With advancement in technology, cheaper robots will replace human workers in the factories of the world which will lead to a cut of 16% labor costs. The Boston Consulting Group has predicted that the companies will soon begin investing in robots and the purchase of the machines will increase to a 10% per year by 2025.
The current figure is at 2% to 3% a year. Companies investing in robots will experience a cut i the heavy labour costs and an increase in the efficiency. Country wise it has been predicted that the labour costs will cut by 25% in Japan, 33% in South Korea, 24% in Canada and 22% in the US and Taiwan. For now just 10% of the work is automated and is already overtaken by the robots.
By 2025 the robots are expected to handle 23% of the workforce or even more. Moreover, the machines are getting cheaper everyday and can do a variety of things together. The cost of purchasing and operating a robot has gone down from $182,000 in 2005 to $133, 000 in 2014. The figure is expected to drop further by $103,000.
The new and upcoming machines will be capable of doing more work while the old robots could operate in predictable environments. The new robots will have improved sensors and can react to the unexpected. The Boston Consulting had studied 21 industries in 25 countries in 2014. It interviewed experts and clients and the consulting government along with industry reports.
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