 12 months and 36 months is a no-brainer. At a minimum, if you have more than two shifts of operation and all-in labor costs of $35,000 per person, there’s a strong business case to look at automation.

Ken McLaughlin is director, automation systems with JMP Engineering Inc.,, London, Ontario, Canada. McLaughlin among the class of 2010 Control Engineering Leaders Under 40. He writes a blog called Robot Shift at

- Edited by Mark T. Hoske, Control Engineering content manager,

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.