A Chinese revolution concerning

There are reasons to be concerned about China, at least for its robotics revolution.

We are faced with an ever-evolving world spewing out groundbreaking technological advancements with the torrid pace of a tennis ball launcher on top. Pew: Autonomous cars. Pew: agricultural drones. Pew: portable translators.

Innovations advance every day, and while it is exciting to live in these revolutionary technological times, there is an important question we must ask ourselves…

Are we ready for this?

It’s something that comes to mind when I hear reports that Asia produces more robots than the rest of the world combined. China, in particular, is adding robots at an average rate of around 20% a year. To put that in perspective, around 650,000 new robots are expected to be installed by 2020.

Every week, I read new examples of that stat in play.

For one, Shentong Express, a Chinese shipping company, recently cut its labor costs in half by adding a fleet of tiny orange Roomba-style robots.

And in February, Changying Precision Technology (which makes mobile phones) made a similar leap into the shiny new world of automation. Previously, the factory was manned by 650 employees, but now only 60 people are required to do the job, and that number is expected to drop to 20 in the future.

That’s a whopping 90% drop in the human workforce thanks to robotics. And yes, it’s paying off: since transition, production has increased by 250% and defects have been reduced by 80%.

Again, that’s exciting and makes my inner sci-fi nerd excited about the possibilities. But there is a scary movie that tempers that emotion.

What about the displaced? How will they get a source of income and how will this affect our economies?

Chinese workers are dealing with that concern; in fact, it is not surprising that they fear being replaced by machines more than any other group. About 80% of Chinese workers surveyed by the ADP Research Institute earlier this year believed technology would replace jobs that require repetitive work. That handily beat the other 12 countries where the surveys were conducted.

Clearly, people are concerned, and there is a valid reason.

Economists expect 9-47% of workers in the West to lose their jobs to automation in the next two decades. And up to 40% of Fortune 500 companies could be gone in just a decade. Meanwhile, between 25% and 69% of jobs could disappear in China and India.

So again, the question becomes again: Are we ready for this?

I don’t claim to know the full scope of the changes that are coming, but I want to make sure that I am prepared for both sides of the equation: the good and the bad.

That is why I seek to benefit from companies focused on the Internet of Things, robotics and other innovations. We are experiencing a momentous period in history, and that will surely bring momentous opportunities.

At the same time, I want to be equipped for any short-term economic backlash that occurs as displaced workers try to find their place in the world.

After all, isn’t it wise to be prepared for whatever comes our way?