Automation and robotics have the potential to solve many of the challenges facing manufacturers today, from rising labour costs and staff shortages to the need for higher production efficiency and build resilience. But although the case for investment in industrial automation is strong, in the current climate of corporate belt-tightening, many automation projects do not make it off the drawing board because of the perceived high upfront investment. In this article, Oliver Selby, head of sales at FANUC UK, looks to reframe the cost of robotics and demonstrate its affordability.
Increasingly, capital decisions are evaluated in terms of ‘freeze, flee or build’: pausing or deferring a decision until key assumptions stabilise (freeze); redirecting capital away from an area of exposure (flee); or accelerating an investment to capture an opportunity or establish a competitive advantage (build). All too often, automation projects get ‘frozen’, not because the rationale is flawed but because they are deemed unaffordable or non-urgent at a time when cash is in short supply. However, choosing this option can lead to considerable inefficiencies and strategic disadvantages, putting manufacturing businesses in a vulnerable position.
Therefore, when constructing a justification for investing in automation, it is important to demonstrate why the project should be treated as a priority, and how it will be financed. By moving the focus from well-trodden arguments to reframing the economics of robotics – and showing why the cost of waiting is usually higher than the cost of taking a decision now – project managers can make the case for immediate investment irrefutable.
Here are six points that manufacturers can draw on to build an automation investment proposal that stacks up.
First and foremost, robots are today more affordable than ever before.The cumulative UK inflation rate over the past 20 years (2006-2026) is approximately 70-80%, based on Consumer Prices Index (CPI) data. Yet over this same timeframe, the average purchase price of an industrial robot has only increased 20%. Investing in equipment that has registered price growth lower than the general rate of inflation can be a strategic move, as it effectively makes it cheaper in real terms. If robot prices are rising by 1% while the overall inflation rate is 3%, manufacturers are purchasing a productive asset that is decreasing in relative cost compared with other investments.
The second point is the emergence of multiple finance options that open up access to robotics. Historically, most automation projects were funded via high street bank loans. Today, there are many finance routes, some of which offer far more flexibility.
Recent years have seen some robotics integrators partner with finance providers to offer flexible funding options, such as staged payments and asset finance, helping manufacturers invest in technology without heavy upfront costs. Asset-based lending has also become more common as a flexible alternative to traditional high-cost bank loans, allowing businesses to acquire new equipment or technology by using assets such as receivables or inventory as collateral. FANUC would advise any company embarking on an automation project to speak to their integration partner or OEM supplier about available finance.
Third on the list is assurance schemes, which build trust for lenders. Trust in robotic systems is growing, driven by a maturing assurance ecosystem, and this confidence is starting to filter through to lenders. Earlier in 2026, Automate UK launched the UK’s ‘Robot Integrator Standard’ in association with BARA (British Automation and Robot Association). Designed to ensure that integrators follow best practice, the standard provides assurance of safe, high quality, and reliable robotic and vision solutions, thereby reducing the risk associated with automation projects.
FANUC UK has also built up its own network of trusted authorised system integrators; partners selected for their ability to provide specialised, low-risk automation. It is expected that such schemes will translate into more favourable financing arrangements for borrowers through reduced risk for lenders.
A fourth point worthy of consideration is the transfer of costs from CapEx to OpEx. While robotics investments are traditionally structured as CapEx – a large outright purchase of a piece of equipment – over time, service has become an increasingly critical element of these projects.
As automation technology has advanced, service has gone from being a post-installation afterthought to a fundamental pillar of success. Most installations today incorporate simulation, training (of both AI systems and human operators), and ongoing servicing and support. From a financial perspective, this workflow has created an opportunity to move some project costs from CapEx to OpEx, converting them into ongoing, manageable and flexible expenses. Taking this strategic decision can help make automation more affordable by reducing the upfront investment, preserving cash flow and enable the apportioning of costs to different cost centres.
Point number five: robots are becoming maintenance-free. Traditionally thinking accepts that annual maintenance costs for an industrial robot will run to 3-10% of the original purchase price. This estimate is dependent on the size of the robot, with maintenance costs for larger robots typically coming in at the lower end of the range. Finance providers have accounted for these costs by bundling them into monthly payments. However, technological advancements such as predictive maintenance, accelerated life testing and grease-less components are moving robots into a new ‘maintenance-free’ paradigm.
Among robot manufacturers, FANUC is leading the way here, with its reliability and eight-year maintenance-free promise. This pledge is making robots more affordable over their lifetime. Such savings will soon be reflected in the structure of finance deals, as robots can be guaranteed to run maintenance-free for the duration of the financial agreement.
Last but not least, automation helps reduce manufacturing overheads.The argument that investing in automation allows businesses to produce more with less has never been stronger. Industry is entering an era of precision manufacturing with technologies such as robotics, AI and sensors enabling real-time monitoring and optimisation of production parameters, quality metrics, material usage and energy consumption. The net result is that manufacturing has the potential to be leaner, more productive and more resource-efficient than ever before.
These advancements are strengthening the economic case for automation. For example, FANUC systems feature AI-driven diagnostics, power regeneration and IIoT solutions that enable intelligent energy recovery, reduce waste and improve uptime.
With 2025-2006 the most expensive period on record for UK businesses, a growing number of manufacturers are turning to automation as a strategy for futureproofing against inflation and maintaining a competitive edge. Reduced risk for lenders is translating to more favourable packages from finance providers. Technological advancements are continuously improving robot productivity, reliability and resource utilisation to drive a structural decline in cost per unit of output. Moreover, in real terms, robots are getting cheaper. For manufacturers, these factors make automation an increasingly powerful lever for expanding margins and scaling production efficiently and flexibly.
More information www.fanuc.eu
