Many people believe that automation means layoffs. According to a recent Wharton study (which happens to be our CEO Mitch Cahn’s alma mater) that’s not always the case. The study abstract says “investments in robotics are associated with increases in total firm employment but decreases in the total number of managers.”

Additionally, the study says: 

Robots reduce variance in production processes, diminishing the need for managers to monitor worker activities to ensure production quality. As additional evidence, we also find that robot investments predict improved performance measurement and increased adoption of incentive pay based on individual employee performance. With respect to changes in skill composition within the organization, robots predict decreases in employment for middle-skilled workers but increases in employment for low- and high-skilled workers. 

Automation is key to staying competitive and is somewhat inevitable. Domestic manufacturers should embrace these changes or risk going out of business. After Unionwear began implementing lean manufacturing principles, only one person lost their job: the manager who resisted the changes. 

Read the study HERE (requires registration) and the summary of the study by Forbes HERE