OM in the News: Europe’s Move Towards Rare-Earths

Europe is trying to get itself on the global rare-earths map. Estonia, once a textiles hub for the Russian Empire, is now host to Europe’s biggest production plant for the kinds of rare-earth magnets needed in electric cars and wind turbines. It is part of Europe’s push to secure a foothold in a global supply chain dominated at every step by China, reports The Wall Street Journal (Nov. 16, 2025). Financed in part by the EU, the factory is expected to begin deliveries to companies in 2026.

Production of rare-earth magnets is expected to increase at the factory in Estonia, but it still isn’t expected to meet Europe’s projected demand.

The problem: Even at the new factory’s initial planned capacity of 2,000 tons of permanent magnet material, the plant will produce a fraction of what European manufacturers need. There are plans to scale up production to 5,000 tons, but that is still a long way from being enough to break Europe’s dependence on China. Total European demand is forecast to reach about 45,000 tons by 2030.  (Companies in the U.S. are planning to build more than 40,000 tons of capacity by 2030).

After China imposed new export restrictions for rare earths this year, the U.S. stepped up subsidies and other measures to support the industry, spurring a race to build out American mining, processing and manufacturing capacity. Rare earths are also essential to manufacturing many defense systems. European auto suppliers were already eager to diversify their permanent magnet sources before China’s move.

Rare-earth magnets are widely used in products such as electric cars and wind turbines

Europe prospered over recent decades in a global trading system that allowed it to import cheap gas from Russia and rare earths from China, powering its industrial base. But Russia’s invasion of Ukraine and China’s move to restrict rare-earth exports showed how dependent the continent had become on those countries. Europe has some rare-earth processing and recycling facilities but no active rare-earth mining. For now, EU producers are relying on customers being willing to pay a premium to avoid dealing with China’s restrictions.

Classroom discussion questions:

  1. Why does China exert such power over the rare earth supply chain and why is that supply chain so important?
  2. What else can the U.S. and EU do?

Meet Chuck and Barry at DSI in Orlando

Barry Render and Chuck Munson invite you to a special session at DSI-Orlando Monday, Nov. 24th at 10am in Magnolia 10. Here is the title: “An Exciting New Way to Teach (and Learn) Operations Management.”

Barry Render
Chuck Munson

To help you start the day, we will be serving fresh Krispy Kreme donuts and coffee in the session room. Or stop by the Pearson booth to say hello.

OM in the News: Aggregate Planning Using Seasonal Workers

Every year, hundreds of thousands of U.S. workers take on seasonal jobs during the holidays. This is one of the most popular aggregate planning strategies that firms use to deal with capacity, as is noted in Chapter 13 of your Heizer/Render/Munson text.

Holiday shoppers crowded a Kohl’s store in Wisconsin last year.

The retail and transportation-and-warehousing sectors typically rush to hire as they staff up for the holidays and let those workers go once the season is over. In the final three months of last year, the two sectors added 912,000 jobs. They then shed 858,000 jobs over January and February.

While the jobs are temporary, they provide an important source of income for low-wage workers, many of whom move from job to job over the rest of the year, writes The Wall Street Journal (Nov. 12, 2025).

This year, some of the companies that do the most holiday hiring have broken from their usual practice of advertising how many holiday workers they plan to hire. United Parcel Service, for example, said last year that it would hire 125,000 workers in its “holiday hiring spree.” This year, it hasn’t made an announcement. Also holding off: Macy’s, which said in 2024 that it would hire more than 31,500 seasonal workers, and Target, which said last year that it would add 100,000 seasonal jobs. (Both UPS and Target have laid off regular employees this year.)

Through October this year large companies have announced plans to hire 372,520 seasonal workers. That compares with 660,150 at the same point last year.

 But Portugalia Marketplace in Fall River, Mass., which nets about 30% of its annual business in November and December, calls for “all hands on deck”—as it wrote in a recent seasonal hiring posting for its warehouse that fills online orders. The grocer’s staff typically grows from 50 people to 60 near year-end as families shop for holiday groceries and the store hosts more events to attract visitors.

Classroom discussion questions:

  1. What other capacity options do firms have?
  2. Why is seasonal hiring slowing this year? Is it an AI issue?

OM in the News: The Electric F-150’s Short Life Cycle

The first Boeing 737 jet rolled off the assembly line 58 years ago, on April 9, 1967.  That is a long life cycle, given it has still not reached the “decline” phase in Figure 2.5 in your text. But the life cycle certainly looks a lot shorter for electric pickup trucks.

