Embracing the Robotic Revolution

According to the International Federation of Robots (Frankfurt, Germany), the world’s average robot density is 74 robots per 10,000 employees.¹ The United States sits comfortably above this, at 189 robots per 10,000 employees, and ranks seventh in the world in robot density as domestic factories modernization to meet the growing demand for American-made products. Robot sales in the U.S. are expected to increase by at least 15 per cent per year between now and 2020. Put simply, the robotic revolution is here. Despite this rapid uptake in automation, more than 70 per cent of Americans still express wariness and concern about the rise of robots in our workplaces, according to Pew Research.² Perhaps they read the report by the McKinsey Global Institute stating that 73 million U.S. jobs could be under threat of automation by 2030.³ This sounds threatening, but is the robot revolution really such a bad thing?

Arguably not. A manufacturer that saves money on labor by using automation has two options: Lower product prices or generate more profit. Both outcomes can result in increased investment, higher demand and, in turn, more opportunity for employment. This isn’t just theoretical. Amazon provides an example of this phenomenon, albeit in warehousing, rather than manufacturing. Over a three-year period, they increased the number of robots in their storerooms from 1,400 to a colossal 45,000. During this same timeframe, the rate at which they hire workers did not slow down or reduce because their capacity also increased due to automation. Increased deployment of robotics forces a shift from manually-intensive labor to jobs that require human skills that robots cannot replicate. Rather than overseeing repetitive manufacturing tasks like machine tending or basic material handling, increased automation can enable workers to manage more complex roles.

References

1. “Robot Density Rises Globally,” International Federation of Robotics, February 7, 2018, ifr.org.
2. “Automation in Everyday Life,” Pew Research Center, Internet & Technology, October 4, 2017, www.pewinternet.org.
3. “Jobs Lost, Jobs Gained: Workforce Transitions in a Time of Automation,” McKinsey & Company, December 2017, www.mckinsey.com.

U.S. manufacturers cannot ignore the growing implications of failing to adopt modern robotics and automated technologies. Rather than fearing the rise of the robot, Americans must further embrace the technology or risk getting left behind in the global manufacturing race.