Workers Being Replaced by Robots

According to a report published by the Boston Consulting Group, manufacturing robots are likely to replace human workers at a faster rate than ever before over the next 10 years. While this development is good news for manufacturers, who are likely to enjoy lower costs as a result, workers could face unemployment if they do not update their skills.

The Boston Consulting Group report predicts a strong growth in investment in manufacturing robots over the next decade. In the 25 nations that produce most exports, experts predict an increase in investment of 10 percent per year. This is a huge increase compared to the current yearly growth of between 2 and 3 percent.

Manufacturing robots could significantly reduce labor costs for manufacturers. Manufacturing robots in the United States are set to save manufacturers 22 percent on their labor costs. Robots are also likely to be very important in countries such as South Korea and Taiwan, where labor costs have risen rapidly in recent years.

The reducing cost of manufacturing robots is one reason why they are growing in popularity. The costs associated with owning a spot welding robot was $133,000 in 2014, which is much less than the equivalent cost of $182,000 in 2005. Prices are likely to fall further during the next decade, as the costs of producing and maintaining the robots decrease.

Modern manufacturing robots are also far more useful than their predecessors. Once, manufacturing robots could cope only in very regimented environments, but today's robots use sensors to detect and interact with objects around them. As a result, they are much more adaptable and able to function in busy manufacturing environments.

Robots could take over many manufacturing jobs. According to the recently published report, robots perform only 10 percent of the manufacturing jobs that could be automated. By 2025, this figure is expected to have risen to 23 percent, which could result in many low skilled workers being left without jobs.

To remain relevant, manufacturing workers must update their skills. There are many highly skilled jobs that robots are not able to do, including roles that involve creative thinking or human emotion. New opportunities may also open up for workers who can program or maintain the robots. By taking every opportunity to learn new skills, manufacturing workers can protect themselves from unemployment in the wake of the growth of manufacturing robots.

As manufacturing robots become a more common site in factories across the world, labor costs are likely to fall as productivity levels rise, which is good news for manufacturers. Many low skilled jobs are likely to be replaced by manufacturing robots during the next 10 years, but the future is also bright for highly skilled workers or those who can adapt to the increasing technology.

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