It’s Not China Taking Our Jobs, It’s Robots

It’s Not China Taking Our Jobs, It’s Robots

Politicians tend to blame China and Mexico for taking our manufacturing jobs, saying that we don’t make anything in this country anymore. However, the truth is our countries manufacturing production is flourishing. The dilemma, automated machine production continues to increase, taking more and more jobs away from factory workers.

Since the peak of manufacturing employment in the United States in 1979, we have lost over 7 million factory jobs because of robotic production growth. General Motors used to employ just over half a million people during that period. Now they employ less than a third of that even though they product way more vehicles than ever before. Americas factory production doubled last year to $1.91 trillion making the U.S. No. 2 in manufacturing just behind China.

A study at Ball State University showed that trade only accounts for about 13 percent of factory job loss in this country. The largest portion of loss was caused by robotic factors, take up to 88 percent of U.S. manufacturing jobs!

The scariest part is how fast the robotics manufacturing industry is growing. Experts predict that industrial robotics will grow by at least 10 percent a year in the future, towering over the recent 2 to 3 percent growth we’re currently experiencing.

The Silver Lining20515_foxconn

And how could manufacturing companies ignore advantages like not paying wages, 24 hour production, and absolute precision. In the United States, factory automation is set to reduce labor costs by up to 22%. There is a silver lining to all of this however. Reduction in production costs and the reduced need to outsource low-wage labor in foreign countries has started bringing our companies back to U.S. soil. Experts predict that by 2020 we will exceed China in manufacturing due to less production costs and protected intellectual property.

The senior partner at Boston Consulting, Harold Sirkin, says the worlds struggle to outsource cheap labor is at an end.

“When I hear that (foreigners) are taking all our jobs – the answer is, they’re not,” he says.

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