General Motors, one of only two big American automakers left, has recently announced another round of layoffs. This time the company is sending 14,000 employees packing and closing down five plants across the globe. The move is, according to the Detroit-based automaker, is part of their attempt to shift to electric and autonomous vehicles. It also signals the end of the company’s production of most sedan-style models, with market forces increasingly in favor of hatchbacks and sports utility vehicles.
While these motives are more than enough to warrant the automaker’s actions, there’s another reason why GM has decided it’s time to once again slash its workforce: automation. More precisely, it’s the ceaseless creep of ever more advanced robotics on the factory floor, a trend which has been happening for decades. With the arrival of state-of-the-art automation, GM and other automakers are increasingly less reliant on the skills and labor assets of flesh and blood employees. By restructuring and switching to a more computer-regulated and robotically-powered system, GM is expected to save upwards of $6 billion by 2020.
The labor costs are what help people outside the industry grasp the true cause of mass layoffs and big operative changes. In other words, they help us appreciate the value of factory automation in a way which is otherwise difficult to understand. We know the value of plant automation for a company the size of GM is in the several billion dollar ranges, to say the least. This is more than enough to warrant a rapid shift to a more automated way of manufacturing.
This line of reasoning clearly extends beyond automaking, to virtually every industry on the planet. While not every company is positioned to save billions, they will experience a scaled version of the value retention achieved by General Motors. It’s no surprise the countries with the highest density of industrial robot technology are all home to manufacturers renowned for their cost-effective quality. Top contenders include Germany and Japan, two countries with reputations for producing top of the line automobiles in addition to an array of other reliable pieces of machinery.
Historically speaking, this trend is hardly a surprise. But for those whose livelihoods are dependent on performing tasks which can be done by robots and computers, the transition to an increasingly automated world is a tough pill to swallow. The same can be said for the societies these men and women are a part of, which are under pressure to find roles for them once their services are no longer required.
Yet whether we’re talking about an individual or the society around him, the writing on the wall is clear as day. This push to a completely automated means of manufacturing is the way of the future, and those unwilling to acknowledge progress are doomed to get swept up in its wake.
It’s worth noting that companies like General Motors, which are seemingly always giving people their pink slips, still retain a vast number of human employees. While the dream is to one day no longer rely on anybody to be there while the cars are built, that future is still many decades away.
