In August of 2012, I penned a post on labor costs stating “labor costs are no longer a primary factor in determining where business should locate.”
This quote was framed within a general discussion of factors used in selecting business / manufacturing criteria for determining where to locate. In hindsight, a more precise statement would have been “automation / robotics are eliminating labor costs as the primary factor in determining where a business should locate”.
In that post, I stated that robotic operating systems cost initially $250,000 per year, and concluded:
Five years later, robotic systems are now priced at $100,000 to $150,000 with reconditioned systems costing half that amount – and with maintenance would translate into a cost per hour of $0.50 if the robotic system was used 24 hours per day. We generally think of robotics to be associated with manufacturing but it reaches into services as well – especially when …