This technological advancement in automation offers many opportunities and challenges for small and mid-sized business owners. For instance, automation capabilities have the potential to significantly boost productivity, with a McKinsey Global Institute report estimating a 1.4% annual increase.
However, understanding the impacts of automation on jobs and the industry is crucial, as it can lead to worker displacement and growing inequality. And while some occupations may benefit from increased efficiency and collaboration with machines, others may face the risk of obsolescence.
So, let's explore the role of automation in manufacturing and how it reshapes the future of work while striking a balance between embracing innovation and supporting the livelihoods of millions.
Let's use as an example a bustling factory working tirelessly around the clock, producing high-quality products with maximum efficiency, all while ensuring the safety of its workforce.
Now, that's the possible power of automation in manufacturing. So what exactly are the benefits of automation, and how can they impact your manufacturing business?
- Increased efficiency: Automated systems can outpace human workers, resulting in higher production rates. For example, car part manufacturers can deploy robots to assemble components more quickly, leading to a notable boost in output.
- Enhanced safety: Automation reduces the risks associated with manual labour, creating a safer work environment. Chemical manufacturers, for instance, can use robots to handle hazardous materials, protecting employees from exposure to dangerous substances.
- Cost reduction: Businesses can significantly cut labour and operating costs by automating tasks and streamlining processes. Food product manufacturers, for example, can employ automated packaging equipment for faster, more cost-effective packaging solutions.
- Waste minimization: Automation allows for precision and consistency, reducing errors and defects in the manufacturing process. Electronic component producers can leverage automated testing equipment to identify and address product defects, ensuring top-notch quality.
Plus, with automation poised to contribute $15.7 trillion to the global economy by 2030, it's clear that embracing this technological marvel can unlock exciting new opportunities for manufacturing businesses.
Automation is transforming every aspect of our lives and empowering businesses around the globe. From finance to healthcare and retail, automation revolutionizes traditional business models and drives innovation.
And with advancements in smart manufacturing, cyber security, and other industries, our world is rapidly changing.
So, as we embrace automation, we can look forward to high-value roles and improved well-being, and businesses can look forward to increased efficiency, agility, and cost savings.
Now that the pandora box is open, it's important to consider the impact these technological advancements may have on your human workforce.
While job displacements are possible, with as much as 51% of work activities in the United States at risk of automation, automation can also lead to new job opportunities that require higher-level skills.
Workers must ideally, therefore, develop skills that complement and leverage automation, including the fields of financial management and technical expertise. Also, by embracing the changing demands of their industries and continually reskilling and upskilling, workers can stay relevant in an automated world and ensure their job security.
Ultimately, successful adaptation to automation will depend on a willingness to learn and the ability to develop new, high-level skills.
Innovation can be a double-edged sword. On the one hand, it brings about automation and increased efficiency. On the other hand, it can lead to the displacement of jobs and economic hardship for workers.
That's why every industry needs a human-centric approach to automation to strike a balance between protecting jobs and supporting workers in the age of automation. This approach focuses on using technology to augment human capabilities rather than replace them.
Also, providing training and development programs that help workers acquire new skills and knowledge is essential for the future of work. Plus, benefits and social safety nets should be available to assist workers who lose their jobs to automation.
The manufacturing industry is in the midst of a technological revolution thanks to automation, artificial intelligence (AI), and machine learning (ML). These machines help to perform daily tasks, monitor processes, transport goods, and troubleshoot issues. And with the latest advancements in commercial AI applications, manufacturers are optimizing efficiency, improving product quality and safety, and reducing downtime.
Small and mid-sized businesses can particularly benefit from these transformations, thanks to their agility and ability to adapt quickly to market changes. Increasing efficiency through cost-cutting measures like energy-saving equipment or lean manufacturing can help industries stay ahead.
Achieving a sustainable and innovative manufacturing industry hinges on balancing automation benefits and workforce needs. And while automation offers significant advantages, manufacturing leaders should consider the long-term impact on the workforce and take steps to address any potential issues.
One way to achieve this balance is by investing in upskilling and reskilling programs for employees. Even better, manufacturing leaders can consider leasing technology and equipment to leverage the latest innovations without tying up capital unnecessarily.
Working with a trusted partner like GRENKE allows you to unlock your company's full potential. So, contact us today to learn more about leasing options tailored to your manufacturing business.