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Armies of Helper Robots Keep Amazon's Warehouses Running Smoothly

jones_supa writes Amazon is continuing to maintain its vision of an automatic warehouse. Since acquiring robot-maker Kiva, a Massachusetts company, for $775 million in cash in 2012, the e-commerce retailer has been increasingly implementing automation at its gargantuan fulfillment centers. This holiday season, Amazon's little helper is an orange, 320-pound robot. The 15,000 robots are part of the company's high-tech effort to serve customers faster. By lifting shelves of Amazon products off the ground and speedily delivering them to employee stations, the robots dramatically reduce the manual labor to locate and carry items. The Kiva robots, which resemble overgrown Roombas, are capable of lifting as much as 750 pounds and glide across Amazon's warehouse floors by following rows of sensors. Because Kiva-equipped facilities eliminate the need for wide aisles for humans to walk down, eighth-generation centers can also hold 50% more inventory than older warehouses. As Amazon is doing well, the company says that increase of automation hasn't yet led to staff reduction.

110 comments

  1. not staff increases, either by turkeydance · · Score: 2

    as Amazon grows, no need for more.

    1. Re:not staff increases, either by i+kan+reed · · Score: 1

      That's not entirely true. They've been hiring developers pretty consistently.

    2. Re:not staff increases, either by DNS-and-BIND · · Score: 2, Insightful

      It's a lose-lose situation for Amazon. If they were expanding warehouse staff, you'd be screaming because the work is cruel and unusual punishment. Now they're not, and you're screaming because they're not creating more jobs. Amazon can't win - and this is by design.

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    3. Re:not staff increases, either by m.alessandrini · · Score: 1

      Well, you can not force a company to hire more people, nor blame it for optimizing their warehouse. It they're really not firing people, that's a good thing. I guess their business is growing, too, so to compensate the reduction in manual labor.

    4. Re:not staff increases, either by __aaclcg7560 · · Score: 1

      When Amazon stops growing, investors will demand profits and find none.

    5. Re:not staff increases, either by Anonymous Coward · · Score: 0

      they'll raise prices by 5% and suddenly have 5% profits

    6. Re:not staff increases, either by Anonymous Coward · · Score: 0

      Amazon has always been designed to expand: build distribution centers, lower shipping costs, then add new items and services to sell. The plan has always been to disrupt retail, and the only way to do that is by selling everything more efficiently than everyone else. Whether that helps society as a whole is up to us to deal with.

    7. Re:not staff increases, either by Shoten · · Score: 1

      Well, you can not force a company to hire more people, nor blame it for optimizing their warehouse. It they're really not firing people, that's a good thing. I guess their business is growing, too, so to compensate the reduction in manual labor.

      Well put. On the other side of it, I don't see how it should in any way be a surprise to anyone who knows Amazon at all (like their warehouse employees) that this kind of thing would be on its way. There is a certain reality to the fact that people must grow and evolve their skills to maintain their own employability no matter what their career path.

      A more cynical, if not entirely inaccurate, way to describe the other side of that equation is this.

      --

      For your security, this post has been encrypted with ROT-13, twice.
    8. Re:not staff increases, either by WindBourne · · Score: 1

      Amazon is a LONG WAYS AWAY from not growing.
      In addition, they will be back on profits in about 2 years or less. This investment is smart on their part. Damn Smart.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    9. Re:not staff increases, either by Anonymous Coward · · Score: 0

      Trolling? Or do you think there is some natural law that says warehouse work has to be cruel and unusual?

      If you go to the stockroom/warehouse at a medium sized store or a small factory you'll find a few warehouse workers who plod along through their day and aren't rushed by whip. At least that's been my experience. I'm sure they get a little less done and earn a little more than the harried and miserable people at Amazon but the work gets done just fine. Investors can live with 1% lower profits, and customers can live with 1% higher prices. No need to treat the staff like garbage.

    10. Re:not staff increases, either by __aaclcg7560 · · Score: 1

      Unless Wall Street decides otherwise. Amazon wouldn't be the first tech stock to collapse from a lack of profits.

  2. Jobs & buying by Anonymous Coward · · Score: 0

    Someone at Amazon should engage in deep thought. With robots doing most of the work, who is going to have jobs that give them the money to buy from Amazon?

    And this is coming on top of a long list of Obama administration schemes (i.e. Obamacare and raising the minimum wage) that are making automation more appealing not just to businesses but, in the long run, even to government bureaucracies.

    1. Re:Jobs & buying by Truekaiser · · Score: 1

      Other people have. https://www.youtube.com/watch?...
      It's just not a result many people want to hear.
      As for minimum wage, in the long run it helps more than it hurts as it widens your customer base.

    2. Re:Jobs & buying by meta-monkey · · Score: 1

      You know what the warehouse employees should do? They should throw their shoes at the robots to trip them up. Then the automation scheme will fail so Amazon can't replace the workers with robots.

      --
      We don't have a state-run media we have a media-run state.
    3. Re:Jobs & buying by alexander_686 · · Score: 1

      Read up on Red Queen's Race Hypothesis. We are constantly running. If Amazon stops and thinks if they should implement these robots, somebody else will.

      It is going to happen. It will increase productivity, and increased productivity is the only way to increase income, and thus it should be embraced. I am not saying that technology is some kind of magic wand that we can wave and magically everybody will be better. This will free people from mind numbing work and let them do something more productive. Technology is one of those "necessary but not sufficient by itself" type of thing. Society must change and adapt, and a right leaning libertarian I might even conceded that might mean changes in government policy. Still, if we want a better tomorrow things like this must happen.

      I am always sad when people fear a better tomorrow.

    4. Re:Jobs & buying by Overzeetop · · Score: 1

      This will free people from mind numbing work and let them do something more productive.

      This is one of the two the fallacies of the computer generation.

      (1) More efficient machines will reduce the length of the work week. Of course it doesn't, because - as you mentioned - we are all competing, and the length of a first world work week is pretty standard at 40 (+/-8) hours, so nobody who actually purchases a machine will voluntarily pay more per hour, or train more people than is necessary.
      (2) People with menial jobs can be more productive elsewhere. No, they can't. They're in those jobs because they can't find anything more productive (i.e. higher paying) to do. It pushes them down the ladder, not up, or out of the job market entirely. Most humans simply have not evolved to the point where they're commercially viable as a resource.

      --
      Is it just my observation, or are there way too many stupid people in the world?
    5. Re:Jobs & buying by CastrTroy · · Score: 1

      It increases income for the corporation, and the fewer people who are left working there. It won't free people to work in more productive jobs, because they simply don't have the skills to do anything more productive. If they had the skills, they would already be working those jobs because they pay better. People aren't working in an Amazon warehouse because they enjoy it and the pay is good. They do it because they aren't qualified to do work that is more fulfilling (financially and personally). Getting robots to do their jobs won't suddenly make them qualified to do more complicated jobs. And it seems to me that the are a lot of people that, even given the opportunity to acquire new skills, are incapable for one reason or another of getting the skills necessary for a better job.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    6. Re:Jobs & buying by GTRacer · · Score: 1

      They should throw their shoes at the robots to trip them up.

      But, I thought the age of sabot tossing was behind us?

      --
      Defending IP by destroying access to it? That makes sense, RIAA/MPAA. Go to the corner until you can play nice!
    7. Re:Jobs & buying by alexander_686 · · Score: 1

      You are missing my point in a couple of ways.

