Showing posts with label American Trucking Association. Show all posts
Showing posts with label American Trucking Association. Show all posts

Wednesday, March 8, 2017

If You Think Your Job Is One That Cannot Be Automated, You're In For A Rude Awakening

Via Duane of FreeMarketShooter.com,


It is pretty accepted knowledge that a number of lower-skilled jobs will disappear in the coming 5-10 years, due to the human element being replaced by autonomous machines. 



One of the most at-risk professions is that of Truck Driver, which as 13D Research points out, is one of the no.1 reasons you rarely (if ever) hear President Trump discuss automation in the workplace:





A widely circulated NPR graphic shows “truck driver” was the most common job in more than half of the U.S. states in 2014?—?in part because how the Bureau of Labor Statistics sorts common jobs, such as educators, into small groups. Indeed, truck driving is one of the last jobs standing that affords good pay (median salary for tractor-trailer drivers, $40,206) and does not require a college degree. According to the American Trucking Association, there are 3.5 million professional truck drivers in the U.S. Entire businesses (think restaurants and motels) and hundreds of small communities, supporting an additional 5.2 million people, have been built around serving truckers crisscrossing the nation. That’s 8.7 million trucking-related jobs. It also represents one of Trump’s most important voting blocs?—?working-class men.



And while it may be further out on the timeline, if you think your job requires a higher, special element of skill and mental acuity that just cannot be automated, you are probably very mistaken.  In fact, there are few (if any) jobs in which a machine would be inferior to a person.  And this is not as far out in the future as you may think.


Just imagine, how Truck Drivers would have reacted if ten years ago, you told them that they would be at risk of being replaced by a machine?  And this isn’t some far-off vision of the future… it is happening now:






But like many of the blue-collar jobs the President promised to save during his campaign, the future of these 3.5 million trucking jobs is less than certain. Fully automated trucks could put half of America’s truckers out of a job within a decade, The Los Angeles Times reported last year. This isn’t an imagined future. It’s already happening. Otto, an automated trucking company acquired by Uber, made a delivery of beer last year and has been approved to travel two routes in Ohio.


 


Last year, Noel Perry, an analyst at industry research firm FTR Transportation Intelligence, told The International Business Times: “Despite a shortage in high-quality drivers, pay hasn’t gone up in five years. Trucks are easier to drive.” So-called “soft-automation” features, like automatic braking and lane assist, mean the trucks can already be driven by less experienced operators commanding smaller salaries. Even ahead of automation, the profession is losing traction. Perry’s final remark to IBT strikes to the heart of the matter?—?“The free market produces jobs, the government doesn’t.”





Now imagine, telling lower level lawyers, doctors, programmers, accountants, etc, that their jobs are at risk now.  While many people would scoff at the notion, they are likely the same people who scoffed at the notion of trucks being automated ten years ago.  Denis Sproten explained a lot of the history and future of automation of labor recently:





A short introduction, first there were the luddites, destroying machinery, which automated mundane tasks. People tell us, we should be happy that we don’t need to do these anymore. This is all history, from which we moved on:


  • Working the fields / weaving: Let’s assume that required a machine with IQ 80 or MIQ of 80, production increased and more products were sold on markets, consumption increased, transportation was needed and distribution of goods into shops. More roads were needed etc, we found a replacement occupation in the next layer.

  • Working as a driver / service industry : assume it requires a machine of IQ 100-110, more complex tasks, product knowledge, navigation, forms to be filled, start of knowledge industry. These jobs are being replaced now as we get automated trucks, drones delivering, online shops replacing shops on the street.

  • Working in an office Knowledge Industry : assume it requires an IQ of 100-120, even more complex tasks, which involve creation of new products, design, programming, lawyers, accountants, doctors etc. We are not there yet, but we soon will have AI which can do basic tasks of doctors, writing news articles, design thinking, algorithms which categorise knowledge and lets you search it.

People are being pushed to become Data Scientists, AI programmers, math geniuses writing algorithms, all jobs which likely require an IQ of 130+. Programs can now write music and are starting to be creative.





The trend I see is that, yes we will be able to find new jobs, but they will require really highly intelligent people, which covers only a small percentage of the population, no matter how much education they have received. Maybe becoming cyborgs will be the answer, if we believe Elon Musk.



More “intelligent” machines below the scale of a true “A.I.” means a growing number of jobs will be “outsourced” to machines, and they will never be coming back.  Even now, you likely find yourself with less reason to visit the doctor, because you can just go on WebMD and see if there is a simple solution to what ails you.  Imagine that function being extrapolated across a series of machines at the basic level of medicine, to serve your needs for more common medical questions/issues.  Wouldn’t that eliminate the need for a significant number of medical professionals?


Medicine is just one example, because truly nothing is off limits.  “Humans Need Not Apply” explained this masterfully over two years ago – if you think your job is “safe” because “a machine could never do it,” you better think again.



(Note: This video is 15 minutes long, and while I’m hesitant to post lengthy videos, since the attention span of viewers for short clips drops significantly after one minute, you may reconsider your job security after seeing this one.)


