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You're not accounting for the cost of automation itself. The "problem" with automation is that it's actually terrifically expensive - industrial robots run into
by potatolicious 4y ago
You're not accounting for the cost of automation itself. The "problem" with automation is that it's actually terrifically expensive - industrial robots run into the high-six-figures and upwards.
There's a reason why low-end manufacturing is not heavily automated no matter where it occurs - automation would likely be more expensive than using humans.
Also importantly automation tends to be expensive to reconfigure - for stable product lines where the same general processes are in use for years at a time, and product variability is low (see: cars) automation is highly successful. But for product lines that are more fly-by-night (see: most fast fashion) the reconfiguration cost of automation makes it even less practical.
Retraining a group of humans is vastly cheaper and easier than reconfiguring a fully integrated automated assembly line.
- JumpCrisscross 4y ago> "problem" with automation is that it's actually terrifically expensive - industrial robots run into the high-six-figures and upwards Totally agree. Just pointing out how the trade-off is rebalancing the margin at which reshoring makes sense down, and that this is a trend one can expect to continue as industrial robots get better and cheaper.
- elcritch 4y agoIndustrial robots are getting much cheaper. The controllers and electronics to drive them are now fairly commodity as is the low level control software. You could easily get Fanuc style arm robots in the sub-100k nowadays. The real limitation is still programming and training the robots. I'm just entering this field, and its fun but yah it takes a team of expensive talented engineers to do it. Especially if you're automating to a higher degree. The progress with AI has been huge but I'd guess on the order of a decade before its commonplace.