      I said productivity would go up, I never said the hours worked would go down. Some people like working long hours to own more toys – bigger houses, faster cars, and exotic vacations. However, in the last 50 years the people with the highest productivity are reporting that they are working longer hours and enjoying their life more. More work has become more interesting.

      Secondly, you mean you can't think of any menial jobs other than warehouse jobs? Cleaning parks, walking dogs, and teacher's assistants are just a few that come to the top of my head. None of these require a college education. Personally, I am more optimistic about being able to retain people. But if push comes to shove I suspect society can find something more productive to do.

    8. Re:Jobs & buying by Anonymous Coward · · Score: 0

      At least with Obamacare people who are robotized out of a job get more health care then the ER with the jail / prison system covering what the ER does not do.

    9. Re:Jobs & buying by Anonymous Coward · · Score: 0

      The past few hundred years of history would like to argue that point with you. While automation isn't the salvation of the human race, its far from its downfall as well. Even 70 years ago before farm mechanization really came into being the standard of living was what we would consider atrocious by todays standards. After that and other forms of automation came into being and were gradually accepted into society our quality of living increased quite markedly, central air/heating in most homes, most people have a variety of home/personal electronics, live in 3 bed/2 bath houses, are kept out of the workforce until 18-24, etc. We tend to acclimate to a new methodology/technology over time, and the resulting productivity improvements generally lead to an improved lifestyle. I'm sure there are ways it can go horribly wrong, but the idea that automation invariably leads to poverty has centuries of evidence showing it to be false.

  3. Robot Video Overview by syserr0r · · Score: 5, Informative

    A 3:35 video on youtube of their general operation, for those interested https://www.youtube.com/watch?...

    1. Re:Robot Video Overview by UnknowingFool · · Score: 2

      Interesting but how do they stock the shelves?

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    2. Re:Robot Video Overview by antdude · · Score: 1

      Is there an updated video of Amazon's bots? ;)

      --
      Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
    3. Re:Robot Video Overview by raftpeople · · Score: 1

      The shelves are stocked the same way they are picked, by having the robot travel to a station where a human places the items on the shelves. One way to organize the warehouse would be to put the replenishment/put away stations near the incoming goods (e.g. receiving area) with the picking stations on the opposite side. not sure if this is how Amazon is configured or not.

  4. Why are we still talking about this? by Anonymous Coward · · Score: 0

    This is old news, seen it on discovery a while back, the local news a while back. OK, yay, they use robots on the floor, I was duped into clicking on this because I thought they were using some newer technology.

  5. Re:So instead by Anonymous Coward · · Score: 1

    Eventually robots will staff the entire factory. Problem solved, right?

  6. is this actually new? by Trepidity · · Score: 1

    I could've sworn I've seen videos of big warehouses that are mainly automated, with footage that looked pretty '80s at the latest. And looking around at what's been written about the topic, people as far back as the '70s were already writing algorithms to optimize movement of the robots up and down the warehouse aisles. Maybe that was just in Japan?

    I don't think Amazon is really ahead of the curve here either way, just implementing what's pretty standard warehouse technology by now.

    1. Re:is this actually new? by Anonymous Coward · · Score: 0

      Moving boxes and/or pallets is easy, getting squishy bags of stuff people actually care about to a package ready for shipping... is not. This last step is the major hurdle. Instead of sending the worker to grab the items, the pallets come to the worker, and they are trying to see if they can remove the worker from this list.

  7. hasn't "YET" by Anonymous Coward · · Score: 0

    >As Amazon is doing well, the company says that increase of automation hasn't YET led to staff reduction.

    At least they are honest about it and are even implying that it will eventually lead to a staff reduction. Not to commend them for some of their horrible treatment of their workers.

    But as a former Walmart employee, this is still a step up as during the single year I worked with them, by the time I had left, I watched them give a single guy the jobs of what was 3 other guys when I had started and it was getting to the point, I was even hearing the Managers complaining about how they can't get that stuff done reliably like that.

    Or one of their advertisements I saw working in electronics on the TVs. Talked about buying products made in American and their example was a Cooler that had 4 parts to the whole thing with the writing at the bottom saying it was assembled in american for foreign parts. Betting the person who assembled it was a Walmart stocker making 25 cents over minimum wage too.

    Kinda sad when this comment here makes them better than Walmart just for their shear honesty.

  8. Re:So instead by Anonymous Coward · · Score: 0, Insightful

    Only when you no longer need to work to have a decent living for yourself and a family. Till then, we are fucked.

  9. Nice website by Anonymous Coward · · Score: 0

    Is in the business of serving a bit of text and some pictures, but won't if it doesn't like your browser. Because "user experience". Oh yes, the browser wars are back.

  10. Re:So instead by Anonymous Coward · · Score: 1

    Automation reduces the cost of labor to zero and the cost of product to the cost of raw materials.

  11. $681,000 per employee by sjbe · · Score: 1

    With robots doing most of the work, who is going to have jobs that give them the money to buy from Amazon?

    That's a very stupid question. Amazon has something around 110,000 employees. Amazon had revenues over the last twelve months of roughly $75 Billion. For 110,000 employees to spend $75,000,000,000 at Amazon they would have to spend $681,818 PER EMPLOYEE which I'm pretty sure is more than most Amazon employees make by more than just a wee bit. Any amount Amazon employees could possibly spend at Amazon would be a rounding error.

    And this is coming on top of a long list of Obama administration schemes (i.e. Obamacare and raising the minimum wage) that are making automation more appealing not just to businesses but, in the long run, even to government bureaucracies.

    Righhhht. Everything is Obama's fault. [/eyeroll] Never mind the fact that the US has among the highest per-capita incomes in the world. If you want more labor-intensive (as opposed to capital-intensive) manufacturing and other jobs to come to the US the ONLY way that will happen is to reduce wages to be more competitive with the rest of the world. It has NOTHING to do with anything the Obama administration or Congress is doing and in fact there is NOTHING the President or Congress could do to change it. Simple economics 101 explains everything. High wages = high labor costs = increased automation.

    If you want high wages you are necessarily going to make automation more attractive economically. You CANNOT have one without the other.

    1. Re:$681,000 per employee by smooth+wombat · · Score: 1

      Amazon had revenues over the last twelve months of roughly $75 Billion

      And yet they still lost money and have been for at least the last 2 years (possibly 3 once this years numbers come out).

      If Amazon is having losses because of their upgrades (such as this warehouse stuff), then this might pay off down the line. However, if they're losing money because they're over extended, not so good.

      --
      We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
    2. Re:$681,000 per employee by Anonymous Coward · · Score: 0

      If you want more labor-intensive (as opposed to capital-intensive) manufacturing and other jobs to come to the US the ONLY way that will happen is to reduce wages to be more competitive with the rest of the world.

      But this person wasn't talking about importing manufacturing jobs but the warehouse jobs that we already have. These jobs aren't at risk from foreign workers, as they are in the US of necessity. There's no point in locating a warehouse in Mexico; shipping and customs would eat up all the profits from reduced wages. Amazon's actually been on a kick of locating warehouses closer to customers so as to support quicker deliveries. The only competition for warehouse jobs is between people and automation. In fact, that's true of retail jobs in general. They don't compete internationally, as they require people to be local.