Ford is planning to scrap the electric version of its F-150 pickup, according to The Wall Street Journal (Nov. 7, 2025) which would make the money-losing truck America’s first major EV casualty. “The demand is just not there” for the F-150 Lightning and other electric trucks, said one dealer. Stellantis earlier this year called off plans to make an electric version of its Ram pickup. GM plans to  discontinue some electric trucks and sales of Tesla’s Cybertruck tanked this year. The trucks seemed a good bet amid booming EV demand and clean-air mandates that required automakers to sell fewer gas-guzzlers.

Ford halts production of the F-150 Lightning

The Lightning fell far short of expectations as American truck buyers skipped the electric version of the top-selling truck. Overall EV sales are plummeting in the absence of government subsidies.  Ford dealers sold 66,000 gas-powered F-Series pickups, and just 1,500 Lightnings, the fewest of any model. (Ford has racked up $13 billion in EV losses since 2023).

 When Ford launched the Lightning 5 years ago it promised a pickup as fast as a sports car and as affordable as a conventional truck. It would drive hundreds of miles on a single charge, and carry enough voltage to power a home for days. “It’s like a smartphone that can tow 10,000 pounds,” said  the CEO at the launch.

But truck buyers worried the pickups would run out of juice in the middle of a job or a long haul as their range is dramatically reduced when towing big loads or operating in cold weather.

GM has also lost billions on electric trucks after rolling out a string of them, including an electric version of the popular Chevrolet Silverado. GM has three electric pickups, and it sold about 1,800 of them last month.

Ford built up the capacity to make as many as 150,000 Lightnings a year. But the EVs cost billions to develop and manufacture, and are only profitable if they sell in large enough volumes, which they did not.

Classroom discussion questions:

  1. Where do you think all EVs are on the life cycle curve?
  2. Why did so many auto manufacturers misread the demand for electric pickups?

OM Podcast #42: An Interview with the Founders of Canada’s Simpla Foods

We’re back with another inspiring episode of the Heizer/ Render/ Munson OM Podcast.  In this episode, Barry Render sits down with Canadian entrepreneurs Katie Wookey and Ari Davis, co-founders of Simpla Foods, a plant-based yogurt company that’s redefining sustainability and supply chain innovation in the food industry.

Ari Davis and Katie Wookey
Barry Render

Barry explores how Katie and Ari turned a personal health journey into a thriving business now sold in over 300 stores across Canada. The couple shares their experience with co-packing and contract manufacturing, explaining how outsourcing production has allowed them to scale efficiently while staying focused on product development and sustainability.

 

Transcript

Have you subscribed to this podcast on Apple Podcasts? Just open your Apple Podcasts app, search “Heizer Render Munson OM Podcast,” and subscribe to get all our episodes delivered straight to your device!

Guest Post: Postal Service Life Cycle Decline

Prof. Howard Weiss shares his insights with our readers monthly.

As discussed in Chapter 2, when a product or service is in the decline stage of its life cycle, cost control is critical. Currently, demand for postal services is in the decline stage in many, if not most, countries. The decline is due to two main factors.

 Digital communication has greatly reduced the number of letters being sent. In the U.S., first class mail volume has dropped to 20% of what it was in 1997. Similarly, Canada Post reported a decline from 5.5 billion letters delivered annually 2 decades ago to only 2 billion today.
 Parcel delivery—once a potential growth area—has increasingly been dominated by private competitors such as UPS, FedEx, and Amazon, which can operate flexibly without the regulatory obligations imposed on government-run postal services.

As a result, national postal authorities are incurring substantial financial losses: $9.5 billion in the U.S., $1 billion in Canada, and $427 million in the UK. There are several ways to cut costs, and different countries are taking different approaches:

Job cuts The most obvious way to reduce costs is to reduce the number of employees. The U.S.P.S. has announced plans to eliminate 10,000 positions, largely through voluntary retirement incentives, while Deutsche Post in Germany anticipates cutting 8,000 jobs.

Close facilities The U.S. is considering closing some of its 31,000 post offices when their leases expire. Canada is going to close some mostly rural post offices. On the other hand, a new law in Germany requires the postal service to not close any of its current facilities.

Rural delivery
In the U.S., Canada and England the postal authorities are required to provide universal service to all addresses and for facilities to be open 6 days a week. In Germany the expectation is 5 days per week. Universal service is costly as it requires more time to deliver mail to rural areas than to urban areas.

