The replacement of human labor through robots Oral Presentation •Jan Cibulka (489416) •Leonardo Papaveri (489416) • Maximilian Thomaseth (486362) •Carolin Pongratz (486270) Human Resources Management Contents: uOverview about robot industry uJob sections affected/not affected uCountries which are most affected by robot replacement uConclusion: Positive and Negative aspects uReferences u Overview about robot industry uIn 2017, the value of global market was around US$16.2 billion uSince 2010, the demand for industrial robots has accelerated considerably due to the ongoing trend toward automation and continued innovative technical improvements in industrial robots uRobot sales increased by 30% to 381,335 units, in 2017; it’s a new peak for the fifth year in a row. uNew estimation by IFR World Robotics confirm that this growth is not going to slow down for several years yet, in fact, in 2018 is expected a growth by 10% to 421,000 units and in 2021 the units will be 630,000 with on average per year by +14% uThe main drivers of this exceptional growth in 2017 were the metal industry (+55%) and electrical/electronics industry (+33%). Robot sales in the automotive industry increased by 22% and remained still the major customer of industrial robots with a share of 33% of the total supply in 2017. u uThere are five major markets representing 73% of the total global sales volume in 2017: China, Japan, the Republic of Korea, the United States and Germany. Since 2013 China has been the biggest robot market in the world with a continued dynamic growth. Job sections affected/not affected uRobots may replace 800 million workers by 2030 uAutomation will more or less affect by type of activity parts of almost all workstations uFor some industries, an increase in automation won't mean a decline in employment, but rather a shift in the tasks needed to be done uFactors: uTechnical feasibility uCosts for the development and use of both hardware and software uLabour costs and the associated supply and demand dynamics uAdvantages over labour substitution including higher production volumes of better quality and fewer errors u uNot affected: uRecreational Therapists uFirst-Line Supervisors of Mechanics, Installers, and Repairers uEmergency Management Directors uMental Health and Substance Abuse Social Workers uAudiologists uOccupational Therapists u uAffected: uPhysical activities play a prominent role in sectors such as manufacturing, gastronomy and housing, and retail trade, they are most vulnerable to automation for technical reasons alone uAll these occupations share a predictable pattern of repetitive activities, the likes of which are possible to replicate through Machine Learning algorithms u Occupation sector percent Transport and logistics professions 56 Enterprise-related service occupations 60 Cleaning jobs 39 Commercial professions 50 Manufacturing occupations 83 Security professions 20 Food and hospitality professions 40 Occupation sector percent Professions in agriculture/forestry and horticulture 44 Social and cultural service professions 13 Construction and extension occupations 37 Medical and non-medical health professions 21 IT and scientific service occupations 39 Professions in business management and organisation 57 Countries which are most affected by robot replacement u u u“(…) the share of occupations that could experience significant automation is actually higher in developing countries than in more advanced ones, where many of these jobs have already disappeared“ (Muoio D.) u Decisive factors: u u uLevel of manufacturing processes uLabor costs uSkill shortage uAge of population/ Birth rate uLabor regulations/ bureaucratic obstacles > > Positive aspects: uBetter decision making uObjective feedback uAvoiding conflict uDecreased Production Costs uShorter Cycle Times uImproved Quality and Reliability uBetter Floor Space Utilization uIncreased Safety uImproved efficienty and outcome uLooking forward: Utopia u > Negative aspects: uHumans need human contact uLack of creativity uHigher Maintenance and Installation Costs uEnhanced Risk of Data Breach and Other Cybersecurity Issues uReduced Flexibility uAnxiety and Insecurity Regarding the Future uLooking forward: Dystopia u u References uIFR World Robotics (2018). Executive Summary World Robotics 2018 Industrial Robots. Retrieved from https://ifr.org/downloads/press2018/Executive_Summary_WR_2018_Industrial_Robots.pdf uStatista (2018). New installations of industrial robots worldwide in 2017, by industry (in 1,000 units). Retrieved from https://www.statista.com/statistics/257080/new-installations-of-industrial-robots-worldwide-by-indu stry/?fbclid=IwAR1dttD7D0foIqXhX5uYqlRhW7MnNtsW8d3BJScWz0hDfrCQ9suJQYvatPA uIFR World Robotics (2018). WR 2018 Presentation Industrial and Service Robot. Retrieved from https://ifr.org/downloads/press2018/WR_Presentation_Industry_and_Service_Robots_18_Oct_2018.pdf uChui M., Manyika J., Miremadi M. (2017). The Countries Most (and Least) Likely to be Affected by Automation. Retrieved from Havard Business Review: https://hbr.org/2017/04/the-countries-most-and-least-likely-to-be-affected-by-automation uMuoio D. (2016). These are the developing countries where robots will take the most jobs. Retrieved from Businessinsider: https://www.businessinsider.com/countries-where-robots-will-take-jobs-2016-3 uSirkin H. (2016). It May Surprise You Which Countries Are Replacing Workers With Robots the Fastest. Retrieved from Huffpost: https://www.huffingtonpost.com/hal-sirkin/robots-workers-countries_b_9992960.html?guccounter=1 uChamorro-Premuzic, Tomas, and Gorkan Ahmetoglu. “The Pros and Cons of Robot Managers.” Harvard Business Review, 23 Mar. 2017. Retrieved from: hbr.org/2016/12/the-pros-and-cons-of-robot-managers. uDelGado, Rick. “The Negative Effects of Robots Entering the Workforce | IT Briefcase.” IT Briefcase, Virtual Star Media, 2 Oct. 2017. Retrieved from: www.itbriefcase.net/the-negative-effects-of-robots-entering-the-workforce. uRobotWorx. “Advantages and Disadvantages of Automating with Industrial Robots.” RobotWorx, SCOTT, 2017, www.robots.com/blogs/advantages-and-disadvantages-of-automating-with-industrial-robots. uRobotWorx. “Advantages and Disadvantages of Automating with Industrial Robots.” RobotWorx, SCOTT, 2017. Retrieved from: www.robots.com/blogs/advantages-and-disadvantages-of-automating-with-industrial-robots. uMake.it; Courtney Connley; 30 Nov 2017; Robots may replace 800 million workers by 2030. These skills will keep you employed. Retrieved from: https://www.cnbc.com/2017/11/30/robots-may-replace-up-to-800-million-workers-by-2030.html uDigital Trends; Luke Dormehl; 11.4.18; Replaced by robots: 10 jobs that could be hit hard by the A.I. revolution. Retrieved from: https://www.digitaltrends.com/cool-tech/examples-of-robots-replacing-jobs/?fbclid=IwAR34SJ0kFwQIiOp n_YVQziyawo7LJ_QFnzayz-pIUdLA26vagfa7unKMRGo uMichael Chui;July 2016; McKinsey & Company; Where machines could replace humans—and where they can’t (yet). Retrieved from: https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/where-machines-could-repl ace-humans-and-where-they-cant-yet?fbclid=IwAR1Tp2vbMDyLCmer4vY4uGvS-tQ4nRv9v7httPuqRS1Kx4zmheULPlG 69m8 u Patrick Scott, 27 SEPTEMBER 2017; The Telegraph; These are the jobs most at risk of automation according to Oxford University: Is yours one of them? Retrieved from: https://www.telegraph.co.uk/news/2017/09/27/jobs-risk-automation-according-oxford-university-one/?f bclid=IwAR3yNdi-kG9g6Mz4EWWUv5X6MXnNqXPwELTQCLPI4OezWw8nnKOetWuxWGI u u u u u uThank you!