The way technology is changing the future has largely to do with its impact on organizations’ operational efficiency and workforce requirements.
How do machines impact downtime?
Machines improve downtime through improving preventive maintenance practices.
1. Unplanned downtimes cost businesses billions of dollars every year.
A study conducted by the Wall Street Journal found that each year, businesses lose a total of $50 billion from unplanned equipment downtimes.
2. Predictive maintenance using smart technology has helped businesses reduce downtime.
A McKinsey report found that companies who have used predictive maintenance technology saw a decrease in downtime of about 50%. In addition, this technology reduced maintenance costs by 10% to 40%.
How fast is the use of new technology rising?
The use of new technologies is quickly rising, both in private and public sectors.
3. Billions of people use new technology in everyday life.
Over 3.175 billion people use phones to access data.
4. High numbers of robots are used on production lines.
There are roughly 1.3 million robots currently in use on production lines across the globe.
5. The number of jobs that require digital skills has risen significantly.
Between 2002 and 2016, the percentage of all U.S. jobs that require at least some digital knowledge rose from 45% to 71%.
How will new machines impact the workforce overall?
With the increased use of new technology, raw labor demands will diminish.
6. Most manufacturers are short on skilled labor.
About 80% of all manufacturers have a shortage of qualified applicants for skilled positions. In the next ten years, it’s anticipated that this shortage will leave about 2 million jobs vacant.
7. Robots significantly cut down on labor requirements.
In one Chinese company, the use of industrial robots cut down their labor requirements from 500 staff to only five.
How will technology affect who gets hired?
While physical labor demands diminish, other skills will become more in demand.
8. Diminished need for basic cognitive and physical labor skills
A study by McKinsey projects an increased need for social and emotional skills as the need for manual skills decreases. These skills—which machines cannot replace—will be in higher demand in the future.
9. The nature of manual labor will change
In the future, it’s anticipated that only about 30% of all jobs will involve manual labor. In addition, those jobs will likely involve working in lab coats with clean, highly reliable machines.
As technology advances, the types of labor involved in running a business will shift. Businesses who adapt these new technologies would be well served in reassessing what skills they need in their organizations.