With the launch of their WONBOT series, Shinhee C&M is not only pushing the boundaries of robotics technology but also emphasizing the importance of safety and prevention in every application.
The success of Korean conglomerates has had a positive trickle-down effect on domestic suppliers, providing them with growth momentum and core capabilities. However, in recent times, due to an increasingly saturated and competitive domestic landscape, it has become essential for enterprises to think globally to continue their growth trajectories. In order to achieve this goal, Korean companies will need to find their place in the global supply chain. What are the challenges and the opportunities for the Korean suppliers in the global supply chains? How can Korean companies benefit from the ongoing realignment of the supply chain?
When considering the Korean economy, it is primarily led by conglomerates, which benefit from strong brand recognition—something that SMEs lack. Despite possessing unparalleled technological prowess, SMEs like ours often struggle to reach overseas clients because we must be selected by those clients first. Historically, my primary focus was not on sales activities, so we didn't have dedicated sales personnel. Instead, we met our buyers mainly through exhibitions, allowing them to witness our technology and products firsthand.
There are few Startups in Korea penetrated the robotics industry in less than seven years, backed by government fiscal support. However, those are not experiencing significant growth or revenue increases. Those who have survived on government support are not our competitors because, although our growth may be slower than expected, we have achieved it with our own capital and manpower. Even when Korean conglomerates reached out to us, we primarily handled it in-house.
There are numerous Robotic startups in Korea, However, with their niche technology, they struggle to produce robots. As a result, other Korean startups often reach out to us for cooperation. Few Korean Robotic companies have more manpower and capital than our company but their quality does not match ours. This is the source of my pride.
The main advantage of SHINHEE C&M is as both the hardware and software are In-house manufacturing. Yes, the hardware design to manufacturing as well the Software design to development of the Robots are made with in our organization with our talented engineers. I believe as with our talented team we will be success in the global market.
My primary concern is how to compete against Chinese competitors. I recently read that the US administration decided to impose 100% tariffs on all Chinese EV imports. I challenge my staff to secure price competitiveness against Chinese contenders while enhancing our quality. We don't have the capacity to focus on overseas marketing because SMEs are so understaffed. Instead, we must concentrate on bolstering quality, Service support and price competitiveness. I believe these are the three key pillars for SMEs to stay afloat.
Despite the rapid growth of manufacturing- and service-robots and active investments in R&D, South Korea is ranked below the United States, Japan and Germany with regard to the competitiveness of its robotics technology. Part of this situation is due to the local industry’s reliance on foreign technologies, particularly those of the USA and Japan, for key robotic parts and software. What areas of improvement remain to lessen the reliance on foreign technology? How was your company able to localize all of the production while other vendors utilize outside sources for many of their software and components?
Achieving in-house production was crucial for our survival in the market. Historically, Germany, Japan, and other advanced economies have spearheaded the robotics industry. However, I believe China has now emerged as the global leader. For the Korean domestic robotics industry to survive, a shift in recognition and awareness is paramount.
I think the era of AI is still far off, but currently, developers are on the wrong trajectory, focusing on profit rather than the well-being of humanity. Since I am not a robotics engineer by training, I strive to imbue the spirit of intrapreneurship in our employees, encouraging them to develop products that are user-friendly and convenient for everyone. Developers have deviated from this path because, as SMEs ventured into the robotics industry, Korean MNCs scrambled to secure their future growth in this sector. However, how can consumers afford these expensive products made by companies like Samsung or LG? Chinese products cost around $6,000, whereas those made by Samsung and LG are about 45 million KRW, making them prohibitively expensive for consumers.
I believe the robotics industry is a distorted market. Historically, both Korea and China have gone through rough patches to achieve economic growth and cater to the well-being of their people. However, the robotics industry is an exception, having become more of a speculative market. I estimate it will take another 10 years to restructure the robotics industry and get it back on track.
I think the robotics industry itself is very distorted. Therefore, we don’t focus on such strategies. Instead, we concentrate on developing robots that best meet the demands and needs of our customers. We aim to collect more data through exhibitions and in-person interactions to gradually grow the size of our company.
Established in 2002, Shinhee C&M has evolved from a caster and electric cart specialist to an automation company twenty years later. The company is now developing and manufacturing various AGV/AMR solutions for smart factories and collaborating with major companies domestically and abroad, such as Trusco in Japan, achieving a total solution provider. What key milestones have contributed to your current position? What were the challenges that you overcame?
On a personal note, I was born in 1966, a time when my generation faced many challenges. I started my own company at the age of 27, initially focusing on bearing distribution. I supplied bearings to a caster-producing company, whose CEO recommended I undertake OEM production of casters. Following this advice, I established a caster production company in China in 1999. Since 2002, I have strategically formulated a three-year plan every three years. According to our original plan, we aimed to establish electric carts in 2014 and enter the AGV and AMR market by 2019, which we successfully achieved. However, the COVID-19 pandemic, which lasted for three years, forced us to put some of our business activities on hold.