Door to door delivery  Canada has transitioned many households from door-to-door delivery to centralized community mailboxes, a shift projected to save $300 million annually. A majority of Canadians already receive their mail through community, apartment or rural mailboxes.

Extended delivery times In some countries the required time to deliver mail may be increased. In Germany the expected time is now 3 days rather than the former 2 days. In all countries delivery of mail could be delayed by a day or more.

Classroom discussion questions:
1. What else can you suggest to save money?
2. Is it reasonable to expect the post office to deliver to very rural addresses?

OM in the News: The AI Revolution and Productivity

Most speculation about AI has focused on its potential to kill jobs and on the policies that government might implement to control AI. But it’s important to remember that our only window into the future is the past. From the colossal changes wrought by the Industrial Revolution to the Digital Revolution of the last quarter-century, improvements in technology have created an array of jobs that far exceeded—in quantity and quality—the ones eliminated, elevating standards of living.

In America growth during the Industrial Revolution was of biblical proportions, writes The Wall Street Journal (Nov. 2, 2025). From 1870 to 1900 real gross domestic product tripled, the population and labor force roughly doubled, and output in manufacturing grew sixfold. Per capita income rose by 110% between 1865 and 1910, while real wages of manufacturing workers increased an estimated 173%. Life expectancy rose by a quarter as inflation-adjusted costs of food, clothing and shelter dropped by roughly 50%.

During the Digital Revolution of the last quarter-century, U.S. GDP rose by 66%. Data show the extraordinary capacity of the American economy to absorb new technology. Since 2000 on average 5 million Americans have either been laid off or quit their job every month, but the economy has created 5.1 million better-paying jobs a month. This creative destruction isn’t new. In 1810, 81% of Americans worked in agriculture; today only 1.2% do. In 1953, 32% of Americans worked in factories. As real industrial production quadrupled, the share of the labor force in manufacturing declined to 7.8% in 2025.

Almost every discussion of AI calls for extensive economic assistance for those who are displaced. Yet this impedes workers’ transition to new jobs.

American exceptionalism—in which Americans are more productive and have higher living standards—depends in part on our extraordinary ability to adjust to change. Europe makes it hard to lay people off, which constrains the ability to create jobs. In China, most industrial subsidies go to noncompetitive industries, not to the potential winners of the future.

By letting the market system develop and absorb AI technology, we can achieve a second economic miracle, which will enrich America and the world.

Classroom discussion questions:

  1. Will AI create more jobs than it destroys?
  2. Will overall productivity measures improve in this AI revolution?

 

OM in the News: Building a Humanoid Robot

Armies of humanoid robots are poised to march into the world’s factories. But before they’re ready to turn a wrench, they must solve what Elon Musk calls “the hands problem.”

Creating the mechanical equivalent of the human hand is a challenge that has been stumping researchers for years, writes The Wall Street Journal (Oct. 27, 2025) . Replacing muscle and skin with motors and sensors is a critical step in making humanoids a versatile source of labor, potentially unlocking a global market that could reach $5 trillion by 2050.

The robotic hand of the future will need many sensors to emulate a human hand. Holding a pencil, for example, would require sensors along the sides of several fingers.

Tesla’s humanoid robot—called Optimus—is good at walking, but making hands that can match a human’s has been a far tougher job. “In order to have a useful generalized robot, you do need this,” Musk said. “You do need an incredible hand.”

Boston Dynamics has equipped its Atlas humanoids with hands that have only three fingers. They can form a palm that allows the robot to lift boxes or brace itself. One digit also can rotate to serve as a thumb, letting the robot grasp objects. The humanoid can pick up auto parts, pump a dumbbell and pluck a tissue from a box. But a robotic hand must make trade-offs between strength, dexterity, slenderness and ruggedness. Increasing one attribute can diminish another.

Industrial robots have relied on pincerlike hands for decades, and are still the most cost-effective form. MicroFactory (in San Francisco) produces a $5,000 robot that has two arms, one of which typically is equipped with a tool, the other with a 2-digit gripper that holds an object in place. That setup can perform most of the functions needed for electronics assembly, such as soldering, inserting screws or peeling off protective films.

The difficulties of re-creating the human hand lead to questions about why it is being done, given that the real thing already exists in humans.  The answer: the shortage of workers for factory and caregiving jobs is driving the need for alternatives.

Classroom discussion questions:

  1. There are almost a half-million open factory jobs in the U.S. Given the tight job market, will your students be willing to take them?
  2. Why are humanoid robots so sought after?

