Breaking: Amazon Acquires Robotics Company out of Belgium

Amazon Acquires Cloostermans

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A Belgian Mechatronics warehouse robotics specialist

Hey Everyone,

This is a short mention on breaking news. I like to report on everything A.I. and robotics. Considering Amazon’s recent and controversial acquisition of iRobot, I found this interesting.

I personally consider Amazon inferior to JD.com in terms of warehouse automation. Amazon?is acquiring?Cloostermans, a company out of Belgium that is a specialist in mechatronics. TechCrunch reports it’s been building technology to move and stack heavy palettes and totes, and robotics used to package products for customer orders.

In reality, Amazon has been using those products as a customer of Cloostermans’ since 2019 for e-commerce operations; it’s making the acquisition to ramp up its R&D and deployment in that area.

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Boosting Warehouse Automation R&D

Cloostermans employees will join Amazon Robotics, Amazon’s division focused on automating aspects of its warehouse operations.

Supposedly Belgium-based Cloostermans will boost warehouse robotics operations.

Amazon said this acquisition will ramp up its R&D and deployment in those areas.

“We’re thrilled to be joining the Amazon family and extending the impact we can have at a global scale,” said Frederik Berckmoes-Joos, CEO of Cloostermans. “Amazon has raised the bar for how supply chain technologies can benefit employees and customers, and we’re looking forward to be part of the next chapter of this innovation.”

Cloostermans and Its Utility

Founded in 1884, Cloostermans has been privately held for the last six generations. Cloostermans has about 200 employees that will join Amazon Global Robotics’ growing presence in Europe. Interestingly, the financial terms of the deal were not disclosed.

Amazon began working with Cloostermans in 2019, using its technology to help move and stack heavy palettes and goods, as well as package products together for delivery, the retail giant said.

The bigger picture for Amazon is that it will likely be doing a lot more in warehouse robotics in the years ahead to meet the demands of its ever-expanding e-commerce operation. It is not clear how Amazon would fare if and when it goes up against JD.com and others similar to it. It’s gains in India have not been as significant as many believed they would be, due to red tape and increasing competition.

Labor Shortages Mean more Robots and Automation for Amazon Warehouses

As labor shortages loom and Amazon greatly over-hired (during the pandemic) and had to?scrap some plans?for new mega warehouses, automation is going to be a big deal. An internal report at the company leaked earlier this year to?Vox?projected that Amazon is facing a major shortage of workers in its warehouses — not necessarily because of the labor disputes it has been facing in various markets, but because it’s running out of people to hire.

As of February, 2022 Amazon topped over 1 million U.S. based employees. How hot was Amazon hiring? Amazon hired hundreds of thousands of workers — 270,000 just in the second half of last year (2021).

If a 2023 recession comes to pass Amazon will feel a lot of pain. The report suggested that alongside higher wages, further automation could be one way to offset that crisis. Deals like this one to acquire Cloostermans and ramp up its usage of robotics in those warehouses would fit into that strategy.

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Is Amazon Robotics any Good?

Amazon’s robotics division may not be as advanced and you might think. Cloostermans will become part of Amazon Robotics, Amazon’s division focused on automating aspects of its warehouse operations. The unit was formed after Amazon?acquired?(Times) Kiva Systems, a manufacturer of warehouse robots, for $775 million a decade ago.

Amazon has mostly relied on human labor, rather than robots and automation. But it won’t be able to keep that up forever.

I’m not sure why Amazon thinks Europe is a great place for its robotics R&D to take place. Amazon has been expanding its robotics work in Europe in recent years, including opening a robotics innovation lab in Italy and operating R&D facilities in Germany; and as you can see from its?job board, it’s hiring aggressively in robotics in both of those places and elsewhere.

CNBC expands the context for us when it states: Amazon continues to launch new machines in warehouses. In June, the company unveiled a package ferrying machine called Proteus, which it referred to as its first fully autonomous mobile robot. It’s also deployed?other robots?that can help sort and move packages.

In reality, there will likely be companies that hit robotics harder than Amazon, including JD.com, Hyundai, Tesla and Xiaomi. With inflation and wage inflation, huge employers like Amazon and Walmart could be at risk. Logistics and last mile delivery is just so expensive. Warehouse working conditions are also relatively poor for humans.

Amazon has been one of Cloostermans’ biggest customers; its other clients will continue to be served until the end of their existing contracts — meaning, those may not get renewed as Amazon ramps up its engagement with the business. Amazon could leverage and consolidate European robotic startups increasingly for external clients.

In a blog post,?Ian Simpson, vice president of Global Robotics at Amazon, said the company is investing in robotics and other technology to make its warehouses safer for employees. Although that doesn’t tell the entire story. Amazon has to figure out if it is serious about a Netflix competitor, a Gaming studio and a Robotics division. You could argue its failing in all of these efforts.

That it is abandoning immediate plans for dozens of U.S. warehouses and expansions in the near future is very concerning, as reported by?Bloomberg. Amazon might have a monopoly on E-commerce in the U.S. and easily the best Cloud service in AWS, but it’s chosen among the most competitive industries in the world.

You could argue it’s been very slow to ramp up R&D in robotics and warehouse automation.

“As we continue to broaden and accelerate the robotics and technology we design, engineer and deploy across our operations, we look forward to welcoming Cloostermans to Amazon and are excited to see what we can build together,” Simpson said.

Ironically robotics and automation can be even more dangerous working environments for warehouse workers. The prospect of warehouse robotics improving safety has been a topic of debate. An investigation by?Reveal from the Center for Investigative Reporting?found Amazon’s warehouses with robots have higher injury rates than facilities without automation. Even Amazon’s?acquisition of iRobot?is highly controversial. Some are calling it a Surveillance Capitalism?nightmare.

Founded in 1884, Cloostermans?began?as a repair shop for textile companies and went on to build industrial machines. They “boot-strapped” themselves and never seemed to get external funding. The company has built tech to move and stack heavy palettes and totes, and robotics used to package products for customer orders. It’s not considered a major acquisition.

If you enjoy articles about A.I. at the intersection of breaking news join AiSupremacy?here. I cannot continue to write without community support. (follow the link below). For the price of a cup of coffee, Join 91 other paying subscribers.

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