BIG NUMBERS will be available. You either get a portion of the BIG PIE, or you don’t.
I have been discussing potential opportunities this year, and it finally appears that substantial benefits, profits, free cash flow, and market value will be there if you get started to recognize a path to gain market share as well as growth via new revenue silos.
$1,000,000,000,000
At a minimum- $2.3 billion in ‘24, to grow to $1.5 trillion by 2035. Compound growth of 80% annually.
You get two guesses to tell me where the bulk of these BIG NUMBERS is coming from.
If you guessed Robots…. you win. But only if you take steps to take advantage of this opportunity,
I was excited when I reviewed this data because it contained information about a HUMANOID ROBOTICS DATA TRAINING CENTER (IN CHINA). I suggest you read this start to finish because it provides information about various uses being performed by Robots.
I suggest you find websites that demonstrate how robots operate in various environments. And if possible, it may be a good idea to match the robot process to various client applications, such as those on the shop floor, in the warehouse, or in logistics. Let’s face it, customers will be making changes faster than you think, and you want to be a key player in the transition.
Developing this expertise will take time and incur costs that the ‘25 or ‘26 budget will cover. It will come with a time-sensitive plan of attack and required deadlines. It may be best to outsource this process if your history of meeting deadlines is weak. You may also want to share this project with performance group members to help split the costs and share the final report on how to move forward.
I recently googled ‘robot manufacturers’ and it returned pages and pages of company names. To start with, you have RealMan in the email. I also looked at Roboflow, which guides navigating the conversion process. You may also want to contact BDO, which has a group that works in this area and has a dealer specialty. We could arrange for BDO to provide an online seminar that readers could attend to review the process and have someone to discuss questions with. (I was an Audit Partner at BDO, providing services to dealers and rental companies.)
I am not sure how your OEMs will react to this transformation. If I were them, I would purchase Robot systems built to service warehouse and manufacturing operations and then work to educate their dealer network on how to introduce methods for customers to transition from their current lift truck programs to ones that use robots.
I always liked to have a “menu” of services and related providers to share with dealers and other types of companies. My list covered every major expense category and included Accountants, Tax Folks for both Federal and State & Local taxes, attorneys to prepare rental contracts and other corporate issues, ESOP consultants, valuation experts to value equipment and inventories, all kinds of insurance firms who knew the industry, technology terms to install or adjust financial data, and marketing programs, etc. I would use these service providers myself and also make them available to customers and their customers who may have a tax question. You get the idea. If you could do something similar with your “group” regarding the AI and Robot transition, I believe you would make some new friends. And the best thing about this process is that if someone has a problem, you can now see if other customers have the same issue that needs correcting.
Other topics of interest
My reading material indicates that the auto industry is slowing down. And what happens in the auto industry ……. Two major auto finance companies recently went bankrupt. Other reports reflect lower FMV and FLV numbers along with less usage. It appears customers are cautious about new investments and stretching older equipment further. The 5% interest rate cut is unlikely to have a significant impact on purchase decisions. If they cut another 10% plus 5%, we already have customers who may decide to purchase.
If margins are tight, it will pay to hold off costs in the COS category. Maybe you don’t buy but lease instead. And there must be AI cost reductions available, including personnel reductions. Also, watch your inventory values. If you provide an annual valuation to the banks, ensure that any issues are addressed before finalizing the report. There are benefits in the insurance area that can reduce costs. One of the folks on the “list” re insurance is Bobbette Puckett (you can ask her about the name…an interesting story). She worked for me for many years, servicing dealers and rental companies. Her cell number is 312 764-9433. Bobbette will review every page of every policy you have and identify ways to reduce costs and adjust coverage. She provided me with a list of 10 topics to discuss with the dealers. You can call her since I am running out of space to list all the topics she will cover.
New source of information
I came across a newsletter that is received three times a week, geared toward business executives, and it’s great!
ARMADA is the title of the publication. $7 a month.
This is an Executive Intelligence Briefing, covering the following topics.
- Supply chain issues.
- Domestic Quick Items of Interest
- Important Domestic Econ Releases
- Global Quick Items of Interest
- US Domestic Economic Items.
- Environmental Items
- Business Cycle Indicators.
- Real GDP-GPD-Biz Investment
- Retail Sales
- New Housing Starts
- Auto Sales
Every topic an Executive would like to see. Contact Karen Sanchez. Her email is [email protected]
GET THE MESSAGE OUT THAT TIMES ARE A CHANGING! AVOID THE PERFORMANCE GAP!
About the Columnist:
Garry Bartecki is a CPA and MBA with GB Financial Services LLC, and a Wholesaler columnist since August 1993. E-mail [email protected] to contact Garry.
