The Robot is Just the Beginning, the Main Cost Comes Later

Just this year, thanks to automated processes and the work of over 300 robots that complete more than 12 million individual tasks annually, the Croatian auto parts distributor Tokić has saved around 400 thousand euros. This is the amount of time the company has saved for the average employee, which, they say, allows them to redirect people to jobs with higher added value.

Thanks to the recent completion of a public share offering, Tokić has raised a total of 23.3 million euros in fresh capital, which will be partially directed towards new technological investments. Plans include the construction of a highly automated logistics and distribution center with fifty new robots that will collect items and deliver goods to employees, who will thus be less burdened.

Eight industrial robots are ‘working’ in the Klimaoprema plant, in the production of air conditioning and ventilation equipment. Tomislav Jaklenec, the head of research and development at the company, explains that they primarily use them for tasks that are heavy or dangerous for humans, and in those cases, the efficiency of robots is drastically higher compared to humans.

– It is difficult to define cost reduction, but the yields are significantly higher due to the larger quantity of products manufactured – notes Jaklenec.

These are two bright examples of domestic companies that use the advantages of robots in their daily operations to perform repetitive, precise, or risky tasks instead of humans. The examples are positive but also rare compared to the rest of the world, where the number of robots in manufacturing plants increases year by year. In 2024, there were more than 4.6 million industrial robots worldwide, a nine percent increase compared to the previous year, with just over two million in China alone, according to the International Federation of Robotics (IFR). Looking at Croatia, as well as Europe, although the interest of entrepreneurs in robotic technologies has significantly increased in recent years, we are still lagging behind in the level of robotization of manufacturing processes.

Nothing Without the Automotive Industry

According to the IFR report, in 2024, a total of 542,076 robots were installed worldwide, of which 400 thousand were in Asia alone, which leads in this area and records a five percent growth. Robot installations in the second largest market, Europe, fell by eight percent to 85,006 units in 2024. Nevertheless, this is the second largest number of installations in Europe’s history. The three European countries with the highest number of installed industrial robots last year were Germany, Italy, and Spain. However, 80 percent of robot installations worldwide are accounted for by five main markets: China, Japan, the United States, South Korea, and Germany.

Thus, there is certainly room for improvement, and regarding industrial robots (as well as many other indicators of economic development), Croatia can look to neighboring Slovenia. In 2023, Slovenia, with 306 industrial robots per ten thousand inhabitants, officially referred to as ‘robot density’, ranked among the top ten countries in the world. This was largely contributed by the household appliance factory Gorenje, which was purchased by the Chinese Hisense in 2018, and with Chinese ownership came robots. A year later, the Japanese Yaskawa, a manufacturer of industrial robots, opened a production facility in Slovenia. Croatia, on the other hand, cannot boast industries like the automotive sector, whose presence is traditionally linked to the number of robots (excluding Rimac Automobili), so such technologies are only introduced by companies that have the capacity and resources for it, as well as a clear development vision.

It is also very difficult to determine the exact number of installed industrial robots by country. Academician Bojan Jerbić, a full professor at the Faculty of Mechanical Engineering and Naval Architecture in Zagreb and head of the Regional Center of Excellence for Robotic Technologies (CRTA), states that Croatia lacks transparent national statistics on robotic applications by companies, and the definitions of what constitutes an ‘industrial robot’ and what constitutes an ‘automated machine solution’ vary, making systematic monitoring of robotization difficult. Therefore, he does not consider the IFR data reliable.

– There are unverified and incomplete data on the import of robots into Croatia. For example, some sources indicate that approximately 167 units were imported in 2023, while the IFR reports only 74 robots. For 2023, the robot density in Europe is estimated at 219 per ten thousand employees. For Germany, for instance, this indicator is 429, while for our neighbor Slovenia, it is 306. Although we do not have reliable data for Croatia, we can estimate that this number is significantly lower than the EU average. There are several reasons for this situation. First, the deindustrialization of our economy and the orientation towards the tourism and general service sector. Additionally, Croatia lacks an automotive industry, which is the largest user of robots, so it is logical that we significantly lag behind Slovenia or Slovakia – notes Jerbić.

