The Outlook for Automation and Manufacturing in Seven Charts

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Over the last decade, the prospect of mass automation has seemingly shifted from a vague possibility to an inescapable reality.

While it’s still incredibly difficult to estimate the ultimate impact of automation and AI on the economy, the picture is starting to become a bit clearer as projections begin to converge.

Today’s infographic comes to us from Raconteur, and it highlights seven different charts that show us how automation is shaping the world – and in particular, the future outlook for manufacturing jobs.

The Age of Automation

The precise details are up to debate, but here are a few key areas that many experts agree on with respect to the coming age of automation:

Half of manufacturing hours worked today are spent on manual jobs.

• In an analysis of North American and European manufacturing jobs, it was found that roughly 48% of hours primarily relied on the use of manual or physical labor.
• By the year 2030, it’s estimated that only 35% of time will be spent on such routine work.

Automation’s impact will be felt by the mid-2020s.

• According to a recent report from PwC, the impact on OECD jobs will start to be felt in the mid-2020s.
• By 2025, for example, it’s projected that 10-15% of jobs in three sectors (manufacturing, transportation and storage, and wholesales and retail trade) will have high potential for automation.
• By 2035, the range of jobs with high automation potential will be closer to 35-50% for those sectors.

Industrial robot prices are decreasing.

• Industrial robot sales are sky high, mainly the result of falling industry costs.
• This trend is expected to continue, with the cost of robots falling by 65% between 2015 and 2025.
• With the cost of labor generally rising, this makes it more difficult to keep low-skilled jobs.

Technology simultaneously creates jobs, but how many?

• One bright spot is that automation and AI will also create jobs, likely in functions that are difficult for us to conceive of today.
• Historically, technology has created more jobs than it has destroyed.
• AI alone is expected to have an economic impact of $15.7 trillion by 2030.

Unfortunately, although experts agree that jobs will be created by these technologies, they disagree considerably on how many. This important discrepancy is likely the biggest x-factor in determining the ultimate impact that these technologies will have in the coming years, especially on the workforce.

Will a Robot Take Your Job?

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Are you ready to hand your job over to R2D2?

A recent study by the Mckinsey Global Institute forecasts up to 800 million workers worldwide could lose their jobs to automation by 2030.

Industrial machine operators, administrators, and service workers will be the first to take a hit. Meanwhile, poorer countries with lower investment in tech are less likely to feel the pinch.

Jobs Out, Jobs In

Today’s chart uses data from the Future of Jobs Report 2018 by the World Economic Forum to take a peek at the changes technology will bring over the next four years.

It shows while humans are handing over a larger share of labor hours to their robot counterparts, the future isn’t all bleak. Although 75 million jobs could be displaced by the coming shift in labor, there will be 133 million new jobs created as well. While certain jobs are becoming redundant, human skills remain in demand in other areas.

Here is the full list of jobs on the chopping block in 2022, as well as the careers that will rise in importance:

New Jobs For A New World

While this coming wave of automation is bound impact the workplace, for now you might want to leave that torch and pitchfork at home – the robots aren’t out to steal your job just yet.

Oxford University researchers predict 47% of American jobs are likely to face automation over the next 20 years. However, the same study reveals 53% of jobs are unlikely to be affected at all. Robots are less likely to take over roles dependent on human interaction – like doctors and teachers. Workers in specialized roles, such as plumbing and care work, can breathe easy too.

Jobs in manufacturing, transport, and administration may decrease. But a potential rise in health, science, tech, and hospitality jobs is likely to offset this trend.

So the real question is, will robots replace your job, or make room for you to pursue a new career?