2017 ASHS Annual Conference
Return on Investment Analysis of a Robot to Automatically Transplant Plant Cuttings
Return on Investment Analysis of a Robot to Automatically Transplant Plant Cuttings
Tuesday, September 19, 2017: 2:15 PM
Kohala 2 (Hilton Waikoloa Village)
Transplant of unrooted plant cuttings to produce rooted liner trays is a manufacturing process that requires considerable labor, especially during the peak season. Greenhouse companies must have the necessary workforce (full time and seasonal) to meet production targets. However, with a shortage of labor, it has become difficult for greenhouse business to find available workers to transplant plant cuttings. Transplanting robots have recently been developed that allow automation of the cutting transplant process. This study focused on (1) analyzing the profitability and return on investment of a transplanting robot, and (2) identifying key factors that businesses would considerer when purchasing a transplanting robot. We collected data on the number and total labor cost of cuttings transplant in 2016, the number of weekly hours the robot was operated since acquisition, and the hourly wage of robot operators in four greenhouse companies. For example, in one greenhouse company surveyed, a total of 32,929,260 cuttings were transplanted in 2016. Two transplant robots were purchased by the company, and were operated for 76 hours per week with 2 shifts per day during the peak season, and 8 hours per week during the off-season since acquisition. We estimated for this business that a capital cost of $245,312 and an annual cost of $115,828 ($12,266 annual maintenance cost, $71,672 annual labor cost, $24,531depreciation over 10 years, 3% interest rate on loan) would yield a yearly saving of $106,756 and a payback period of 2.3 years. Analysis of the four locations showed economies of scale with increasing robot number, and greater efficiency when the number of hours of robot operation was increased during the peak period. Robot use was also more efficient when cuttings were transplanted throughout the year. Results will help growers evaluate how robotics could benefit labor cost and availability for the transplant process.