Editor’s Note: In this week’s Thursday Feature, we take a look at a revealing new survey that explains what manufacturing executives really think about the future of robots in America’s factories and what the implications could be for US workers.
Factory workers who fear they could be replaced by a robot sometime in the not-so-distant future may be right. A recent survey found that nearly three-quarters of leading manufacturing executives expect robotics and automated systems to replace human workers in US factories.
The latest PwC Manufacturing Barometer — which was released last week — found that 79% of US manufacturers are already using robotic systems in their plants and that 58%are planning to install more robotics and automation within the next 24 to 36 months.
But the survey also found that 73% agreed with the statement: “Increased robotics will replace workers and reduce our overall workforce.”
And 77% said that one of the values of adding robotic systems to their manufacturing plants was that they reduced labor and healthcare costs.
Use of Robotics Growing
The quarterly survey polled 58 senior executives of large, multinational US manufacturing companies. It found that manufacturers are implementing robotics for a wide variety of applications, including assembly, consistent high-speed work, and material handling and packaging.
The Manufacturing Barometer asks industry executives about their current business performance, the state of the economy, and their expectations for growth over the coming year. But this quarter’s survey included an additional section entitled, “Special Topic: Robotic Systems”.
What Executives Had to Say
This quarter’s Barometer’s findings included:
- 79% of US manufacturers surveyed are currently using robotics systems and nearly half (48%) are heavily involved or using them moderately. Another 31% said they have limited use to date and 21% don’t use robotics at all.
- Over the next two to three years, more than half of the executives surveyed (58%) said they planned on buying more robotics systems and 31% are planning many or moderately more automated systems.
- When asked how important robotics will be to their company’s business and profit growth over the next couple of years, 44% said robotics will be important and 19% said they believe they will be very/extremely important. But a majority (52%) said they didn’t consider robotics to be as important to their profit growth.
- How companies planned to use robotics varied widely, according to the survey. The leading use was assembly (64%), followed by material handling and packaging (51%), visual sensors linked to computers (49%), machining (46%), highly dangerous/onerous tasks (41%), higher quality work such as arc welding (36%), and artificial intelligence linked to robotics systems (28%).
- A strong set of business values is delivered by robotics, according to the survey, with 87% or respondents agreeing that robotics offers greater productivity, as well as bottom line profits (85%), costs controlled or reduced (80%), labor and healthcare costs reduced (77%), higher throughput (72%), and leaner and more efficient manufacturing cycles (67%).
- How long will it take to recover the initial cost of robotics systems? The average response was 2.5 years while 59% of executives said ROI would be more than 1 year and only 18% said costs could be recovered within the first year.
Barriers to Acquiring More Robotics
The PwC Marketing Barometer also asked manufacturing executives about the chief barriers that might prevent their companies from purchasing new robotics systems. A majority said it was the high cost or lack of cost effectiveness (56%) while 48% said it was because it is hard to find or hire skilled workers with robotics experience.
The report also asked executives whether they agreed or disagreed with a series of statements regarding robotics and automation:
- “Robotics plants in the US can compete on costs/quality with present offshore manufacturing installations.” (81% agreed)
- “Robotics will create new job opportunities to engineer advanced robots and robotic operating systems.” (77% agreed)
- “Increased robotics will replace workers and reduce our overall workforce.” (73% agreed)
- “Price and ROI for robotics systems must be notably reduced before we can consider more installations.” (69% agreed)
- “Quality of robotics must significantly improve before we can consider more installations.” (44% agreed)
The PwC Manufacturing Barometer, which is conducted by the consulting group Price Waterhouse Coopers, captures participants’ opinions about the direction of the US and world economies and their company’s performance and expectations in such areas as revenue growth, margins, inventory and costs. Other sections explore plans for investment, mergers and acquisitions, and hiring, as well as potential barriers to growth and much more.