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

Baksy, Aniket, Chandler, Daniel ORCID: 0009-0009-9094-143X and Lambert, Peter ORCID: 0000-0001-7006-5326 (2024) Anatomy of automation: CNC machines and industrial robots in UK manufacturing, 2005-2023. CEP Discussion Papers (CEPDP2131). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2025 The Author(s)
Divisions:	School of Public Policy Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor T Technology > T Technology (General)
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J63 - Turnover; Vacancies; Layoffs
Date Deposited:	30 Oct 2025 10:48
Last Modified:	31 Oct 2025 13:39
URI:	http://eprints.lse.ac.uk/id/eprint/130003

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