ICMS, Inc Reports
Tom Okure, Ph.D.
February 20, 2017
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Surveys and research findings strongly indicate that the
loss of manufacturing or factory jobs in the United States (US) is a
consequence of increased automation rather than international and regional trade
(NAFTA).
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| Robots in action on the Jaguar XE production line in Solihull |
Under these circumstances, it is very doubtful that increasing
protectionist policies as advocated by the current Trump administration would
overcome the forces of automation. Research results over a long period shows
that 80 to 88 percent of factory job losses in the US are attributable to
robots (automation) and other corporate decisions that lessen the need for
human labor input in manufacturing.
The North American Free Trade Agreement (NAFTA) is an
agreement among the United States, Canada and Mexico designed to remove tariff
barriers between the three countries. The Trump administration blames NAFTA for
US job losses and is beginning new negotiations with its Canadian and Mexican neighbors
designed to improve the trade level playing field in favor of the US.
It should be clearly pointed out that US labor force and employment
levels are generally affected by many domestic factors including economic
growth; demographics; cyclical and structural factors; labor unions; education
and training; innovation and industry consolidation factors.
A November 2016 CBS news report stated that “A study at Ball
State University’s Center for Business and Economic Research …. found that
trade accounted for just 13 percent of America’s lost factory jobs. The vast
majority of the lost jobs - 88 percent - were taken by robots and other
homegrown factors that reduce factories’ need for human labor.”
Despite the overwhelming research evidence, surveys of displaced
factory workers, most of which in favor of Trumps new protectionist agenda for
the US tend to blame NAFTA and global trade between the US and other countries rather
that factory automation for the loss of jobs. Nevertheless, people surveys
indicate that many displayed workers do welcome factory automation for various
reasons including increased skills training it offers employees to operate and maintain
the robots, increased efficiency in assembly line processes and the reduction
of injuries in manufacturing processes as a result of the use of robots.
The campaign and eventual election success of Donald Trump as
US president was centered on faulting countries like China and Mexico for
stealing millions of jobs from the United States. There has been allegations by
Trump that “we don’t make anything anymore.” But according to many experts, the
truth is manufacturing is still flourishing in America. According to The Associated Press, “the problem
is, factories don’t need as many people as they used to because machines now do
so much of the work.”
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| Ford motors is one of the first manufacturers to wholesomely accept automation |
The desire and quest to produce more efficiently with fewer
human input has a very long history in US manufacturing. The US automotive
industry and more specifically Ford motors is one of the first manufacturers to
wholesomely accept automation. Over the decades,
the global automotive manufacturing sector has witnessed and benefited from enhanced
technological improvements in robotics. Today, the automotive industry utilizes
more precise and more multi-functional and smaller robots in automotive
manufacturing applications. Globally, automation
has become indispensable in the manufacturing process.
Rising costs connected with next-generation automotive
materials, safety systems and skilled labor coexist alongside a need for
manufacturing equipment to accommodate product changeovers. From parts, press
and paint shops to assembly and inspection, there has developed over the
decades a convincing case for flexible, cost effective automation solutions at
every step of the automotive manufacturing process.
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