AGVs make a comeback

As end users rediscover the value of automatic guided vehicles in small systems, demand is up sharply.

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 10/1/2004

'Business is pretty good!'

That's a phrase you don't hear every day. But it applies to the automatic guided vehicle (AGV) industry, where business is, well, pretty good these days.

'Through the first six months of the year, revenues for the industry were up 28%,' says Mark Longacre, marketing manager, FMC Technologies (215-822-4300), referring to MHIA's statistics. (See related news story - AGVs on the move.) 'The total number of vehicles sold is also up about 25% from last year.'

The number of vehicles sold is an important measure of the health of the AGV industry. The trend for several years has been away from large systems with 50 or more vehicles in favor of smaller, more strategic applications using just three or four vehicles per system.

There are reasons for that change. 'People have a better understanding of the capabilities of AGVs and are better at applying them than in the past,' says Bob Jurcago, account manager, Mentor AGVS (216-360-7710). 'Plus, AGVs are more efficient than in the past thanks to better battery charging methods.'

A system with vehicles equipped with batteries capable of carrying a longer charge, or that can automatically recharge themselves during down time, can get by with fewer vehicles.

Today's vehicles can also operate at higher speeds than in the past. 'There's a trend for vehicles to travel faster,' says Longacre. 'That's because laser bumpers allow you to make the safety zone much larger in open areas. As long as the load won't shift, you can speed up the vehicle.'

All add up to smaller, more efficient systems. If the total number of vehicles sold is up in that environment, that means end users are rediscovering what AGVS can do for their operations.

In some respects, the growth in AGVs comes as a surprise. This, after all, has been considered a mature technology. Some of the most significant innovations, like laser and inertial guidance systems, laser bumpers, and user-friendly diagnostics are old news.

What's new is that more companies are taking advantage of those features along with the benefits of automation including higher productivity. Mean-while, many are upgrading systems while others are pushing the application envelope for AGVs.

'A lot of manufacturing companies have worked through their processes and solved the big productivity problems,' says Tom Woodson, regional sales manager, Murata Machinery USA, Inc. (888-568-7282). 'Now, they're looking for improvement in smaller areas.'

This is especially true of large companies. 'Sixty-five percent of the systems are still being installed in Fortune 500 companies,' says Randy Winger, product manager, HK Systems (800-457-9783). 'That tells us that larger companies are investing in automation to improve their operations.'

The demand for systems continues to come largely from manufacturing. 'Production is a consistent process, and AGVs shine in that environment. In distribution, there's less consistency,' says Woodson.

In fact, many manufacturers are now incorporating AGVS into the manufacturing process as movable assembly stations. 'One of the biggest areas of growth we have seen is in small, non-automotive assembly projects,' says Don Holdenrid, director of sales and marketing, AGV Products (704-845-1110). 'The AGV becomes a movable workstation that's used to assemble the product.'

AGVs in warehousing are typically bringing materials and components from a storage area to a production line, or delivering finished goods from the line to the warehouse, where other systems take over.

While AGVs are available in a variety of configurations to handle loads, the biggest demand today is for fork-style vehicles that can do the same job as a lift truck. 'An AGV with forks provides a very consistent way to move product from point A to point B,' says David Noble, marketing director, Egemin Automation, Inc. (616-393-0101). 'Plus, the system allows you to track the movement of loads through the facility in real time. That's a big benefit of an AGV system.'

Real-time load tracking is made possible by new controls and software that integrate with automation control systems. That's one reason why there is a great deal of interest in retrofitting and upgrading existing systems (See sidebar on Procter & Gamble below.)

'There are a number of older, mature systems out in the field,' says Randy Jennings, general manager of business development, Transbotics (704-362-1115). 'Those customers already understand the value of an AGV system and want the benefit of new technology.'

New electronics, for instance, allow users to process information faster than in the past. Potentially, that may allow a user to eliminate vehicles as they eliminate the information lag. 'I visited a customer the other day who is planning to go from 11 vehicles to 8 because of faster communication,' Jennings says.

Users with customized systems are the most likely candidates for a retrofit. 'These are users whose vehicles have a good frame, chassis, and mechanical structure, but they want to take advantage of new controls,' says HK's Winger. 'If they can invest and get another five years out of their system, that's a big deal.'

New software is another reason to upgrade a system, according to Gary Koff, AGVS technology manager for Siemens Dematic (616-913-6200). 'We've moved from engineered solutions to quick, configurable technology,' says Koff. 'Instead of calling in the vendor and taking out your wallet to make a change to the system, a user can now change the guidepath, the control, or the routing logic themselves as their needs change.'

Finally, there is emerging demand for a new breed of low-end, light-duty vehicles that is opening up new applications for AGVs.

'We are designing some solutions upfront to be inexpensive,' says Holdenrid of AGV Products. 'We've had customers tell us what they want to spend, as opposed to what they wanted in terms of functionality. That may mean a wire-guided system in a closed-loop application, or a semi-automatic vehicle that travels to a workstation where an operator makes manual adjustments.'

Automakers, in particular, have embraced simple, automated carts with a minimum of control logic that can transport components and assemblies between workstations.

'Manufacturers in lean environments want something that can move material from a stock room or an assembly area without increasing lift truck traffic,' explains Keith Soderlund, senior sales manager, Creform Corporation (864-877-7405).

In the warehouse, sorting transfer vehicles (STVs), a high-speed AGV on floor- mounted rails, are used in place of conveyors. 'In a centralized warehouse where you're picking across multiple SKUs [stock keeping units] to fill orders, STVs can sort materials and deliver the product to an operator picking orders,' says John King, vice president, sales and marketing, Daifuku America (614-863-1888).

Other users are extending AGVs outside the warehouse and into the yard. 'In Europe, AGVs are being used to pull containers off ships in ports,' says Jurcago of Mentor AGVS. 'Another application is to pull tractor/trailers through a scanner at customs. Some weather conditions like heavy snow or fog can interfere with the laser, but there are few problems navigating in normal weather.'

Finally, warehouses are taking a closer look at AGVs. One problem that most vendors are trying to solve is loading and unloading trucks. While there's a great deal of interest on the part of users, the place that AGVs will hold here remains off in the future. 'There's a lot of nuances associated with automated truck loading,' says HK's Winger. 'Getting there is still some time off.'

In the meantime, AGVs will continue to drive efficiencies in plants. 'There's a huge opportunity in facilities with 150,000 to 500,000 square feet,' says Koff. 'If we can lower their anxiety level about technology and keep down the costs of the systems, there's a huge opportunity for more penetration.'

Click on the icon to learn how Ford uses AGVs (Ford powers ahead - April 2004)

Click on the icon to learn how PPG uses AGVs (PPG moves to hands-off handling - January 2004)