Office furniture manufacturers have been late adopters of automation, particularly inside their West Michigan-based factories.
But lately, they’ve switched gears and are investing in more technology, according to industry experts, who point to a statewide labor shortage, problems with outsourcing materials, and companies adjusting to repeatable processes as factors leading to more automation.
The industry has “lagged” in automation in the past, but business decisions have forced companies to act with more technology, said Tom Haverdink, production work team leader at Zeeland-based Herman Miller Inc.
“From where I sit, I believe there has been an increase in automation,” Haverdink told MiBiz. “I do not see them ever being what I would call ‘a very automated industry,’ but I would say it is on the increase. … As we move more from craftsmanship to high volume items, it lends itself to automated processes.”
The company is investing in its manufacturing operations to help drive operational efficiency. In the first quarter of Herman Miller’s 2018 fiscal year, the company experienced capacity constraints in several product categories, including height-adjustable tables and laminate storage solutions.
As a result, Herman Miller’s first quarter gross margins came on the lower end of expectations as the company incurred higher costs related to overtime and outsourcing, President and CEO Brian Walker said at the time. The gross margin pressure also carried over into the second quarter.