The Dangerous Economist: Robots Are Looking Better to Detroit as Labor Costs Rise

Expensive new union contracts spark more interest in assembly-line automation for vehicles, but risks exist

By Nora Eckert of The WSJ. Excerpts:

"While automakers have been moving to automation for some time, rising labor costs are poised to accelerate the adoption of such technologies, said Laurie Harbour, president of Michigan manufacturing consulting firm Harbour Results."
"A spokesman for GM said the company will continue to use technology to help its team members increase productivity, and make work environments safer."
"The auto industry is a top consumer of robots, according to the International Federation of Robotics. The global automotive industry installed 136,000 new industrial robotic units in 2022, the federation found, second only to the electronics industry."
"Dozens of new battery factories and electric-vehicle plants in the works will also open the door to broader use of high-tech systems, analysts say. It is easier and less costly to install robots in a new facility versus retrofitting an existing one."
"Automakers are likely to introduce more robots and other forms of automation over time, replacing workers as they retire, rather than displacing swaths of their current workforce."
"There are varying views on how extensive auto-industry automation will become in the next decade, and many analysts point out that other strategies—such as streamlining the production process by offering fewer vehicle options—can have larger cost savings.
Additionally, whatever machines gain in terms of productivity can be zeroed out by the needed personnel to fix or program robots, some academics say. Humans are sometimes better at completing precise tasks that require visual judgment and the ability to nimbly adjust equipment."

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