Anatomy of automation: CNC machines and industrial robots in UK manufacturing, 2005-2023

Aniket Baksy, Daniel Chandler and Peter John Lambert

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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 (search for similar items in EconPapers)
JEL-codes: D24 J23 J63 L60 O33 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2025-10-24
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