Nevertheless, he believes that awareness of the need for a long-term orientation towards innovation and a technology-driven economy with high added value is rising, which is then reflected in the application of advanced technologies, including robotics. And robotization, he emphasizes, undoubtedly increases productivity and quality.

‘No One Has Lost Their Job’

He cites the example of China, whose economy relied on low labor costs for growth twenty years ago, and today is the country with the absolute highest number of robots in production, as well as being a leading manufacturing economy.

– Depending on the level of automation, it is estimated that one robot replaces three to six workers in production. In the automotive industry, due to the high level of automation, this number is even higher. However, at the same time, new jobs are being created in the maintenance and programming of robots. Robots ensure continuous operation, without breaks, work faster, repeat the same operations precisely, and shorten cycles, thus increasing overall production for the same workforce. Quality is a special aspect of robotization. Robots work with greater consistency, precision, and fewer variations than manual labor, and reduce the percentage of waste. Therefore, the quality achieved through automation and robotization cannot be effectively replaced by manual labor – explains Jerbić.

In Croatia, about thirty companies are engaged in the development and production of robots, but most of them specialize in specific niches and applications, including industrial purposes. Some target domestic customers, while others aim for high-value exports to the region, EU, and the USA. For example, the company Romb Technologies develops technology for ‘smart forklifts’, meaning their software allows forklifts to move autonomously in space and transport loads.

– Thus, the forklift receives a command and then does everything by itself: plans the trajectory, drives itself, picks up the load, and delivers it to the designated location. In doing so, it constantly monitors its position in space with an accuracy of +/- five millimeters – states Damjan Miklić, director of Romb Technologies, noting that their software does not replace human labor but complements it.

Their technology, for instance, is used by the company OMCO from Hum na Sutli, a leading global manufacturer of tools for the glass industry.

– Our robot automates the transport of materials from rough primary processing (saw) to welding machines served by robotic arms. Employees in primary processing no longer have to spend time transporting to the robotic cell but have more time for machine servicing, sorting, and checking materials. No one has lost their job; rather, productivity and reliability of the process have increased, which is the main goal of automation – explains Miklić.

In Tokić, for example, automated processes for data collection and consolidation, e-archives, reporting, input and processing of sales orders, coordination with suppliers, ordering and replenishing branch stocks have been implemented, and numerous applications for standardizing operations and monitoring activities have been developed.

– We remember the first examples when we introduced the first robotic automation process into our business. It was the processing of sales orders, and employees were afraid they would lose their jobs. But, time has shown that in Tokić, due to the automation of processes, no one has been laid off. Moreover, working conditions have improved, and new employees have been hired in the technology, analytics, and ICT departments… – they recall in Tokić.

In Klimaoprema, they have three robots from the aforementioned Yaskawa, four from the Japanese brand Fanuc, and one from the Swedish-Swiss manufacturer ABB, and they plan further investments in robotics and automation.

– We must be aware that the integration of industrial robots entails the need for highly educated engineers and higher maintenance costs than ordinary manual labor, but the advantages are greater quantities produced, safer work, and repeatable and quality products – emphasizes Jaklenec.

Integration is More Expensive than Robots

As the types of robots and their purposes vary, so do their prices. In addition to the robots themselves, it is important to include the costs of their implementation, software systems, and even employee training for working with and alongside them. Jerbić explains that due to technological development and increased production, the prices of robots are falling, but due to artificial intelligence and increasingly complex motor systems, the cost of implementing robotic systems is rising. – For industrial robots on a global scale, prices for ‘the robot itself’ without integration range from 25 to 100 thousand euros. For simpler or low-cost robots, the price can vary from five to fifteen thousand euros. Thus, the price of the robots themselves is not high, but the costs of implementation and expert support significantly increase and complicate the application – explains Jerbić.

