Industrial Automation in Developing Countries: A Global Game Changer

Industrial automation has often been seen as a tool of the privileged, available to manufacturing conglomerates and production facilities in the developed world. However, with technological advancements, industrial automation is now being embraced globally as an engine of economic development for countries worldwide, especially those in the developing market. In this blog post, we’ll explore how industrial automation has become a game changer for these countries – from its potential to elevate their manufacturing sector to its role in providing unprecedented opportunities for employment and entrepreneurship. By understanding what drives the successful integration of industrial robotics into societies worldwide, developing countries can learn new ways to transform their economies while addressing some social issues.

What is Industrial Automation, and How is it Different from Manual Labor in Developing Countries

Industrial automation refers to using advanced technologies to facilitate the production process in industries. This technology-based approach enables companies to optimize their production processes, which in turn leads to increased capacity, higher efficiency, and quality production outputs.

In contrast, manual labor involves employing human workers to handle the various tasks involved in the production process. Unfortunately, developing countries rely heavily on manual labor to produce goods cheaper. However, in developing countries, manual labor jobs are often characterized by poor working conditions, low salaries, long hours, and dangerous materials.

To illustrate, let’s take a look at some examples. In countries like Bangladesh, India, and Cambodia, where the textile industry is a significant employer, workers are typically paid low wages and work long hours in unsafe conditions. Some factories have limited ventilation, poorly maintained machinery, and inadequate safety measures, leading to frequent accidents such as fires, collapses, and other life-threatening disasters.

Industrial automation offers a solution to the risks that come with manual labor in these developing countries. Automating the manufacturing process reduces the workforce’s reliance significantly, thus eliminating the potential harm to their health and safety. Instead, machines handle most tasks, thus reducing the need for manual labor and considerably lessening the risks involved in the production process.

Advantages of Industrial Automation for Developing Countries in Terms of Cost Savings, Efficiency, Safety, and Output

Automating a workspace is often easier with the right people to do the job and can seem like a highly daunting task. It’s expensive, needs particular infrastructure, and requires a team to be trained to use the new equipment. However, once the shiny new system is implemented and finally produced, the benefits will also be built right along it. Here is what a country, whether developing or developed, may see during its switch to industrial automation:

Cost Savings:

Industrial automation presents significant cost-saving opportunities for developing countries through reduced labor expenses and increased operational efficiency. By replacing manual labor with automated systems, companies can minimize human errors, enhance production speed, and optimize resource utilization. This leads to lower production costs, improved profitability, and increased competitiveness in the global market. Return on investment will also play a significant role here, as these systems will pay off as quickly as the factory allows. Developing countries like India have witnessed substantial cost savings through automation in the textile industry. Automated weaving, spinning, and cutting machinery have replaced manual labor, enhancing productivity and reducing labor costs over time.

Efficiency:

Automation streamlines and accelerates manufacturing processes, resulting in enhanced efficiency and productivity. By automating repetitive and labor-intensive tasks, companies can achieve consistent output quality, higher production volumes, and shorter lead times. Additionally, automation enables real-time monitoring and data analysis, facilitating proactive decision-making and process optimization. Automation has been utilized by developing countries in the automotive industry to improve efficiency. By adopting robotic assembly lines and automated systems for parts manufacturing, production time has been reduced, and output has increased due to faster and more accurate production.

Safety:

Automation improves workplace safety by minimizing workers’ exposure to hazardous conditions. Repetitive or physically demanding tasks can be assigned to automated systems, reducing the risk of injuries and improving the overall well-being of employees. Additionally, automation allows for implementing advanced safety measures, such as sensors and interlocks, to prevent accidents and ensure compliance with industry regulations. Developing countries in the food processing industry have implemented automated systems for tasks like packaging, cutting, and sorting. By minimizing direct human contact with machinery and employing safety protocols, these countries have enhanced workplace safety and reduced the occurrence of accidents by up to 72%.

Output:

When switching from manual labor to robotics, one of the outcomes is the quality of the product being produced. While we have already mentioned that these robots and systems can automate a repetitive and tedious process to prevent harm and fatigue to a worker, the other consequence of this shift is a consistent product with tight tolerances. When implemented in a country where the product quality is often low or inconsistent, the change in that product’s fit and finish is significantly improved and much more noticeable than if it were to come out of a more modern factory that had recently switched to automation.

Challenges of Implementing Industrial Automation in Developing Countries

As with anything, switching from a legacy system to a much more modernized and specialized set of equipment could be as daunting as it is difficult. Just like shoes, robotics isn’t a ‘one size fits all’ situation, and the challenges will vary from site to site, city to city, and country to country.

Financial Constraints:

Industrial automation requires significant upfront investments in machinery, technology, and infrastructure. Developing countries may face financial limitations, making acquiring the necessary capital for automation projects challenging. Industrial robots sell for around $25,000 for an entry-level, while a more complex system could reach $100,000. Then, one must consider the infrastructure to install them and any supporting equipment. Limited access to affordable financing options and the high costs associated with technology acquisition can impede the implementation of industrial automation.