      Note: I'm fine with increasing automation. It will lead to better paying jobs on average. The problem here is that we're getting there by banning the bad jobs, which has the side effect of increasing unemployment. If automation was increasing because there was a shortage of employees, that would be different. The best way to increase wages in bad jobs has always been to provide better jobs. Then people with bad jobs can switch. Banning the bad jobs just makes people worse off, as they apparently preferred having the bad job to not having a job.

    3. Re:$681,000 per employee by gstoddart · · Score: 1

      And yet they still lost money and have been for at least the last 2 years (possibly 3 once this years numbers come out).

      Bah, knowing about Hollywood accounting, offshore tax shelters, and everything else ... I mostly don't believe corporations when they say this.

      Did they lose money, or did they run a shell game to move around money to make it look like they lost money?

      These days, it's highly profitable to "lose" money when you have a network of wholly-owned subsidiaries who can charge you crazy rates to replace the toilet paper.

      I'm not saying they didn't actually lose money. But corporations are awfully good at not making money on paper.

      Either way, I bet executive compensation and bonuses was at record highs. Probably slightly larger than the amount of money they claim to have lost.

      --
      Lost at C:>. Found at C.
    4. Re:$681,000 per employee by LynnwoodRooster · · Score: 1

      Actually, tax rates could be adjusted to bring highly skilled jobs back. Corporate tax rates are rather high in the US, especially when compared to the other G20 nations. Cut the corporate income tax rate down to a reasonable level (the average of the EU, or the G20) - or better yet, eliminate it as corporate taxes are a small percentage of the total Federal revenues - and you'll see highly skilled, hard-to-automate jobs flood back into the US.

      And that is something the President and Congress are most definitely in control of - taxation.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  12. ATTN: DAVE NEAL by Anonymous Coward · · Score: 0

    What you read on these pages likely is not factual. That means what you read on these pages you should not consider using. Got me?

  13. Re:So instead by Anonymous Coward · · Score: 0

    That's only a problem about distributing the fruits of robot labour fairly. Eventually we are going to need to limit population growth if it doesn't happen naturally. That's about 2.2 childs per family. The current owners of robots will just have to yield eventually and let the robots feed everyone "for free". So everyone will be guaranteed some basic level of housing, clothing, warmnt, and food. On top of that you could earn extra by, say, tending the robots and creating new, better robots, and maintaining the robots.

  14. Re:So instead by Anonymous Coward · · Score: 0

    Which solves the issue of people needing to work to buy that product how?

    As stated before, this is an issue till people no longer need to work to have a decent living and a family.
    Also, products prices aren't typically based on how much it costs to make except as a lowest threshold of profitability, the sale price is decided by what people are willing to pay for the product.

    Automation is a fantastic thing, so long as the benefits of it is spread to all which would require required work hours and minimum wage be adjusted so all could work and live. But that doesn't happen and when the benefits are horded mainly by the top at the expense of others, it greatly diminishes the benefits of these advances and many times makes it where the overall impact of that advance is actually net NEGATIVE till they are forced to do otherwise.

  15. Remembering the IBM 3850 Mass Storage by crunchy_one · · Score: 1

    The IBM 3850 mass storage system, announced in 1974, held up to 472G on strips of magnetic tape. The 3850 was a rectangular box large enough walk into, with the strips stored along its interior walls in a honeycomb arrangement of slots. A pair of robotic pickers took turns running along a set of rails where they would fetch a tape strip, carry it to a device that wrapped it around a drum for read/write access, and later return it to its slot. You could watch it operating through a window in the box (IBM loved to show off their stuff).

    My point is that none of this is new. It is neither interesting nor innovative.

    1. Re:Remembering the IBM 3850 Mass Storage by meta-monkey · · Score: 1

      It is interesting so far as a job picking at an Amazon warehouse was pretty much the shittiest, most back-breaking (really, foot breaking from running on concrete floors all day with no rest), abusive job Americans still did. You only worked as a picker at Amazon if you had no other option and were on the verge of starvation. When those jobs are eliminated because of robots, those desperate enough to take a picker job will have no where else to go.

      I'm not at all suggesting that automation is bad. It's great. Progress. I just wonder what people who were already in such dire straits as to put up with Amazon warehouse abuse are going to do instead.

      --
      We don't have a state-run media we have a media-run state.
    2. Re:Remembering the IBM 3850 Mass Storage by wonkey_monkey · · Score: 1

      The IBM 3850 mass storage system, announced in 1974, held up to 472G on strips of magnetic tape. The 3850 was a rectangular box large enough walk into, with the strips stored along its interior walls in a honeycomb arrangement of slots. A pair of robotic pickers took turns running along a set of rails where they would fetch a tape strip, carry it to a device that wrapped it around a drum for read/write access, and later return it to its slot. You could watch it operating through a window in the box (IBM loved to show off their stuff).

      My point is that none of this is new. It is neither interesting nor innovative.

      Yes, yes, and the fax machine is nothing but a waffle iron with a phone attached.

      All "things that move other things" are not equivalent. Kivas aren't restricted to running on rails. I suspect the IBM picker-bots weren't actively scanning their environment to avoid collisions, either, and so on.

      It is neither interesting

      Oh, isn't it? I thought it was. I guess I must be wrong about that.

      --
      systemd is Roko's Basilisk.
    3. Re:Remembering the IBM 3850 Mass Storage by fustakrakich · · Score: 1

      My point is that none of this is new. It is neither interesting nor innovative.

      It's evolutionary, which is just as good as "new". Better even, it rides on proven, reliable technology. "New" is for the laboratory, where people are expected to die in an accident.

      --
      “He’s not deformed, he’s just drunk!”
    4. Re:Remembering the IBM 3850 Mass Storage by gstoddart · · Score: 0

      My point is that none of this is new. It is neither interesting nor innovative.

      Well, let's think about this:

      Because Kiva-equipped facilities eliminate the need for wide aisles for humans to walk down, eighth-generation centers can also hold 50% more inventory

      They're saying eighth generation.

      So, just maybe, they're not saying "ZOMG, we invented teh automation bitches" ... and what they're actually saying is "after several iterations, these have gotten better and more efficient".

      Since Amazon isn't saying what they have is new, or especially innovative ... maybe it's still interesting?

      --
      Lost at C:>. Found at C.
    5. Re:Remembering the IBM 3850 Mass Storage by ultranova · · Score: 1

      I just wonder what people who were already in such dire straits as to put up with Amazon warehouse abuse are going to do instead.

      Well, traditionally a combination of desperate people and victim-blaming has led to unrest and eventually to a revolution. The possible responses to this are social security or a police state. The political situation in the US makes the former impossible, and all signs from the actions of intelligence agencies to the build-up of military gear for the police point to the country preparing to fight a war against its citizens, so I guess we're in for stormy weather.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

  16. Re:So instead by Anonymous Coward · · Score: 0

    Agreed, but till the fruits of robot labor are distributed as such, the ones at the bottom of the barrel will still be un or under employed and still fucked.

    And, Correct me if I am wrong, but in the first world countries, if you factor out the number of immigrants coming into the nation, the overall population would be in decline.

    So I believe that our population control might not be as much of an issue if the rest of the world was brought up to current first world standards except in areas where large families are cultural.

