Macro Economics 102
Human capital is the most valuable asset for a company. It plays a significant role in the growth and development of a manufacturing industry. Human capital plays a vital role in the success of the manufacturing industry just like a physical plant, intellectual property, technology, and data. Human capital is solely responsible for the development of technology and data in the manufacturing industry. Human capital forms the most valuable part of the manufacturing industry (Squicciarini, Mara and Nico, 2015). They form the primary basis required to move the company forward. Today, most managers in the manufacturing industry perform full-time sprint to ensure that the demands of the industry are met. The managers understand that human capital is the most valuable asset that the manufacturing industry requires to move them to the next step in innovation and growth. A lot is being done to ensure that they are fully developed and utilized for the success witnessed in the manufacturing industry.
Human capital helps the manufacturing sector in achieving their desired goals and objectives. The success experienced in the manufacturing sector is attributed to human capital in the sector. They are responsible for the development of current technologies and innovations in the industry (Squicciarini, Mara and Nico, 2015). This ensures that the manufacturing industry produces products that are in tandem with the needs of the consumers. Besides, they help in designing the physical plant to promote work efficiency and ensure that the cost of production is kept at the minimum.
Automation technologies play a significant role in everyday life. Today, the machines have a potential effect in the work place. The robotics and machines are replacing several jobs. For instance, in the banking and manufacturing industry, several jobs are being replaced by the machines. However, automation or machines will replace few occupations in the next decade. Machines are being utilized to perform technical jobs in the manufacturing industry which were previously carried out by people (Grint, Keith, and Steve, 2013). The machines have transformed several sectors taking into consideration technical feasibility of the machines in the healthcare and finance sectors among others. In the next decades, technology will replace about 45 percent of jobs which people are paid to perform. The automation will affect almost 30 percent of the current occupations. Most activities will be automated since technology is making operations in the different industries more easy and efficient. It is expected that the number of robots in the United States of America would quadruple in the next ten years. As such, the population employment ratio will reduce in comparison with the current situation (Brynjolfsson, Erik, and Andrew, 2014). The wage growth is expected to go down. This is likely to result in more job losses. Therefore, the economy is expected to shift in the future considering the increase in the number of robots or machines.
Machines have a transformative effect on the labor market in various countries. It is a trend that is expected to continue and can affect the performance of different industries in the world. Automation coupled with artificial intelligence is the primary driver of technological unemployment (Brynjolfsson, Erik, and Andrew, 2014). In this case, several occupations are becoming unsafe. The machines can perform multiple tasks. The machines are replacing workforce in various fields such as welding, handling materials, assembling, packaging, and painting. These are jobs which were previously performed by human labor.
Therefore, it is important to note that technology or machines will replace human labor in the next decades. A lot of technological innovations are being carried out to promote efficiency in various sectors. As such, machines will replace a significant number of human labors in specific industries such as banking and manufacturing.
- Brynjolfsson, Erik, and Andrew McAfee. The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & Company, 2014.
- Grint, Keith, and Steve Woolgar. The machine at work: Technology, work and organization. John Wiley & Sons, 2013.
- Machlup, Fritz. Knowledge: Its Creation, Distribution and Economic Significance, Volume III: The Economics of Information and Human Capital. Vol. 3. Princeton University Press, 2014.
- Squicciarini, Mara P., and Nico Voigtländer. “Human capital and industrialization: Evidence from the age of enlightenment.” The Quarterly Journal of Economics 130.4 (2015): 1825-1883.