How Covid-19 Will Transform The Global Manufacturing
What the pandemic of 2020: the outbreak of Covid-19 has brought to the forefront is the economic inadequacy of every country to handle a dire situation like this, not only keeping its population safe and clinically healthy, but also keeping them well-fed. The risks in supply chain have become prominent and the manufacturing industry globally is sure to undergo a transformation, one of its kind in history, due to the unprecedented times we are in. Globally, most manufacturing companies are dependent on cheap and available labour in third world and developing countries.
In the light of the newly imposed lockdowns by every country in an attempt to battle Covid-19, in the absence of a treatment or vaccine invented by medical science, these global manufacturing industries are shifting to the other alternative that are not only affordable but are never afflicted: the robots .
Depending on robots for advancing manufacturing processes are nothing but a profitable venture for global manufacturing industries, as robots, though require an initial smart investment, they are the more affordable and efficient options in the long run. They can work for days at a stretch, and the repeatability of tasks in manufacturing industry do not bore them, or do not make them commit errors.
The zero probability of error increases efficiency of the labour force, which results in, excellent product quality which is a win-win situation for the global manufacturing industry. Investment in robots is not new, but soon might replace reshore production, too. Whereas paying a worker from a third world country is cheaper than paying a worker from a first world country, a robot does not even demand wages. Or, a health insurance. They do not need sick leaves, and they do not unionize in protests of higher wages, hence the adaptive move to shift to robots is highly likely a scenario in a post-Covid manufacturing universe.
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A 75.7 percent likeliness can be expected in bringing about adoption of robots, influenced by the estimated 30 percent drop in interest rates in terms of monetary policy that central banks would adopt to combat the economic damage of the pandemic. Such a trend would appear as a threat to the economic models of most developing countries, whose economy is based on reshore production workers and their employment, to an extent.
The manufacturing industry is an essential sector of the global economy, occupying a 16 percent GDP in the global economy. Our aim should be to increase resilience in the production ecosystem we inhabit at present. Executives would be brought together to exchange what seems to be unprecedented best practices in the trying times, while incubating new collaborations to value chain disruption. A joint response must be catalyzed, while harnessing leading responses, in our response to a...