App. B—Commissioned Background Papers
ROBOTICS AND ITS RELATIONSHIP —
Paine Webber Mitchell Hutchins Inc.
More attractive technology, the end of the baby boom, the need to modernize an aging manufacturing base and to reduce the use of labor more expensive than most o f our U.S.
and a more favorable tax structure will lead product, the robot, is likely to become a key
to increasingly building block
in the penetration this report is to interrelationship
of factory’ automation into the manufacturing world.
provide a framework for analyzing the
The purpose and its
This report is divided into several sections: . An overivew of the general status of U.S. manufacturing and the potential need for robots.
An analysis of current and potential uses of robots.
An analysis, of the robot
from the robot producers’ point of view, of the likely evolution market and key competitive factors.
of the impact of robots on manufacturing operations.
A discussion availability
from both the producers and users’ point of view of capital and potential financial incentive programs which could foster the
development of the robot industry.
OVERVIEW: REDISCOVERING THE FACTORY
Omllon ,muo,ng an onsultant Ioacomoany bebng
inflation, exploding energy prices and gyrating money markets. These factors contributed to a decade of sluggish economic growth, weak research and development spending and economic policies that favored consumption over investment, resulting real capital spending that significantly trailed the strong outlays of the 1960s.
1.5% productivity growth during 1973-79 was half our historic average, with some economists suggesting that labor may have been the only factor in the classical equation that contributed more to productivity growth since 1973 than it did from
naSbOQn ObtalnOd Blyln
t,m. IO ttme
The automated factory has been a dream of the manufacturing world.
in an exceptionally period of rapidly increasing
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Weobef Incofporaled a(fll,aled comoan,es andlor If?eof olf,cer~ dtreclors
may at \,mes h~ve ~
or trom cuslomefs
of the changes.
business has had to operate during most of the 1970s, a
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of OUY !nem
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manager, always pressured to improve output, has been influenced by classical economists who ranked technological advancement as the most important determinant
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