  17. Re:So instead by MrL0G1C · · Score: 2, Interesting
    --
    Waterfox - a Firefox fork with legacy extension support, security updates and better privacy by default.
  18. Automation does not reduce labor costs to zero by sjbe · · Score: 5, Informative

    Automation reduces the cost of labor to zero and the cost of product to the cost of raw materials.

    Automation does not and never did reduce the cost of direct labor to zero, nor does it reduce the cost of any product to the cost of raw materials even in a state of the art factory. First off there is always a substantial amount of direct labor in any company, even a highly automated one and the amount is non-trivial. Second there is the important matter of overhead (Sales, Engineering, Marketing, R&D, capital equipment, utilities, rent, property, maintenance, management, etc) which you seem to be completely overlooking. Automation can minimize labor costs but it cannot eliminate them because it is not economical to automate all jobs even when it is technologically possible to do so.

    Disclosure: I'm an industrial engineer and a certified cost accountant. I do this sort of stuff for a living.

    1. Re:Automation does not reduce labor costs to zero by CastrTroy · · Score: 1

      Automation can minimize labor costs but it cannot eliminate them because it is not economical to automate all jobs even when it is technologically possible to do so.

      The only thing stopping that is that it's still too expensive to build machines to do certain jobs. But that won't last forever. Eventually, with the progress of technology, it will become very economical to replace workers with machines. Some jobs may require a robot that requires 20 years to pay itself off, that probably isn't worth it for a lot of businesses. Some jobs will pay off the machine in 2 or 3 years. At that point, as far as the company is concerned, it's economically irresponsible to not get the robot to do the job. As the cost of the machines come down, that machine that used to take 20 years to pay off, will only take 10, or 5, and eventually it will be cheap enough. The only jobs left will be thinking/creative jobs (unless there is some major advancement in AI), and jobs that people actually want to talk to a person for. As annoyed as people get with customer support personnel, they would be infinitely more annoyed at a machine who was reading off the same script.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    2. Re:Automation does not reduce labor costs to zero by Anonymous Coward · · Score: 1

      Disclosure: I'm an industrial engineer and a certified cost accountant. I do this sort of stuff for a living.

      I wonder how long until they develop robots to do your job.

  19. Re:So instead by fustakrakich · · Score: 2

    Karl Marx, please pick up the RED courtesy phone. Yes, automation will require a much larger *share the wealth* attitude amongst the public. We definitely do need to base pricing on human cost of production to make it work.

    --
    “He’s not deformed, he’s just drunk!”
  20. Reinvesting in the business by sjbe · · Score: 1

    And yet they still lost money and have been for at least the last 2 years (possibly 3 once this years numbers come out).

    Because they are reinvesting in the business and experimenting with new businesses. Unless you have a very short term Wall Street-esqe investment horizon that isn't really a big deal. Amazon could be substantially profitable tomorrow if they chose to be.

    1. Re:Reinvesting in the business by alexander_686 · · Score: 3, Insightful

      AMZN is not losing money because they are reinvesting back into their operations. That is not how accounting works. "Earnings" is a balance sheet operation; "Investment" is a balance sheet operation. Think about this way – If I invest $100m of profits in US Treasury Notes, how does that affect my earnings? If I invest $100m in property, plant, and equipment, how does that affect my profits? What if I paid out a dividend? It does not – in all cases one's profit is 100m.

      The issue is that AMZN is trading profit margin for market share. Expanding quickly today to reap the profits of tomorrow – in theory.

    2. Re:Reinvesting in the business by konekoniku · · Score: 1

      This is not true -- at least not entirely. Amazon has increased investment in R&D significantly. Most people would consider R&D an investment, but unlike PP&E GAAP generally treats R&D as an expense (only a very limited set of software-related R&D can be capitalized). Over the past two years, for example, Amazon's expenditure on R&D has increased by 108%, compared to an increase in SG&A of 77%. Gross margins have actually risen over the past two years, from 23.7% to 28.6%, which belies the notion that Amazon is trading profit margin for market share.

    3. Re:Reinvesting in the business by alexander_686 · · Score: 1

      On the margin side I am going to have to disagree with you. I assume you are talking about gross margin. Sure, Amazon's gross margin has been going up. The average S&P 500 company has a gross margin of 42%, which has been increasing. I would argue that operation margin would be better than gross margin. There AMZN is at 1% where the S&P is at 14.6%. AMZN's ROI has historically been one of the lowest in the S&P. They are operating a supper thin margins.

      As for the R&D - I will have to consider that. At first glance I am a little surprise that the numbers that I am seeing. Personally, I would assume (well, guess) that most of those expenses are capitalized but it does give me food for thought.

    4. Re:Reinvesting in the business by konekoniku · · Score: 1

      Fair enough, but when people say "trading margin for market share" they generally refer to gross margin, since that's the line item that pricing decisions directly impact.

  21. No progress in 40 years? by sjbe · · Score: 1

    My point is that none of this is new. It is neither interesting nor innovative.

    That's pretty much the same statement as saying nothing interesting or innovative has happened in IT in the last 40 years. Just because someone did a crude version of something 40 years ago doesn't mean there has been no advancement or innovation in the mean time.

    1. Re:No progress in 40 years? by crunchy_one · · Score: 1

      That's pretty much the same statement as saying nothing interesting or innovative has happened in IT in the last 40 years.

      Thanks for the clarification, that's exactly what I'm saying. Oh yes, there was nothing crude about the 3850.

  22. Re:So instead by fustakrakich · · Score: 1

    With full automation, the planet can sustain many times the population we have now. Our only impediment is bad management that emerges from any one or more of the *seven deadly sins*.

    --
    “He’s not deformed, he’s just drunk!”
  23. Re:So instead by ShanghaiBill · · Score: 2

    Which solves the issue of people needing to work to buy that product how?

    By lowering prices. Amazon has consistently used cost savings to lower prices and gain market share. As people spend less on these goods, they will spend more on other goods and services, generating jobs for those providing them.

    If you seriously believe that rising productivity causes poverty, then you need to explain the last few centuries of economic progress, where 90% of jobs were eliminated by the mechanization of agriculture, and millions more by the automation of manufacturing. Throughout this process employment, incomes, and living standards when up.

  24. Re:So instead by turbidostato · · Score: 2

    "If you seriously believe that rising productivity causes poverty, then you need to explain the last few centuries of economic progress"

    If you seriously believe that unbound natality depletes world's natural resources, then you need to explain the last few centuries of economic progress.

    See the parallelism?

  25. Tractors by raymorris · · Score: 2

    > Someone at John Deere should engage in deep thought. With machines doing most of the work, who is going to have jobs that give them the money to buy from John Deere?

    ftfy. People have been worrying about that for a couple hundred years and what always happens is that a guy with a machine is more productive than a guy without a machine. His pay is about 25% of the revenue matched to his labor, so as long term productivity rises, wages rise to match. In the short term there is some disruption as the guy who used to operate a shovel learns to operate a backhoe, scribes learn to operate a printing press, etc. In the long term, the guy makes more money using a backhoe than he did using a shovel, because he gets more done using the machine.

    1. Re:Tractors by blue9steel · · Score: 1

      You're right of course, so far. The problem is that as one sector automated all the new jobs were found in a different sector. When agriculture automated everyone moved to manufacturing, as manufacturing has automated everyone has moved to service, as service is automating there isn't much left to move to though. We're now entering somewhat uncharted territory. It's true that in the past this has never proved to be a problem, but from our current vantage point it's hard to be certain that pattern will continue.

