The existence of global industrialization

The Impact of Robots on Global Industrialization

The continued existence of global industrialization is primarily reliant on the utilization of machinery and technological breakthroughs. Today's industries are increasingly relying on robots to offer labor rather than human labor. The efficiency of using robots is determined by the system controls in place, as well as the monitoring and maintenance of robots. Changes have been unavoidable throughout the last century, such as the preference for agricultural equipment over horses in food production. It is quickly becoming acceptable for industries to invest capital in robotic advances. Human work is being replaced by robots because the long-term cost of using robots is lower. The increased supply of robots into the market causes a decrease in their prices hence human labor could be displaced.

The Cost and Productivity Benefits of Robotic Use

The initial cost of using robots in the industry is high as compared to using human labor as with any other innovation which is at the introduction stage. However, with continued usage of the profits gained from using robots grows and substitutes capital on the vertical axis as an input and is scaled against labor. Productivity increases with the use of robots since the labor cost gradually decreases and the quantity produced increases. The amount of wages the industry pays for human labor will fall lower than the minimum wage bill since human labor is being substituted with the marginal increase in robot use. The effects of such substitution is that the policies regarding labor laws will be adjusted to favor the laborers within the industry.

The Future of Robot Use in Industry

The fact that the rate of robot use as a replacement for human labor is still low in America will be affected as the production costs continue to reduce. With higher quantities produced in the industry, the profits will increase and part of it will be reinvested in the innovative robotic researches. Assuming that the firms in the industry aim at maximizing outputs they will be interested in reduced input costs and the efficiency of using robots. According to the theory of firm, the inputs available and the costs are low while using robots will affect the price of human labor. This, however, does not mean that human effort will become obsolete just as the horses still had a necessary role in the 20th century agricultural era.

The Impact on Employment and the Economy

The automation of industry operations with the increased use of robots will affect the demand of human labor. The supply of the robots shifts to the right and the prices reduce marginally. The optimal price of labor will be determined by the supply and demand curve, and it may be lower than the prevailing wage bill in the country. The implications of the reduced price of labor are that the level of unemployment will increase in the country. However, with reduced employment opportunities, individuals might opt to venture into personal businesses, thus, establishing a private sector, which still promotes the global economy. Just like some of the horses become valuable for alternate use, these individuals can invest in alternative industries.

The Role of Robotics in the Global Industry

The global industry is interested in financial returns and hence the use of robotics is inevitable. Individual firms within the industry aim for a competitive edge against each other and hence invest heavily in robotics innovation and research. The cost of production includes all the inputs among which labor is key. Once a firm is able to lower the cost of labor, it is likely to increase profits accrued within a certain time period.

The Benefits of Embracing Robotics in Industry

In conclusion, robots are able to improve the productivity within the industry through the substitution of human labor. Marginal change in quantity produced through the use of robots result in a marginal reduction of the cost of human labor. Using robots will enable the firms to save costs and invest capital in other sectors. The supply of robots into the industry will result in reduced costs of labor which may be below the minimum wage bill. The use of robots in the industry ought not be feared by individuals, but rather embraced positively since it allows for other industrial sectors and private investment.

The Role of Human Labor in the Robotic Era

The customers will prefer low product prices which will be attained by firms which are having reduced production costs by using robots. Individuals should realize that the substitution of labor sources does not necessarily mean that human labor will become obsolete. Human input is valuable even in the robotic era since robots require configuration and maintenance. Since innovation is necessary in the robotic era, individuals should invest in research and private business sectors. Change is inevitable and responding positively enables the global industries to grow and the welfare of the people improves.


“Will Robots Displace Humans as Motorized Vehicles Ousted Horses?” The Economist, April 1, 2017.

“Economic Models.” Boundless. Accessed August 9, 2017.

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