Silicon Valley Doesn't Understand the Manufacturing Rust Belt
General Electric’s Jeff Immelt had some common sense views to share on automation. The fears of robots causing mass unemployment are rooted in a misunderstanding of the economics of manufacturing.
There seems to be two camps forming around this issue. Those of us immersed in the world of manufacturing and who have first-hand experience with automation who are not worried about mass unemployment. And those outside of manufacturing who are in a panic.
Show me a study that claims six jobs are lost for every robot deployed and I’ll show you an analyst who is ignoring the full picture. There are real consequences that result from a large corporation consolidating its product line in order to automate. Both from the Automator winning new business due to being the new low-cost leader or to smaller companies that can now enter an abandoned product niche that didn’t make sense to automate to larger corporations.
Silicon Valley is not talking to the manufacturing rust belt. There needs to be a more balanced discussion that includes both viewpoints.
Related:
Steve Mnuchin Gets Automation
Elon Musk Is Wrong About Factory Automation
Is Automation to Blame for Jobless Recoveries?
How to Prepare for Employment in the Age of Artificial Intelligence
Show me a study that claims six jobs are lost for every robot deployed and I’ll show you an analyst who is ignoring the full picture. There are real consequences that result from a large corporation consolidating its product line in order to automate. Both from the Automator winning new business due to being the new low-cost leader or to smaller companies that can now enter an abandoned product niche that didn’t make sense to automate to larger corporations.
Silicon Valley is not talking to the manufacturing rust belt. There needs to be a more balanced discussion that includes both viewpoints.
Related:
Steve Mnuchin Gets Automation
Elon Musk Is Wrong About Factory Automation
Is Automation to Blame for Jobless Recoveries?
How to Prepare for Employment in the Age of Artificial Intelligence
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