New Study Finds Automation Adds $195 Billion to Monthly Business Revenue in the U.S. and £14 Billion in the UK
SnapLogic, provider of the #1 Intelligent Integration Platform, today released first of its kind research into the economic impact of automation. The study - 'Automation: Past, Present, and Future - A Driving Force for Economic Growth' - looks at the growing adoption of automation and its role in bolstering business revenues, creating jobs, increasing productivity, and strengthening economic resilience.
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A new study from the Centre for Economics and Business Research and SnapLogic uncovers a direct connection between the adoption of automation and revenue growth, job creation, worker productivity, and economic resilience. (Graphic: Business Wire)
The new research finds that investments in automation are directly linked to increased business revenues (up 5-7%), job growth (up 4-7%), and long-term productivity (up 15%). Spurred on by the pandemic, the adoption of automation is accelerating, with companies in the U.S. and UK spending 8-13% of their annual revenues on automation-related technologies.
Automation Boosts Revenue and Economic Resilience
The research reveals that those businesses who invested in automation saw a marked increase in revenues. In addition, the research indicates that the more a country employs automation, the better equipped it is to deal with worldwide economic disruptions, such as a recession or the recent COVID-19 pandemic.
The report showcases a relationship between automation, job growth, and worker productivity. Despite some claims that automation can limit opportunities for employees, the results tell a different story:
Automation Usage is Increasing, Supported by Core Technologies
The popularity of automation continues to accelerate in both the U.S. and UK. According to the report, U.S. companies spent an average of 13% of their annual revenue (amounting to $4.4 trillion) on automation-related technologies, while in the UK there was an average spend of 8%, or £268 billion in total.
This increased automation spending was focused on certain core technologies:
Companies also had clear business goals for moving forward with automation adoption:
"Our new research confirms a significant positive relationship between automation and economic resilience," said Josie Dent, Managing Economist at Cebr. "The adoption of automation, spurred on by the recent pandemic, has helped organizations shield themselves from disruption and quickly position themselves for accelerated growth. Automation has also led to job creation and greater worker productivity, a significant contrast to the economic picture seen in the period following the global financial crisis."
"This first of its kind report from Cebr demonstrates the power of automation to help businesses navigate widespread disruption, and shows how it can be used as a tool to accelerate growth in a post-pandemic age," said Gaurav Dhillon, CEO at SnapLogic. "Businesses today need to equip themselves with enterprise automation technologies that will allow them to quickly adapt and execute business strategies in a rapidly changing world."
For this study, Cebr surveyed 1,000 businesses in the U.S. and UK about their automation strategies, initiatives, and results. The full study includes case studies of how Siemens (News - Alert) Digital Industries, Browns Shoes, SnackNation, SCG Logistics, and others implemented automation technologies within their organizations.
About the Centre for Economics and Business Research
The Centre for Economics and Business Research is an independent consultancy with a reputation for sound business advice based on thorough and insightful research. Since 1992, Cebr has been at the forefront of business and public interest research. They provide analysis, forecasts, and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies and trade bodies. For further information about Cebr, please visit www.cebr.com.
SnapLogic powers the automated enterprise. The company's self-service, AI-powered integration platform helps organizations connect applications and data sources, automate common workflows and business processes, and deliver exceptional experiences for customers, partners, and employees. Thousands of enterprises around the world rely on the SnapLogic platform to integrate, automate, and transform their business. Learn more at snaplogic.com.