It was extremely difficult to hire employees in Korea for caster production, which required skills in pressing, plating, welding, and assembly. To address this, we established a joint venture with our partner in China and first ventured overseas in 2004 through an exhibition in Las Vegas. Although I wasn't fluent in English, I was able to thoroughly explain the specifications of our products to buyers and secure transactions. That marked the beginning of our business.
I believed that casters would always be essential because they are so important for everyday life. With casters as our starting point, we ventured into electric carts, which required significantly less manual labor than in the past. This step-by-step approach has guided the progression of our business. With all this experiences we started building AMR and AGV from 2022 and now we have several AMR models named as WONBOT along with our own Fleet Management Software named as WONBOT M+.
The implementation of new automated logistic solutions within a factory and warehouse always requires a customized package. The layouts of the facility, necessary functionalities, and the presence of other types of automated systems are some of the numerous factors that increase the complexity of a smart factory. Shinhee C&M has developed a large number of solutions in a few years, such as 11 types of AGV/AMR for lifting and collaboration, a Wonbot Follow-me modular sensor using deep learning for target following features, and its own proprietary software including AMR management, MES, and API to connect to other systems. Could you explain how your entire portfolio supports the nimbleness of your solutions to cater to your customer demand?
Having a comprehensive portfolio is absolutely necessary because it allows us to instantly understand and meet the specifications and requirements of our clients. We strive to customize our products to cater to diverse needs, including those of minority groups and the disabled population. Of course, mass production presents its own challenges. However, developing technologies for specific groups, such as the disabled population, enhances our overall technology portfolio.
For the software aspect, we consult with talented engineers as much as possible for our development. This approach helps us build a robust and versatile technology base that supports the flexibility and responsiveness required to meet our customers' demands effectively.
A significant challenge when implementing your solutions across different environments is their adaptability. Each logistics center, for example, has a unique layout, existing robots, and pre-existing MES or AMR systems. Consequently, there's a need to tailor your solutions not only to different layouts but also to diverse environments and ensure compatibility with existing systems. Our research shows that you operate in various sectors, including logistics, factories, and hospitals. How can you ensure that you meet the specific requirements of all these different environments?
Our company established AMR in 2022, and within two years, we've expanded our product variety significantly. We offer payload capacities ranging from 200 kg to 1000 kg. Our base models include two main types: one without a lifting mechanism and one with a lifting mechanism. These two models are designed primarily for industrial use in factories and warehouses. For instance, our 200 kg warehouse model is compact, and we can add a customizable layer on top to suit various applications. From these two base models, we developed a comprehensive product portfolio, both with and without lifting capabilities, which are essential in smart factories and warehouses.
When engaging with customers, we demonstrate our ability to meet their demands through these versatile models. Additionally, we have extensive experience in building smart factories across various economic sectors. Personally, I have over 15 years of experience in factories, with six years dedicated to smart factories. This broad knowledge base across different industries allows us to provide added value to our customers.
If a customer requires a specific type of AMR for their factory or already has an MES system, we offer consulting services and customized solutions. We advise on how they can integrate our products with their existing systems. Our primary focus is on delivering the best quality and cost-effective solutions to our customers.
In production areas or inside the warehouse, the growing number of automated systems and robots interacting around workers is increasing the risks of accidents due to unpredictable situations and potential human clumsiness. This phenomenon is amplified while heavy and tall packages are lifted, which can easily harm humans. Shinhee C&M has just released its new 1000 kg forklift which uses SLAM navigation to build a map of its surroundings while simultaneously keeping track of its position within the map. Could you explain how your robots enhance the safety of human and robot interaction? How does your system address the various challenges involved?
Our AMRs are equipped with SLAM navigation technology. Initially, we install the AMRs at our customers’ sites and create detailed maps of their environments. However, one drawback of SLAM technology is that the AMRs may struggle to operate effectively if there are significant environmental changes, requiring us to remap the area each time. To address this, we added a line-following functionality, which we use at customer sites and in outdoor environments.
Initially, we developed our AMRs with SLAM technology, but we have since incorporated line-following capabilities to enhance adaptability and reliability. If customers encounter any issues or have specific needs, we proactively develop additional solutions to address them. This approach reflects our commitment to listening to our customers and meeting their needs one by one.
Safety is a paramount concern for us. To ensure safe interaction between humans and robots, we have integrated numerous sensors into our robots. These sensors help detect obstacles and prevent accidents, enhancing overall safety in environments where heavy and tall packages are handled. By continuously improving our technology and listening to our customers, we aim to provide solutions that are both effective and safe.
