"Labor Shortage" Leads to Sharp Increase in Robot Orders in US Manufacturing Industry

[Asia Economy New York=Special Correspondent Joselgina] Since the COVID-19 pandemic, U.S. manufacturers struggling with labor shortages are increasing their orders for robots.

According to the Wall Street Journal (WSJ) on the 29th (local time), the total value of industrial robot orders from U.S. manufacturers in the first quarter of this year reached $1.6 billion (approximately 2 trillion KRW). This represents a 40% increase compared to the same period last year, marking the highest growth rate since the industry began compiling related statistics.

The U.S. manufacturing sector has been confirmed to be increasing robot orders as it faces difficulties in meeting production demands due to recent labor shortages and rising wages.

John Newman, Chief Financial Officer (CFO) of Athena Manufacturing, a machine parts producer located in Austin, Texas, explained the background: "Orders from dealers have increased, but it has been difficult to secure enough labor to implement shift work."

Unlike the past when industrial robots were mainly used in automobile manufacturing plants, recently robots have been introduced into production processes across various sectors such as food and consumer goods. In 2016, 71% of robot orders were accounted for by automobile assembly and automobile parts manufacturing industries. However, last year, the share of these industries in robot orders dropped to 42%.

Fanuc, an industrial robot manufacturer, stated, "In the past, manufacturers viewed operating industrial robots as too complicated or costly. Now, operating industrial robots has become much smoother." Additionally, various robots that meet industry demands are being developed and launched.

Some express concerns that robots may also impact the human job market. Daron Acemoglu, an economics professor at the Massachusetts Institute of Technology (MIT), pointed out, "Manufacturers' reliance on robots could eventually lead to an oversupply of human labor, resulting in wage cuts," adding "The spread of industrial robots could ultimately destroy jobs."