An Eye On Automation

A month following the White House’s report on Artificial Intelligence, Automation, and the Economy – we have our own take on where Automation is heading for the Consumer Packaged Goods (CPG) landscape in the not too distant future.

Boiled down, one theme among all five primary economic effects is sporadically impacting, but consistent amplification of change.  Just as innovation, technology, and data are snowballing in activity – so, too is change.

And, while this may be the year of the bot, AI, automation within manufacturing and uneven economic impact are altogether nothing new.  However, it’s worth noting the increasing velocity of change, the attention given to it by our government and media, and most importantly – how to best position yourself and your company to take full advantage of our shifting CPG environment.

5 Primary Economic Effects of AI, Automation & Economy:

1. Positive contributions to aggregate productivity growth;
2. Changes in the skills demanded by the job market, including greater demand for higher-level technical skills;
3. Uneven distribution of impact, across sectors, wage levels, education levels, job types, and locations;
4. Churning of the job market as some jobs disappear while others are created; and
5. The loss of jobs for some workers in the short-run, and possibly longer depending on policy responses.

As for the CPG industry, and equipment involved within its supply change – we’ve seen also seen a growth in the churn rate for equipment and projects starting, stopping, or ramping up based upon success and failure.

Just as anyone else, we’ve adapted to what’s worked and what hasn’t – but also have adapted our services to reflect the same state of flux for our customers.  That is, equip our customers for change with flexible payment plans, rental terms, and speed to market manpower and machinery.

The report goes on to suggest three broad strategies for addressing the impacts of AI-driven automation across the whole U.S. economy:

1. Invest in and develop AI for its many benefits;
2. Educate and train Americans for jobs of the future; and
3. Aid workers in the transition and empower workers to ensure broadly shared growth

With ever-disruptive technology shifts, our business environment like any other is increasingly more fluid.  The ability to be nimble, minimizing bad investments, and maximizing good ones is the key to success.

CPG companies will continually need to quickly adapt & innovate to stay digitally connected with millennial consumers, while being able to react to the data they receive directly thru purchases or indirectly thru other digital trends and data.

When data reveals what’s working, what’s not – those with access to this data will focus their horse power on what is working and re-allocate or discontinue resources from what is not.  So, having data and flexibility to adjust to data is the one-size-fits-all model to future success.

As Winston Churchill said, “A pessimist sees difficulty in every opportunity, an optimist sees opportunity in every difficulty.”