The quest for high productivity with minimal capital has traditionally led US organizations to outsource manufacturing to countries such as China or Mexico, where labor and resources are cheaper, and profits, in turn, can be maximized.
Outsourcing began as a disruptive strategy as far back as the early 18th century, in line with the Industrial Revolution. Technological advancements then meant businesses could begin mass production, but this advantage came at a cost. Companies realized they could retain their structure by outsourcing labor to contractors when demands required.
In the 1970s, however, with the rise of consumer electronics, there was a wide […]
The rate of creation of new jobs in the more technologically sophisticated economy was much slower than before, leading to the phenomenon of jobless growth. The current problems of the Indian economy have been aggravated by the government’s refusal to accept the clear body of evidence suggesting an economic slowdown. Hence the government does not seem bothered to tackle the challenges of declining growth, rising inflation, and growing unemployment. While economic growth and inflation can still be addressed by corrective policies, unemployment is a more long-term difficulty that cannot be sorted out by appropriate macroeconomic policies alone. Unemployment is […]
Every day, global trends are reshaping society and the business landscape. Here are 10 insights into how the world is changing—and where we are heading. 10 Global Insights into a Transforming World from 2019
Every day, global trends are reshaping society and the business landscape.
Today’s infographic from McKinsey Global Institute (MGI) presents a snapshot of 10 insights into how the world is changing, based on its research work from 2019.How did we get here, and where are we going? A Connected World in Flux Globalization is making the world “shrink” every day, as humans and trade become increasingly connected. […]
Do not buy the headlines. At a time when India is struggling with an unprecedented job crisis, at least one industry has not gone slow on hiring.
The nearly $200 billion Indian IT services industry created over 200,000 new jobs in 2019, up from 180,000 a year ago, industry body Nasscom said yesterday (Feb. 12). The sector now has a total workforce of 4.36 million.
Over seven in 10 CEOs believe 2020 will be another year of strong hiring, Nasscom’s survey of over 100 IT leaders found. “This is reflected in offers the industry is already making on campuses,” said Sangeeta […]
Perhaps no industry has been hit as hard by the labor shortage as the construction industry, so it should come as no surprise that contractors would look to automation to fill the gap. The Midwestern Economic Policy Institute, along with the Project for Middle Class Renewal, dove into the issue and concluded that as many as 2.7 million construction jobs could be automated by 2057.
That level of displacement represents 49% of the America’s blue-collar construction workforce, the report says, adding that automation would also eliminate nearly 500,000 non-construction jobs in the next 37 years as well.
“Advancements in technology have […]
A nation of takeout deliverers
The adoption of industrial robots in France makes manufacturing businesses more productive and profitable but at the expense of jobs, according to a recent paper presented by the National Bureau of Economic Research, a private, non-profit, non-partisan research organization in America.
In a paper titled "Competing with Robots: Firm-Level Evidence from France," economics professors Daron Acemoglu (MIT), Claire LeLarge (University of Paris Saclay), and Pascual Restrepo (Boston University) analyzed 55,390 French manufacturing firms to study the economic impact of robot adoption.Within that data set, 598 French companies deployed industrial robots between 2010 and 2015. The […]
The world of work increasingly will be automated, from the “internet of things” interconnecting management with production equipment such as industrial robots. Here’s a look inside a local company that is incorporating advances in such bots to expand sales without losing its workforce.
“When automation comes in, people are nervous,” said Jim Happ, president of Labcon North America, based in Petaluma. “And you just have to keep reassuring them until they see that it makes their life better, that they actually have the potential to make more money because they’re doing higher-value work.”
Labcon makes research consumables such as pipettes used […]
11 The writer is a development and technology policy consultant. ONE of the first concepts taught in economics is the circular flow of income: workers sell their labour to producers and receive income in return, which then flows back to producers in return for finished goods and services. This foundation sustains the modern economy. But the quest for higher profits accelerates the breakdown of this relationship between capital and labour. In its worship of the bottom-line, capitalism aims to drive labour costs ever lower through technological progress.
Joblessness and increasing inequality erode purchasing power and break down […]
Klaus Schwab, the founder of the World Economic Forum, wrote in January 2016: “We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before.” He is describing, among other things, automation. His ominous message winks at what economics are calling the Fourth Industrial Revolution, a digital revolution that will fundamentally alter the way in which people live and work.
According to a 2013 study by Oxford economist Carl Benedikt Frey, 47 per […]
Automation has a significant impact on how business operations are handled. Throughout decades, we have constantly strived to figure out ways to work smarter and get things done faster.
With technology accelerating at an incredible speed—leading us to the Fourth Industrial Revolution—it’s no wonder we’ve consistently sought ways to eliminate repetitive tasks and focus our efforts on areas that require brainstorming and creativity.
Mass automation is a big part of our world, and will continue to shape the economy moving forward. Raconteur recently released an infographic detailing the age of automation and its profound influence. According to their research, remote communication […]