U.S. productivity has steadily risen since 1995, more than doubling the lackluster average one percent annual gain from 1973 to 1995. Economists continue to debate whether these gains represent a new economy, meaning a lasting, structural change driven in large part by businesses investing in automated equipment and systems.

            Beginning in 1994, automated storage and retrieval equipment installations also began to increase. Is there a relationship? Perhaps. These parallel growth trends may help demonstrate one of the reasons why businesses and manufacturers have been able to expand rapidly over the past five years. “The increase in worker productivity translates into a company’s ability to raise workers salaries without increasing costs, says Dick Ward, executive vice president Materials Handling Institute of America.

            In their basic configuration, automated storage and retrieval systems deliver items to an operator, as compared with traditional shelving which requires operators to travel aisles, searching for items. In many manufacturing, warehousing and distribution applications, automated storage and retrieval systems can improve employee productivity by a factor of 2/3 and can significantly reduce the amount of floor space required for materials storage, freeing up large areas for more value added operations. These features have an immediate and lasting effect on the efficiency of a company’s operations, and can help reduce the overall cost of doing business.

            Automated storage and retrieval systems have proven to provide fast paybacks, generally ranging from nine months to a year and a half. These systems range from relatively low cost capital acquisitions to major facility creation.

            A major growth area has been on the relatively low cost automated solutions used to improve segments and portions of companies manufacturing and distributions processes. The best example of this has been the rise of the lean manufacturing concept as a means of improving productivity. This philosophy emphasizes the strategy of breaking processes into cells or work areas and improving each cell while increasing employee participation, communications and morale.

            Operational improvements resulting from the installation of automated storage and retrieval systems are significant. For example, Parker Hannifin, Forrest City , N.C. , consolidated two parts facilities into one. Using pre-1995 methodologies it would have built an additional 25,000 square feet onto its existing Forrest City facility.

            However, Parker Hannifin saw a major asset in its facility’s existing vertical height. To maximize, it installed an integrated system of Shuttle Vertical Lift Modules (VLMs) by Remstar International, Westbrook , ME controlled by FastPic, FastPic Systems, Westbrooke , ME , inventory management software. A group of Shuttle VLMs service each work cell. Each cell typically consists of machine tools, assembly tables, and test stands.

            Parker Hannifin eliminated the cost of a 25,000 square foot addition, the additional personnel to operate it...

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