Guest Post: Southwest Airlines’ Boarding Overhaul–When Queuing Theory Takes Flight

Providence College Professor Jon Jackson discusses a topic that every flier understands.

For over 50 years, Southwest Airlines has stood out with its open seating policy—passengers lined up, boarded in order, and picked any available seat. That system will soon end. Starting in January, Southwest will introduce assigned seating and its first premium seats, as part of a major redesign of its boarding process. Internally called “Project USA,” this initiative is more than a marketing shift—it’s a deep operational rethink based on one principle: if queuing isn’t good, boarding isn’t good.

Southwest’s new boarding plan is a live experiment in queuing theory and process design, balancing efficiency with customer experience. Boarding is a significant driver of turnaround time—a key metric for airlines. Every minute saved at the gate means higher aircraft utilization, lower fuel costs, and better schedule reliability, writes The Wall Street Journal (Oct 13, 2025).

Astrophysicist Jason Steffen’s boarding process, which boards passengers in a diagonal pattern, minimizes blocking and maximizes parallel activity. Simulations suggest it could reduce boarding times by 30–50%, but it relies on strict compliance and passenger discipline—hard to guarantee in practice.

Southwest’s new system will use a variation of the WILMA method—boarding Window, then Middle, then Aisle seats—to reduce aisle interference and speed up boarding. This approach is validated by queuing research, though the Steffen process is even more efficient in theory.

Boarding an aircraft is fundamentally a queuing problem—a test of bottlenecks, flow efficiency, and human behavior. The new plan introduces nine boarding groups and two parallel lines to create a smoother, more predictable flow.

Classroom Discussion Questions
1. How do the WILMA and Steffen boarding processes differ in terms of efficiency, complexity, and customer experience? Why might Southwest choose a simplified version rather than the most efficient theoretical model?
2. What behavioral factors might reduce the effectiveness of Southwest’s new boarding plan, and how could the airline design around them?

OM in the News: AI and the Learning Curve

Scale drives efficiency—for almost a century, industrial planners have relied on this simple principle. In 1936 aeronautical engineer Theodore Wright discovered that costs fell in a predictable way every time production doubled. The more you produce, the cheaper things become, in part because the learning cost per unit declines. This is the topic of Module E in your text.

Artificial intelligence has accelerated this principle, writes The Wall Street Journal (Oct. 23, 2025). It is rewriting Wright’s Law, which assumes that experience follows production: You make mistakes, learn from them and improve. AI makes it possible for experience to come before production. Simulation can happen millions of times before a single box is shipped. Experience scales almost instantly at no real cost. The learning curve doesn’t only steepen. It collapses.

That means knowledge that once took decades of human trial and error can emerge in weeks, days, even hours. In a supply chain, this is a profound shift. Decisions about capacity, warehouse space, routing, technology adoption and risk management can be modeled, tested and optimized in advance. The costs of imprecise planning shrink dramatically.

AI is breaking Wright’s Law because the learning cycle is no longer physical but computational. Models can test, fail and improve millions of times faster than any team of human engineers. Experience can be generated in advance, and at negligible cost.

The implications for logistics are extraordinary. AI agents will negotiate, reroute and optimize flows of goods in real time. Traditional ownership models, fleets, warehouses and even labor could be replaced by dynamic orchestration of perfectly used assets.

This new golden age of logistics will unveil solutions to problems we may not even know exist. Wright’s Law still matters, but perhaps AI has broken it.  The challenge will be not building the tools but surviving the pace of their consequences.

Classroom discussion questions:

  1. Why can AI have this impact on learning curves?
  2. Besides logistics, which is mentioned in this article, can AI impact operations?

OM in the News: The AI’s Industry 100-Hour Workweeks

The explosive growth of artificial intelligence has forced leading tech companies to rethink their human resource strategies and job design, reports The Wall Street Journal (Oct. 23, 2025). As the demand for rapid innovation intensifies, organizations like Google, Microsoft, Meta, and Anthropic are relying on small, highly skilled teams to push the boundaries of AI development. These teams often work 80 to 100 hours per week, far exceeding the traditional schedules we discuss in Chapter 10, as they race to keep up with the pace of technological change.

Several researchers compared the circumstances to war. “We’re basically trying to speedrun 20 years of scientific progress in two years,” said one Anthropic scientist. “Extraordinary advances in AI systems are happening every few months. It’s the most interesting scientific question in the world right now.”

