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Greenville Business Magazine

Companies Plan To Increase Automation Investments Due To Covid-19, Study Shows

Jul 09, 2020 11:31AM ● By David Dykes

More than half of U.S. companies are increasingly open to invest in automation to survive changing market conditions brought about by the Covid-19 pandemic, according to a recent Honeywell study.

The 2020 Honeywell Intelligrated Automation Investment Study reveals that the e-commerce (66 percent); grocery, food and beverage (59 percent); and logistics (55 percent) industries are most willing to invest more in automation.

"The global pandemic caused a sudden and seismic shift in the global supply chain driving distribution centers to embrace remote operations and social distancing work processes," said Chris Feuell, chief marketing officer at Honeywell Intelligrated. "Recent consumer studies have shown increased online purchases by 28 percent globally and buy online/pickup in store is expected to increase by more than 60 percent in 2020. 

"Consumers want seamless integration between online and in-store shopping, buying and delivery experiences, and companies are adapting by deploying micro-fulfillment strategies, relying on automation solutions to improve speed and accuracy of order processing, fulfillment and delivery, and to optimize productivity and return on investment."

The use of robotic technology, guided work solutions and computer-controlled equipment is seen as very important by companies for future competitiveness, Honeywell officials said.

Warehouse execution software (48 percent), order picking technology (46 percent) and robotic solutions (44 percent) – three of the most widely implemented solutions – are most expected to receive further investment soon, according to the study. 

While nearly all companies have experienced positive business outcomes from automation solutions they have implemented, cost is by far the largest barrier to further investment, the study shows. More than half of the consumer-packaged goods industry sees the cost of implementation as a major barrier in further automation, Honeywell officials said.

Said Feuell: "Companies are investing in technology to improve employee and customer safety, but these technologies, such as voice-guided solutions, and leveraging data-driven insights to make better operational decisions, are also easing the burden of tight turnaround times and leading to better customer interactions."

The 2020 Honeywell Intelligrated Automation Investment Study was conducted April 21 to May 7, 2020 in collaboration with KRC Research, an independent third-party research firm not affiliated with Honeywell or its business groups. 

The 434 U.S.-based professionals polled work full-time in senior roles for companies that directly manage warehouses or distribution or fulfillment centers.

Honeywell ( is a Fortune 100 technology company that delivers industry specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally.