Race Against the Machine: Robotics, AI and the World of Work!

Dear Commons Community,

The New York Times has a featured article today on the advances being made in the development  of industrial robots.  We already have major problems with unemployment in this country but the possibilities that the new robotic technology may bring cast major new concerns especially for the manufacturing sector.  The article provides the following scenarios:

“At the Philips Electronics factory on the coast of China, hundreds of workers use their hands and specialized tools to assemble electric shavers. That is the old way.

At a sister factory  in the Dutch countryside, 128 robot arms do the same work with yoga-like flexibility. Video cameras guide them through feats well beyond the capability of the most dexterous human.

One robot arm endlessly forms three perfect bends in two connector wires and slips them into holes almost too small for the eye to see. The arms work so fast that they must be enclosed in glass cages to prevent the people supervising them from being injured. And they do it all without a coffee break — three shifts a day, 365 days a year.

All told, the factory here has several dozen workers per shift, about a tenth as many as the plant in the Chinese city of Zhuhai.

This is the future. A new wave of robots, far more adept than those now commonly used by automakers and other heavy manufacturers, are replacing workers around the world in both manufacturing and distribution. Factories like the one here in the Netherlands are a striking counterpoint to those used by Apple and other consumer electronics giants, which employ hundreds of thousands of low-skilled workers.

“With these machines, we can make any consumer device in the world,” said Binne Visser, an electrical engineer who manages the Philips assembly line in Drachten.

Many industry executives and technology experts say Philips’s approach is gaining ground on Apple’s. Even as Foxconn, Apple’s iPhone manufacturer, continues to build new plants and hire thousands of additional workers to make smartphones, it plans to install more than a million robots within a few years to supplement its work force in China…

At an automation trade show last year in Chicago, Ron Potter, the director of robotics technology at an Atlanta consulting firm called Factory Automation Systems, offered attendees a spreadsheet to calculate how quickly robots would pay for themselves.

In one example, a robotic manufacturing system initially cost $250,000 and replaced two machine operators, each earning $50,000 a year. Over the 15-year life of the system, the machines yielded $3.5 million in labor and productivity savings.

The Obama administration says this technological shift presents a historic opportunity for the nation to stay competitive. “The only way we are going to maintain manufacturing in the U.S. is if we have higher productivity,” said Tom Kalil, deputy director of the White House Office of Science and Technology Policy.

Government officials and industry executives argue that even if factories are automated, they still are a valuable source of jobs. If the United States does not compete for advanced manufacturing in industries like consumer electronics, it could lose product engineering and design as well. Moreover, robotics executives argue that even though blue-collar jobs will be lost, more efficient manufacturing will create skilled jobs in designing, operating and servicing the assembly lines, as well as significant numbers of other kinds of jobs in the communities where factories are…”

The article also refers to the work of two economists at M.I.T., Erik Brynjolfsson and Andrew McAfee, who are making the case that our  economy is on the verge of a rapid transformation. “The pace and scale of this encroachment into human skills is relatively recent and has profound economic implications,” they wrote in their book, Race Against the Machine.

In their minds, the advent of low-cost automation foretells changes on the scale of the revolution in agricultural technology over the last century, when farming employment in the United States fell from 40 percent of the work force to about 2 percent today. The analogy is not only to the industrialization of agriculture but also to the electrification of manufacturing in the past century, Mr. McAfee argues.

Lots to think about!

Tony