{"id":13007,"date":"2020-06-09T00:00:00","date_gmt":"2020-06-08T23:00:00","guid":{"rendered":"https:\/\/www.argonandco.com\/news-insights\/articles\/germ-warfare-and-the-robot-revolution\/"},"modified":"2020-12-17T15:40:22","modified_gmt":"2020-12-17T15:40:22","slug":"germ-warfare-and-the-robot-revolution","status":"publish","type":"article","link":"https:\/\/www.argonandco.com\/us\/news-insights\/articles\/germ-warfare-and-the-robot-revolution\/","title":{"rendered":"Germ warfare and the robot revolution"},"content":{"rendered":"

Consumer goods (CG) companies are caught between increased stay-at-home demand, limited ability to pass on price increases, and a labor force that requires increased expense to keep safe. CG companies quickly defended against germ warfare\u2014readying their front line with masks and gloves, confining them to make-shift plastic bunkers, and teaching them to follow painted arrows on the floor. You\u2019d expect productivity to fall until you put into context that these anxious employees are grateful not to join their 39 million out-of-work neighbors.<\/p>\n

The rapid response of CG employers is admirable and completely necessary. But relying on these short-term actions and expecting to sustain profitability is like catching a falling knife.\u00a0 The solution is becoming obvious, the need to automate via robotics is paramount to reduce overall workforce reliance and overcrowding of facilities<\/em>. While this thought process flies in the face of our current astronomical unemployment phase, it begins to make a lot of sense in the future for both the American worker and the CG companies that want to be around for the long term.<\/p>\n

Front line employees make up generally 60-70% of CG companies\u2019 headcount. Entry-level jobs often consist of repetitive motion activities, long periods of standing, and not a lot of space. \u00a0Supply chain worker availability has been in short supply over the past 5 years, as these jobs are not considered desirable or highly sought after. \u00a0\u00a0The choice of driving an Uber or Lyft and choosing when one works is more appealing\u2014and can be as profitable\u2014versus the basic entry worker in manufacturing or distribution. \u00a0These unfavorable working dynamics have led to turnover broaching 30% annualized. Companies respond by paying more than the company down the street (bidding wars for talent) to quick-fix a systemic problem.\u00a0 The added wage expense puts more pressure on productivity targets, and the downward spiral continues.<\/p>\n

Despite the current surge in the available workforce, manufacturing jobs are still not desirable.\u00a0 Jobs are viewed as higher risk given today\u2019s pandemic.\u00a0 Newly offered hazard pay doesn\u2019t make up for the monotonous routine.\u00a0 For the few companies that have managed to create a robust hourly employee training and development program, they probably never considered the impact of an \u201conboarding buddy\u201d who must wear a mask and stay 6-ft. away from new hires.<\/p>\n

The only reasonable answer to the situation is to automate.\u00a0 No longer just a cost-cutting idea, automation now reduces employee exposure to hygienic hazards without a decrease in productivity.\u00a0 While there will be short term reductions to the overall number of jobs available, automation should be incentivized, as it provides improved technical skills and pay opportunity for today\u2019s workers while reducing risk for companies and employees. \u00a0Furthermore, automation can be the key to bringing quality, skilled manufacturing jobs back to our country.<\/p>\n

With capital interest rates at all-time lows and the availability of money at an all-time high, automation investments are even more attractive.\u00a0 Projects that have been put off for years due to high-interest rates or low ROIs may now be viable, supported by higher demand and increased labor cost.<\/p>\n

Given what we know and see, we must make judgments about the future.\u00a0 We know the virus impacts will be long-lasting. Companies must shift from short-term response plans to long-term strategies. If I had to place my bet, it would be on an offensive strategy to implement systematic automation focused on eliminating high concentration, low-skilled, and repetitive motion labor. Long-term, the strategy results in a more protected workforce with higher wage opportunities and a more reliable supply chain.<\/p>\n

I welcome your thoughts on the subject.<\/p>\n

———<\/p>\n

There is much to consider during recovery. Let us help you figure out how to come back strong in the coming months.<\/p>\n

 <\/p>\n

As of September 8, 2020, Crimson & Co (formerly The Progress Group\/TPG) has rebranded as Argon & Co following the successful merger with Argon Consulting in April 2018.<\/strong><\/span><\/p>\n","protected":false},"featured_media":15054,"template":"","categories":[145],"class_list":["post-13007","article","type-article","status-publish","has-post-thumbnail","hentry","category-supply-chain-planning"],"acf":[],"yoast_head":"\nGerm warfare and the robot revolution - Argon & Co<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.argonandco.com\/us\/news-insights\/articles\/germ-warfare-and-the-robot-revolution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Germ warfare and the robot revolution - Argon & Co\" \/>\n<meta property=\"og:description\" content=\"Consumer goods (CG) companies are caught between increased stay-at-home demand, limited ability to pass on price increases, and a labor force that requires increased expense to keep safe. 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