As manufacturers across the globe face widespread shortages of skilled labor, intelligent automation is emerging as a solution to alleviate the problem. One company leading the charge is Watch Out, which has developed highly automated workcells designed to make production more flexible, efficient, and less reliant on human labor.

According to a report from Deloitte and The Manufacturing Institute, nearly 2 million U.S. manufacturing jobs could go unfilled through 2033, highlighting the urgent need for advanced automation solutions. Watch Out, a Montreal-based company, offers machining cells that utilize patented sensors and machine learning for precision manufacturing across industries such as aerospace, automotive, medical, and more. With claims of providing “Level 5” autonomy, their systems can handle complex tasks such as materials handling, machining, and inspection, all without the need for human intervention.

The roots of Watch Out trace back to 2012, when Sébastian Laporte and Frédéric Perret co-founded a precision manufacturing company focused on aerospace. Bernard Mariette, the executive chairman of Watch Out, explained that Laporte, who had learned to program some of the first CNC machines in France, quickly identified the limitations of these machines and the issue of retraining staff.

Laporte had previously built software to analyze the exact dimensions of tiny quartz watch pieces submerged in oil, intellectual property that was later acquired by Rolex. This experience laid the foundation for the creation of Watch Out in 2016, where Laporte and Perret, alongside Mariette who joined in 2019, started to design a more efficient system based on data and deep learning.

“We started by linking sensors directly to FANUC CNC machines,” said Mariette. “This allowed us to solve the first problem: collecting precise data. The cameras in the machine monitor the position of the parts and tools in real-time. By working in nanoseconds and controlling down to 2 microns of accuracy, we could measure every piece, not just one piece out of 1,000.”

Watch Out’s system features high-speed connectivity and proprietary sensors that allow for real-time data collection and analysis. This innovation enables the system to adjust to production requirements autonomously, drastically reducing the time and labor needed for tasks like managing CAD files, inspecting parts, and recalibrating machinery.

In traditional manufacturing, if a part needs to be changed, the process involves multiple steps: a human operator analyzes the plan, adjusts the machine code, tests it, and makes further adjustments before production can resume. This process can take up to two days for complex materials. With Watch Out’s system, the entire process is automated. A CAD file is uploaded, the machine designs its own process, selects the necessary tools, and makes the first batch of parts. If the parts aren’t perfect, the system adjusts itself and runs another batch, all within a maximum of 30 minutes.

This means Watch Out’s systems can change production paths even during weekends or nights, allowing factories to operate autonomously for up to 48 hours without human intervention.

While the rise of intelligent automation often raises concerns about job displacement, Mariette emphasizes that Watch Out’s workcells are designed to enable reshoring—bringing manufacturing back to the U.S. and other regions facing labor shortages.

“We’re not taking jobs away; we’re creating opportunities for higher-level staff and logistical workers,” Mariette said. “With traditional machines, 40 machines need 40 workers. With our system, you only need 10, but we don’t yet have automatic feeding of parts from stock.”

The concept of a “microfactory” is at the heart of Watch Out’s workcells. AI drives the entire manufacturing process in real-time, with multiple robot arms and inspection modules all integrated into the same unit. Each workcell is designed to be compact enough to fit inside a standard container, making it easy to deploy in various locations.

In a shift from the traditional model of capital expenditure (CapEx), Watch Out offers its workcells through a subscription or Robotics-as-a-Service (RaaS) model. This means that instead of purchasing a machine and amortizing it over several years, manufacturers can access the full capabilities of Watch Out’s automation system on a flexible, usage-based plan.

“It’s not about buying a machine anymore,” Mariette explained. “It’s about having fewer machines but using them to their full potential. Our system eliminates obsolescence by knowing when to change parts before they break, ensuring continuous operation.”

Since launching its workcells, Watch Out has quickly gained traction. With workshops in Bonneville, France, and Dorval, Canada, and customers including aerospace giant LISI Aerospace, the company is looking to expand beyond Europe and Canada. It aims to enter the U.S. market and expand globally in the near future, with expectations to triple its 2022 revenues, reaching $30 million CAD ($20 million U.S.) in sales by 2024.

Watch Out’s vision of a fully automated, flexible, and data-driven manufacturing environment is poised to reshape industries, offering solutions to the labor shortages plaguing traditional manufacturing sectors while driving efficiency and precision. The company’s innovative approach to automation and AI is making it a key player in the future of manufacturing.

By Impact Lab