  26. not the right area to focus on by slashmydots · · Score: 0

    I recently had to go back to Amazon for the first time in about 6 years to get a motherboard that was out of stock everywhere and too expensive on Ebay. I couldn't determine who the seller actually was. They just claimed it was MSI themselves, which is obviously bullshit. I couldn't figure out where it was shipping from. I didn't get a shipping quote until the final page so I had no idea what the total was going to be until I got almost done checking out. They screamed "Prime" at me like a thousand times and send a dozen followup e-mails. Their website was so busy it made my head hurt and there was stuff flying around and popping up and moving around so much, it was like a warzone.

    So in other words, nothing changed since the last time I used it. Or since 10 years ago for that matter.

    AND THEY'RE WORRIED ABOUT PEOPLE NOT PICKING UP BOXES AND SHIT FAST ENOUGH?! Hire a robot to fix your awful pile of crap website, Amazon!

  27. The key word being in the last sentence... by Anonymous Coward · · Score: 0

    "Yet." Whether the choice of jones_supa, samzenpus, the LA Times, or Amazon, that word is likely a most accurate descriptor.

  28. Science fiction by sjbe · · Score: 5, Informative

    The only thing stopping that is that it's still too expensive to build machines to do certain jobs. But that won't last forever.

    That isn't likely to change in the lifetime of anyone reading this. You actually even explained why below. To eliminate all need for human direct labor you would have to invent a machine that is as flexible as a human and costs less per unit. In other words a human level AI on the cheap. That simply isn't likely to happen anytime soon. (and don't give me any BS about the so called singularity or other paranoid hypothetical dystopian futures) Any scenario where we get human level AI in a robot body for less money than a human would cost is simply science fiction for the foreseeable future.

    Eventually, with the progress of technology, it will become very economical to replace workers with machines. Some jobs may require a robot that requires 20 years to pay itself off, that probably isn't worth it for a lot of businesses.

    That is exactly why your hypothesis is wrong. The return on investment is simply too long for many projects to make certain types of automation economically feasible without the invention of robots with human level AI at absurdly cheap prices. To make automation practical you have to have large enough volume of product (measured in dollars) to achieve an economic return within the lifetime of the project. There are countless manufacturing projects where the lifetime and/or dollar value of the project is too short to justify complete automation and this will not change any time soon. The labor content of manufactured goods will minimize to a limit function but the need for human labor will not go to zero without invoking science fiction level advances in technology. If you need a model to look at check out agriculture. A lot of automation has gone into agribusiness but the equipment is VERY expensive (and not getting cheaper) and has not come even close to replacing the need for human labor and won't anytime soon either.

    The notion that robots will replace all human workers in manufacturing is a paranoid delusion from people who aren't actually involved in manufacturing. I run a manufacturing company. I deal with this daily.

    1. Re:Science fiction by CastrTroy · · Score: 1

      Based on life expectancy, I can probably assume that I will live another 50 years, barring anything catastrophic. 50 years ago, computers took up entire rooms, and the thought of having computer at each and every desk was kind of a dream. Now it's a reality. With how much has changed in the past 50 years, I'm not going to pretend that I know what technology will bring in the next 50, but it would seem to me that quite a few jobs are going to disappear, and I don't really see a lot of low qualification jobs opening up.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    2. Re:Science fiction by SillyHamster · · Score: 1

      To eliminate all need for human direct labor you would have to invent a machine that is as flexible as a human and costs less per unit. In other words a human level AI on the cheap. That simply isn't likely to happen anytime soon. (and don't give me any BS about the so called singularity or other paranoid hypothetical dystopian futures) Any scenario where we get human level AI in a robot body for less money than a human would cost is simply science fiction for the foreseeable future.

      It is refreshing to see someone else on Slashdot who notices this (unlikely) prerequisite for the robotic dystopia fantasy where humanity is replaced with machines.

  29. This doesn't even vaguely resemble a tape library by sirwired · · Score: 1

    A tape library arranged in a straight line with one or two picker robots does not, in any way, even resemble the issues involved with an army of independent transport robots picking things from an entire warehouse. Other than the word "robot", the two really don't have anything to do with each other.

    A tape library requires lighting speed, and a very high degree of precision. The issues with this system revolve around route planning, collision avoidance, queuing speed, and battery longevity.

    But while you are talking about tape libraries: The IBM 3495 library was a conventional tape library for cartridges. However, development problems with the new robotics assembly led to IBM using a general-purpose welding robot, of the sort you'd see on an automobile assembly line. This was, needless to say, an utterly absurd application of such a robot; using a robot with about 8 degrees of motion in a task requiring only 3.

    Hilarious true story. During product test, a bug in the x-axis software led to one of the robots driving right through the end of the frame at top speed, falling over, and crashing through the raised tile. This led to a requirement for a dedicated cabinet on each end of the chain having nothing but large hydraulic/spring bumpers of the sort you might see at the bottom of an elevator shaft to keep mutinous robots from trying to crush their human masters.

  30. Why couldn't it be MSI directly? by sirwired · · Score: 3, Informative

    Plenty of companies (including manufacturers) have Amazon storefronts. Some of them use Amazon for fulfillment, some just use Amazon as a storefront. I don't see why MSI can't.

    While Amazon's site for computer parts isn't nearly as good as NewEgg's (Amazon's spec search capability is pitiful), I've never had any difficulty telling who the seller for a particular product is. In your case, if it said "Sold By: MSI", you can be pretty sure that's who it was.

    As far as not getting a shipping quote until checkout? That's pretty normal for lots of web stores. If you are going to charge for shipping at all, per-item shipping is certainly a choice, but plenty of web retailers do it differently. They can go by actual shipping cost, a rate based on total order size, etc. In Amazon's case, if the item is fulfilled by Amazon, you either go with the free shipping (or prime), or you pay according to their published shipping rate tables. If it's not fulfilled by Amazon, they just do whatever the retailer tells them to.

    Personally, I find NewEgg's shipping to be the most confusing: depending on the individual item, shipping is either free (and slow), free (and less slow), per-item, or total-weight. And it's never clear which shipping rates are going to apply if your order contains items in multiple shipping categories.

  31. This is quite different from existing systems. by sirwired · · Score: 3, Informative

    Simple X-Y robots (that have been around for years) that pick regularly-shaped items off of shelves (usually decent-sized boxes) and drop them onto conveyors are pretty standard, and not that difficult. Picking up objects of an infinite variety of shapes and sizes, many of which are quite small, is something it's not possible for robots (at least not reasonably priced ones) to reliably do at this time.

    This system (which brings the shelves to the workers, as workers are MUCH better at plucking small, irregularly-shaped items out of boxes) has fascinating challenges all of it's own, mainly related to traffic control, safety, and where to put the shelves after you are done. (A fixed location is very inefficient, but neither do you want to stick the shelf in the first available space.)

    1. Re:This is quite different from existing systems. by Trepidity · · Score: 1

      Ah thanks, that makes sense. I guess the videos I've seen were probably of warehouses with at least semi-standardized items, e.g. distribution centers for one company's production.

    2. Re:This is quite different from existing systems. by ultranova · · Score: 1

      This system (which brings the shelves to the workers, as workers are MUCH better at plucking small, irregularly-shaped items out of boxes) has fascinating challenges all of it's own, mainly related to traffic control, safety, and where to put the shelves after you are done. (A fixed location is very inefficient, but neither do you want to stick the shelf in the first available space.)

