{"id":129820,"date":"2025-04-22T19:47:18","date_gmt":"2025-04-23T00:47:18","guid":{"rendered":"https:\/\/www.controleng.com\/?p=129820"},"modified":"2025-04-23T19:05:21","modified_gmt":"2025-04-24T00:05:21","slug":"machines-as-a-service-in-the-time-of-tariffs","status":"publish","type":"post","link":"https:\/\/www.controleng.com\/machines-as-a-service-in-the-time-of-tariffs\/","title":{"rendered":"Machines-as-a-service in the time of tariffs?"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Machines-as-a-service in the time of tariffs?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/gZEJkbvTH_4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Tariffs continue to dominate the news, and the impact is being felt in manufacturing.<\/p>\n\n\n\n<p>But the show must go on. Orders must be fulfilled, and parts must be created. And&nbsp;<a href=\"https:\/\/www.plantengineering.com\/how-to-scale-automation-strategies-against-tech-tariff-uncertainty\/\">automation drives a lot of manufacturing processes<\/a>.<\/p>\n\n\n\n<p>How are manufacturers automating tasks when they\u2019re not sure what tariffs will be implemented and which are being paused?&nbsp;<\/p>\n\n\n\n<p>Perhaps one of the most surprising winners in the current tariff environment is machines-as-a-service (MaaS). The model involves renting equipment along with service and&nbsp;<a href=\"https:\/\/www.controleng.com\/overcome-three-obstacles-to-process-data-analytics-see-example\/\">data analytics<\/a>&nbsp;through a full-service provider.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How one company is addressing automation needs<\/h2>\n\n\n\n<p>Whispers about tariffs started in late 2024 and into early 2025, and that\u2019s about the time Saman Farid, chief executive officer of <a href=\"https:\/\/formic.co\">Formic<\/a>, a full-service MaaS provider headquartered in Woodridge, Illinois, started to see a run on his company\u2019s services.<\/p>\n\n\n\n<p>\u201cI think there\u2019s a lot of uncertainty manufacturers face,\u201d Farid told Control Engineering in an exclusive interview. \u201cStarting in the December, January timeframe, we started hearing about possible tariffs coming toward Canada and Mexico.\u201d<\/p>\n\n\n\n<p>About that time, some manufacturers started to wonder about hedging against the uncertainties they might face should those tariffs become a reality.<\/p>\n\n\n\n<p>\u201cRaw materials costs may fluctuate, my ability to source from overseas suppliers may fluctuate,\u201d Farid noted. \u201cKnowing the environment is changing so much, it\u2019s hard for me to put hundreds of thousands of dollars into equipment I might not need a year from now.\u201d<\/p>\n\n\n\n<p>And that\u2019s where MaaS comes in.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-1024x576.jpg\" alt=\"The possibility of tariffs have led some manufacturers to turn to machines-as-a-service to meet their automation needs. Courtesy: Formic\" class=\"wp-image-129821\" srcset=\"https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-1024x576.jpg 1024w, https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-300x169.jpg 300w, https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-768x432.jpg 768w, https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-1536x864.jpg 1536w, https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-900x506.jpg 900w, https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1-400x225.jpg 400w, https:\/\/www.controleng.com\/wp-content\/uploads\/2025\/04\/Formic_FT2-1.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The possibility of tariffs has led some manufacturers to turn to machines-as-a-service to meet their automation needs. Courtesy: Formic<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">It\u2019s not just renting robots<\/h2>\n\n\n\n<p>On the surface, MaaS sounds like renting automation equipment for short-term production needs. But that\u2019s only part of the equation, Farid cautioned.&nbsp;<\/p>\n\n\n\n<p>\u201cWe provide full-service automation, not just rental,\u201d he said. \u201cWhat we\u2019ve found is that for a lot of small- to medium-sized manufacturers in particular, renting doesn\u2019t actually solve the biggest problem around deploying robots, which is \u2018I don\u2019t know what to buy, I don\u2019t know how to buy, I don\u2019t know how to manage it, I don\u2019t know how to maintain it.\u201d<\/p>\n\n\n\n<p>His company, he said, installs, engineers, deploys, maintains, provides spare parts and reconfigures as needed to help smaller manufacturers fill empty headcounts.