Tuesday, May 6, 2025

AI vs labor

During the past 50 years while manufacturing was offshored the primary motivating factor was labor cost but thanks to technology and AI that is no longer the case. The move toward reshoring is prompted by the fact that the efficient operation in new factories is not determined by labor cost. When computers first came on scene the driving force was programmers but in this new world the need is for tradesmen. AI will be the new programmers. New factories will be much larger and contain much more technology. First it takes large numbers of skilled craftsmen just to build the facility. Then it takes others to build the machines that will build the machines to install in the factory. While engineers will lay out the plans, it will be workers who put the plans into effect. People will receive on the job training on how to operate the machines (robots) that build the finished product and it will be people learning on the job how to build the robots that build the robots. All of those jobs that left the country during the past 50 years will be coming back to build the future. Some jobs will be eliminated, some will be created and all jobs will be changed but as has happened throughout history since the start of the industrial revolution, more jobs will be created than lost. The biggest need will be for electric power and small nuclear reactors are ready to satisfy this need.

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