Case Study Economic Feasibility of a Robot Installation

ABSTRACT The paper examines the economic feasibility of a robot installation in a metal industry located In the mid-west. The different viewpoints were considered: (1) the company's viewpoint and (it) the government's viewpoint. The results of the economic analysis indicated that the robot installation, though desirable from the company's viewpoint, 1b not always attractive to the government, especially if it leads to permanent unemployment of the displaced employees. However, when the displaced employees are relocated, with or without retraining, the robot installation becomes economically desirable from both viewpoints. The Impact of robot installations on employment displacement and the CNP is discussed and certain policy changes are suggested to make robotization of work places beneficial to all concerned.