Automation might be the solution to the current labour shortage in Poland. This investment can pay back within a year

Automation might have a good effect on the level of wages and salaries in the Polish economy. It may also solve the problem of labour shortages which impede the development of businesses. An industrial robot costs from several hundred thousand to million zlotys, but it is an investment with a short payback time – it pays back as quickly as within a year or two, thus increasing efficiency and giving the business a competitive edge. This, in turn, results in lower costs and extra revenues. In Poland, industrial robots are used primarily in the automotive, chemical and steel industries.

“The Polish economy is struggling with a shortage of workers who are easily replaceable by robots. Also, we are committed to supporting pay rises in the Polish economy. Pay rises can be stimulated through legislation but automation can have a very good effect on this aspect, too,” Maciej Kuczyński, PhD Eng., Omron Electronics, told the Newseria Biznes Agency.

Process automation is considered to be one of the possible solutions to the unemployment rate which has been consistently low over the past months. In a December report called “The robots are ready. Are you? Untapped advantage in your digital workforce”, Deloitte experts noted that organisations which have decided to embrace this technology early on are now reaping substantial benefits, such as improved efficiency and lower costs. This is a chance for businesses that are not expecting a higher supply of professionals at this moment, or cannot afford to increase wages ad infinitum.

“Automation responds to the market challenge of a shortage of workers willing to do heavy and arduous work. Of course, we can always get cheap labour from the East, but this will inevitably result in wages and salaries remaining fairly low. Automation is an alternative solution to this challenge, making us independent of paid labour. This opens up opportunities for investing in innovation. Also, increased automation gives businesses a competitive edge, leading to higher wages and salaries for less numerous staff,” said Maciej Kuczyński.

According to Deloitte’s report, more than half of the largest companies in the world have started implementing automation processes using robots. A further 19 percent of companies are planning to follow suit within the next two years. Global businesses have spent an average of USD 3.5 m on automation. Three-fourths (78 percent) of businesses are planning to increase their automation expenditures substantially within the next three years. Deloitte experts have pointed out that process automation will become commonplace in a matter of the next five years if automation investments continue at this rate.

Eventually, robots might replace a fifth of full-time employees (according to the  McKinsey Global Institute, robots will take over about 800 m jobs by 2030). Then again, businesses will be looking at higher revenues. According to Deloitte analyses, major companies (with a workforce of more than 50,000 and annual revenues of more than USD 20 bn) could earn USD 30 m in extra annual revenues by having robots do 20 percent of the jobs. This is exemplified by South Korea, one of the fastest-growing economies in the world, in which there are 530 robots per 10,000 employees (by comparison, in Poland there are 32 robots per 10,000 employees in all industries).