Outlook for Automation in 2024
I want to share an article I found that discusses the reasons manufacturers should adopt automation in 2024 as a strategic response to global uncertainties, reshoring requirements, labor shortages and the pursuit of increased productivity.
The authors, Søren Peters (CEO) and Mette Klausen (Platform Director) of HowToRobot, highlight key factors that make automation essential in the current business environment.
To summarize, the year 2023 witnessed global political unrest, supply chain disruptions, and rising interest rates, leading many businesses to delay investments and save cash. The uncertainty is expected to persist in 2024, with The Economist describing it as a "second cold war" and "multipolar disorder." In response, businesses are likely to make strategic investments, with automation emerging as a crucial area.
One major driver for automation is the need to reduce supply chain dependencies. Political events have disrupted global supply chains, prompting businesses to consider reshoring production. Automation plays a key role in moving production closer to OEMs, helping offset growing labor expenses associated with reshoring.
Labor shortages have contributed to record robot sales. Despite some easing in 2023, the gap between labor supply and demand remains, with structural issues in both the U.S. and Europe. As the number of workers retiring accelerates and fewer young people enter the workforce, automation becomes crucial to ensure business continuity. Unions are recognizing the role of automation in safeguarding jobs in the long run.
Productivity remains a driving force behind automation, as businesses aim to produce more at a lower cost. The article highlights the growing pressure on manufacturers to advance productivity, given the substantial rise in labor costs. Businesses are setting clear performance goals for automation solutions, leading to a more rational and practical dialogue between buyers and sellers in the robotics market.
The authors note the maturing robotics market, with an increased focus on practical considerations and the emergence of sourcing platforms to facilitate automation adoption.
Check out the full article here.
Related Content
-
How to Use Automation to Minimize Mistakes and Speed Mold Build Process
A guide to capturing and reusing company knowledge and experience with software automation.
-
Maintaining a Competitive Edge: EDM, Automation and Machining Technology Roundup
This month’s technology roundup features products, processes and services relating to EDM, automation and machining. For example, jig grinding for large molds, scheduling automation software, cobot integration, die sinker EDM and much more.
-
MMT Ask the Expert: Hot Runner Benefits and the Fundamentals of Maintenance and Refurbishment
In this next portion of our “Ask the Expert” series, Husky’s Derrick Hennebicque answers some FAQs about the advantages of hot runner systems and refurbishment strategies. This episode is brought to you by Husky, Melt to Mold Precision.