<\/p>\n\n\n\n<p>His three biggest clients? Packaged consumer goods producers, metal fabricators and plastic injection molding facilities.&nbsp;<\/p>\n\n\n\n<p>And what exactly are they adding to their facilities?&nbsp;<\/p>\n\n\n\n<p>\u201cPalletizers are a very common one, case packing robotic applications, conveyors are always needed. Autonomous mobile robots for different use cases,\u201d he said.<\/p>\n\n\n\n<p>AMRs are particularly useful in plant sanitation, especially for food production.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cWhat we allow these factories to do is to suddenly scale up their throughput and the quality of their products without having to go deep into their pockets to come up with a lot of capital expenditures for that,\u201d Farid said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">MaaS brings automation without capex<\/h2>\n\n\n\n<p>One of the big pressures large manufacturers face is the inability to source parts. It\u2019s something the Wall Street Journal noted in a recent piece about the&nbsp;<a href=\"https:\/\/www.wsj.com\/business\/entrepreneurship\/out-of-the-tariff-turmoil-a-few-winners-emerge-0393856c?st\">surprising winners of what it calls tariff turmoil<\/a>.<\/p>\n\n\n\n<p>\u201cA lot of large manufacturers used to buy their parts from overseas,\u201d Farid said. \u201cHow can I get a domestic producer to help me make XYZ component. They\u2019ll come to a lot of these small factories and say, \u2018Can you bid this part? Here\u2019s the CAD drawing, can you make it?\u2019 And, unfortunately, the reality is, a lot of these shops will say, \u2018In theory, we can make it, but we\u2019re booked full\u2019.\u201d<\/p>\n\n\n\n<p>A lot of these smaller companies, Farid noted, are not automated.<\/p>\n\n\n\n<p>\u201cWhat we\u2019re seeing is once they get a couple of robots, they can start to say yes to some of those orders, so it helps them get more of that business,\u201d he said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to automate quickly<\/h2>\n\n\n\n<p>Addressing the current tariff uncertainty isn\u2019t simple, but Farid does have some advice for plants looking to scale their automation plans.\u00a0<\/p>\n\n\n\n<p>\u201cRobotics isn\u2019t one of those things you can indiscriminately add,\u201d he said.<\/p>\n\n\n\n<p>It requires management and maintenance.&nbsp;<\/p>\n\n\n\n<p>His first piece of advice would be to add a strong internal robotics team. Failing that, hiring a trust source and having the capital to back it up would be his next piece of advice.<\/p>\n\n\n\n<p>\u201cIf you\u2019re going to go with&nbsp;<a href=\"https:\/\/www.controleng.com\/how-to-mitigate-automation-risks-with-a-system-integrator\/\">a systems integrator<\/a>, my expectation would be to budget about 50% more than what they\u2019re going to quote you,\u201d he said.<\/p>\n\n\n\n<p>This is because change orders happen frequently. Problems arise over a year or two, leading to more expenses.<\/p>\n\n\n\n<p>The third option is full-service automation, which he provides.<\/p>\n\n\n\n<p>\u201cIt does sound a little bit self-serving, but the easiest way is through full-service automation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tariffs continue to dominate the news, and the impact is being felt in manufacturing. But the show must go on. Orders must be fulfilled, and parts must be created. And&nbsp;automation drives a lot of manufacturing processes. How are manufacturers automating tasks when they\u2019re not sure what tariffs will be implemented and which are being paused?&nbsp; [&hellip;]<\/p>\n","protected":false},"author":4919,"featured_media":129821,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"pgc_sgb_lightbox_settings":"","footnotes":""},"categories":[107247,108044,104149],"tags":[109736,109341,109340,110100,110099,109513,110097,110098,110044],"tracking-metrics":[],"display-location":[109353],"class_list":{"2":"type-post"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Machines-as-a-service in the time of tariffs? - Control Engineering<\/title>\n<meta name=\"description\" content=\"With uncertainty looming over tariffs in the United States, some manufacturers are turning to machines-as-a-service to automate.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.controleng.com\/machines-as-a-service-in-the-time-of-tariffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Machines-as-a-service in the time of tariffs? 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