# The Automation Adoption Boom: Why ROI is the 2026 Metric That Matters, Ep #30

- Show: [Lights Out](https://hardwarepodcasts.com/podcast/lights-out)
- Published: 2025-12-12
- Length: 39m
- Episode: 30
- Page: https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30
- Listen: https://8819970d-2c51-481c-b08a-4d2a806885b2.libsyn.com/the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30

## Summary

Hosts David Buick and Eric Nekich launch a multi-part series on automation ROI, arguing that shops must quantify return on investment before investing in hardware. They emphasize that automation cannot fix unreliable processes, specifically highlighting the critical role of workholding systems from SMW Autoblok and pallet delivery systems from Hennig. The hosts outline five key baseline metrics—spindle utilization, setup time, operators per machine, labor cost per part, and remaining labor percentage—that shops must capture using simple tools like stopwatches to build a valid ROI model.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=0) Introduction: Workholding and SMW Autoblok
- [2:18](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=138) Launching the Automation ROI Series
- [4:13](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=253) Industry Trends Driving 30% Automation Adoption
- [6:46](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=406) Defining ROI: Process Goals and Upstream/Downstream Impacts
- [13:44](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=824) Common Automation Failures and Cobot Misuse
- [17:43](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=1063) Core ROI Foundations and Cost Factors
- [25:19](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=1519) Metric 1: Measuring Spindle Utilization
- [28:35](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=1715) Metric 2: Setup Time and Modular Workholding
- [31:16](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=1876) Metric 3: Operators Per Machine and Multi-Machine Tending
- [31:16](https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30#t=1876) Metric 4: Labor Cost Per Part and Remaining Labor Percentage

## Topics

- [Design for manufacturing & NPI](https://hardwarepodcasts.com/topic/design-for-manufacturing)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Factory operations & automation](https://hardwarepodcasts.com/topic/factory-operations)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)

## Most relevant to

companies scaling up

## Mentioned

- SMW Autoblok (company)
- Hennig (company)
- Verdant Commercial Capital (company)
- Hire MFG Leaders (company)
- NTMA (company)
- Fifth Axis (company)
- Trygg Work Holding (company)

## Related episodes from other shows

- [The New ROI of Automation w/ Scot Lindemann](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-02-08-the-new-roi-of-automation-w-scot-lindemann) (The Manufacturing Executive)
- [An Outcome-Based Solution for Deploying Robots w/ Saman Farid](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2024-01-30-an-outcome-based-solution-for-deploying-robots-w-saman-farid) (The Manufacturing Executive)
- [How to Solve the Technology Hesitancy Issue in Manufacturing w/ Erik Nieves](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2021-09-07-how-to-solve-the-technology-hesitancy-issue-in-manufacturing-w-erik-nieves) (The Manufacturing Executive)
- [#327 Understanding the ROI of an eQMS](https://hardwarepodcasts.com/podcast/global-medical-device-podcast/2023-07-11-327-understanding-the-roi-of-an-eqms) (Global Medical Device Podcast)
- [Robot-Lean: Synthesizing Automation and Lean Manufacturing w/ Alex Webster](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-06-03-robot-lean-synthesizing-automation-and-lean-manufacturing-w-alex-webster) (The Manufacturing Executive)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/lights-out/2025-12-12-the-automation-adoption-boom-why-roi-is-the-2026-metric-that-matters-ep-30. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Lights Out.