Anatomy of Automation: CNC Machines and Industrial Robots in UK Manufacturing, 2005-2023

Aniket Baksy, Daniel Chandler and Peter John Lambert
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Aniket Baksy: University of Melbourne
Daniel Chandler: LSE
Peter John Lambert: LSE & University of Warwick

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: Using a novel proprietary survey of UK manufacturing sites, we study the impact on employment of arguably the two most important industrial automation technologies of the past fifty years: computer numerical control (CNC) machine tools and industrial robots. First, we document the growing prevalence of both technologies across a wide range of industries between 2005 and 2023. Second, we use a local-projection difference-in-difference design to show that plants that adopt these technologies for the first time increase their employment by 6% to 9% compared to non-adopting plants in the same industry. Third, we find that for both technologies, automation is associated with an increase in employment among industry-competitor sites, and a positive overall impact on industry-level employment.

Keywords: Automation; Manufacturing; Employment; Technology Adoption; Robots JEL Classification: J23; L60; O33; D24; J63 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-ind, nep-inv and nep-lma
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https://warwick.ac.uk/fac/soc/economics/research/c ... tions/wp778.2025.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:778

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