      The most space-efficient system I've ever seen was in a library and had shelves that moved sideways on rails. There were no space whatsoever between adjancent shelves. You had a single alley and moved that to where you needed it by moving the shelves.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    3. Re:This is quite different from existing systems. by Trepidity · · Score: 1

      I've seen a version of that in a handyman shop also, allowed for compact storage of shelves and shelves of tools and parts. It's not good for throughput, though: since you can only have one aisle at a time "open", it's good for things like tools or library books where you have a large archive but only rarely retrieve any individual item. Not sure it'd work great for a delivery-staging warehouse.

    4. Re:This is quite different from existing systems. by tlhIngan · · Score: 1

      This system (which brings the shelves to the workers, as workers are MUCH better at plucking small, irregularly-shaped items out of boxes) has fascinating challenges all of it's own, mainly related to traffic control, safety, and where to put the shelves after you are done. (A fixed location is very inefficient, but neither do you want to stick the shelf in the first available space.)

      The shelves are movable like you said. The position of the shelves within the warehouse can change depending on the hotness and coldness of the items within.

      You have to remember the robots are not autonomous - they are controlled by a central computer tied to the ordering and inventory databases. The central computer is also responsible for knowing where all the robots are in the warehouse, what they're doing, and where they're going. And human traffic is easy to detect since the robots have traditional bump, IR and other sensors (which the computer can look at the path planning and stop other robots headed towards a collision with the first robot).

      And this leads to the idea of hot and cold shelves - because the shelves are movable, they can be put anywhere. And in Amazon's warehouse (as is everyone else's using the robots), the shelves are arranged from hot to cold with hotter shelves towards the packers and colder shelves towards the far end of the warehouse. The computer adjusts the location of the shelves dynamically as need be - as a shelf gets hotter, its position in the warehouse changes.

      Yes, it means that a company like Amazon can't tell you WHERE in the warehouse something is without consulting the inventory database because that location changes constantly. Probably easier to just have a robot bring you the item than to look it up and pick it manually.

    5. Re:This is quite different from existing systems. by ultranova · · Score: 1

      It's not good for throughput, though: since you can only have one aisle at a time "open", it's good for things like tools or library books where you have a large archive but only rarely retrieve any individual item.

      But of course you can have any ratio of alleys to shelves. Just keep tabs on how many alleys you have at use at once on average and concentrate popular items on the same alleys. You can even put that "users who purchased this also often purchase these" database to use and group so an order can be completed by minimum number of alley accesses.

      You can even get help from compiler technology. Think of shelves as main memory and alleys as registers. You can only operate on values in registers, and there's very limited bandwidth available moving stuff between them and main memory. Given this, a recorded access pattern, and weights for both latency (how long it takes to complete individual order) and throughput, what is the optimal strategy for moving the alleys? How many should you have, given a limited floorspace budget and a cost for not having a particular item stocked?

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    6. Re:This is quite different from existing systems. by MikeTheGreat · · Score: 1

      This system ([...]) has fascinating challenges all of it's own, mainly related to traffic control, safety, and where to put the shelves after you are done. (A fixed location is very inefficient, but neither do you want to stick the shelf in the first available space.)

      Without actually stopping to look up any details I'm going to say the following: It seems like the memory-management algorithms that operating systems use ought to at least shed some light on this problem. It seems like a lot of the same problems are present in both situations: you can move 'pages' of product into and out of the processing units (i.e., people in the factory, CPUs/cores in a computer), you want to keep frequently-used shelves/pages nearby (as opposed to out in the slower-than-cache RAM), etc, etc.

      I guess the major difference is that the factory can arbitrarily re-order the sequence in which it accesses the shelves in order to ensure high efficiency. (Obviously there are limits so that you make your delivery deadlines, but if you wanted to put off packing a particular box for several hours it's probably fine).

      (I wonder if the 'longest-common-substring' algorithms are useful here - "For the 15 minutes we're going to pack just boxes that have a Frozen DVD, Barbie , GI Joe Tank as a 'common core' that people then add an item or two on to)" )

  32. Re:This doesn't even vaguely resemble a tape libra by Anonymous Coward · · Score: 0

    We had a general purpose 'robot arm' (fixed to the floor but otherwise fully flexible - probably the sort of thing they had paint spraying cars at the time) loading our IBM mainframe tape drives a few years back. On several occasions it 'got frustrated' and shoved a cartridge through the casing of a tape drive. It also pinned an operator against the glass screen once (he shouldn't have been in the enclosure while it was active), luckily he was not injured.

    If some VIP came to visit the data centre the robot arm was always the highlight of the tour.

    Rambling on, we also used to have 'radio tokens' to open the two sets of motorized doors that led to the machine room 'hands free' - 30 years ago this seemed like the coolest thing ever to me - like the relevant bit in the opening titles of 'The Prisoner'.
    Nowadays the data centres are on the other side of the country and I don't have the need or clearance to access them...but I'm still working on some of the same mainframes (logicially, not the physical hardware of course, though we've still got two of the original FEPs, used for crtical purposes, with no fallback if they both expire - no support, no part available).

    Rambling over...

  33. Investment involves multiple accounting periods by sjbe · · Score: 5, Informative

    AMZN is not losing money because they are reinvesting back into their operations. That is not how accounting works.

    I'm a certified accountant so I'm kind of giggling over you telling me "how accounting works".

    That is not how accounting works. "Earnings" is a balance sheet operation

    I presume you are talking about Retained Earnings which is on the balance sheet. Retained Earnings != Earnings. Earnings = Profit and that comes from the Income Statement, not the balance sheet.

    "Investment" is a balance sheet operation

    Investment is FAR more complicated than simply transferring items around a balance sheet and it touches the Balance Sheet, Income Statement and Statement of Cash Flows.

    Think about this way – If I invest $100m of profits in US Treasury Notes, how does that affect my earnings?

    It depends on why you are investing the profits into those Treasury notes and whether you are investing in them as a profit making venture or merely as a place to park cash intended for other uses. The accounting is substantially different depending on the purpose of the investment. Furthermore the effect on earnings can be substantial in future accounting periods which I should think would be obvious.

    If I invest $100m in property, plant, and equipment, how does that affect my profits?

    The effect on profit depends on the return on the investment though in the immediate period the effect is either neutral or negative most likely. You're making the mistake of only considering the current accounting period. If you buy a building and capitalize the expense it has some effect on the current accounting period but the real effect on profit is depends on what you can do with that asset. It may reduce future profits or enhance them. Without more information no one can say more.

    What if I paid out a dividend?

    Then you are returning earnings to the shareholders rather than reinvesting them in the company or other assets. Basically a dividend is an admission by the company that the expected return from available investment opportunities is low. The company is foregoing future opportunities so the long term effect on earnings to the company is either neutral or negative.

    It does not – in all cases one's profit is 100m.

    Not correct and even if it were you aren't considering the net present value of that $100m.

    The issue is that AMZN is trading profit margin for market share. Expanding quickly today to reap the profits of tomorrow – in theory.

    Which is another way of saying they are investing in the business. Amazon is introducing products (tablets, phones, etc), investing in infrastructure (warehouses, IT) and similar. They have a long term perspective and aren't worrying about quarterly results. Perhaps this will burn them in the end but my thesis that they are investing in the business remains intact.

