Automation is not a new concept – the industrialized world has been automating physical tasks and processes for hundreds of years in different fields. For example, look at the cotton gin and harvesters in agriculture. There’re conveyor belts and assembly lines in early factories. Even the personal computer in the 1970s and 1980s automated some tasks, from word processing to bookkeeping.
Today, there’s a convergence of technology: Robotics, machine vision, and other automation technologies – combined with the power of artificial intelligence – are empowering unprecedented improvements in precision, speed, and quality. These technologies, combined with the growth of cloud computing, advances in high-speed wireless and cellular networks, and continued improvements in microprocessors, have allowed new companies -- and new industries -- to embrace opportunities in automation.
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At the same time, the need for automation continues to grow. Shifting demographics in certain countries mean the population is getting older, requiring more assistance from technological solutions. A 2018 study by Deloitte and The Manufacturing Institute predicted more than 2 million unfilled manufacturing jobs in the United States by 2028 as baby boomers exit the workforce and fewer younger workers enter the field. In Japan by 2040, almost 40 million people will be older than the age of 65. That will be 35% of the country’s population.
These labor shortages will affect companies’ ability to serve their customers. The rise of online shopping (an exploding trend even before the pandemic) saw many companies struggling to fill orders quickly, as workers and existing processes couldn’t keep up.
Finally, companies are using automation and robotics technologies to keep workers safe.
Automation proponents often use the phrase “Dirty, dull or dangerous” to describe the types of tasks that automation can perform. Think about the workers who have to inspect a sewer tunnel, the infrastructure underneath a bridge, or check for cracks on a wind turbine. Consider the types of repetitive stress injuries that workers frequently endure. Automation can keep workers away from hazardous material and away from dangerous environments.
All of this is leading companies to implement automation at even faster pace. In the supply chain space, for example, 72.8% of respondents to IDC’s Supply Chain Survey said, “Robotics will be important or very important to their organization in three years.”
Jordan K. Speer, a research analyst with IDC Retail Insights, believes “intelligent robotics will speed and improve the flow of goods through the warehouse and [distribution center] while freeing humans to focus on other tasks that involve human strengths such as creativity, critical thinking, fine-motor coordination, and customer engagement.”
The good news for companies looking to quickly automate is that the cost of entry into automation is much lower than in previous years. Developments in technology and lower costs for equipment are giving small and midsize companies the opportunity to explore automation.
Depending on the system or type of robot deployed, companies can see a return-on-investment in six to 15 months on average. With ongoing improvements in software, automation is becoming easier to deploy and easier to use - existing staff on a factory floor can quickly learn to operate a robot rather than relying on a roboticist or engineer, in many cases.