Automation, broadly referring to the adoption of machines and computers in the production process has become increasingly more popular across many sectors and countries. For example, the market for industrial robots has experienced a dramatic expansion in the last couple of decades, as shown in Figure 1. Figure 1 Annual shipments of industrial robots worldwide (thousand units) 630 553 31- 421 381 294 254 291 Source: Modified from Exhibit 2 , McKinsey 8 Company, '36 159 173 Industrial Robotics: Insights into 1n the Sector's Future Growth Dynamics, Iuly 2019. '20 11! I11 113 B1 73 39 Note: Forecast 20182021 0 $000 2005 2010 2015 18F 19F 20F QGQIF At the same time, the prices of labour and robots have been changing. The case of the US manufacturing sector in the last few decades is shown in Figure 2. Figure 2: Robot prices and labour compensation in manufacturing in the US (1990=100) 220 Labor costs 200 130 Source: Tilley, Jonathan, "Automation, 160 Robotics, and the Factory of the Future\