What is productivity?
Labor productivity refers to the average output of one employee over a specific period, such as the value added per FTE per year or per hour. An increase in labor productivity occurs when an employee produces more within the same time frame. This increase typically results in lower production costs per product, improving the financial position of a company or sector and thereby strengthening its competitive position.
To foster growth in the industry, there are roughly two options: hiring more personnel or increasing production per employee. Given the unfavorable outlook for an increase in personnel, growth is expected to come primarily from an elevated labor productivity. Although labor productivity in the industry is already high, a significant increase is necessary to keep pace with future growth.
In addition to aging, the demand for technical personnel is expected to rise due to rapid technological advancements and ambitious goals in sustainability and digitization.
Robotics and automation contribute to the solution
This increase in labor productivity can only be achieved if companies fully embrace digitization, automation, and robotics. While often used interchangeably, robotics and automation are distinct concepts.
- Robotics involves using robots to perform tasks previously done by humans.
- Automation is the use of technologies and systems to control, monitor, and optimize processes with little or no human assistance.
Robotics is a form of automation, but not all automation involves robotics.
Robotics and automation can enhance industry productivity by improving production speed, capacity, flexibility, and efficiency. Robots and systems operate faster, longer, more accurately, and consistently than humans. They can also be easily adapted to different products, orders, and customers, reducing waste, errors, and downtime. This results in increased production and lower costs.
Therefore, robotics and automation are crucial for the industry. To remain relevant and competitive, an acceleration in investments in robotics and automation is necessary. WEMO is eager to collaborate on this journey with you! Check out, for example, our automated solution for door hinges: