It is an obvious point that the Covid-19 pandemic has accelerated the rollout of technologies minimising social contact. But recessions are an opportunity for labour-saving innovations too.
In the US, profit margins were under strain before the onset of the pandemic. Firms will come under intense pressure in 2021 to justify elevated share prices. This may, eventually, lead to a reversal in the current politically-driven rise in inflation expectations.
Robots are not always cheaper than human labour. But costs are falling sharply, stimulating a new wave of robotic installations.
Global orders for Japanese industrial robots jumped to Y59.4bn in October last year, just shy of the record.
How far robot sales rise over the next two years will depend largely on China, by far the world’s largest market for industrial robots. Clearly, the current Chinese manufacturing upsurge will provide a boost for robotics. However, China poses a double-edged sword for Japanese robot-manufacturers, as it bids to develop its own indigenous industry.
