The Future is Now...

This is a line from an excellent business movie by the Cohen brothers, The Hudsucker Proxy. If you have not seen the movie, I suggest that you do.

This post is not about the movie, but I do love that line. And this post certainly can apply to "The Future is Now..."

Elsewhere in this post you will find a link to a CNBC article titled "The World's First Humanless Warehouse is Run by Robots and is a Model for the Future.  Mujin is a Japanese firm that started at Tokyo University.  Mujin developed sophisticated controllers that can automate a warehouse and/or fulfillment center operation.

The system is in its infancy. The prototype was introduced at a recent Japanese technology show.  The product builds controllers and cameras that integrates with existing robotics.  It is a very impressive system.

The Mujin system already has its first customer, JD.com.  JD.com is the largest retailer and the biggest internet company by revenue in China.  That is a very impressive first customer. 

Now do think I am naive.  Automation in some form or fashion has been around for centuries.  And so have various economic "revolutions."  But this maybe the first one where the number of jobs eliminated could be greater than the jobs created.  Think about it. Every economic revolution I can think of (agriculture as it pertains to cotton, industrial, and information) all created more jobs than were eliminated.  Countries, states and localities adjusted as the best they could.  

No matter what you may think, the future is now. If you have toured a warehouse operation or a fulfillment center, you see employees scattered around perhaps busily packing and/or unpacking boxes received or prepping for shipment. They likely utilize forklifts and other equipment.  

Now, consider the Mujin system.  No employees, just the hum of of robotics and conveyors.  

So what happens to the employees?  High paying jobs with benefits are fewer and far between. Usually, they require considerable training.  

Over the past couple of years, I read that the trucking industry could soon be driver less, meaning up to 2.6 million drivers could be impacted.  In addition, 3.4 million laborers and material movers who work in warehouses and fulfillment centers could also be impacted. 

For economic development professionals, a couple of questions:

• Can we do anything?
• If so, what do we need to do today and tomorrow to offset significant job losses in these industries?

I realize to some this may come off as simplistic.  And they may have a point.  However, I think this economic revolution might be different. It maybe the first of many challenges economic development professionals may face when previous job growth industries start a substantial decline due to automation.  In other words, "the future is now."

Link to article:

https://www.cnbc.com/2018/10/30/the-worlds-first-humanless-warehouse-is-run-only-by-robots.html?__source=msn%7Cmoney%7Cheadline%7Cstory%7C&par=msn