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New Legislation Makes Cobots an Even Greater Financial Opportunity for Manufacturers

On July 4, 2025, new legislation took effect, offering manufacturers expanded financial incentives to adopt automation. The goal: to help companies offset labor shortages, control rising costs, and stay competitive in a challenging market. For many facilities, investing in collaborative robots (cobots) has now become one of the fastest, most effective ways to reduce expenses and achieve a measurable return on investment (ROI).

Across industries, business owners and plant managers face similar questions:

  • How can production stay on schedule with a shrinking workforce?
  • What’s the long-term cost of employee turnover?
  • Can automation be a practical investment for small and mid-sized manufacturers?

This new legislation reinforces a clear reality: cobots aren’t a futuristic idea—they’re a present-day solution for today’s operational challenges.

Why Cobots Are Transforming Modern Manufacturing

Labor shortages remain one of the top concerns in manufacturing, with open positions growing as demand for production increases. Cobots help bridge that gap by performing reliably—without downtime, turnover, or fatigue.

Engineered specifically for small and mid-sized operations, cobots are compact, safe to work alongside, and simple to program. Unlike traditional industrial robots, they don’t require extensive guarding or specialized engineering teams to integrate.

And the ROI is hard to ignore: a typical cobot installation ranges from $35K–$75K, yet can pay for itself within 6–12 months, saving $65K–$75K annually in labor costs.

Cobots Strengthen the Workforce—They Don’t Replace It

One of the biggest misconceptions about automation is that it replaces people. In reality, cobots handle the repetitive and physically demanding tasks that often lead to employee burnout and high turnover—such as:

  • Palletizing and packaging that cause repetitive strain
  • Overnight or extended machine tending shifts
  • Manual labeling and inspection tasks that limit efficiency

By taking over these routine responsibilities, cobots free employees to focus on higher-value work like problem-solving, quality assurance, and innovation. It’s not about replacing people—it’s about helping teams work smarter and safer.

What Plant Managers Should Know About the New Incentives

Automation is no longer a luxury or a large-scale investment reserved for global corporations. The new legislation makes it easier and more affordable for small and mid-sized manufacturers to adopt automation technologies. Those who delay risk losing their competitive edge as others modernize and scale faster.

Start small. Automate a single process, deploy one cobot, or pilot on one shift. The improvements in consistency, uptime, and efficiency often compound across your entire operation.

The Takeaway for Manufacturers

If your facility is struggling with labor shortages, production delays, or rising overtime costs, now is the time to explore how cobots can help. With new incentives in place and proven ROI, cobots offer a smarter, faster path to stronger performance and operational resilience.