These additional costs can include design, installation, sensors, programming, installation of safety and protective systems, training, and hiring additional engineers. In general, integration, according to Jerbić, costs four to six times more than the price of the robot, and an investment in a robot and necessary tools of 40 thousand euros leads to annual savings of 60 thousand euros.

For example, Romb Technologies’ solutions cover various functionalities of autonomous navigation, and the price, emphasizes Miklić, ‘depends on the complexity of the vehicle and the operation it performs, as well as the specific software package’.

– Roughly speaking, the price of an autonomous forklift ranges from 70 thousand to 150 thousand euros, of which about ten percent relates to software – emphasizes Miklić.

In Klimaoprema, there are cases where the robot accounted for 80 percent of the total project cost, and there are also situations where the cost of the robot was less than ten percent. Jaklenec states that the price of a robot, depending on its load capacity and reach, can vary from 19 to 50 thousand euros. In the case of a new type of robot, an additional two thousand euros is needed for engineer training hours. There are also licensing and programming software costs, which can range from 500 euros for lifetime use to two thousand euros per year, and it is essential to account for downtimes during implementation and the time it takes for the robot to become operational.

From Three to Eighteen Months

The cost of integration is not just the price of the robot and equipment but also the time we internally spend on planning, programming, testing, and fine-tuning the system. This includes the engagement of our automation, robotics, and maintenance engineers, as well as coordination with external integrators. In more complex applications, such as robotic welding or complex manipulations, the total integration time can last from several weeks to several months, while in simpler applications, integrations can be completed in a significantly shorter time – explains Jaklenec.

Jerbić confirms this, stating that in the case of smaller companies with smaller robots and simpler processes, the implementation time can be from three to six months, while in larger and more complex lines, it lasts from six to eighteen months, or even longer.

The robotization of a manufacturing process can cost from 50 thousand to several million euros and depends on the size of the company, the type of process, and the complexity of integration. The process from decision to project development, then installation and commissioning often takes nine to twelve months under optimal conditions – notes Jerbić, adding that costs do not cease upon system commissioning as maintenance must also be considered.

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In Tokić, they decided to develop systems themselves rather than purchase ready-made ones, which has brought them more agile development and faster application. As a result, the first processes were introduced a year after business preparation.

– We used open-source technology and grew through the experience and knowledge of employees. We can say that all technological departments have continuously grown, so the investment in the salaries of 30 employees, who work in technology departments, is the cost and price of the technology we now master – they emphasize in Tokić.

Isolated Cases

However, to even talk about robotization, we first need to have developed production. In other words, we first need to have an industry and invest in development to count robots.

– Investments in robotics in Croatia still lag significantly behind the world average, even behind some neighboring countries, such as Slovenia. So far, we have received the most inquiries from the glass and food industries. For now, these are more isolated cases than a strong industrial trend – says Miklić.

That Croatia is not an exception is also shown by the broader European picture. According to IFR forecasts, robotization in Europe will not take off this year either. The number of orders was already negative in the first quarter of 2025, before the escalation of American customs policy, primarily due to the weakness of the European automotive sector. The IFR expects that robot installations will fall below 79 thousand units this year. The only positive note, they state, is that the development of cheaper and simpler robots will open doors for smaller companies and new sectors that have not had access to robotization due to high costs. Perhaps it is precisely in this that European, and even Croatian entrepreneurs will find their opportunity.

However, to truly seize this opportunity, Croatia lacks not only capital but also a sufficient number of experts who know how to work with such technologies. Paradoxically, although we export knowledge and educated engineers, the domestic industry still lacks enough people who can apply that knowledge in their own facilities.

– It seems that the biggest obstacle to introducing robotic technology is the lack of expertise, or competent skilled labor, which is often lacking in conventional manufacturing. The introduction of robots implies a significant change in the skill profile of employees – concludes Jerbić.

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