Robotic workshop machinery could boost UK productivity
Photo by Ewan Buck on Unsplash
UK productivity has stalled in what the Labour Party is calling 13 years of decline. The average output of a British worker is not tracking in line with other developed economies, suggesting a fundamental structural issue with how the country does business. US workers increased their productivity by more than double the amount of those at home over the period since the financial crisis.
But even though the situation looks dire, analysts are confident that advances in technology will eventually filter through to the rest of the economy and make meaningful improvements to output per hour. Advances in artificial intelligence and robotics mean that everything from welding machines to conveyor belts could become more efficient. Even if the UK doesn’t develop these technologies, it can import them to perform more tasks, allowing employers to better leverage the labour they already use.
The robotic welding market is already worth billions and will reach an estimated $6.77 billion by 2029. This growth in the sector will come primarily from improvements in supporting digital technology. Companies want systems that can perform a greater breadth of tasks and don’t require as much human input.
Furthermore, British business wants technology that can generate more accurate and reliable results. Companies want to emulate their German, Japanese, and American counterparts to achieve similar productivity levels.
To facilitate this, the government is pouring money into research into the design and implementation of improved machinery and technology. Ministers want to see improvements in design across the board to give working people more opportunities to make money and expand the economic pie. Growth is more essential than ever, given the rising cost of food and structural issues in the housing market. The Conservatives require a positive record on the economy to secure another term in power.
Interestingly, this issue could transform the UK’s SME sector. The country’s largest firms already operate efficiently at close to the international standard, but smaller firms are bringing the average down. These organisations don’t have the in-house skills and technical know-how to develop the sort of productivity-enhancing processes the UK needs to remain competitive.
Robotic workshop machinery could fundamentally shift the balance. Capital owners could make small upfront investments in plant and equipment and receive larger margins for decades to come by producing more with less.
It sounds like a simple solution to the productivity problem, but it could potentially prove effective. Unlike computers and digital device technology which doesn’t actively involve the production of goods, robotic workers do. These innovations have the potential to “replace” more labour than any other technology and, in doing so, they will free workers up to focus on high-value tasks.
This shift may even be what the UK needs to move out of its current status as a “low-wage economy.” British workers could see improvements in their pay packets similar to those witnessed by the resurgent US over the last ten years, with dramatic changes in productivity per person. For organisations representing employees and SMEs, it is an exciting time.
