Cold Link Africa Nov/Dec 2016 | Page 9

NEWS INCORPORATING COLD CHAIN Packaging: Will automation take over jobs? A ccording to a recent report by Deloitte, the African continent will become a high growth region for the packaging industry. What does this mean for marking, coding, and labelling in terms of automation? This predicted high growth could be attributed to the increase in local markets for the consumer, burgeoning incomes, and an expanding youth market. Speaking at the Packaging and Beyond Africa Innovation Conference in Johannesburg last year, Roy Campbell, partner and manufacturing industry: Forestry, Paper and Packaging sector leader at Deloitte, said that International Monetary Fund (IMF) forecasts predict growth of 6.5% per annum over the next five years in East and West Africa. This would put the two regions on par with the fastest growing regions of mainland China and emerging Asia. Although risks are still attached to investment in Africa, the IMF expects 15 African countries to grow faster than China. Two of the primary factors behind this high growth rate are that this is generally off a relatively small GDP base, and Africa has youth on its side. Already, 25% of the world’s under 18s are found in Africa. “Contrary to some commonly held perceptions, African growth will not be primarily driven by commodities,” says Campbell. “Eight of the 12 fastest growing economies in Africa do not rely on natural resources for their prosperity.” This figure, anticipated to grow to 50% by 2100, guarantees growing consumer markets a demand for products, and therefore increased opportunities for the packaging industry that serves the manufacturing and consumer sectors. “I believe that automation may well make certain jobs redundant, but in turn creates new opportunities for skills in automation and robotics instead,” says Gary Chilton, managing director of TracePack. “People will always adapt to these changes and re-skill or upskill themselves into these newly created jobs.” Would the demand for automation, labelling, marking, and coding products drive job losses in our industry? According to an article written by Rachel Nuwer for the BBC, examining these questions begins with the realisation that technology, innovation, and shifting cultural norms have always fuelled a turnover in workforce composition. Machines have been taking over jobs for centuries. Although automation may make certain jobs redundant, it will create opportunities for different skills within robotics and electronics. “Market economies are never sitting still; industries rise and fall; products and services change — and that’s been going on for a very long time,” explains David Autor, a professor