The Rise of the Robot

Retirements, Worker Shortage Leads to Increased Automation

Necessity is the mother of all invention. You’ve probably heard the push for higher minimum wage demanded by fast food workers and the arbitrary $15/hr. demand. Knowing that $10 hamburgers wouldn’t sell particularly well, McDonald’s has introduced a “Create Your Own Taste” self-ordering kiosk. Customers can custom order their meals which are delivered right to their table. It’s not just innovative; it helps them keep payroll down by eliminating these obsolete, order- taking positions.
On a much larger scale, manufacturing has led the charge in automation for years. While many large shops have used robots for years, the smaller manufacturers are now getting in on the party as well. A recent article in the Insurance Journal* cited several reasons for the change:

1. Dwindling Workforce – as baby boomers retire, Millennials have chased other careers instead.
2. Lack of Skilled Workers – Workers who are available often lack the skills needed to perform these jobs.
3. Increased Job Satisfaction – Workers can focus efforts on problem-solving instead of the repetitive tasks now performed by the robots.

The employee benefits climate has also changed dramatically since the ACA went into effect. Employers with over 50 full-time equivalent employees are required to offer group health. This can be crippling to retail establishments or those in the restaurant industry. As these costs continue to soar, employers can realize significant savings by utilizing more automation. The one-time price tag is large, but it more than pays for itself after a few years by avoiding these additional expenses.

And robots don’t complain...

This article is from the May publication of The Bertram Business Bulletin. To subscribe, send your request to abertram@cobrown.com to be included in the mailing list.

*http://www.insurancejournal.com/news/midwest/2015/04/23/365475.htm