Automating the Russian Economy: Wading through Challenges
Reluctance of businesses to adopt government-backed automation technologies
Robots and automation are no longer a thing of the future. Last year, the market for automated process management systems skyrocketed by 50%, reaching an astounding 124 billion rubles. Despite this, Russia lags behind the global trend, with only 19 robots per 10,000 workers compared to countries like the US and South Korea. With a predicted decrease in the working-age population, businesses are left with no choice but to invest in robotics and automated systems.
Navigating the Uncharted Waters of Robotization
Many large and medium-sized Russian companies have recognized this reality, from industrial producers like "Kirovsky Zavod" to HoReCa and retail. Success stories of robotization in some enterprises have set market trends, encouraging others to adopt advanced technologies. However, robotics in Russia remain the domain of forward-thinking companies ready to revolutionize familiar operations and envision their future.
Many entrepreneurs, however, lack the necessary knowledge to fully comprehend the benefits that robotization and automation of their processes could bring. Even with successful cases available, companies may still be hesitant about implementing these technologies due to perceived high costs and lengthy processes.
Robots aren't a Magic Solution, but a Long-term Investment
It's essential to acknowledge that robots are not an instant solution to every business's problems. Current financial conditions and the need to import most robotics from abroad can indeed be deterrents for entrepreneurs seeking to implement advanced solutions. However, with strategic planning and a long-term mindset, these obstacles can be surmounted by gradually introducing technologies and optimizing expenses. Companies that start the process of robotization now will be able to gain a competitive edge within a few years by reducing their costs and increasing profits.
A Helping Hand from the State
To help remove obstacles hindering the implementation of new solutions, the state has set ambitious goals, recognizing the role that robots will play in the global competitiveness of the Russian economy. By 2030, Russia aims to rank among the top 25 countries in terms of robot density, increasing from the current 19 machines per 10,000 workers to 194. The government aims to achieve this through existing support measures, such as additional funding for a national project "Development of Industrial Robotics and Automation of Production," to the tune of 350 billion rubles over five years.
Bridging the Gap between State and Business
Despite initiatives for digitization, entrepreneurs still find it challenging to navigate available support measures, tax incentives, and preferential loans, as well as the requirements for obtaining them on government resources. The process of "scouting" and selecting the most suitable measure for business can take weeks.
Applying for programs involves preparing large volumes of documentation, significantly increasing the administrative burden on the company. Strict documentation requirements sometimes force businesses to engage in bureaucratic red tape just to qualify for state aid. To answer the question of why a company needs a subsidy, leaders often have to fabricate stories to fit the formulations of government documents.
For a company implementing robots, a separate challenge is the requirement for domestic origin of machines, as established, for example, for preferential taxation according to the government decree No1937-r. While stimulating domestic robotics production, it also limits the company's ability to choose ready-made solutions.
State Support: A Mixed Bag
Without state support, achieving the targeted goals for a significant quality leap in the current conditions is simply impossible. However, to encourage businesses to seek help, program operators should simplify selection criteria, provide more flexible conditions regarding project implementation deadlines and target indicators that need to be achieved, automate reporting procedures, and improve the quality of expertise provided to businesses.
Russia faces three core challenges in the implementation of robotics and automation:
- Conservative business leadership
- Integrator expertise gaps
- Logistical and localization hurdles
By addressing these challenges and offering subsidies, tax incentives, workforce training programs, integrator support, and regulatory clarity, Russia could accelerate its lagging automation rates and catch up with the global trend.
Editor's opinion may not align with the author's viewpoint
- With the aim of increasing robotic adoption in Russia, the government has set a goal to rank among the top 25 countries in robot density by 2030, reaching 194 robots per 10,000 workers.
- To simplify the process of obtaining state support, program operators should focus on automating reporting procedures, providing more flexible conditions, and improving the quality of expertise offered to businesses.
- Many entrepreneurs would benefit from bridging the gap between available state support, such as funding for the national project "Development of Industrial Robotics and Automation of Production," and understanding how to effectively apply for and utilize these resources.
- Advanced technology, such as data-and-cloud-computing, finance, business, and technology solutions, can enable new opportunities for robotics and automation within various industries, including Kirovsky Zavod, HoReCa, and retail.
- By overcoming obstacles and fostering collaboration between businesses, the state, and technology providers, Russia can navigate the challenges of robotization and automation, ultimately reducing costs, increasing profits, and enhancing its global competitiveness.
