Mitsubishi HC Capital, along with its U.S.-based group company Mitsubishi HC Capital America, announced it has signed a joint commercial agreement with Formic, a leading robots-as-a-service (RaaS) provider, accelerating the adoption of automation across American manufacturing.
The agreement allows the two companies to strategically align their efforts in the growing RaaS sector, which is projected to grow at a CAGR of 17.4 percent through 2028 to more than $4 billion.
Formic’s RaaS model is an all-encompassing managed solution for manufacturing automation. The company scopes and designs a solution to a manufacturing issue, creates an engineering plan, procures the required equipment, deploys the system into operation, and provides continuous monitoring and maintenance for the life of the engagement to ensure success. By working alongside Mitsubishi HC Capital America, the two companies can collaborate to source and finance the entire lifecycle.
“Automation can help small- and mid-size manufacturers address labor shortages, control costs, improve safety, and drive growth. However, financing is often a barrier to adoption,” said Mitsubishi HC Capital America’s President of Vendor Solutions Jim Freund. “With Formic’s innovative solution and our ability to finance it, businesses can rethink their entire manufacturing model, from their human capital needs to equipment requirements.”
Mitsubishi HC Capital America’s RaaS financing allows a company to bundle the costs of equipment, software, supplies, and servicing into one affordable monthly payment. By financing it as one, a company can preserve cash for other business uses, accelerate their sales cycle, increase their competitive advantage and more.
Furthermore, Mitsubishi HC Capital America has made a strategic investment in Formic through the parent company’s new Innovation Investment Fund. The purpose of the fund is to promote the creation of new services and the development of new businesses through open innovation in an effort to realize the company’s 10-year vision: ‘Together we innovate, challenge and explore the frontiers of the future.’ By investing both time and resources in growing companies, Mitsubishi HC Capital Group can enable rapid execution and accelerate innovation efforts.
“Working with Mitsubishi HC Capital America and receiving a strategic investment represents the best combination of manufacturing proficiency and commercial acceleration,” said Formic CEO Saman Farid. “Businesses need to be agile and innovative. Automation is quickly becoming a necessity and this partnership allows all U.S. manufacturers to benefit from our forward-thinking services, as well as Mitsubishi HC Capital’s long-standing financing expertise.”