Programmable Automation, Labor Productivity, and the Competitiveness of Midwestern Manufacturing

摘要

The report investigates the effects of programmable automation (PA) on the labor productivity and cost competitiveness of five midwestern industries. The types of automation and industries studied in the report include programmable controllers in the iron and steel products industry, computer numerical control equipment in the metalworking and machinery industry, computer assisted design in the electrical equipment industry, and robotics in the fabricated metal products and motor vehicle and equipment industries. Analytical results are based on responses from 110 completed case studies on the effect of PA on manufacturing operations in the industries. Results from the case studies are used to estimate potential declines in labor use and cost, changes in rates of production, and return to investment in PA. The survey estimates are combined with aggregate industry data to estimate potential cost and price reductions for each industry studied. The potential price reductions are used to estimate final changes in output and long-run employment for each industry. Recommendations for local and federal industrial policymakers on the relative merits of PA adoption in the industries studied are discussed at the end of the study.