Question 12: Robots improve the US industrial Production
I would like to discuss robots that bring manufacturing factories back to the US. The strong dollar and weak overseas economies continued to suppress demand for American-made goods in September. As the result, the US industrial production slipped 0.2% in September this year. (Josh Mitchell, Oct. 16, 2015) By estimating that the economy grew at around a 2% pace, the US economy still appears to be expanding.
In order to have competitive production in the US, we need advanced and flexible technologies such as programmable robots, which is called economies of scope. This reduces the US average total cost of production as a result of increasing the number of different goods produced.
For example,
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These are the initial investment, no results guaranteed, and the maintenance to keep robots running.
The initial investment of robots is significant, especially when business owners are limiting their purchases to new robotic equipment. For choosing manual or robots, we have to compare the costs of goods sold for both manual and robots, and then, identify what number of units it would be indifferent between the two operations like Question 9.
Incorporating industrial robots does not guarantee results. Without planning, companies can have difficulty achieving their goals. Like Question 10, the decision to use robots requires calculating the process capacility index for each process choice.
Lastly, robots need maintenance to keep running as well as employees training in programming and interacting with the new robotic equipment. This normally takes time and financial output.
In conclusion, with careful planning and calculation, robots can help the US companies be more competitive by reducing the manufacturing costs in the US. The US industrial production will improve as far as the US companies keep using technological innovation such as