Challenge of the Automation

Technology intervention in our workforce is inevitable. For past few years, we have witnessed an unprecedented growth in the manufacturing sector.  The way goods are manufactured, serviced and delivered are changing with the adoption of new technology, global reach, and faster communication. In many areas, a machine replacing human labour as well as it is taking on cognitive skills. Automation has long term implications. It is apparently threatening joblessness of semi and unskilled workforces. It is, therefore, necessary that automation should be sustainable and be able to create benefits for people. Automation is going to change the basic way of manufacturing, supply chain management system works. Robots will replace the labour intensive jobs, which would increase productivity. In reality, automation will provide an opportunity to create innovative and prolific jobs for human resources. Adaptability with technology is the key. Labor and machines are not two opposite sides competing for each other. Coordinated and supportive frameworks need to be worked out aiming at continual integration of automation, productivity, and the creation of more jobs.

During the last decade, Information and communication technology has been the forerunner in providing a technology solution in a most cost effective manner. Availability of data through high-speed communication provided insights to analyse production, requirement and supply pattern. Big Data analysts are analysing a large volume of data to draw inferences. High-speed internet connectivity makes it possible to connect devices remotely. We have entered in the era of Internet of Things (IoT), here each device, from an air conditioner, washing machine, coffee machine, lamp to car and jet engines is possible to be controlled with IoT. It is expected that by 2020, over 26 billion devices will be connected to a colossal network of connected things, and that includes people too. The connection is going to be between machine-people, machine-machine, and people-people. In reality, IoT is continuing to be an integral part in designing smart cities.

Nowadays, in many manufacturing assembly lines are equipped with industrial and automation robots. These robots are reshaping the industry. Generally, robots are employed in tasks that are hazardous and unsuitable for human beings. In places that demand high output and zero error, robots are increasingly used.

For economic opportunity and improved well-being technology driven manufacturing units can be dominant drivers. Numerous industries across the globe are considering the new technologies for higher productivity, efficiency and performance at lower manufacturing cost. Machines can improve the effectiveness and reduce risk in a hazardous workplace. However, they also carry a host risks for workers and business, especially in the form of elimination of a vast number of jobs. In many industries across the globe structural job reduction is noticed. Semi and unskilled labours are impacted majorly, These workers make up a substantial portion of the workforce in manufacturing and agricultural sector.

The availability of jobs, type, and location will be significantly affected by technological advancement and pace of change. Machines are getting ready to replace some jobs, and new jobs will be created while existing jobs may take on a new set of tasks. New business models will create other jobs. It is expected that millions of new jobs will be created by new technology,  these will include designing, manufacturing and maintaining robots.

Nonetheless, access to these jobs may be challenging since it requires acquiring adequate skills. As location and type of jobs will alter, it will cause large-scale displacement of the workforce. New jobs may not be a one-to-one substitute of the existing jobs. Women workers, which contributes a substantial part of light manufacturing processes and agriculture value chain may become vulnerable to these changes. It is envisioned that technology should make it accessible to the vulnerable group by customising job requirements.

By creating new high-skilled jobs and by improving the quality of existing jobs with new technologies will lead people to be more productive and eligible for higher remuneration. Technology will create new high-skilled jobs and improve the merit of existing jobs. This will help people to be more productive and eligible for better remuneration. The present workers will be trained to fit in a new technology driven environment. If workers have the required skills to fill these higher-paying manufacturing jobs and the benefits of improved productivity are returned to workers, these could offer improved incomes and overall prosperity. Overall, there will be an improvement in the quality of life. Technology driven new jobs can remove some social barriers and promote gender equality. For example, some jobs are regarded as labour intensive and male dominated. With a paradigm shift because of new technology, no such barriers will ever exist.

The best interest of any business is enabling more people to harness the advantages from technological innovations. Only improving productivity by cost cutting techniques and replacing human by machines without a holistic framework for sustainability will have an unpropitious effect on business in a long run. Without considering the impact on the existing workforce and continuously investing in technology could lead to numerous operational risks. Already we see that trends of non-availability of skilled manpower at rising. Along with automation, manufacturing units need upgrade skills of existing workers, who will be able skilled to handling change in working environment. Otherwise, business growth and productivity will decline. Another challenge is how automation will help employees with different skill sets. If investment in training workforce has not done in advance, the introduction of the advanced machine tool may exacerbate the work environment. There will be a long-term difficulty in the macroeconomy if the technology is used only in making high-speed, cost-effective machines that substitute labours. Rising unemployment will damage social union and it will reduce consumer demand. This will lead to creating a vicious cycle of a weak economy. There is a growing opinion among manufacturer that technology and labour are two opposite sides of a coin. Notwithstanding, adopting a mutually reinforcing connection where automation extends the ability of workers should be a long term solution.

Staying prepared for long-term is important for success in any business. Not utilising the real potential and only trying to alleviate the adverse effects of technology change is far from desirable. Government funded institutions should examine how technological changes are going to affect employment, what are the opportunities for manufacturers, consumers and other stakeholders involved in all kind of supply chain management. Special importance should be provided to semi and unskilled workers and labour intensive manufacturing units like construction, manufacturing and agricultural products. Data analysis and research can harness the potential of automation on a sustainable basis to investigate how automation is changing production, creating jobs and prosperity of workers and how industries.

To summarise, monotonous manual jobs and perilous jobs need to be automated. In some developed countries, labour intensive jobs were replaced by machines about two decades back. Technology intervention is inevitable. Utilising the potential of technology for overall economic growth and prosperity of people is the way forward. Skill development, upskilling, reskilling and collaboration will be enablers in sustaining business models. A new curriculum and pedagogy for our schools, colleges, universities, workplace and setting up of more vocational training centres to stand along with machines is the need of the hour.