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DimesForShares

06/22/20 11:05 PM

#192913 RE: faithabides #192910

Silkworms raised by robots. Sounds expensive and inefficient.

Labor in Vietnam is cheap. That is a principal reason Thompson worked so hard to establish a company there. Robots are expensive and require trained technicians to repair along with a good supply chain.

There is nothing wrong with hiring human labor to take care of our silkworms. It would be far less expensive than developing robots to replace them. A malfunction in an automated facility might endanger the crop of silkworms, while people are quite reliable.

No reason on earth to think KBLB would be developing automated facilities. I don't think $24 million would be sufficient to develop, test, and deploy robots for this purpose. It also goes against KBLB's 'drop in replacement' idea.

KBLB can expand far more quickly and cheaply by hiring more employees to take care of silkworms than by spending money to develop robots to perform all of the needed sericulture tasks.

SMH

arachnodude

06/23/20 6:42 AM

#192921 RE: faithabides #192910

They do have a point, you did say, "another fully automated facility."

What I'm baffled by, though, is why the focus was on correcting use of the words "fully automated" and not the fact KBLB doesn't need the heavy equipment infrastructure at their facility since they outsource the capital-intensive part of that process?

It has only been the foundational strategy of the company for, oh, the last 10+ years. Odd to say the least.