Production technologies create jobs, not eliminate them

The process of production automation is often perceived as a threat to jobs. However, what you see in practice is quite the opposite, because technologies streamline businesses: they help expand production, launch new business lines and enter foreign markets. Of course, all of this is followed by the creation of new jobs in areas such as control over automated processes, development of new solutions and maintenance of IT systems.

The demand for such specialists is becoming noticeable in many regions, including Central Asia. According to the International Federation of Robotics (IFR), there are 182 robots per 10,000 workers in Asia, compared to 219 in Europe and 197 in North America. This means that the potential for automation in the region is significant. As a result, a transformation of the labor market here is required to streamline the redistribution of roles and the emergence of new professions related to the maintenance and development of automated systems.

Industries such as food production, logistics and pharmaceuticals have been actively implementing enterprise resource planning (ERP), RFID (Radio Frequency Identification) tags, manufacturing execution systems (MES) and analytics. These technologies help not only to control the overall quality of their products but also to ensure they meet all the requirements of foreign markets. For instance, to export such products to the Eurasian Economic Union (EEU) or the European Union (EU), a manufacturer must ensure its goods can be tracked and that its packaging is genuine. Without automated accounting systems and marking, this would be a very complicated task.

Let me give an example. One textile manufacturer in Uzbekistan reported a 70% decline in the time needed for inventory counting and cut the number of warehouse workers in half by implementing an RFID system. Notably, the company provided training for part of the displaced workforce and redeployed them to the quality control department, which was expanded thanks to growing production and exports.

One of the largest manufacturers of packaging in Central Asia has had a similar experience. In 2012, the company launched automation of its production processes, implementing an ERP system to count its inventory of raw materials and finished products. Later, they began using RFID tags to protect their packaging from fake products. They were the first to do this in the region.

Thanks to automation, the enterprise managed to arrange exports to six CIS member states. Moreover, the company reported a 50% increase in output, while its costs plunged by 40% per product unit. Over the past 14 years, the company has boosted its production volume 60-fold, providing steady jobs for 600 people. As the company grew, it embraced many initiatives – export expansion, development of high-tech solutions for packaging and implementation of quality standards for international markets.

Another aspect of automation is the changing structure of employment: routine positions disappear, while new professions emerge, such as quality control engineers, IT specialists and equipment operators. This helps businesses not just save money, but also constantly grow by investing in employee training and solidifying their positions in external markets.