NZ Manufacturer September 2019

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September 2019

www.nzmanufacturer.co.nz

12-15 FACILITIES INTEGRATE

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VIEW 31 REAR Is technology

PRODUCTIVITY Are you leaving productivity on the factory floor?

making us less productive?

Worried about artificial intelligence? Productivity Commission Chair, Murray Sherwin, CNZM

Professional 3D CAD New Version 2019 released

We’ve been asked at the Productivity Commission to explore the impact of technological change on the future of work. This month we released New Zealand, technology and productivity – the first of four reports on the topic.

New file import/Export engine New Graphics engine More producve with large assemblies More drawing image opons Powerful dynamic seconing

We’ve been assigned the task because Ministers are genuinely troubled about the potential for emerging technology, especially robotics and artificial intelligence, to replace workers, undermine the security of work and working conditions, and in doing so, disrupt the labour market and the social order, and undermine wider community wellbeing. There is certainly no shortage of pundits telling us that most jobs will disappear or change fundamentally and that we should prepare for a very different future of work. Our approach is to try to understand what is going on so that we can respond to developments that are real, rather than imagined or assumed. What are the channels by which new technologies enter and diffuse through the New Zealand economy? Adoption of new technology happens as the result of decisions made by individual firms – large and small – across an economy. The ambition for improved profitability and growth are key drivers. We know that adoption of new technologies requires access to capital and may require other complementary investments as well. It’s not usually just a simple case of buying a new machine or computer programme; firms may need to reorganise their business or change their business model. That’s quite an investment and most firms don’t take those decisions lightly.

Firms will make decisions in the context of how well their industry and the overall economy is performing, and their owners’ appetite for risk. But we know that when firms adopt tech and improve their bottom line, the country’s productivity also improves, giving us higher income growth and increased resources to pay for the things New Zealanders’ value. Adopting new technology is not necessarily labour-replacing. It might lead to different types of jobs/tasks being required and more jobs if the firm expands. A lot of the newer research talks about artificial intelligence being better at some human tasks, freeing up humans for the work tasks they are better at. And there are certainly jobs for artificial intelligence that humans could never do. One example I came across the other day is from Norway, which has a large fish-farming industry. One threat to the industry is sea lice, which infect hundreds of millions of fish a year, feeding on their mucus, skin and blood. Infected fish are

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