Bill Klaus, president of AEC Magnetics, has spent 42 years in automated manufacturing. His company was founded in 1961 specifically to provide magnetic solutions for automated manufacturing. Bill took a few minutes away from designing custom power supplies this morning to talk about trends he expects to see in the new year.
There is a lot of new technology being touted in manufacturing. Would you say that embracing new technology will be the biggest automated manufacturing trend in 2024?
While the new technology is exciting and will certainly be a welcome manufacturing tool, I believe the biggest trend in automated manufacturing next year will be the substantial labor challenge. 2023 saw about 10,000 retirees a day. This is a mass exodus of experience and talent. Add to that the shrinking pool of available workers, and the impact on manufacturing is enormous. I've read one projection that by 2030 there could be more than 2 million jobs unfilled. These numbers iindicate a substantial workforce gap. AEC Magnetics automated solutions bridges that gap by automating manual, repetitive and dangerous tasks. We have known for years our automation equipment mitigates high turnover in production, makes the manufacturing floor safer and allows current employees to transition to more skilled roles, or frees them up for other jobs in the shop. I can tell you this is definitely how it works successfully. I work directly with the manufacturers to design and build solutions that have a low barrier to entry. The operators readily adapt. It is a win-win for the employee and employer.
Do you see 2024 bringing large capital investments to AEC Magnetics?
What we have seen in 2023, which will continue in 2024, is a continuing, gradual evolution in industrial automation. This has actually been going on for 30 years or more. There have been times when high through-put manufacturing required big, complex investments and technology, but we think we will continue to see an increased demand for automation solutions that are simple, affordable and will ease the labor shortage. These solutions are often, if not always, complimentary or companion-type technologies that enhance manufacturing.
What other trends do you see in automated manufacturing?
The perception that automation will displace jobs and render humans unecessary will decrease. Humans will always have a place in manufacturing. Fewer than one in ten manufacturing jobs are completely automated; those that are typically open up other opporunities instead of replacing employees.
In 2024, I see automation--due to the labor shortage--becoming more of a "need to have" rather than a "nice to have." The benefits of AEC automated manufacturing solutions will be very easy to see in the challenging economic conditions predicted for 2024.
Any other thoughts?
There is absolutely game-changing technology coming in 2024. AI, for instance, Do-It-Yourself automation, MAP programs for integrating engineering sosftware and modular hardware--all of it will become more of a part of the landscape in 2024. AEC, however, sees the trend continuiing for scalable automated solutions that integrate seamlessly into a manufacturing process rather than an enormous transition to a completely automated shop. This is exactly what AEC does.
Please, call me, Bill Klaus, and I will take all the time necessary to listen to your automation challenges and work with on on solutions, (800) 635-3954.