Automation is becoming increasingly attractive as businesses struggle to find ways to address a nationwide labor shortage.
Initially seen as a job-killer, automation is actually contributing to ongoing labor shortages, especially in manufacturing, by 2030, according to a May 2021 study by Deloitte and the National Association of Manufacturers. With 2.1 million jobs projected to be lost in 2020, it could be the solution. (nam).
Lauren Hein, Head of Advisory Relations at ROBO Global, an investment firm that specializes in automation investments, told Yahoo Finance Live:
According to the U.S. Chamber of Commerce, as of July 2022, nearly 6 million people were unemployed, but there were 10 million job openings. Rather than waiting to find enough workers to fill the void, Hein suggested automation as a reasonable alternative.
“Cobots (collaborative robots) are a major industry, and cobots will work alongside humans, something that machines alone cannot do,” she said.
Automation creates new opportunities
According to the World Economic Forum’s Future of Jobs Report 2020, 85 million jobs could be lost to automation by 2025, but 97 million new roles will emerge from technology, giving working professionals a ‘better job’. may provide an opportunity.
According to Harvard Business Review (HBR), there are two reasons. The first is, “The more we train computers to perform the highly repetitive tasks often assigned to entry-level employees, the more we focus on complex tasks with competitive salaries.” Many roles take their place.” In other words, young professionals have more career choice opportunities.
Automation can also help new hires get higher salaries, according to HBR. Because new types of roles are “never done before” and these individuals are “more likely to be pioneers.”
U.S. business leaders seem open to the idea — 78% of U.S. business executives will invest in automating their companies to survive the labor shortage, according to a January 2022 survey by UiPath or that they are likely to increase their investment in automation.
Additionally, according to the survey, 86% of executives see automation as a way for their employees to focus on “more creative work” rather than mundane, time-consuming tasks.
Many Fortune 1000 companies, such as Amazon Web Services (AMZN) and IBM (IBM), have already invested in AI platforms, along with logistics automation with a focus on human resources.
Amazon in particular is one company Hein sees that could benefit from increased automation in logistics, especially after last year’s turnover rate was 159%.
Currently, approximately one-fifth of US warehouses use some form of automation. Still, the warehouse automation market could reach $41 billion by 2027.
“As wages rise, automation solves that problem to some extent, investing in robots and providing a kind of cost control as opposed to labor variability,” she said. “Robots are not going to replace humans everywhere.”
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Tanya is a data reporter at Yahoo Finance.follow her twitter.
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