    1. Re:Investment involves multiple accounting periods by gstoddart · · Score: 2

      I'm a certified accountant so I'm kind of giggling over you telling me "how accounting works".

      Well, since you come here to Slashdot and have a low UID, you should understand something by now:

      Most people believe that accounting is the art of fudging your books to look like how you want it to appear, and hide as much money so it can be funneled into executive bonuses, kick back schemes, and hookers.

      Something has to happen to sustain that $30 billion in net worth held by Jeff Bezos.

      In general we put about must expectation of truth coming out of corporate accounting as we do beer coming out of city tap water -- because corporations are awfully good at chicanery and concealing the truth when it comes to accounting. Especially any multi-national corporation, or one which makes movies and music. We don't always take "lost money" to mean lost money in the same way we mean it.

      So, while I'm not saying you are a lying, deceptive bastard who is skilled in the art of hiding money ... I will say that in general I think that corporate accounting is, in fact, dominated by people who are lying, deceptive bastards skilled in the art of hiding money, and that what shows as a loss this quarter isn't necessarily one. ;-)

      --
      Lost at C:>. Found at C.
  34. You don't live in the right place by sjbe · · Score: 2

    I'm not going to pretend that I know what technology will bring in the next 50, but it would seem to me that quite a few jobs are going to disappear, and I don't really see a lot of low qualification jobs opening up.

    That's because you don't live in the right place. There are LOTS of unskilled labor jobs available in parts of the world other than the US and EU. Go visit China for a while and tell me there are no jobs for low qualification workers. Go out to a farm and tell me there are no jobs for low qualification workers.

    Yes a lot of jobs we currently have will disappear and others we cannot even conceive of yet will appear. It's easier to visualize the former since we know what those are. Could you have anticipated the job of Web Developer 50 years ago? Probably not - at least not without invoking science fiction. Same thing will happen 50 years from now most likely. We have a hard time guessing about things that haven't been invented yet.

    1. Re:You don't live in the right place by blue9steel · · Score: 1

      Go visit China for a while and tell me there are no jobs for low qualification workers.

      Of course Foxconn and others have publicly stated that they intend to fix that problem now that wages are rising. The developed nations have already resolved that issue so the solutions are pre-made.

      Go out to a farm and tell me there are no jobs for low qualification workers.

      You realize that as an employer Agriculture now represents something like 1% of jobs right? Additionally, due to rising labor pressures among migrant workers there is a renewed push for automation that seems to be gaining traction.

    2. Re:You don't live in the right place by LynnwoodRooster · · Score: 2

      Hi there, previous China resident for 6 years, and now spend half-time there... Heavily involved in manufacturing within China.

      There is a HUGE push towards automation within China, mainly as a means to lower costs (to stay competitive with Vietnam, Laos, Cambodia, and Thailand) as well as to increase quality. A serious issue under consideration from most of the provincial-and-down Governments is employment (not so much with the Beijing elite, yet) - job growth is stagnating in the face of automation. I've seen dozens of factories move from highly manual production lines of 60-70 workers per line to semi-and-fully automated lines where you need 3-4 workers per line to keep the machines fed.

      One supplier in particular, just outside of Shanghai, is proud of the fact it's been able to automate their assembly of speakers to such a degree that they have reduced workforce by 70% - whilst reducing floorspace by 50% and INCREASING production volumes and revenues by 30%. All within the last 3 years. Profit is also up considerably, and as they are a publicly traded company (listed on the Shanghai exchange), their stock has seen significant gains in the last 3 years.

      China is heavily automating, not just for cost but for quality. Employees come in hung over, pissed off at their boyfriend (most assembly lines are staffed with women), tired, or sick - and quality/consistency suffers. Machines don't have those issues. You get higher quality - which means fewer rejects, leaner operations, and happier customers. It is only a matter of time before the other SE Asian countries start their path towards automation as well as a means to combat China's increasing quality push. Lower cost labor won't help there...

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  35. This article is over a year old! by tekrat · · Score: 1

    Guys, I saw this on "60 minutes" over a year ago. Seriously. Seriously. Give up Slashdot and let someone who actually gives a fuck run it instead. Seriously. How much do you want to sell it for? I'm ready to change careers and I could run this site blindfolded better than you guys. Please. Sell. You don't know what you're doing and you're one step away from losing the entire audience.
    Please sell.

    --
    If telephones are outlawed, then only outlaws will have telephones.
  36. Re:So instead by uncqual · · Score: 1

    Not quite. One has to add the cost of capital, depreciation of assets, insurance and other operating expenses to the product price also. For example, these robots are not "free" and themselves require raw materials to build so their initial and operating costs must be amortized over all the stuff they pick. Similarly, the warehouses don't just spring spontaneously from the ground when Bezos says "let there be a warehouse".

    --
    Why is there an "insightful" mod and why isn't it "-1"? If I wanted insight, I wouldn't be reading /.
  37. New CEOs are going to follow .... by WindBourne · · Score: 1

    ppl like Bezo and Musk, rather than the trash like Welch and Whitman.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  38. warehouse retrevial jobs were dificult, low paying by peter303 · · Score: 1

    Running across concrete all day in minimally air conditioned buildings and under the uncaring eye of the computer clock for not much more than minimum wage. I read several exposee articles in the past few years about this. Unons and liberal governments were about to crack down on difficult considitons. And now they may not need to. Some things are better left to machines.

  39. where do the workers go? by SethJohnson · · Score: 1

    When those jobs are eliminated because of robots, those desperate enough to take a picker job will have no where else to go.

    Many will slide to a lower rung in the employment ladder. Some will ascend to the next rung up. For those jobs, wages will decrease.

    We are already seeing this with pseudo-jobs like Uber and taskrabbit.

    My mother has frequently said plumbers will always make a good living. When unskilled jobs disappear due to automation, many of those workers will be motivated to study a trade. The surge of new workers in the industry will reduce the 'good living' that plumbers make.

    1. Re:where do the workers go? by Anonymous Coward · · Score: 0

      My mother has frequently said plumbers will always make a good living. When unskilled jobs disappear due to automation, many of those workers will be motivated to study a trade. The surge of new workers in the industry will reduce the 'good living' that plumbers make.

      Then plumbers will need to come up with some way to keep new plumbers out. Say requiring licenses and apprenticeships, which is the #1 reason plumbers make so much money.

    2. Re:where do the workers go? by SethJohnson · · Score: 1

      Say requiring licenses and apprenticeships, which is the #1 reason plumbers make so much money.

      Those chaufer's licenses and medallions didn't work out so well for protecting cab drivers' revenue stream from the Uber hordes....

  40. Hasn't yet led to staff reduction by wiredog · · Score: 1

    Usually doesn't, at first. It increases productivity by making it possible to use the current workers more efficiently. Slowly the unskilled workers who move boxes from point A to point B get replaced by slightly skilled workers who supervise the robots.

    Thank God we don't allow the underclass to buy firearms here in the USA, otherwise we'd have to worry about a revolution.

  41. Re: So instead by Anonymous Coward · · Score: 0

    With robotics, solar power, and vertical farming, one playing off the other, we could easily get the population to 70-80 Billion.

