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Unleashing Efficiency: Harnessing the Power of Automation

By Manuel Macedo - Honeywell América Latina
CEO and President


By Manuel Macedo | President - Wed, 08/23/2023 - 12:00

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Technology has become an integral part of our daily lives, revolutionizing the way we work and enhancing our productivity. From scheduling emails to programming our coffee makers, automation has streamlined numerous tasks, making them more efficient and effortless. In the era of Industry 4.0, the combination of artificial intelligence (AI) and robotics has propelled it to new heights, offering immense benefits across industries. As we embrace this transformative technology, it is essential to understand its economic advantages, its role in sustainability, and the strategic integration required for maximum impact.  

Although there is an ongoing debate regarding the substitution of human labor with automation, this technology has actually exerted a positive impact on the economy and various industries. It enhances productivity, improves product quality, reduces production costs, strengthens risk management and, paradoxically, results in the creation of more jobs.  

Boosting Productivity

Manual tasks often consume a significant portion of employees' time, even 60 to 70%, diverting their focus from critical areas and hindering long-term efficiency.   By implementing advanced machine software solutions capable of operating 24/7 with minimal supervision, companies can unlock significant productivity growth. Studies have shown that automation can lead to annual productivity gains ranging from 0.2 to 3.3 percentage points. This not only enables quicker and safer task completion but also frees up valuable time for employees to explore new opportunities and engage in training and skill development.  

Enhancing Product Quality

Maintaining consistent high quality is paramount. Programmed robots offer precise control in manufacturing processes, reducing variability, and eliminating manual errors. This level of precision is particularly critical in sectors like pharmaceuticals, manufacturing, and food. By implementing automated quality management software, manufacturers gain real-time access to data, enabling them to optimize inspection measurements and ensure reliable quality control. The result is enhanced product quality, improved customer satisfaction, and streamlined processes.  

Cost Reduction Through Error Prevention:

Human errors are an occupational hazard in industries, often resulting in long-term financial burdens caused by incorrect assembly, initial set-up mistakes, measurement, and labeling errors, particularly in the manufacturing sector. Moreover, in the world of Industry 4.0, approximately 95% of cybersecurity issues can be traced to human error. Fortunately, intelligent automation helps mitigate these mistakes by identifying and addressing them before they escalate and require costly interventions. This has made a huge difference in industries where errors can have critical consequences. For instance, in chemical industries, it can yield savings ranging from 10 to 20 percent, exemplifying its transformative potential.

Driving Energy Efficiency

By regulating lighting, heating, cooling, and optimizing resource usage, automation may offer energy efficiency, ultimately saving resources. The Orlando Utilities Commission reports that 15% of a warehouse's operational budget is typically spent on energy expenses.   Consequently, the logistics industry is actively seeking sustainable solutions in conjunction with technology adoption. As for workspaces like buildings and offices, studies have shown that up to 50% of operating costs is solely attributed to energy consumption. Fortunately, smart building automation solutions can customize and regulate technical needs, optimizing energy usage and reducing costs.  

Effective Risk Management

Since the pandemic, businesses are more aware of the potential supply shock that global crises can create. As a result, automation in production, logistics and supply chain have gained relevance. To navigate current business challenges, companies must invest in mechanisms such as robust risk management programs that allow them to proactively anticipate and address potential risks before they happen. This includes identifying weak points in the processes, allowing stakeholders to collaborate on developing alternative strategies to mitigate risks effectively.  

Promoting Education and Employment

Automation in the Industry 4.0 landscape not only enhances profitability and expansion of companies, but also contributes to increased employment opportunities. The higher productivity achieved through automation translates to accelerated economic growth, more consumer spending, increased labor demand, and thus greater job creation. Additionally, it will boost tech-oriented education and careers to have a more specialized workforce. 

Thus far, we have evaluated the economic benefits of automation solutions in various industries; however, we are living in a transitional phase as we gradually incorporate more advanced and technological mechanisms. In addition to these promising prospects, the ongoing concerns regarding job losses have led to a skeptical outlook among some. While this fear and reticence are understandable, they likely stem from a lack of perspective and proactive planning. 

In order to achieve a successful integration of these solutions across industries and reap their economic benefits, companies must engage in strategic planning and coordinate with their human resources departments. That way, it will be possible to identify the strategic areas that could benefit, make investment plans, and give their employees more specialized education and training regarding automatization and digitalization processes. An example that supports this notion is evident in countries like Japan and South Korea, where, as of 2019, the utilization of robots and automation is among the highest worldwide, and yet they exhibit the lowest rates of unemployment. 

Nevertheless, it is important to mention that these sophisticated solutions require a significant investment that may not be easily affordable for developing countries. In such cases, it becomes imperative for governments and companies to collaborate and devise strategic ways to drive financing programs, starting with the country’s most strategic sectors, such as manufacturing.  

Once the tangible economic value is demonstrated, financial resources can be directed toward other industries. This cooperative effort will help facilitate the adoption of these technologies and ensure the broader benefits are realized across different sectors of the economy.  

Automation plays a fundamental role in the industry 4.0 landscape, offering a vast number of tailored solutions across different fields and industries. Nonetheless, the benefits will vary depending on the region and country´s income level, wage rates, demographic composition, and industry structure. It’s critical for governments to collaborate closely with industries and make strategic investments to ensure that these advantages contribute effectively to societal development. By aligning efforts and making informed decisions, stakeholders can harness the transformative potential of these solutions to drive progress and prosperity.  


Photo by:   Manuel Macedo

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