It's 2022, and fully automated factories and warehouses are now a reality.
Depending on whom you ask, the impact of automation on the workforce is estimated to be more or less severe. Some sources claim robots will replace 20 million jobs by 2030 (8.5% of the global manufacturing workforce), while others purport 25% of U.S. employment—as of 2016, 36 million jobs—will face "high exposure" to automation in the coming decades.
However, no matter the impact of automation, industrial operations still heavily rely on the human workforce. And even in the worst scenario, there will be enough employees working in industrial companies to justify investing in environmental health and safety (EHS) software and strategy.
Why EHS is and will be essential for businesses
EHS is critical for industrial companies for the following reasons:
- Hazardous materials will still be required in production and can have devastating effects on employees and the environment. The fashion and textile industry (especially fast fashion, or rapid production of cheap clothing) is one of the most polluting industries. It is estimated that textile dyeing and treatment generate 20% of the industrial water pollution in China.
- Robots can solve EHS problems but also create new ones. For instance, there is evidence that employees may ignore safety rules when pressured to keep up with robots. Furthermore, Amazon had to develop a special vest for its employees to make sure robots avoid them.
- Natural phenomena such as hurricanes or tornadoes will probably occur more often than ever due to global warming. Even cleaning after hurricanes can be extremely dangerous for workers, especially undocumented workers.
- Field employees and contractors are more exposed to danger as they travel and work in multiple locations. Of the 5,250 fatal workplace incidents that occurred in the U.S. in 2018, more than 40% were transportation incidents.
Companies need to adopt EHS because customers expect them to be environmentally friendly and treat employees properly. This is becoming an important consideration that may make consumers change their providers of products and services. For instance, research by Accenture shows that 66% of people choose brands based on how they source materials and treat employees.
Finally, a more pragmatic reason companies want to avoid accidents is cost. Any disruption to operations can be costly for manufacturers or supply chain companies. Not to mention that compensation and fines can be hefty.
| Related: Why Environmental Health and Safety Matters, More Than Ever → |
When the future is uncertain, EHS should be paramount
As industry 4.0 is moving toward automation and a significant reduction of menial work, businesses will adopt a proactive approach that is more likely to protect employees and the company in the long term. Companies will protect their brands by avoiding issues instead of trying to fix them after they occur. Employees will also be better protected; in companies' minds, they will be more critical and challenging to replace.
The evolution of EHS in industry 4.0 work environments will also rely heavily on technology (such as software) or intelligent infrastructure (such as the internet of things (IoT)). We estimate that the next 5 to 10 years will be a transition period from old to new technology. Most companies will probably use a mix of legacy software, new solutions, many devices, and advanced modern technology during this period.
Another significant trend that's already taking shape is the use of EHS software by companies of all sizes. While EHS has been designed and was traditionally used by large companies, the graph below shows that small and medium businesses use it more and more.
As a result, vendors will need to adapt so they can provide functionality for all companies and also include features for industry 4.0. Integration with smart equipment will also be critical for buyers and EHS users. Also, technologies like digital twins and AR/VR will be used to simulate work environments to help people and robots work better together.
Edited by Jigmee Bhutia
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Gabriel Gheorghiu
Gabriel’s background includes more than 15 years of experience in all aspects of business software selection and implementation. His research work has involved detailed functional analyses of software vendors from various areas such as ERP, CRM, and HCM. Gheorghiu holds a Bachelor of Arts in business administration from the Academy of Economic Studies in Bucharest (Romania), and a master's degree in territorial project management from Université Paris XII Val de Marne (France).
