Skip to content
Search AI Powered

Latest Stories

newsworthy

Automation likely to displace workers making less than $20 an hour, CEA says

Workers making more than $40 an hour face virtually no chance of displacement, report finds.

There is an 83-percent probability that automation will replace workers whose wages are less than $20 an hour, the White House's Council of Economic Advisors (CEA) said today in releasing its 2016 economic report.

By contrast, there is a 31-percent chance of automation substituting for workers who make between $20 and $40 an hour, and virtually no chance of it replacing workers whose hourly wages exceed $40, CEA said.


Those in the higher wage scale will find their work "complemented and improved" by workplace automation, CEA said.

Data on wages paid to warehouse and DC nonmanagement workers is difficult to come by. However, it is thought that workers in nonsupervisory roles make less than $20 an hour. The CEA report did not highlight salary conditions in the logistics field.

Worldwide shipments of industrial robotics, which are being eyed as the next frontier in warehouse workforce staffing and management, more than doubled from 2010 to 2014, to 229,000 units, according to the report. In 2012, the last year of data cited in the report, the U.S. had, on average, 135 robots for every 10,000 workers. That lagged Japan and Germany, but was ahead of China, according to the report.

The report found that, between 1993 and 2007, robotics added an average of 0.37 of a percentage point to a country's annual GDP growth, accounting for about 10 percent of all GDP growth during that period.

Citing a 2015 outside research paper, CEA found that higher levels of robot density within an industry leads to higher wages in that industry. Though that finding suggests that robotics are complements to labor, it is also possible that the higher wages are due to robots replacing lower-skilled workers in that industry, thus skewing wage estimates upward, CEA said.

The report had some historical reassurance for those worried that machines will take large numbers of jobs away from humans. Though machines over several centuries have been increasingly been performing tasks once done by humans, this trend has resulted in higher incomes, greater consumption, and more jobs for almost everyone who wants them, the report said.

"In other words, as workers have historically been displaced by technological innovations, they have moved into new jobs often requiring more complex tasks or greater levels of independent judgment," CEA said.

The Latest

More Stories

pie chart of business challenges

DHL: small businesses wary of uncertain times in 2025

As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.

However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).

Keep ReadingShow less

Featured

forklifts in warehouse

Demand for warehouse space cooled off slightly in fourth quarter

The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.

Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.

Keep ReadingShow less
drawing of warehouse for digital twin

Kion Group teams with Accenture and Nvidia to design intelligent warehouses

German lift truck giant Kion Group will work with the consulting firm Accenture to optimize supply chain operations using advanced AI and simulation technologies provided by microchip powerhouse Nvidia, the companies said Tuesday.

The three companies say the deal will allow clients to both define ideal set-ups for new warehouses and to continuously enhance existing facilities with Mega, an Nvidia Omniverse blueprint for large-scale industrial digital twins. The strategy includes a digital twin powered by physical AI – AI models that embody principles and qualities of the physical world – to improve the performance of intelligent warehouses that operate with automated forklifts, smart cameras and automation and robotics solutions.

Keep ReadingShow less
person holding smartphone with freightcenter app for tracking shipments

3PL BlueGrace Logistics acquires FreightCenter

The third party logistics (3PL) provider BlueGrace Logistics has acquired FreightCenter, an online transportation solutions provider for freight logistics management, saying the move will expand BlueGrace’s customer base by integrating FreightCenter’s clients with BlueGrace’s suite of tools and services.

Following the deal, Palm Harbor, Florida-based FreightCenter’s customers will gain access to BlueGrace’s unified transportation management system, BlueShip TMS, enabling freight management across various shipping modes. They can also use BlueGrace’s truckload and less-than-truckload (LTL) services and its EVOS load optimization tools, stemming from another acquisition BlueGrace did in 2024.

Keep ReadingShow less
worker using sensors on rooftop infrastructure

Sick and Endress+Hauser say joint venture will enable decarbonization

The German sensor technology provider Sick GmbH has launched a joint venture with the Swiss measurement technology specialist Endress+Hauser to produce and market a new set of process automation solutions for enabling decarbonization.

Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.

Keep ReadingShow less