While technology is shifting the way businesses operate, a move towards automation does not have to come at the cost of jobs, says Australian mining and resources sector-focused manufacturer Keech CEO Dr Herbert Hermens.
“Some businesses are failing to see the opportunity that automation brings – the opportunity to educate people and reskill the workforce is a move towards more speciality skills that we can then export to the rest of the world. This will bring significantly more value to their operations than simply cutting jobs,” he suggests.
A recent report from national nonprofit member organisation the Committee for Economic Development of Australia claimed that 18.4% of the workforce had a “medium probability” of losing their jobs in the next two decades, but Hermens believes those worrying about the future of Australian businesses are missing the point of this report.
“Automation should be used to strengthen Australia’s position in the global market, as it will allow us to be more nimble and quick to respond to changing trends,” he states.
Over the past five years, Keech – which predominantly services the mining and resources sector – has seen about 10% growth in a market that has been in steep decline.
“Keech invests 7% of its turn- over into research and development and we’ve thrived for more than 80 years through constant adap- tation,” Hermens says.
Automation is on the agenda for Keech, which specialises in making steel castings and wear-resistant products for the mining, construction, industrial, agriculture and rail industries, and which recently expanded its capabilities through the adoption of industrial three-dimensional printing.
“We’re moving a substantial percentage of our manufacturing processes to an automated system. Put simply, we’re embracing automation to improve market share, have better control, better quality products and improve our global position.
“This is not just a cost cutting exercise. Our goal is not to shed staff. We’re implementing a training programme to reskill and redeploy staff within the company. We hope to continue the move towards automation in our foundries over the next 15 years, but foresee no real reduction in labour over this time. This cost will be absorbed in our growth,” Hermens says.
He is adamant about the need to upskill Australia’s workforce and believes that the Australian government and private entities alike should take an active role in stimulating the manufacturing sector.
“There is an urgent need for additional emphasis on science, technology, engineering and mathematics courses, and a move for young people towards earlier engagement and training so they can continue to add value,” Hermens states.
According to Hermens, business leaders need to be working with their management teams to bring them along the journey and employees should be working hand in hand with their employers to secure training and redeploy their skills within operations.