Key Takeaways:
- Ongoing global tariffs and recession risks make automation a strategic necessity, not a luxury
- Automation fills labor gaps, reduces costs, and boosts productivity
- Safer, automated operations drive greater efficiency and product quality
- Modular, standardized systems offer faster deployment and stronger ROI
As manufacturers face mounting economic pressure—from sweeping tariffs to labor shortages—automation is emerging as a critical tool for staying competitive. In this episode of Great Question: A Manufacturing Podcast, Editor-in-Chief Laura Davis walks through key insights from Wauseon Machine’s President and CEO, Scott Anair, on how to recession-proof your operation. Learn how automation not only improves efficiency and safety but also prepares your business to thrive during turbulent times.
Below is an edited excerpt from the podcast:
There's no doubt about it, we're facing some serious economic warning signs right now. With these new sweeping tariffs affecting imports from practically every country, our supply chains are under enormous pressure. Ports could be emptying within the next month, and even if things start moving again quickly, we're looking at potentially another month before operations normalize. And according to JP Morgan Research from just two weeks ago (at the time of recording this), the probability of a recession in 2025 remains at 60%. Despite some unwinding of the Liberation Day tariffs, they note that the remaining universal 10% tariff remains "a material threat to growth," and the 145% tariff on China keeps that recession probability stubbornly high. When economic trouble hits, manufacturers feel that pressure from all sides—efficiency drops, safety concerns pop up, and sustainability goals take a backseat. But here's the thing: automation might just be the lifeline businesses need to weather these storms. Today, I want to explore how companies can use automation not just to survive what might be coming our way, but to come out stronger on the other side.
So what does it mean to recession-proof your business? At its core, recession-proofing is about making your company resilient—able to stand strong even when everything around you seems to be falling apart. Typically, this includes some combination of improving cash flow, optimizing resources, and cutting unnecessary expenses. But let me tell you, recession-proofing goes way beyond just watching your finances.
It's about creating a business that's adaptable and flexible, one that uses data to drive decisions rather than gut feelings, and one that's ready to compete even when demand drops and competition gets fierce. And that's where automation comes in—it streamlines processes, reduces your dependency on labor (which we'll talk about in a minute), and boosts productivity across the board. These are all critical factors when you're trying to weather an economic storm.
Let's talk about one of manufacturing's biggest headaches: labor turnover. Manufacturers know this pain all too well. On average, there are between 500,000 and 700,000 job openings in U.S. manufacturing at any given time. Many of these positions go unfilled because they involve repetitive, low-skill tasks that, frankly, people don't want to do. And who can blame them?
This is where automation really shines. It can take over those monotonous tasks, freeing up your human workforce to focus on higher-level, skilled roles. Instead of having people performing the same tedious task day in and day out, they could be operating and maintaining the machines that do those tasks. This not only improves efficiency but opens up new career paths for your employees.
And let's be honest, labor costs are about way more than just wages. The cost of benefits like healthcare and disability insurance keeps climbing year after year. Plus, every time you need to hire and train someone new, that's more time and resources diverted from your core operations. And we all know what happens when you're short-staffed and rushing to train people—quality suffers, safety gets compromised, and your brand reputation takes a hit.
Automated systems, on the other hand, can run 24/7 without needing breaks or holidays. They provide consistent, reliable output that can improve facility safety and help you maintain the product quality your customers expect. And in a recession, when consumer loyalty becomes even more crucial as demand decreases, ensuring consistent quality can make or break your business.
Now, beyond filling that labor gap, automation brings other significant benefits to the table. Carl Doeksen, Global Robotics Automation Director at 3M, puts it really well. He says, "There is nothing more important than safety to any organization, any factory. We find that the safest factories are also the most efficient and are putting out the highest quality products. Quality lies in precision and repeatability."
About the Podcast
Great Question: A Manufacturing Podcast offers news and information for the people who make, store and move things and those who manage and maintain the facilities where that work gets done. Manufacturers from chemical producers to automakers to machine shops can listen for critical insights into the technologies, economic conditions and best practices that can influence how to best run facilities to reach operational excellence.