Automation and Labour: Better Together

By 2030, Singapore is expected to face a talent shortage of over a million workers which could result in losses of US$106.8b. Globally, the talent shortage is projected to reach 85.2 million people, with developing economies in Asia expected to be among the hardest hit . The manufacturing sector alone is expected to face a deficit of two million workers by 2020, and more than 7.9 million in 2030, amounting to US$607.1b in revenue losses.

According to J.P. Morgan and Singapore Management University, a shortage of industry-ready skilled workers presents one of the biggest challenges for the five core ASEAN countries: Singapore, Malaysia, Thailand, Indonesia and the Philippines.

The shortage of labour, accompanied by slow workforce productivity growth , is cause for concern from an economic perspective, as wages and economic growth come under serious threat.

Fortunately, there is a silver lining. Issues on labour shortage and low productivity are pushing industries to evolve rapidly and present an opportunity for manufacturers to gain a competitive edge if they are willing to innovate and adapt quickly. As a result, manufacturers are increasingly turning to robotic automation to enhance productivity and avoid potential losses as the labour crunch looms.

Automation Helping Businesses Operate
Automation has many advantages for businesses. Automation can reduce businesses’ reliance on unstable sources of labour which threaten profitability, prevent market expansion and in extreme instances, force them to close. The Boston Consulting Group (BCG) estimates that globally, US$10t of GDP is at risk by 2030 as businesses and countries struggle to fill available job vacancies.

With automation, businesses will be able to improve labour productivity. Existing workers can upskill and be allocated tasks of higher value, instead of having to execute menial or repetitive tasks. As each worker is better able to generate output of greater value, this will improve business efficiency and raise wages.

In addition, robots can now carry out tasks which could previously only be done manually thanks to advanced end-of-arm-tooling (EOAT) – tools usually fitted at the end of a robotic arm. For instance, intelligent grippers that are able to see and feel objects using torque sensing or built-in force. These touch-sensitive two-fingered hands can quickly and efficiently pick and package small, delicate products without squashing or breaking them.

Another intelligent tool is the force/torque sensor which can mimic the sensitivity and dexterity of the human hand. The sensor easily handles complex polishing, sanding or deburring jobs where precise control and force-feedback is paramount in order to obtain the desired end result. Sensors with force and torque settings are highly efficient for such applications in furniture, shipbuilding, and aircraft manufacturing.

Businesses are increasing using dual grippers to boost machine utilisation. For instance, while one gripper removes a processed part from a Computer Numerical Control (CNC) machine, the second picks the next raw part to be loaded into the machine, reducing cycle time, improving efficiency and increasing output. With a single gripper, machines are left idle for long, having huge cost implications for the business.

With around a third of organisations forced to turn away new business due to labour limitations , a shrinking workforce poses a clear and serious threat to the manufacturing industry. Automation can enable businesses to operate more independently without having to risk serious disruption.

The Future of Automation
Given labour’s decreasing supply and reliability, robotic automation is proving to be a viable solution for businesses. It also helps companies and workers maximise labour productivity and efficiency by taking over ‘dull, dirty and dangerous’ tasks, allowing workers to put their skills to better use elsewhere. Automation therefore plays a key role in supplementing human labour and maximising efficiency, and in the long run, carrying out tasks when labour is in short supply.