IT’S RISKY TO USE HISTORY AS A BASIS FOR PREDICTING
how the 2016 presidential election cycle will play out. At least, it’s
been a wholly unreliable indicator so far. Who could have foreseen
that the campaigns of the perceived front-runners (Hillary Clinton
and Jeb Bush) would have been so fundamentally derailed by two
so-called anti-establishment candidates: an extreme proponent of
democratic socialism and a reality TV star who, in large part, has
turned the entire race into pretty much a new reality TV show of
his own.
It’s probably no surprise that the campaign rhetoric, too, has
veered off in unexpected directions. We’ve all heard about proposals to build border walls and make other
countries pay for them, an all-new “birther”
debate (because the first one wasn’t stupid
enough), and a host of other issues that distract
the candidates and voters from more important
issues—like jobs.
Typically, jobs creation would be at the tip of
a presidential candidate’s campaign spear. Not
this year, though. You can add that to the list of
things that are wrong with this year’s election
cycle and by extension, we guess, with the current crop of candidates.
Make no mistake, despite the happy talk,
the nation continues to struggle with unemployment. Even as the official unemployment
rate has ticked down (dropping to 4. 9 percent
from 7. 8 percent over the current administration’s term), other metrics point to a worsening situation. Take
the Bureau of Labor Statistics’ (BLS) labor participation rate, for
example. In January 2009, according to the BLS, nearly 66 percent
of able-to-work Americans aged 16 years or older were working.
As of January 2016, that number had dropped to 62. 7 percent.
This news comes at a time of great uncertainty about the future
of the job market. As detailed in a recent report by DC VELOCITY
Senior Editor Ben Ames, the logistics industry—and specifically,
the material handling sector of logistics—is moving rapidly to
integrate robotics into its operations. As Ben noted in his report,
“Businesses are buying robots for warehouse and distribution
center applications at a faster pace than ever, helping push robot
orders and shipments in North America to record levels in 2015.
... Material handling applications helped drive that demand with
a 24-percent increase in orders over 2014, second only to coating
and dispensing applications, which saw a 49-per-
cent year-over-year increase.”
You might expect at this point to hear the usual
lament about technology killing off jobs. But that’s
not where we’re going here. The introduction
of robots doesn’t always mean displacing human
employees. A number of companies right here in
the logistics and supply chain world have proved
that point.
Back in 2012, for instance, Crown Equipment
Corp. installed 50 welding robots in its manufactur-
ing operations. The move didn’t
result in a round of layoffs, how-
ever. Instead, the lift truck maker
retrained the affected employees
and shifted them to new jobs.
Similar scenarios played out
over at MCFA (Mitsubishi
Caterpillar Forklift America) and
Toyota Material Handling, USA.
MCFA automated its painting
process and brought robotic
welders and metal-cutters to its
manufacturing line, while Toyota
introduced automated guided
vehicles. Neither move resulted
in a flurry of pink slips. Like
Crown, these companies simply
retrained and reassigned workers to new positions.
These are but three examples, and there are plenty
more. Robotic technology is now a proven means of
boosting productivity. Higher productivity typically
leads to higher profit margins, which allows companies to expand their operations and add more jobs.
In short, productivity means growth, and growth
means jobs.
Maybe someone should make that the focus of his
or her campaign.
Group Editorial Director
BY MITCH MAC DONALD, GROUP EDITORIAL DIRECTOR outbound
Getting focused