I never thought we could afford a palletizer. Here is how the analysis plays out
A plant stacking 600 cases a shift on two shifts assumes a robot is for bigger companies. Run the arithmetic with honest inputs, the labor actually freed, the cell priced as a project and the operating cost included, and the answer is usually a payback in months, not years. Here is the math, step by step.
The short answer
In the example below, a two-shift line with one hand stacker per shift pays back a collaborative palletizing cell in roughly 13 to 22 months, depending on where the cell lands in the planning range and what the labor really costs. On one shift the same cell takes three years or more. The robot did not change. The number of hours it works did.
The station, as a composite example
This is a worked example with made-up but realistic inputs, not a client story and not a quote. Every figure on this site is an illustrative planning range subject to engineering verification. Put your own numbers in the same slots and the arithmetic is yours.
Picture a food plant with one line producing about 600 cases a shift, cases of 25 to 30 pounds, two shifts a day, five days a week. One person per shift stacks cases from the end of the conveyor onto pallets, and a forklift driver pulls full pallets. Peak rate during a clean run is about 1.5 cases a minute. The plant owner assumes a robot costs a quarter of a million dollars and skips the conversation.
The inputs we used
Labor: the stacker's fully loaded cost, wages plus benefits, overtime and turnover, at 30 dollars an hour, which is 62,400 dollars a year per position at 2,080 hours. Labor freed: not 100 percent. Somebody still swaps pallets, clears the occasional jam and loads stretch wrap, so we count three quarters of a position freed per shift, 1.5 positions across two shifts, or 93,600 dollars a year. Cell cost: the palletizing guide on this site carries an illustrative equipment range of 45,000 to 95,000 dollars and an integration range of 15,000 to 40,000 dollars. We used a 95,000 dollar midpoint for the whole project and a 135,000 dollar high case. Operating cost: 5,000 dollars a year for maintenance, consumables and software, a round number to keep the math honest rather than a quote.
How the arithmetic played out
Base case: 93,600 dollars freed minus 5,000 dollars operating leaves 88,600 dollars a year. A 95,000 dollar project divided by 88,600 dollars a year is about 1.1 years, call it 13 months. High case: a 135,000 dollar project with the same savings is about 1.5 years, 18 months. If the real labor cost is 25 dollars an hour rather than 30, the savings drop to 78,000 dollars less operating, and the high case stretches to about 22 months. That is the 13 to 22 month range in the short answer, and it sits inside the 18 to 36 month range the guide quotes for a cell replacing roughly one position across two shifts, because this example frees a little more than one.
One shift changes everything. Three quarters of a position on one shift is 46,800 dollars, less operating is 41,800, and the 95,000 dollar midpoint project takes 2.3 years. The high case takes 3.2 years. Still a project some plants do for ergonomic and turnover reasons, but no longer an obvious one.
What moves the answer most
Shifts, first and by a wide margin. Then the fraction of the stacker's time the robot actually frees, which depends on how clean the infeed is and how often someone has to intervene. Then the labor rate. The equipment price, the thing the owner was afraid of, moved the payback by five months between the midpoint and the high case. It matters, but it is third on the list.
What would have killed it
A peak rate the arm could not hold with margin, which pushes the cell up a class and up in price. Cases too flimsy for vacuum picking, which forces a mechanical gripper and more integration. No floor space for a second pallet position, which means the robot stops every time a pallet is pulled. And the quiet one: a line where the bottleneck is upstream, so the palletizer waits and the hours freed never materialize.
Run your own numbers
Count your cases at peak, weigh your heaviest one, note your shifts and your loaded labor rate, and be honest about how much of the stacker's job disappears. Then describe the station to Joe, the concierge on this site. It will put your figures into this same frame, name the class of machine that fits with candidates from the matrix, and tell you plainly when the one-shift version does not pencil.
Related on this site
- Palletizing
- Size for peak, not average
- Palletizing wasn't worth automating at low volume until cobot palletizers shrank the cell
- How to read an automation quote
- Robots for food and beverage plants
Payback on a palletizer is driven by shifts and by how much of the stacker's time the robot really frees. Two shifts and a clean infeed pay back fast. One shift and a messy infeed may not pay back at all.
Put it to the test on your own job
Tell Joe what you are running and he will apply this to your numbers, including telling you when a robot is the wrong answer.
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