Frequently Asked Questions

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After using Automation and Robotics, product quality will be more consistent, lower defects, and lower direct and overhead costs. This results in better operation, and the company's future will rapidly grow rather than those keeping it manual.

Contrary to popular belief, robots are not replacing workers. While there is some shedding of employees when firms adopt robots, the data show that increased automation leads to more hiring overall. That’s because robot-adopting firms become so much more productive that they need more people to meet the increased demand in production.

Any decrease in employment we found came from the non-adopting firms. These firms became less productive relative to the adopters. They lost their competitive advantage and, as a result, had to lay off workers.

Business leaders should be mindful of their low-skilled workers. As a company automates and the middle-skill level shrinks, those entry-level workers lose upward mobility. So the company must train selective workers to work with robots and the rest will be transferred to other duties.

Return on Investment (ROI) is an important aspect to calculate when deciding whether or not a robotic system would pay off in your plant. Basically, ROI is the amount of time it would take for a robot’s production to pay itself back to the company through labor and savings. The typical payback for any robotic system, new or used, is between 6-18 months, depending on the size of the initial investment.”
“Why choose to switch to a robotic system instead of using manual labor? The bottom line is this – a robotic system can run at 95 percent efficiency, while the average laborer is usually about 20-25 percent efficient during any given shift. This is not the fault of the laborer – humans require breaks and days off, and their bodies get tired throughout their shift. Robots do not run into this problem, and in many cases, a robot can perform the work of up to four manual laborers per shift. This means that one robotic system can work with 12 laborers over one given day. That shows the return on investment in labor cost savings alone.

The robot revolution is “inevitable,” given the leaps in artificial intelligence, machine learning, and other technologies rapidly transforming the workplace. Business leaders should embrace the change and explore strategies to maximize the benefits.
For example, the study found that robots were associated with greater use of performance-based pay because automation reduces variance. In other words, it’s easier to meet production quotas when robots are on the job. Robots also reduce workplace injuries.