The industrial robots have not yet achieved economies of scale, illustrating the market opportunity that will come quickly after economies of scale are achieved. New technology and improved controllers open the path to economies of scale for industrial robots. As this occurs a new industrial revolution will occur. There are massive numbers of products offered by each major industrial robot vendor. Product consolidation is occurring in the market. Customization of a few products to increase product volume hold the promise of changing the market so it functions at a level that means devices that basically have eluded economies of scale in the past, will now be able to be mass produced.
Think about the current industrial revolution. Before the invention of the automobile, buggy whip manufacturing was a thriving business. No longer. In the same vein, industrial robots hold the promise of eliminating many of the existing jobs in manufacturing. Innovation, centers of excellence. New enterprises promise to replace many of the existing jobs. People need to be flexible, to develop new industries.
Technology has drastically increased from the time of hand rolling. Thanks to the use of automated cigarette manufacturing machines, cigarettes are made in huge quantities in a fast and efficient manner. First the tobacco is transferred from it’s holding areas, this is normally called a silo. In the silo, the tobacco is processed to insure the fullest flavor of your cigarette. Then it is transferred to a machine that will cut the tobacco and divide it. The machine will divide the tobacco and roll it into cylindrical shapes. Then it is transferred on to another machine.
Similarly, offshore manufacturers incur expenses like shipping, inventory, communication, travel, training, permits, duties, tariffs, compliance with import/export restrictions and others which they may not incur in their country. This in the long run pushes the production cost.
Job-specific training brings value to companies but can be very complicated when it comes to making sure every worker has had the best training possible to effectively produce the best products for customers. Especially in the manufacturing industry, efficiency is key and if products are not consistent with quality, they will be worse off in the economy.