As per expert reports, the economic impact of industrial robots on different countries is significantly multifaceted. The economic impact varies depending on various factors, such as the country’s level of technological advancement, industrial sector composition, and labor market dynamics.
The productivity of manufacturing and production processes can be significantly boosted by industrial robots. The tasks can be performed with speed, precision, and consistency, leading to higher output levels and improved quality control.
Industrial robot adoption across the world has had both positive and negative effects on the labour market. Human workers can be replaced by Industrial robots for certain repetitive and routine tasks, leading to job displacement in various sectors. However, it is also stated that while industrial robots take care of the routing tasks, human workers can be redeployed to more complex, creative, and value-added roles.
On a global scale, countries effectively adopting industrial robots can enhance their industrial competitiveness through cost savings, higher production efficiency, and improved product quality. Automating production processes can help countries find more cost-effective ways, such as localizing supply chains in low-wage countries.
Given the economic impact, industrial robots can have distributional effects on income inequality.
Let’s see the economic impact of industrial robots on various countries.
- European Union: Industrial robots are heavily used to contribute to the growth of labour productivity in the European Union. European countries such as Germany are working hard to gain a competitive advantage in manufacturing sectors.
- China: The adoption of industrial robots is significantly increasing labour productivity and total employment in the manufacturing sector. The use of industrial robots is mostly to promote the transformation of processing into general trades.
- OECD countries: Robot adoption is associated negatively with manufacturing employment in OECD countries, mainly at high levels of penetration. It is not quite acceptable in non-OECD countries.
- United States: The International Trade Administration report stated that the economic impact of industrial robots uses panel data from industries in 17 countries between 1993 and 2007, contributing to productivity growth.
Well, it can be clearly seen that the impact of industrial robots is going to vary across different countries depending on their current economic situation. For many countries, the development of industrial robots can be seen as a boon, but for many, it can be seen as a curse on their daily livelihood.