The rise in automation effecting the manufacturing labor force

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Thalia Fry

Description

As AI and IOT technologies transform manufacturing as well know it today, there is great potential for increased automation in manufacturing to displace workers. It has been found that nearly half of paid activities and tasks could be automated. Additionally, automation would also have a positive effect on industrial productivity and fuel economic growth. 30 percent of hours worked globally could be automated by 2030 – which would have a dramatic effect on the global labor force who specialize in manufacturing.

Enablers

The automation industry is projected to increase at a CAGR of 9% between 2021 and 2028. This growth is projected based on the emphasis on process automation, which is designed to minimize costs and human labor by proxy. Corporations are increasingly more interested in adopting robotic assistance to mass produce products.

Inhibitors

There are some tasks that still will require a human touch, and in this way it would not be possible to fully replace a factory with robots. Where creativity and complex problem solving are needed, process robots are not advanced enough to replace a human. In addition, while AI may displace some jobs, this industry will also create a host of new jobs to help support AI growth and development across the manufacturing industry

Paradigms

Old: Number of staff would shift to produce as much as possible prior to automation

New: Today robots can produce with demand (not at max volume, but rather, a more precise demand) while lowering labor costs with fewer workers on site.

Experts

Jonathan Tilley

Timing

2021 - 2028

Web Resources

https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages

https://www.grandviewresearch.com/industry-analysis/industrial-automation-market

https://www.forbes.com/sites/forbestechcouncil/2019/01/17/the-alleged-threat-of-ai-taking-away-human-jobs-is-not-what-we-think-it-is/

https://www.valuetransform.com/automation-paradigm-shift/