The Age of Automation

The precise details are up to debate, but here are a few key areas that many experts agree on with respect to the coming age of automation:

Half of manufacturing hours worked today are spent on manual jobs.

  • In an analysis of North American and European manufacturing jobs, it was found that roughly 48% of hours primarily relied on the use of manual or physical labor.
  • By the year 2030, it’s estimated that only 35% of time will be spent on such routine work.

Automation’s impact will be felt by the mid-2020s.

  • According to a recent report from PwC, the impact on OECD jobs will start to be felt in the mid-2020s.
  • By 2025, for example, it’s projected that 10-15% of jobs in three sectors (manufacturing, transportation and storage, and wholesales and retail trade) will have high potential for automation.
  • By 2035, the range of jobs with high automation potential will be closer to 35-50% for those sectors.

Industrial robot prices are decreasing.

  • Industrial robot sales are sky high, mainly the result of falling industry costs.
  • This trend is expected to continue, with the cost of robots falling by 65% between 2015 and 2025.
  • With the cost of labor generally rising, this makes it more difficult to keep low-skilled jobs.

Technology simultaneously creates jobs, but how many?

  • One bright spot is that automation and AI will also create jobs, likely in functions that are difficult for us to conceive of today.
  • Historically, technology has created more jobs than it has destroyed.
  • AI alone is expected to have an economic impact of $15.7 trillion by 2030.

Unfortunately, although experts agree that jobs will be created by these technologies, they disagree considerably on how many. This important discrepancy is likely the biggest x-factor in determining the ultimate impact that these technologies will have in the coming years, especially on the workforce.

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The Outlook for Automation and Manufacturing Jobs in Seven Charts

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https://www.visualcapitalist.com/automation-manufacturing-jobs-7-charts/

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