How Robots And Automation Bring Jobs Back To The US

ROBOTS & AUTOMATION BRING JOBS BACK TO THIE V.S. Robots work in places that The Robotic Industry itself creates people cannot work, such as jobs-people must build the robots. in dangerous mining and fac- tory scenarios, robots can go places that people cannot go, Surgeons use robotics in ex- tremely delicate surgeries, the automotive industry uses ro- and do dangerous jobs that people cannot do. botic automation to precisely laser-cut delicate automotive parts. HOW ROBOTS CREATE & SUPPLEMENT JOBS FOR AMERICANS Manufacturing Sectors--traditional low-paying, "blue collar" jobs in manu- facturing turn into high-paying jobs when robotic automation is intro- When companies create new robotic automation products, many jobs out duced into a company. The workers Sources: http://blog.robotiq.com/bid/52655/Robots-create-Jobs receive training on how to operate the http://www.brisbanetimes.com.au/world/ of the production sector are created robots, which in turn increases their robot-used-to-disarm-suspects-boobytrapped-apartment-20120722-22ibr.html to market and sell the robots. These job responsibilities, their job security, their pay, and their value to the com- jobs include robotic product techni- cal support, sales, customer services pany. and marketing. The New Demand for Skilled Robotics Operators. More and more jobs openings are advertised each year for robotic skilled workers in the fields of healthcare, engineering, repair, technology, and maintenance. MAY 2010 approx. 3000 new jobs MAY 2011 オ オ 大 7 MAY 2012 大众 大 秀 众 介 approx. 4650 new jobs approx. 6000 new jobs Source: http://www.prweb.com/releases/2012/6/prweb9639031.htm ROBOTIC SUCCESS STORY Martin Steel Wire is a U.S. company that sells wire racks and bas- Martin Steel Wire Uses Automation to Raise Wages, kets. When owner Drew Greenblatt took over the company in the mid 1990s, unsafe working conditions caused several of the em- Elevate Working Conditions ployees to lose fingers. One employee even lost his eye in a and Gain Competitive Edge job-related accident. The workers were only paid $6 an hour. in Global Marketplace After fledgling sales and product re-branding efforts, Greenblatt automated the company's assembly line, which he since moved from Brooklyn to Baltimore. Today, each highly skilled worker oversees several robots and makes between $18 to $24 dollars per hour plus benefits. The workers also have the opportunity to make performance bonuses solely based upon their own efforts. These bonuses can reach $1,000 per biweekly pay period because the company's automa- tion efforts allow them to successfully compete with Chinese workers that make 30 cents per hour. Why robots are important Robots carry out work that would not be economically viable in a high wage economy. Robots carry out work in areas that would be unsafe for humans. Robots carry out work that would be impossible for humans. Source: http://roboticsonline.wordpress.com/2011/03/30/cnbc-begins-dialog-on-how-robots-have-positive-impact-on-jobs/ http://www.sheetmetalfabrication.com/docs/success-stories-marlin-steel-wire-products-wire-journal.pdf The prevailing argument that "hyper productivity" due to automation advances in the manufacturing industry is responsible for steep job losses in U.S. manufacturing is false for several reasons: The statistics released by the Bureau of Labor Statistics (BLS) & Federal Reserve about U.S. productivity count offshore production owned by U.S. companies as U.S. productivity, which it isn't. Automation doesn't equal perfection - there is still a big need for skilled labor to oversee robotic cells, handle quality control, etc. Since 1997, consumption of automation technology in several areas has actually fallen - so if LESS of these robots are being bought, how did they displace SO many manufacturing jobs? Finally, as AJ Sweatt says in his article - "Who's gonna build all these robots?" Source: http://ajsweatt.com/challenging-the-manufacturing-labor-shortage-vs-automation-myth/) The GHINΑΥ ΜΥΤΗ "Based on Total Cost of Ownership, 40% of American companies have a cost disadvantage importing goods from China instead of making them here." -- According to economist Alan Beaulieu, U.S. Labor costs have remained consistent since 2000, while China's labor costs have risen 250%. Source: http://ht.ly/ct8kF NEGATIME PCINTS OF CFFSI-ICRED TOTAI. COST OF CWNERSI-IIP When deciding to outsource work to offshore suppliers, many companies don't look beyond the quoted unite price. The "true cost of ownership" is an estimate of direct and indirect costs and benefits of offshoring production - including quantity and quality of work. Burdensome Communication Problems that Decrease Productivity Inconsistent Quality Unauthorized Substitution of Materials Managerial Travel Expenses Unfavorable credit and purchase order terms Three to Twelve Month Cost of Transistion Expenses Legal Troubles Due to Failure to Uphold Product Warranties Intellectual Property Infringement Sources: http://ezinearticles.com/POutsourcing-Manufacturing--Make-Sure-YOU-Understand-the-Total-Costs&id=4921304 TOP REASONS FOR COMPANIES TO RIESI-ICRIE: - Reduces Total Cost of Ownership -Improves quality and consistency of inputs Reduces pipeline and surge inventory impact on just-in-time operations - Clusters manufacturing near R&D facilities, enhancing innovation Reduces intellectual property and regulatory compliance risk - Eliminates the waste and instability caused by offshoring - Strengthens companies' ability to respond quickly to customers' demands Top reasons for the nation to reshore: Brings jobs back to the U.S. Helps balance U.S., state, and local budgets Motivates recruits to enter the skilled manufacturing workforce - Strengthens the defense industrial base Source http://www.reshorenow.org/why_reshore; http://roboticsonline.wordpress.com/2012/07/16/bring-the-jobs-home-and-train-people-to-fill-them/) The Boston Consulting Group, Inc. (BCG) confirms that one-third of of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it. The 17th annual ASSEMBLY State of the Profession survey captured some of the recent uptick in reshoring activity. For instance, 19 percent of respondents claim that their company has brought jobs back to the states from overseas. And, 16 percent expect their companies to reshore assembly operations during the next 12 months. The top factors cited as driving future decisions on production locations are labor costs (57 percent), product quality (41 percent), ease of doing business (29 percent) and proximity to customers (28 percent). In addition, 92 percent of respondents believe that labor costs in China "will continue to escalate" and 70 percent claim that "sourcing in China is more costly than it looks on paper." Since skilled labor is the Both of these training The Reshoring Initiative also sponsors the FIRST Robotics Competition, an international high school robotics compe- tition. The competition the key to successful resources that the Reshoring Initiative sponsors will help fill the 600,000 high-paying manufacturing jobs that are going unfulfilled due automation, the Reshoring Initiative partnered with Festo, an automation technology educator to train people on robotic automation. commissions teams to to the lack of skills in the build a robot weighing workforce, according to the Deloitte and Touche up to 120 Ibs. in six weeks. Classes are held at local colleges and universities. To date, 42,000 people study. have received this training. KUKA www.KUKARobotics.com Sources http://ht.ly/ct8kF; http://www.reshorenow.org/about/ Copyright 2012 | KUKA Robotics http://www.deloitte.com/view/en_US/us/press/Press-Releases/ac4fa3e2f7213310VgnVCM3000001c56f00aRCRD.htm