A report by the Boston Consulting Group (BCG) says that robots are forecast to become “more affordable, more advanced and more prominent” over the next 10 years.

The subsequent increase in automation in the work-place will cut labour costs by an average of 16% across the world’s 25 largest goods-exporting nations (22% in the USA).

BCG senior partner Harold Sirkin said: “As labour costs rise around the world, it is becoming increasingly critical that manufacturers take steps to improve their output per worker to stay competitive. Companies are finding that advances in robotics and other manufacturing technologies offer some of the best opportunities to sharply improve productivity.”

According to the report, “operational industrial robots perform about 10% of the day-to-day manufacturing tasks that could be potentially automated — like assembly, packaging and material handling”.

By 2025, the group estimates that robots will perform 25% of such tasks. The countries expected to benefit the
most are the five that account for almost 80% of world-wide robot purchases so far: South Korea, China, Japan, Germany and the USA.

BCG partner Michael Zinser said: “For many manufacturers, the main reasons for not replacing workers with robots have been pure economics and technical limitations, but the price and performance of automation are improving rapidly. Within five to 10 years, the business case for robots in most industries will be compelling, even for many small and medium-size manufacturers.”

The report suggests that productivity increases will come at the expense of low-skill jobs. For example, owning and operating a robotic spot-welder cost automotive manufacturers an average of $133,000 last year — about $8 per hr
— while paying a human worker to perform the same task cost an average of $25 per hr.