The narrative surrounding automation and artificial intelligence often centers on job displacement, yet evidence suggests these technologies can also foster job growth and enhance worker productivity. Companies are increasingly leveraging automation not to replace human workers, but to improve operations, create new opportunities, and justify higher wages.
MiddleGround Capital, an investment firm, has implemented automated technologies in its portfolio companies with the goal of improving employee well-being and enabling better work. These advancements aim to reduce dangerous or tedious tasks, address skills gaps, and potentially create new positions within the manufacturing sector.
Transforming Factory Work
In manufacturing, automation can transform demanding roles. For instance, a MiddleGround Capital portfolio company producing automotive and powersports components automated a forging press operation. This initiative addressed a production bottleneck, reduced downtime by approximately 15%, eased ergonomic strain on workers, and generated significant enterprise value. John Stewart, associated with MiddleGround Capital, noted that operational efficiency in this context translates to increased output and opportunities for workers to learn to operate the new automated systems, leading to higher wages.
Upskilling and New Job Creation
Contrary to the belief that automation eliminates jobs entirely, many manufacturing workers are developing new skills and transitioning into different roles. These new positions often require technical expertise in operating, troubleshooting, setting up, and maintaining automated systems. The World Economic Forum estimated in 2021 that automation could lead to the creation of 58 million jobs globally.
Beyond upskilling existing employees, automation can also spur the creation of entirely new job categories, such as automation technicians, robot programmers, and system designers. This trend also necessitates more engineers and business leaders with specialized knowledge in automated manufacturing.
Growth of Automation Divisions
The expansion of automation is also leading to the creation of dedicated, higher-level automation divisions within companies. These roles demand specialized training and education, further contributing to job creation. Human oversight remains crucial for interpreting data, ensuring compliance, and determining the most effective implementation strategies for automation.
MiddleGround Capital’s own automation division, established in 2022, has grown to include 11 team members focused on identifying and implementing automation solutions. This division prioritizes enhancing safety and work conditions for frontline factory employees, developing automated tools based on workers' daily experiences, and ensuring employees are upskilled for new roles when their previous positions are automated.
The continued development and investment in automation and AI, particularly in manufacturing and technology, suggest these trends will persist. Rather than solely leading to job losses, automation and AI are positioned to support the workforce, contributing to the development of more meaningful roles and career advancement opportunities across various levels of industry.