There is a notion circulating in the technology and manufacturing sectors that the rise of automation and artificial intelligence will lead to widespread job displacement. 

While that may be true at some organizations, there is also evidence suggesting that automation may help support job growth and employee productivity. One need only look toward companies like John Stewart’s MiddleGround Capital, which has deployed automated technology across factory floors that aims to improve employee livelihood, enable better work, and justify higher wages and expanded capacity. 

Automation may help support worker productivity by reducing dangerous or tedious tasks, helping address skills gaps and potentially creating new roles. These are all goals that MiddleGround Capital and like-minded organizations are striving to achieve. 

Replacing Dangerous Work With Creative Jobs 

Those outside of the manufacturing industry might believe that automation is a hindrance to factory floor workers. Artificial intelligence and automation may help enhance processes while reducing the need for some dangerous or tedious tasks. 

For instance, John Stewart and MiddleGround Capital work with a portfolio company that manufactures high-performance and racing components for the automotive and powersports industries. The forging area had long been a production bottleneck, requiring heavy manual labor in a high-temperature environment. According to MiddleGround Capital, its automation team completed the first phase of a robotic forging-press tending installation that helped address a production bottleneck, reduced downtime by approximately 15%, eased ergonomic demands on workers, and generated an estimated $9.07 million in enterprise value creation.

As Stewart explains: “Operational efficiency in this market doesn’t really mean job reduction. It means increasing output… we use this to raise wages for workers and train them in how to run the automation.” 

This type of shift may be occurring not only at companies such as MiddleGround Capital and its portfolio companies, but across parts of the manufacturing industry as well.

Upskilling Workers Via Automation and Creating New Jobs 

Another myth in the automation sphere is that jobs are being scrapped entirely, when in reality, workers in manufacturing often develop new skills and transition into different positions. This can include technical skills such as troubleshooting and operating automated systems, as well as learning to set up and maintain new equipment.

Furthermore, new types of jobs may also emerge. There appears to be an increase in roles in the manufacturing sector, including automation technicians, robot programmers, and system designers. From a managerial perspective, there also appear to be more engineers with a deeper understanding of automation, as well as business owners who are experienced in running automated manufacturing companies. As recently as 2021, the World Economic Forum estimated that 58 million jobs globally would be created as a result of automation. 

Upskilling the workforce can offer a variety of potential benefits. From a company perspective, it may support employee retention and operational efficiency by preparing employees to manage and operate automation systems. From an employee perspective, it may contribute to more fulfilling work, greater job satisfaction, and a broader range of career opportunities.

The Rise of Specific Automation Divisions 

In addition to roles expanding across the factory floor, there also appears to be growth in the number of higher-level automation divisions being created. These roles require higher forms of education and specific training, which is a boon to both job creation and the education realm. Human involvement remains important for areas such as interpretation, compliance, and oversight. These roles can also help determine where and how automation may be most effectively implemented.

MiddleGround Capital itself serves as a prime example. The company’s automation division has expanded since its inception in 2022, helping to create new positions for workers who previously operated in separate capacities. The company reports that the automation division now consists of 11 highly skilled team members, all of whom remain focused on searching for ways to implement automation at the companies that MiddleGround works with. 

The main objective for this division is to improve safety and enhance work for frontline factory workers. They approach companies to learn the subtle nuances that these workers deal with day in and day out, then develop automated solutions. And they always prioritize upskilling employees to new roles if their current role is being automated. 

The Bottom Line 

The development of automation and artificial intelligence is likely to continue, particularly in industries such as manufacturing and technology, where substantial investment has already been made globally.

Instead, greater peace of mind may come from recognizing that automation and AI are not necessarily replacing the job market, but can support workers and contribute to the creation of more meaningful roles across different levels of work.

Factory floor workers may find opportunities for less hazardous and potentially more fulfilling work, along with training that could support advancement into higher-level roles. Engineers and scientists may see growth in automation-related opportunities, while those in managerial positions may take on new responsibilities or divisions focused on overseeing automation implementation.

Investing involves risk and your investment may lose value. Past performance gives no indication of future results. These statements do not constitute and cannot replace investment advice.