Why robotics should impact NC job recruitment

Talk is fast and furious that North Carolina is in the running for a major auto production plant. Is it worth the cost?

As has been noted by WTW in the past, one only has to drive I-85 through South Carolina to see first-hand evidence of the economic impact an auto plant and related businesses can provide. On the other hand, what has happened to that mammoth Dell PC manufacturing plant near Winston-Salem? Abandoned and now redeveloped. But no PCs, no servers, no good-paying manufacturing jobs.

Could the same thing happen in North Carolina if the state actually does land an auto plant this time?

A new study from Boston Consulting Group on the rise of robotics in manufacturing should be a part of the discussion.

Says the report: “The transportation equipment, computers and electronics, electrical equipment, and machinery industries are expected to account for around 75 percent of advanced robotics installations through 2025. By that time, robots should be able to handle 30 to 40 percent of automatable tasks in these industries. Adoption will be slower in industries such as food products, plastics, fabricated metal, and wood products, where many tasks will remain difficult to automate and wages are relatively low. Thanks to technological advances, however, robots are making greater inroads in these industries as well.”

So as North Carolina is pursuing the plant, some points to bear in mind:

An auto plant will likely be even less of a big jobs producer than in years past
Once here the jobs could disappear in short order even if the plant doesn’t relocate
Is our state equipped – or prepared – to train workers needed to manufacture as well as maintain robots?

Industry Growing – for Now

U.S. Bureau of Labor statistics show the auto industry is producing more jobs. As of January, 913,200 jobs were credited to the auto sector, up from 846,300 a year earlier. Jobs have surged from a recession low of 661,2000 in 2010.

However, in January 2005, jobs stood at 1,107,200. The number declined steadily and then plunged in the Great recession.

Perhaps North Carolina should be focused on becoming the “Robotics State.” The state has taken steps to train biotech workers and deserves kudos. ( A study coming out this week points out continued growth in jobs and economic impact.)

What about robotics?

The Boston Consulting Group’s study on the surge in use of robots for manufacturing worldwide should be required reading for EVERY person involved in industrial as well as high-tech recruiting.

Better Investment for Golden LEAF?

Golden LEAF, the economic development group that helped underwrite the cost of the North Carolina Research and Education Network that has taken fiber all over the state, has committed $50 million to the auto plant search. The LEAF group also anted up $100 million given to the Global TransPark in Kinston in 2008 to attract Spirit Aerosystems.

Now which investment is going to deliver the greatest payoff – bringing the prospect of broadband to every county, every school, every small business (through private-sector partners) or aerospace jobs that pay well but are subject to complete replacement by robot?

Auto and truck plants are already highly automated and will become even more so as robots become smarter, durable and reprogramable while companies seek to drive down manufacturing costs.

And look at how fast robotics are advancing: The integration of IBM supercomputer technology into those Pepper robots{[/a}} in Japan could have breath-taking impact.

Imagine what providing robots with advanced cognitive capabilities could do even on assembly lines.

Report Highlights to Consider

Here are the “key takeaways” from a slide in the Boston Consulting report:

Key takeaways:

Robotics will change the calculus of manufacturing. The era of moving factories to capitalize on low-cost labor is coming to an end. Not for every product but for many.

This can already be seen in the transportation, computer, and electrical equipment sectors

The size of the manufacturing plant will be far less important as an economic driver than it is today

Robotics will economically produce products in smaller lots and can be flexibly programmed and reprogrammed to create different configurations

Manufacturers, in some industries, will no longer need traditional, permanent production lines

Factories will be smaller and will be able to serve local markets with tailored products

Once manufacturers set up a facility, they will be able to replicate production by sending the programming to similar robots anywhere

Even small and medium-sized enterprises (SMEs) can participate as new robots cost as little as $25,000 with attractive economics
The workforce will require very different skills (e.g., programming and higher-end mechanical engineering)

Workers will need new training for the tasks they will do