All of this is a precursor to a topic I plan on discussing in the future – not if, but when, a machine is created that is as capable (or more likely, far superior to and more capable than) as a human being.  What will that machine look like and be capable of?  How will it view and process the existence of humans, and/or threat human beings pose to its own existence?  It is something you have seen in many sci-fi movies, and discussed by many billionaire business moguls and scientists.  Still, there are many aspects of A.I. that have not been touched on by the ongoing discussion, mostly related to how a machine would react, knowing that it is superior to its human creators.


In the meantime, while the machines created today and in the near future might not be more capable than their human creators, they are going to become exceedingly efficient at the jobs they are built to do.  And one of those jobs a machine might replace, is yours.  Whether this is something that a politician is willing to discuss or not, you should think long and hard about what it will take for a machine to replace you in the workplace, and what you will do with your life if that happens to you while you’re still in your working years.


Saturday, February 18, 2017

Why President Trump Does Not Tweet About Automation

Via 13D Research (13D.com),


"Fully automated trucks could put half of America’s truckers out of a job within a decade..."



A widely circulated NPR graphic shows “truck driver” was the most common job in more than half of the U.S. states in 2014?—?in part because how the Bureau of Labor Statistics sorts common jobs, such as educators, into small groups. Indeed, truck driving is one of the last jobs standing that affords good pay (median salary for tractor-trailer drivers, $40,206) and does not require a college degree. According to the American Trucking Association, there are 3.5 million professional truck drivers in the U.S. Entire businesses (think restaurants and motels) and hundreds of small communities, supporting an additional 5.2 million people, have been built around serving truckers crisscrossing the nation. That’s 8.7 million trucking-related jobs. It also represents one of Trump’s most important voting blocs?—?working-class men.




But like many of the blue-collar jobs the President promised to save during his campaign, the future of these 3.5 million trucking jobs is less than certain. Fully automated trucks could put half of America’s truckers out of a job within a decade, The Los Angeles Times reported last year. This isn’t an imagined future. It’s already happening. Otto, an automated trucking company acquired by Uber, made a delivery of beer last year and has been approved to travel two routes in Ohio.



Last year, Noel Perry, an analyst at industry research firm FTR Transportation Intelligence, told The International Business Times: “Despite a shortage in high-quality drivers, pay hasn’t gone up in five years. Trucks are easier to drive.” So-called “soft-automation” features, like automatic braking and lane assist, mean the trucks can already be driven by less experienced operators commanding smaller salaries. Even ahead of automation, the profession is losing traction. Perry’s final remark to IBT strikes to the heart of the matter?—?“The free market produces jobs, the government doesn’t.”


Drivers reportedly account for about one third of the cost in the trucking industry. Ostensibly, there isn’t much a president?—?even one as untraditional as Trump?—?can do to stop a company from making more money. Or is there? Which begs the question: How will automation, employment, productivity and Trump co-exist?


A few days after Trump “saved” 750 jobs at Carrier, Greg Hayes, CEO of Carrier’s parent firm, United Technologies, admitted that automation would eventually win out. During a CNBC interview with Jim Cramer, Hayes revealed: “We’re going to make a $16 million investment in the factory in Indianapolis to automate to drive down costs so that we can continue to be competitive. . .But what that ultimately means is there will be fewer jobs.


Thomas H. Davenport, professor in management and information technology at Babson College, opined recently for The Harvard Business Review:





“Trump knows virtually nothing about technology?—?other than a smartphone, he doesn’t use it much. And the industries he’s worked in?—?construction, real estate, hotels, and resorts?—?are among the least sophisticated in their use of information technology. So he’s not well equipped to understand the dynamics of automation-driven job loss.


 


“. . .The Art of the Deal’s author clearly has a penchant for sparring with opponents in highly visible negotiations. But automation-related job loss is difficult to negotiate about. It’s the silent killer of human labor, eliminating job after job over a period of time. Jobs often disappear through attrition. There are no visible plant closings to respond to, no press releases by foreign rivals to counter. It’s a complex subject that doesn’t lend itself to TV sound bites or tweets.


 


To be fair, it’s not just Trump who finds this a difficult enemy to battle; other politicians don’t engage with that much either. And there are several good reasons. . . One is that automation usually comes with corporate investment rather than cutbacks. Note that United Technologies announced a $16 million investment in the Indiana Carrier plant. Who wants to criticize that?”



As we have written, Trump’s number one priority is to get re-elected. To do so, he will have to keep the 8.7 million men and women in the trucking sector employed. At the same time, he has pledged to encourage foreign investment in the U.S. and to attract U.S. companies back to American soil, all with an eye to creating more jobs for Americans. To remain competitive, these companies will have to improve productivity, and the shortest path to increased productivity, is automation. But, even with vigorous training, the vast majority of America’s working middle-class, like the 3.5 million truckers who voted largely for Trump, cannot transition easily into the types of job created by automation?—?engineering, integration, IT.


Therein lies the dilemma facing America, and much of the developed and the developing world. The economy needs more productivity growth, not less. But it also needs to create jobs. Any politician who wants to appeal to the business community will be reluctant to provoke a war against automation. But, he cannot afford to see his key voter bloc displaced.


All of which begs the question: How can Trump insulate the status quo from the disruptive forces of automation and technology? Will he tweet to the perception or the underlying reality?