Industrial Automation Magazine India

Our experience in the US supports the view that robots are creating jobs

Published on : Tuesday 30-11--0001

Are robots a boon or a threat to human beings, especially when it comes to jobs?

We believe that robots are saving and creating jobs, just the opposite of what is often reported in the news and in studies that come out with scary headlines. For example, a major McKinsey study came out a while back saying as many as 800 million jobs could be lost globally due to robotics and automation. However, it wasn’t reported that they found as many as 890 million new jobs could be created, for a net gain of 90 million jobs! Fortunately, there are more recent studies that accurately portray the situation such as the one that came out last year from the World Economic Forum. They reported that as many as 133 million new jobs could be created by 2022 while 75 million jobs may be displaced, for a net gain of nearly 60 million jobs globally.  Our experience in the United States supports the view that robots are creating jobs. We took a look at a 20 year period starting in 1996. We found that whenever robot sales went up, unemployment went down. And, when robot sales went down, unemployment went up.

While many manufacturing jobs were lost in the US, we believe it was primarily due to companies sending manufacturing overseas to take advantage of low cost labour. However, automation allows them to manufacture in the US, which many companies now realise is a strategic advantage since it allows them to get products to their customers faster, save on shipping costs, and protect their intellectual property. What we’ve also experienced is that during the record period of robot adoption in the US from 2010 to 2018, when more than 177,000 robots were sold, more than 1.2 million new manufacturing jobs were created. At the same time the unemployment rate in the US fell from nearly 10% to below 4%, and has continued to fall.  The real threat to jobs is when companies can no longer compete, since that’s when all jobs are at risk. Automation and robotics help companies compete, win new business and ultimately hire more people than they had before automating. We’ve had many examples of this, especially at small and medium sized companies, who are just now beginning to fully embrace robotics in large numbers.

Is the robots-taking-jobs argument exaggerated, as there are still jobs waiting to be filled?

One of the main drivers today of increased use of robotics is the shortage of people to do many jobs. Examples include working in warehouses, which often requires walking miles each day. As e-Commerce drives demand for more products, the need for warehouse workers grows, and companies would find it very hard to meet increased demand without automation. Another example is restaurants: there is a shortage of cooks and wait staff in major cities, especially in fast growing areas that have had an explosion of new restaurants in recent years. This could lead to restaurant closures. Yet another example is agriculture, where strawberry farms, for instance, need more labourers than they can be certain of finding at key picking times, so they are looking at how robotics can help them. This is true in nearly every industry. In fact, we have more open jobs in the US then there are people looking for work. The problem is that there’s a mismatch in skills between the available jobs and the people seeking them. This has to be addressed by the education system, apprenticeship programs, training and retraining efforts and more.

Demographic issues also play a role here, since as the US population ages it becomes harder to replace workers in jobs like manufacturing since many younger people do not want careers in manufacturing. The image of manufacturing also needs to be addressed, since there are many good, high paying jobs in the industry that allow people to use their brains, not just do dull, dirty and dangerous jobs (automation now handles many of those jobs!).

While robots are adapting fast to new roles, are their human counterparts slow in doing so?

We see that greatest benefit comes from people and robots working together. Companies who take advantage of what people do best and marry that with what robots do best are often the most productive. Artificial intelligence is helping robots become more intelligent, but we are nowhere near having robots as smart or capable as people. The creativity, problem-solving ability, understanding of how to do certain tasks (like identifying and picking up objects), and emotional intelligence that people have is unmatched by machines.

Compared to the advanced economies, robot penetration in India is still low. Will there be a dramatic change in the near future?

We believe that robot use is rising throughout the world because more and more companies understand that automating with robotics gives them a competitive advantage. The failure to take advantage of technologies like robotics is a risk to companies everywhere, especially in highly automated industries like automotive and electronics. Therefore, we expect to see growing adoption of robotics in India. It’s also true that in countries where robot use is high, the economies are usually healthier and less likely to see crippling downturns.

What will be required before robot penetration increases in India?

One of the first things that has to happen in India before robotics becomes more widespread is an education process. Companies need to learn about how robots are being used in a wide variety of industries. They need help in finding out who can help them get started on a robotics project, and how to determine if robots are right for them. There also has to be an effort to educate the public on the fact that robots aren’t a threat to jobs that the real threat is if Indian companies fall behind in terms of adopting highly productive technologies like robotics that make companies more competitive. And, while government strategies and incentives can be helpful to encourage companies to automate, the most important thing is that governments not put up barriers to automating. In the US and in Europe there have been discussions of things like robot taxes or universal basic income. These are terrible ideas that would damage economic growth and end up being job killers not just in the robotics industry but throughout the supply chain and in communities where manufacturing and distribution companies are located.

Finally, will man and robot co-exist in harmony?

We definitely expect to see man and robots existing in harmony long into the future. One of the reasons is that robotics can help people live longer and healthier lives. Robots are helping doctors find cures for rare diseases, assisting surgeons in procedures that can lead to better medical outcomes, working with physical therapists to help people recover faster and ultimately will assist us in our homes in a wide variety of ways. In the future we expect to see robots interacting with us in every part of our daily lives in ways that are beneficial to mankind. So, I’m very optimistic about the future of the relationship between man and robots!

Jeff Burnstein is the President of the Association for Advancing Automation (A3), the parent group of the Robotic Industries Association (RIA), AIA – Advancing Vision + Imaging, and the Motion Control and Motors Association (MCMA). Together these trade groups represent over 1,200 global companies involved in robotics, vision, motion control and motors and related automation technologies. Burnstein joined RIA in 1983 and has held a variety of senior positions, culminating in his promotion to President in 2007. He is a frequent commentator in the media as well as to global audiences on issues such as the impact of automation on jobs and the future of automation beyond the factory floor. Burnstein also serves on the Executive Board of the International Federation of Robotics (IFR).