The role of AI and Automation in addressing labor shortage

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Canada (Commonwealth Union)_ In the heart of Toronto, the Canadian Manufacturing Technology Show is set to unveil a transformative message of hope and progress for the manufacturing and construction sectors. Organized by SME, a stalwart in North America’s manufacturing industry, this annual event is poised to address a pivotal issue – the pressing labor shortage – with the aid of artificial intelligence and automation.

Julie Pike, the astute senior director of event strategy for SME, spearheads the drive to dispel misconceptions about AI. She acknowledges the natural human inclination to resist change, particularly when it involves groundbreaking technology. Julie emphasizes that AI isn’t here to replace jobs, but rather to alleviate the burdens shouldered by workers. By introducing streamlined systems, technology liberates human capital, allowing it to be redirected towards areas of growth and expansion.

Last year, a study by Canadian Manufacturers and Exporters revealed staggering economic losses of nearly $13 billion due to labor and skills shortages. A staggering 62% of manufacturers surveyed reported losing or rejecting contracts due to inadequate workforce, resulting in a colossal $7.2 billion in lost sales. In a parallel narrative, KPMG Canada’s report in June highlighted the acute shortage of skilled labor in nine out of ten Canadian construction companies, struggling to meet unprecedented demand.

The survey underscored digital technology as a beacon of hope in alleviating these shortages. However, it also exposed a reluctance within Canada’s construction industry to embrace new digital technologies, with nearly three-quarters of respondents feeling that the sector lags behind other countries in this regard.

For small-to-medium-sized companies, the journey towards integrating AI into their operations is a varied one. Julie cites the compelling story of Massimiliano Moruzzi, CEO of Xaba, an ingenious startup specializing in intelligent automation. With an AI platform, Xaba has revolutionized the creation of fully functional robotic car chassis, equipped with a synthetic brain that comprehends the intricacies of materials like carbon fiber. Through industrial AI software, Xaba’s robots excel in tasks ranging from welding and drilling to assembling and additive manufacturing. This breakthrough eliminates the need for extensive programming and time-consuming trial-and-error.

According to Moruzzi, Xaba’s technology is distinct from existing AI solutions. It facilitates genuine collaboration between humans and machines, allowing for problem-solving based on the machine’s own knowledge. This stands in stark contrast to AI that merely replaces human tasks.

Moruzzi astutely points out that current mechanization merely replaces jobs without creating anything novel. It’s akin to robots spreading jam on bread, a task that humans have mastered for generations. To advance, we must transcend this paradigm.

Julie emphasizes that industry leaders are committed to educating their peers on the immense potential of AI. With the scarcity of available workers, it’s imperative to embrace technology as an ally in maintaining productivity. She aptly likens the challenge to building and flying a plane simultaneously, stressing the need for manufacturers to adapt and thrive in this evolving landscape.

The Canadian Manufacturing Technology Show stands as a beacon of hope, a testament to the resilience and adaptability of Canada’s manufacturing and construction sectors. By embracing AI and automation, we pave the way for a brighter, more efficient future, where humans and machines work hand in hand to achieve remarkable feats. Together, we transcend the boundaries of what’s possible, propelling our industries into a new era of prosperity and innovation.

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