In recent times, the economic landscape has shifted dramatically, and vertical farms have felt the effects. With rising inflation, increasing interest rates, and the resulting economic consequences, many farms are facing difficulties. While vertical farming holds enormous potential, it is still a developing technology that is trying to find the right balance between profitability and scalability.
One aspect of achieving this balance is aligning costs and revenue. Vertical farms require substantial upfront investment in building infrastructure and equipment before crops can be grown. To address this issue, growers are now turning to as-a-service models offered by equipment suppliers. By adopting OPEX-based automation using mobile robotics, farmers can better match their revenue with their expenses.
Seasony, for example, is taking this approach with their customers by providing robotics-as-a-service. This model allows growers to access the automation they need without the need for significant upfront investments or expensive service agreements.
There are three key economic factors that impact the operations and profitability of vertical farms, and OPEX-based automation can help mitigate their effects. Firstly, the sudden increase in energy costs has put strain on farming operations. By automating labor-intensive tasks, such as those offered by Watney, farms can save costs without requiring extensive redesign.
Secondly, high-interest rates make it challenging for farms to invest in traditional capital expenditure-heavy automation solutions. With an OPEX-based model like Watney, farms can align their automation expenses with production output, reducing the need for large upfront capital commitments.
Lastly, as wage pressures increase due to high inflation, automation becomes a more attractive option. Watney’s flexible automation solution allows even marginal labor tasks to be automated efficiently, helping farms counter these wage pressures.
As the economic landscape evolves, vertical farming must adapt. Rising inflation, fluctuating interest rates, and wage pressures require flexible and economically sustainable solutions. By offering immediate cost relief, reducing capital needs, and providing scalable automation, Watney enables vertical farms to navigate these uncertain economic conditions successfully.
For more information, contact Seasony at [email protected].
[Seasony website – www.seasony.dk]