This environment has led to a redefinition of job roles and expectations. Rather than adhering to standard 9-to-5 or even the demanding “9-9-6” (9 a.m. to 9 p.m., six days a week) schedules, some AI workers describe “0-0-2” routines—working around the clock with minimal breaks. The pressure is especially acute for those directly involved in developing new AI models, where the unpredictability of research outcomes and the speed of breakthroughs require constant adaptability.

To support these extreme demands, companies are adapting their HR strategies. Some provide weekend meals and ensure continuous staffing, while others appoint rotating “captains” to monitor model outputs and oversee product development. These measures aim to sustain productivity and manage burnout, acknowledging that the traditional boundaries between work and personal life have blurred for many in the field.

Job design in this context emphasizes autonomy, intrinsic motivation, and a sense of mission. Many top AI researchers are driven not just by compensation but by the excitement of discovery and the belief that their work is shaping a pivotal moment in history. This self-motivation reduces the need for formalized overtime requirements, as employees willingly invest extra hours to stay ahead in the competitive landscape.

But this also raises concerns about sustainability and well-being. While some workers have become wealthy from their efforts, most have little time to enjoy their success or maintain relationships outside of work. The model raises questions about long-term retention and the potential need for more balanced, human-centered HR strategies as AI becomes further integrated into mainstream business operations.

Classroom discussion questions:

  1. Your comments on the 100 hour workweek?
  2. Is this a valid human resource strategy?

OM in the News: Amazon’s AI-Robotics Warehouse Revolution

 

Amazon is rapidly transforming its e-commerce fulfillment operations through a bold integration of artificial intelligence (AI) and robotics, reports The Wall Street Journal (Oct. 23, 2025). The company’s vision is clear: make human workers more efficient while automating repetitive, menial tasks. At the heart of this shift is Amazon’s Shreveport, Louisiana facility, which now boasts ten times as many robots as a typical warehouse. This leap in automation enables packages to move through the system 25% faster, with anticipated cost savings passed on to customers.

Safety and efficiency are top priorities. Robots now handle tasks such as sorting packages, transporting carts, and retrieving out-of-reach items. Amazon is also investing in its workforce, offering apprenticeships to train employees in managing these advanced systems. The company’s latest innovations include Blue Jay, a robot arm designed for sorting in tight spaces, and Eluna, an AI agent that helps managers optimize staffing and avoid bottlenecks. Blue Jay’s rapid development—just over a year, compared to 3 years for previous models—was made possible by generative AI, which allowed for virtual prototyping.

The company aims to deploy Blue Jay robots in urban, space-constrained warehouses, enabling same-day delivery networks that are both faster and more cost-effective.

These advances could save Amazon billions annually. By the end of next year, nearly 40 fulfillment centers will be equipped with robots, with an estimated to $4 billion in yearly cost reductions. This automation trend is expected to reduce the need for both warehouse and white-collar workers. In fact, the average number of workers per facility dropped to around 670 in 2024, the lowest in 16 years.

Amazon is testing augmented-reality glasses 

Amazon’s automation push extends beyond warehouses. Augmented-reality glasses are being tested for delivery drivers, helping them identify packages and navigate routes more efficiently.

Amazon’s journey began with its $775 million acquisition of Kiva Systems in 2012. Today, three-quarters of its deliveries involve some form of robotic assistance. The company’s latest announcements—Blue Jay, Eluna, and AR glasses—signal a new era where AI and robotics are supercharging logistics, reshaping the future of retail fulfillment.

Classroom discussion questions:

  1. How does Eluna work?
  2. Why is Amazon trying to eliminate warehouse jobs?

OM Podcast #41: Healthcare Supply Chains

In our latest podcast Barry Render is joined by Misty Blessley, professor of supply chain at Temple University, to co-host a conversation with Jennifer Taylor, Director of Contracts at Universal Health Services (UHS).

Jennifer shares her journey to leading procurement and sourcing at one of the nation’s largest healthcare providers. The discussion covers the challenges of transitioning industries, managing purchasing across hundreds of facilities, and navigating the complexities of tariffs and product allocations in healthcare supply chains.

Jennifer Taylor

You’ll also hear about UHS’s innovative internship

Misty Blessley

program designed to build a pipeline of young talent in supply chain management—and how it’s already producing full-time hires.

 

Barry Render

 

TRANSCRIPT
A Word document of this podcast will download by clicking the word Transcript above.

Have you subscribed to this podcast on Apple Podcasts? Just go to your Apple Podcasts app, search “Heizer Render Munson OM Podcast,” and subscribe to get all our episodes on your mobile device as soon as they come out!

