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NLT StaffJan 30, 2024 4:25:25 PM3 min read

Navigating the Automation Revolution in Manufacturing: Insights from Research


The manufacturing sector in the United States is currently undergoing a paradigm shift with the aid of automation. Emin Dinlersoz and Zoltan Wolf conducted a notable research study that explored the consequences of automation on labor and productivity in the manufacturing industry, and New Light Technologies (NLT) played a significant role in it. In this blog post, we will dive deeper into the study's principal discoveries and highlight the important contributions of NLT to this critical research.


Understanding the Impact of Automation

The study dives deeply into the impact of increased automation in manufacturing plants on labor dynamics. The research findings reveal a dual phenomenon, which is a decrease in the labor share and an increase in higher wages for certain segments of the workforce. The decline in labor share is attributed to the fact that automation replaces some of the human workforce, resulting in a reduction in the number of jobs available. On the other hand, the increase in higher wages can be attributed to automation requiring a different set of skills and expertise, which are often in short supply, hence commanding a higher wage. 

These findings provide a valuable understanding of the evolving relationship between technology, labor demand, and compensation in the manufacturing industry. They show that while automation has the potential to improve efficiency and productivity, it also has significant implications for the workforce. The study suggests that to mitigate the negative impacts of automation, policymakers and industry leaders should focus on training and re-skilling the workforce to meet the changing demands of the industry.


Productivity Insights

Utilizing a sophisticated Constant Elasticity of Substitution (CES) model, this groundbreaking study provides a comprehensive and detailed analysis of the impact of automation on productivity. The research offers a fresh perspective on the conventional wisdom surrounding automation, challenging the widely held belief that it inevitably leads to job losses and reduced productivity. Instead, the study's findings suggest a positive correlation between automation and increased labor productivity, indicating that automation can enhance productivity by streamlining processes and reducing errors.

This aspect of the study is particularly relevant to NLT's focus on innovation and efficiency. By embracing automation technologies, NLT can significantly improve its operations and stay ahead of the competition. The study's results provide compelling evidence for the benefits of automation, highlighting its potential to transform the workplace and create new opportunities for workers. In light of these findings, NLT can confidently pursue its strategy of leveraging technology to boost productivity and drive growth.


NLT's Involvement and Broader Implications

NLT's active involvement in this research exemplifies our unwavering commitment to leveraging data-driven solutions to comprehensively understand and adeptly adapt to technological advancements. The study's consequential findings have significant implications for industry leaders and policymakers, providing them with a clear and actionable roadmap to confidently navigate the complexities of an automated manufacturing landscape.



The study conducted by Dinlersoz and Wolf, with the crucial involvement of NLT, represents a significant advancement in comprehending the transformative influence of automation in the manufacturing industry. We urge you to explore the entirety of this research to fully understand its implications for the future of manufacturing.

For a more comprehensive understanding of the study "Automation, labor share, and productivity: plant-level evidence from U.S. manufacturing" by Emin Dinlersoz and Zoltan Wolf, and to explore the full scope of the research, please visit the following link for detailed insights and analysis: Read the Full Research Article. This link directs you to the publication, where you can dive deeper into the findings and implications of this significant study.