New Legislation Boosts the Financial Appeal of Cobots for Manufacturers

On July 4, 2025, new legislation was passed that provides manufacturers with even greater financial incentives to adopt automation. This bill aims to help businesses address ongoing labor shortages and rising operational costs. For many companies, integrating collaborative robots (cobots) has become one of the most efficient—and cost-effective—ways to reduce expenses and achieve a rapid return on investment (ROI).

Today, business owners and plant managers are faced with key challenges:

  • How can we maintain production with a shrinking workforce?
  • What impact does employee turnover have on our production schedules?
  • Is automation a viable solution for mid-sized businesses, or only for large enterprises?

The new legislation highlights an essential truth: cobots are no longer a distant possibility—they are a practical, immediate solution to address labor gaps in today’s fast-paced production environment.

Why Cobots Are Gaining Traction in Manufacturing

Labor shortages remain a significant issue, with increasing job vacancies in manufacturing and growing demand for production. Cobots present a solution that human workers simply can’t match—they don’t take sick days, go on vacation, or leave unexpectedly.

Designed with smaller operations in mind, cobots are compact, safe to work alongside humans, and don’t require costly enclosures or specialized engineering teams to install. Their ROI is both clear and quick. A typical cobot installation, which costs between $35K–$75K, can pay for itself within 6–12 months by saving $65K–$75K annually in labor costs.

Cobots: Supporting Workers, Not Replacing Them

A common misconception is that cobots replace human workers. In reality, cobots handle repetitive, mundane tasks that can cause fatigue and reduce job satisfaction. These tasks include:

  • Palletizing, which leads to physical strain
  • Late-night machine tending shifts, which are difficult to fill
  • Constant packaging and labeling, which can result in burnout

When cobots take over these tedious tasks, employees are free to focus on higher-value work, such as quality control, problem-solving, and innovation. It’s not about replacing workers—it’s about empowering them and allowing them to contribute more meaningfully to the business.

What Plant Managers Should Know About the New Legislation

The message is clear: automation is no longer just for large corporations. The barrier to entry has decreased, making cobots accessible to small and mid-sized manufacturers. Companies that delay implementing automation may find themselves falling behind competitors as labor shortages worsen.

Start small—focus on one task, one cobot, and one shift at a time. You’ll soon see the positive impact on your operation, with benefits that grow over time.

Key Takeaways for Manufacturers

If you’re struggling with labor shortages, missed production deadlines, or rising overtime costs, now is the time to explore how cobots can improve your operations. Don’t wait for the issue to escalate—take advantage of this opportunity and discover how cobots can increase your productivity, efficiency, and ROI.