Guest Post: Cyber-Enabled Cargo Theft On The Rise

Temple U. Professor Misty Blessley shares her insights with us today.

In Chapter 11 of your Heizer/Render/Munson textbook, cargo theft is identified among many risk categories. Given tracking and tracing technologies along the supply chain, how is cargo theft possible? Because thieves can outsmart digital logistics technologies.

Victims Guy Fieri and Sammy Hagar recently had two semitrailers carrying roughly 24,000 bottles of their Santo tequila vanish en route to a warehouse in Pennsylvania. Valued at over $1,000,000, only 11,000 bottles were recovered. It was not a smash-and-grab hijacking. To manipulate the logistics process, the thieves orchestrated a high-tech ruse by creating false shipping companies, spoofing GPS signals, and sending phony mechanical breakdowns. The drivers were diverted to a fake warehouse, but believed they were following valid instructions.

In such schemes, criminals exploit fragmented and non-transparent logistics networks—double brokering loads, creating illegitimate carrier identities, and manipulating tracking data. Cargo theft incidents involving fraud are on the rise, with the food and beverage sector being a frequent target. Here are two examples:

Yogurt/Plant-based Milk Heist: A load of refrigerated yogurt and plant-based milk was stolen in a double-broker fraud. Criminals used a stolen motor carrier number and a fake email to win the job, then rerouted the load and held the broker’s reputation hostage, threatening losses unless paid off.

Energy Drink Heist: A shipment of energy drinks was stolen after criminals used email spoofing and fake carrier identities in which the fraudsters created a near-perfect replica of a trusted company. They listed themselves on online load boards, won the contract, and successfully arranged pickup of the shipment. The load was rerouted more than 1,000 miles off course following false delivery instructions.

Supply chain managers must treat theft risk as integral to their supply chain risk model. Here are three suggestions:
1. Vet every carrier who will touch your product, including subcontractors and brokers.
2. Use redundant tracking systems.
3. Protect high-value shipments by using escorts and incorporating real-time verification checkpoints.

Reducing this category of risk is increasingly essential in a world where clever cyber-enabled criminals can hijack not with force, but with deception.

Classroom discussion questions:
1. The 11,000 recovered bottles were eventually distributed for sale after being deemed in good condition. Do you agree/disagree with this decision? Why?

2. Of the risk categories identified in the textbook, which risk reduction tactics are also beneficial in reducing cargo theft? How is cargo theft different from the other risk categories?

OM in the News: U.S. Manufacturing Resurgence Will Be Powered by Cobots

Once a luxury reserved for big manufacturers, smaller, smarter, more flexible and less expensive “cobots”—collaborative robots—are bringing automation to every fabricator, no matter the size. The slow, fragile recovery of American goods production wouldn’t be possible without them, writes The Wall Street Journal (Oct. 11-12, 2025).

The number of U.S. companies that make physical things reached a low point in 2014 and has grown since then. Yet they are trapped in a never-ending labor shortage as skilled workers age out, and young people fail to take their place.

China has the greatest number of industrial robots, including these at a factory in Nanjing.

China has become the de facto manufacturer of the world’s goods, owing not only to its enormous population of engineers, technicians and machinists but also its 2-million-plus army of industrial robots. Now the U.S. is attempting to claw back some of those contracts—called “reshoring”—and robots can in some cases quadruple worker output.

The push to bring manufacturing back to the U.S., and the demand for industrial goods to power America’s AI-fueled economy, are driving automation adoption and innovation. “Automation is key to reshoring, plain and simple,” says one CEO.

Cobots have become radically easier to program over the past decade, and now people can use a simple tablet interface to instruct them to perform specific sequences of actions. Programming the older robots common in automotive factories since the 1960s took years of training.

Cobots are part of a broader trend in robotics: Specialized robots that use sensors to safely navigate human environments. They can cope with more variability than previous industrial robots, which had no sensing abilities. This has been essential to the rise of Amazon and its superfast fulfillment, and now it’s coming to manufacturing.

China is indisputably the leader in high-volume manufacturing, and companies that want the biggest volumes of manufactured parts for the lowest possible price continue to send work there. And though many U.S. manufacturers can’t match their Chinese peers in volume, they are competing by using automation to tackle smaller batches of goods under tight deadlines. Manufacturers in the U.S. are now asking how to reshore the making of critical parts.

Classroom discussion questions:

  1. What is a “cobot” and how does it differ from a robot?
  2. Why has China become such a powerful manufacturing hub?