You mentioned recently that your controller can integrate all the different equipment inside the robot itself. Can you explain the competitiveness of your controller and the benefits it brings to the market compared to existing solutions?
The main component of all industrial robots is the controller, which is essential for their movement. To function effectively, we need to connect various elements, including lidar and motor drivers, to the system and PC. We have developed our own controller named as SHSC-WB001(SHIHEE SOUL CONTROLLER) model name as (WB001 – WONBOT001), which we consider the heart of our AMR.
One significant advantage of our controller is its integrated design. Typically, using an industrial PC requires external connections, which can be problematic if the connection is lost. Our single controller integrates all components, eliminating this risk and enhancing reliability. Additionally, we plan to sell this controller as a standalone product to our customers. They can either purchase the controller and build their own AMR or opt for customized packages from us. In fact, we already offer some navigation packages.
We are also working on simplifying our controllers. Currently, setting up an AMR requires extensive setup and configuration, often needing software engineers. Our goal is to make our controllers more user-friendly and easier to use. This way, customers can purchase our controllers and robots, and set up everything easily, including mapping, without needing our engineers to be onsite. We aim to deliver high-quality, cost-effective products that anyone can use.
Overall, we have several plans and goals for our controllers, and we are working to achieve them gradually, one step at a time.
In 2023, Shinhee C&M achieved USD 100 million. While the company develops its own casters, electric carts, and AGV/AMR, it also serves as an OEM/ODM for other companies, such as Omorobots, developing specific custom solutions. What are your objectives for the next 3-5 years in terms of revenue and business development? What milestones will you set to achieve those objectives?
Caster production has already matured, and our focus for logistics is shifting towards robotic systems. This coming June, we plan to establish a new corporation, a spin-off of our robotics division. Our employees will be shareholders of this new corporation, allowing them to share in the benefits.
In terms of revenue, I don’t have a specific strategy at the moment. My primary goal for the next five years is to create the most user-friendly robots. I believe that by accelerating the development of user-friendly robots, our revenue will naturally see exponential growth.
After five years, I plan to pass the leadership to the next generation of our staff and step down from my presidency. If we succeed in creating groundbreaking, user-friendly robots, I am confident that we will experience significant revenue growth.
Shinhee C&M has a long history of collaboration with the international market. You first ventured into overseas market in 2004. On the one hand, the company started with a factory in China and expanded in Vietnam in 2020 for producing casters. On the other hand, the company collaborated with partners in Japan and in the US, such as Bstar Robotics or FlyHigh Technologies. Could you walk us through your international strategy?
Caster production serves as the bedrock of our business. The international market is crucial for us, as 80% of our products are exported, with only 20% sold in the Chinese domestic market. We attract clients primarily through international exhibitions.
In Japan, the caster market is particularly challenging due to strict quality and delivery time requirements. However, we are now collaborating with a company that produces components for AGVs supplied to Toyota. After successfully navigating the approval process, we are now manufacturing these components. Building on our caster production, we are jointly developing AGVs and AMRs to penetrate the Japanese market starting in June this year. Clients who already use our casters are showing interest in our comprehensive portfolio, including AGVs and AMRs, which means we don't need to aggressively seek new clients—they come to us.
Beyond Japan, we have buyers across various continents, including the US, Canada, Brazil, Argentina, Chile in Latin America, and Italy, Germany, the UK, and France in Europe. The Netherlands remains our largest buyer in Europe, and we are also gradually exporting to South Africa. We export to Australia, New Zealand, Vietnam, and Indonesia as well. Buyers of our casters often become contacts for other business areas, including robotics. Word of mouth helps us expand our comprehensive portfolio, as satisfied customers recommend us to others.
For example, our buyers often show videos of their AGVs or AMRs to other companies, sparking interest. When these companies inquire about the origin of the casters, we provide samples. This approach allows them to integrate our products into their offerings. This word-of-mouth strategy is highly effective for us, eliminating the need for extensive sales activities.
Let's envision that we come back to have an interview with you on the very last day of your presidency. What goals, ambitions, or objectives would you like to have achieved by then?
I plan to retire in three years. After stepping down from the position of front runner, I’ll focus on catering to the overall needs of the company. My goal is for my employees to confidently lead the business, building on the foundation of quality products that I have established. I hope that my employees and the next generation of entrepreneurs will stay on the right track.
I believe it’s best to retire around the age of 65, which is the average retirement age. Some people stay in their roles for a very long time, but I think that’s not always beneficial. Cognitive sharpness tends to diminish with age. My grand ambition for the company is for the next generation of entrepreneurs to lead this business successfully.
For more details, explore their website at: https://www.shcnm.co.kr/
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