In this exclusive article, the Head of NBC (Nordic Baltics Countries) Torbjörn Lundberg from SMC shares insights on the ever-evolving world of automation and its profound impact on various industries. Explore the future of automation and its potential to reshape the way we work and live.
The Rise of Automation
Automation or mechanised execution of work really took off at the beginning of the 20th century, in the middle of the Second Industrial Revolution, when manual labour was replaced by chain or sequential technology, soon to be supplemented by electric motors and pneumatics. The reason for this was simply that we started to run out of one of the most important ingredients and conditions for continued economic growth – the availability of cheap, trained and flexible labour.
Shift in manufacturing strategy
Another response to the need for cheap labour, practiced by many companies in the developed countries, is to move their production to a country where labour costs less. China has been a favourite for a long time but has lost some of its popularity in recent years. The reasons for this are many:
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Sharply rising labour costs, wages have more than tripled in 10 years and the currency, the Yuan, has become more expensive.
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An "unreliable" workforce where you change job from one day to the next
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Bad environment, both air and water
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The language is also a challenge
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Quality deficiencies, both in materials and work
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Risk of Trademark Infringement
When it no longer pays so well to move production to low-cost countries, the need for automation increases. What does automation have to offer in the future? So far, it has been pretty much about the same thing being done repeatedly and certainly it is still perhaps the most important type of automation and instead of a human doing the movement, it was machines that accomplished this.
A Glimpse into the Future
Today, the convergence of affordable computer memory and enhanced computing capabilities has led to breakthroughs in Artificial Intelligence (AI). This has given rise to highly specialized applications where computers 'learn' normal processes and respond to deviations. One key application is predictive maintenance, optimizing machine upkeep by using sensors, computing power, and intelligent algorithms to detect issues before they escalate. Predictive maintenance saves costs and minimizes unplanned downtime.
Robotic Process Automation (RPA) and AI-driven chatbots are also on the rise, streamlining administrative tasks and providing reasoned responses. Furthermore, translation software has vastly improved with machine learning.
While the dream of AI with emotions remains distant, the potential is intriguing. According to a McKinsey report, automation, particularly in digital technology like RPA, is expected to contribute to annual GDP growth of 1.2%. Early technology pioneers have a distinct advantage in shaping the future. To sustain economic growth, reduce working hours, and support an aging population, automation is the key!
