(NETWORK IN) I-U Kelley School of Business Professor Mark Frohlich says many factories put new equipment purchases on hold while they rode out the recession. The school’s annual survey of manufacturers shows they started spending again around 2014 and haven’t stopped — but Frohlich says this year, instead of replacing old or obsolete equipment, there’s a clear shift to upgrading with robots and other advanced manufacturing gear to boost productivity.
Frohlich doesn’t expect the robots to displace human workers. He predicts companies will try to move people to more skilled tasks while the machines handle the routine stuff. And he says humans will still be needed to keep the machines running properly.
The Kelley School expects a fifth straight year of higher profits when the books are closed on 2017 — the survey projects average growth of three-percent. Spending on new equipment is growing even faster, at eight-percent.
