Lewis Krauskopf — Researchers figured out when companies think about replacing workers with robots

The research found a tipping point for installing robots: Companies tend to start thinking about replacing workers when the costs of owning and operating a system come at a 15 percent discount to employing a human counterpart. 

For example, in the U.S. automotive industry, which is predicted to be one of the more aggressive adopters of robots, a spot-welding machine costs $8 an hour versus $25 an hour for a worker. 

A robot that can perform certain repetitive tasks costs about one-tenth as much as it did more than 10 years ago, Sirkin said. Costs tied to one commonly used robotics system, a spot welder, are expected to fall 22 percent between now and 2025. 

Three-fourths of robot installations over the next decade are expected to be concentrated in four areas: transportation equipment, including the automotive sector; computer and electronic products; electrical equipment and machinery.

There's a further advantage to robotizing, which is giving China a push to robotize even with low labor costs. It's not just cost and productivity. The output of production is just better qualitatively, and in a six sigma world of business, that's a huge competitive advantage, especially where a competitor has to avoid or overcome a reputation of "cheap."

A friend of mine who does carpentry on the side went to the local contractor supply house and was complaining that he can buy cheaper at the big box stores. The supplier said, "Yeah, and I bet it's a lot less expensive, too." My friend thought about that for a second or two, smiled, and placed his order.

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Researchers figured out when companies think about replacing workers with robots

Lewis Krauskopf, Reuters