One of the most important technological trends taking place in the United States' manufacturing sector is the use of advanced robotics on the production line. Now that the economic recovery is a reality, U.S. manufacturers still need to be able to shut down cheaper manufacturers overseas. To accomplish this, they need to meet a goal of reducing costs and maximizing efficiency.

Robots seem to be an excellent way to accomplish this. In fact, a study by the Boston Consulting Group released on Feb. 10 asserts that increasing workplace automation will result in the United States saving 22 percent on labor costs, while the top 25 countries in the world that export goods can average a 16 percent savings.

In the United States, robots already do around 10 percent of automatable work. They perform manufacturing tasks like packaging, material handling and assembly. According to the Boston Consulting Group (BCG), a mere five countries — South Korea, China, Japan, Germany and the U.S. account for 80 percent of all manufacturing sales.

"For many manufacturers, the biggest reasons for not replacing workers with robots have been pure economics and technical limitations," said Michael Zinser, a partner at BCG. "But the price and performance of automation are improving rapidly. Within five to 10 years, the business case for robots in most industries will be compelling, even for many small and mid-sized manufacturers."

The case for robots

According to BCG, manufacturing will add about 1.2 million advanced robots by 2025. The report stated that four industries will lead the way:

  1. computer and electronics
  2. appliances and other electrical equipment
  3. transportation
  4. machinery

Paul Davidson, a journalist with USA Today, wrote that the cost of an advanced robotic spot welder has dropped from $182,000 in 2005 to $133,000 in 2014. In addition, forecasts are that by 2025 there will be cuts up to another 22 percent.

That alone makes a compelling case for robots. For the work presently done by workers making $25 per hour, advanced robots only cost manufacturers $8 per hour.

Higher quality is another factor manufacturers discovered using robots for repetitive tasks such as spot welding. Once programmed, robots need no additional on the job training, bathroom, food or rest breaks. They work faster and can work 24/7. The cost of acquisition of a robot is steep, but the return on investment (ROI) can be as short as six months to one year.

Workforce impact of robotics

Taking the results of the BCG report to mean that there will be massive unemployment in the United States as robots roll out to join the production line is simply untrue.

For many companies, the choice is to outsource manufacturing overseas or invest in advanced robotics. Based on cost analysis, the savings in outsourcing or using industrial operations are the same, roughly 60 percent. By integrating advanced robots, the jobs not being done by robots stay in the United States. Outsourcing, on the other hand, means factories are shut down and all jobs are then eliminated.

Sure, there will be some job loss. But the jobs robots do best are repetitive, boring and even dangerous. Those jobs that are lost to robots will be replaced by more interesting and challenging jobs, sometimes at the same plant. After all, the new robots need maintenance and programming.

For those still in school, the U.S. needs more STEM-educated people in the immediate future. These are the folks who will design, build and program advanced robots. Likewise, those likely to be replaced by robots over the next 10 years needs retraining as their jobs will disappear.