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December 9, 2016

Futurism: “Automation Is the Greatest Threat to the American Worker, Not Outsourcing”

Which is better and for who?

Political stories dominated 2016. Often the headline that is easy to sell to the public is often the one that ran. “Trump saves Carrier jobs” is a much easier sell to the public than  “Trump saves Carrier jobs, but only some because Carrier is now focusing heavily on automation.”

Futurism recently reported in their article,  “Automation Is the Greatest Threat to the American Worker, Not Outsourcing”

As part of the deal brokered by the Trump administration, 850 jobs will remain in Indiana and United Technologies will be awarded $7 million in tax incentives. In the interview with “Mad Money,” Hayes revealed that United Technologies will be making a $16 million investment in the plant, but it’s what the CEO said is the ultimate goal of that investment that’s key: “…to automate to drive the cost down so that we can continue to be competitive.

As Hayes elaborates in the interview, automating won’t be as cheap as moving to Mexico would be, but the result for many of the state’s workers will eventually be the same: “we will make that plant competitive just because we’ll make the capital investments there…But what that ultimately means is there will be fewer jobs.”

Carrier and its parent company United Technologies are not alone in this effort to move to automation. Nike and Apple, two well-known outsourcers, have been looking into moving their manufacturing efforts back to the States while favoring automating their production lines vs. hiring traditional employees.

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