  42. Re:So instead by Anonymous Coward · · Score: 0

    china has child limits

  43. Re:So instead by dryeo · · Score: 4, Interesting

    That hasn't been consistent. After the Luddites there was 70 years of chronic unemployment which society met by executing people who stole a loaf of bread. Then it became necessary for the whole family to work to make ends meet, your kid is now 5 years old? Better put the kid to work. Then as the need for workers fell due to automation, things like compulsory education were introduced to cut down the labour force, then expanded to even more education needed for most jobs until today where kids are expected to stay in school until almost 30 years old. Women were also removed from the work force about the same time with the idea of the stay at home mom. This wasn't so bad as wages did go up for a while due to the efforts of unions and the threat of socialist revolution. Eventually the population was convinced that socialist meant bad and wages stopped going up, women returned to the workforce so the family didn't fall too far behind and whole classes of people were created that were unemployable (felon) to keep the unemployment numbers looking good.
    Now we live in a time where the middle class is shrinking, most people have massive debt while production is at an all time high. Meanwhile there are businesses such as Amazon who cater to the more well off (need good internet and a credit card to take advantage of those low prices) which push up the costs of other businesses due to less economics of scale.
    Today the people who are doing well are doing very well while the majority are scraping by.

    --
    https://en.wikipedia.org/wiki/Inverted_totalitarianism
  44. Re:So instead by dryeo · · Score: 1

    The limitation is energy.

    --
    https://en.wikipedia.org/wiki/Inverted_totalitarianism
  45. Training. Now hiring robot repair techs by raymorris · · Score: 1

    I hear that Amazon is now hiring people to maintain warehouse robots, program them, and even develop new ones. Historically, using a backhoe required a little different training than using a shovel. Using a laser CNC machine required different training than using a chisel. The new job made a bit more money, so the middle class now has two cars and a giant HD TV. Middle class houses have doubled in size compared to 50 years ago, when typists had to completely retype a page from scratch when they made an error.

    I don't think there's any evidence of that changing. All evidence I've seen says we'll be using more computers to be more productive in more jobs, so cops, fireandfighters, and school teachers need to know how to copy and paste. Teachers don't need to spend weekends in the library with a pen and paper developing lesson plans - they can share lesson plans with peers around the country with a couple of clicks. Different training to get more done in less time.

    Those who choose to keep training constantly can specialize in implementing new technology and by doing that my wife
      and I have cut our work week in half - she stays home with the kid while I write software. I don't see any reason that would change. I just have to keep my training up to date, exactly like the elevator-operator turned hvac tech of 50 years ago.

    1. Re:Training. Now hiring robot repair techs by blue9steel · · Score: 1

      I'm not suggesting that humans as a species will be unemployable any time soon since strong AI seems quite a ways off still. It does appear likely that we're going to have a large class of individuals though who have no marketable labor value. Our distribution system is based on "work or starve" so that could be a serious problem.

  46. Tax policy is a marginal effect by sjbe · · Score: 1

    Actually, tax rates could be adjusted to bring highly skilled jobs back.

    You could reduce the tax rates to zero and it would have at most a marginal impact. The biggest driver by far is wages and benefits. The tax burden on companies is trivial by comparison. When you are talking $1/hour labor in China versus $15/hour labor in the US, it doesn't matter how much tax the US charges if the companies are competing directly. The rate could be zero and most of the business would still move to china if the labor content is high enough. Sure it would affect a few companies right on the fence but that doesn't apply to most of them.

    The simple fact is that US labor rates are MUCH higher than in many other parts of the world and you should expect the osmotic gradient of high labor content jobs to flow to where labor costs are lowest. If labor rates in China rise substantially (and they have been) you will see the business move back across the Pacific or elsewhere. Anything the President of Congress does will be a very tiny impact by comparison.

    1. Re:Tax policy is a marginal effect by lgw · · Score: 1

      When you are talking $1/hour labor in China versus $15/hour labor in the US, it doesn't matter how much tax the US charges

      Those jobs don't matter anyhow - they'll all be done by robots. The conversation was about skilled jobs that pay well. That's what we want America to be centered on! Not crap jobs that are going away soon anyhow.

      The simple fact is that US labor rates are MUCH higher than in many other parts of the world and you should expect the osmotic gradient of high labor content jobs to flow to where labor costs are lowest.

      It's not that simple. When labor costs scale with the number of items sold, then sure. But when labor costs are your R&D budget (or whatever you call the cost of producing, say, a film), and you have vast economies of scale, then it's all about making a great product, not cutting labor costs. When what's on the line is the difference between iPhone sales and Zune/Kin/Fire phone sales, or a film with $1B vs $10 MM sales, the goal isn't cutting an extra million off R&D, but on hiring the best you can find.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    2. Re:Tax policy is a marginal effect by LynnwoodRooster · · Score: 1

      Actually, tax rates could be adjusted to bring highly skilled jobs back.

      You could reduce the tax rates to zero and it would have at most a marginal impact. The biggest driver by far is wages and benefits.

      Really? Labor costs in China of something like an iPhone or an Xbox are around $6; in the US it would be about $25 more (based upon productivity of the typical US worker versus the typical Chinese worker; it's not a 1-to-1 conversion). The cost of corporate income tax on that $300 product is well in excess of the increase. A huge amount of the offshoring I've been involved in has been because of corporate income taxation; in the case of the aforementioned iPhone, it's $120 for the US-built and sold unit, versus effectively zero for the China-built and sold unit.

      If labor rates in China rise substantially (and they have been) you will see the business move back across the Pacific or elsewhere. Anything the President of Congress does will be a very tiny impact by comparison.

      You are already most of China's business run out of Hong Kong or Singapore (both of which enjoy special privileges with China in terms of setting up shop) because of the tax-free advantage your company has. You only pay tax on the work done within HK or Singapore; manufacture in China, sell through HK or Singapore and you save a ton of cash.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  47. Re:So instead by Anonymous Coward · · Score: 0, Insightful

    >Today the people who are doing well are doing very well while the majority are scraping by.
    whats with all the communists posting on slashdot lately? has bob avakian been touring college campuses?

  48. Re:So instead by Anonymous Coward · · Score: 0

    Karl Marx, please pick up the RED courtesy phone. Yes, automation will require a much larger *share the wealth* attitude amongst the public. We definitely do need to base pricing on human cost of production to make it work.

    ... until SkyNet decides it doesn't want to "share the wealth" anymore...

  49. Re:So instead by dryeo · · Score: 1

    Some people believe in community and some believe in taking advantage.

    --
    https://en.wikipedia.org/wiki/Inverted_totalitarianism
  50. Congrats, Amazon, welcome to 1989! by wcrowe · · Score: 1

    I'm sick of hearing about Amazon's "amazing" robots. The story is everywhere. I remember touring the IBM plant in Rochester, MN, back in 1989 (this is the place where the AS400s were built). There were robots everywhere throughout the factory running all over the place. Congratulations Amazon, welcome to 1989!

    --
    Proverbs 21:19
  51. Re:So instead by fustakrakich · · Score: 1

    Well, as Ted Kennedy once said, *We'll drive off that bridge when we get to it*

    I think the numbers says we're good for maybe 150-200 years, only with the best tech yet to come, solar, nuke, geothermal, all of it, at the present growth rate, which is very unlikely.. especially considering that we are still petro-burning cavemen... Maybe the wall is *closer than it appears*...

    --
    “He’s not deformed, he’s just drunk!”