Automation is a hot topic, from The Economist to McKinsey. As of June 2015, Suncor Energy, one of Alberta's largest oil producers in the Athabasca oil sands, will be replacing around 800 dump trucks with driverless models of the multi-hundred-ton capacity equipment - the driver savings for the company is estimated at over $150M per year.
Automation and creative disruption is nothing new. 40% of Americans contributed to the farming industry a few generations ago, today that number is less than 2%. And in-part thanks to the labor reduction in the farming industry, food has become more available and cheaper than ever in human history in America. Moreover, the automobile has become increasingly cheap to manufacture due to robotics and economies of scale.
Most economists and business executives agree that we are entering into another major era of automation, especially in industries such as transportation, retail, real estate, and telemarketing. With that in mind:
1. Can we assume the majority of cost savings from automation will be experienced by consumers?
2. If so, and cost savings are a "wash" for the business because prices fall as well, what industries prove to gain from increased automation?
3. Which industries prove to gain from an increased labor pool as jobs decrease due to automation?
I am interested in hearing what you think.
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