Skilled Workforce and Training:

Adopting industrial automation often demands a skilled workforce capable of operating, maintaining, and troubleshooting complex automated systems. Developing countries may need more skilled workers with expertise in automation technologies. Additionally, providing adequate training and education programs to upskill the existing workforce can be challenging, especially in regions with limited technical education and vocational training. For instance, in Brazil, only 18% of adults aged 25-64 have attained a tertiary education.

Technological Infrastructure:

Establishing a robust technological infrastructure is crucial for successful industrial automation. Developing countries might face infrastructure challenges such as unreliable power supply, inadequate network connectivity, or outdated machinery. Upgrading or building the necessary infrastructure to support automation can require substantial investments and coordination among various stakeholders.

Resistance to Change:

Implementing industrial automation often involves a significant shift in work processes and roles. Resistance to change from employees and labor unions can pose a challenge, as they may fear job losses or job insecurity due to automation. Addressing concerns, fostering a positive work environment, and providing clear communication and training are essential for managing this resistance effectively.

Regulatory and Policy Frameworks:

Developing countries may need more comprehensive regulatory frameworks and policies tailored explicitly to automation. Clear guidelines and regulations governing automation practices are necessary to ensure safety, ethical standards, and fair employment practices. Establishing these frameworks and ensuring compliance can be a complex process that requires collaboration between government bodies, industry associations, and other stakeholders.

Integration with Existing Systems:

Integrating new automated systems with existing infrastructure and processes can be a challenge. Legacy systems, incompatible technologies, and fragmented data management practices may hinder seamless integration. Developing countries may need to invest in system upgrades, data standardization, and interoperability solutions to overcome these challenges. This, however, ties back into the financial constraints category.

Maintenance and Support:

Adequate maintenance and technical support are essential for the sustained operation of automated systems. Developing countries may need help accessing reliable and timely support services due to geographical constraints, limited local expertise, or dependency on foreign vendors. This can lead to extended downtimes and unforeseen logistical problems in a typical labor-driven environment. Building local support capabilities or establishing partnerships with automation providers can help address this challenge. However, that would require multiple businesses and factories to switch to automation to be a sustainable business practice.

It’s important to note that while these challenges exist, many developing countries have successfully navigated them and made significant progress in implementing industrial automation. Overcoming these hurdles often requires strategic planning, collaboration among stakeholders, investments in education and training, and a supportive policy environment to drive technological advancements.

How Global Companies are Leveraging Industrial Automation to Enter New Markets

In the current era of technological advancement, global companies continuously seek innovative ways to expand their presence in new markets. One of the most effective ways for companies is by leveraging industrial automation. The application of intelligent machines in manufacturing and production has revolutionized how companies operate.

Industrial automation has enabled companies to achieve economies of scale, streamline production processes, and improve overall efficiency. For example, Mordor Intelligence states that in India, the current manufacturing sector contributes to around 17% of the country’s GDP, but with the help of the government pushing for automation, that could increase the share to 25% by the end of this year.

Another advantage of industrial automation in global expansion is standardization. Machines used during the production process can be standardized, implying that they can be easily replicated across various manufacturing sites worldwide, thus reducing production costs and lowering the barriers to entry in new markets. Furthermore, as industrial automation minimizes the need for human intervention, companies can reduce the risk of human error and improve their product quality control processes.

In addition to efficiency and standardization, industrial automation provides an avenue for global companies to enhance their sustainability agenda. Automation mechanisms are designed with energy efficiency in mind, leading to significant reductions in energy consumption and, as a result, carbon emissions.

As more companies develop products locally, industrial automation has become the backbone of their operations in new markets. For instance, Toyota produces different vehicle models in its factories worldwide, with the machines used in production being standardized for easy replication at multiple sites. Similarly, Apple has leveraged automation to produce iPhones in various factories worldwide, standardized in terms of production mechanism and infrastructure.

In conclusion, industrial automation in production has played a crucial role in enabling global companies to enter new markets and scale up efficiently. This innovative technology has enabled economies of scale, streamlining production processes, standardizing production mechanisms, and enhancing sustainability.

Closing Thoughts

Industrial Automation is a part of Industry 4.0 and is inevitable to shift into. While it had received early negative feedback from skeptics and workers, automation’s benefits are clear as day, especially for countries with grueling labor jobs to produce goods that a much safer system could easily replicate. While IA isn’t anything new, it is now on the fast track in countries such as India and China to significantly contribute to the nation’s GDP. Perhaps, with the rise of IA will come the rise of other countries that profit from this technology to become their global leader. Only time will tell.

This entry was posted on October 9th, 2023 and is filed under Education, General, Technology. Both comments and pings are currently closed.