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20 HARTFORDBUSINESS.COM | August 29, 2022 Mark Auletta, president and chief operating officer of Bristol-based manufacturer Bauer, said his company is finishing up a multimillion-dollar facility expansion that will include new automated robots that cut metal. HBJ PHOTO | STEVE LASCHEVER Man & Machine Major CT industry sectors turn to automation, AI amid workforce shortage, high labor costs By Skyler Frazer sfrazer@hartfordbusiness.com A s several industries deal with workforce shortages and high labor costs, compa- nies are increasingly investing in automation and artificial intelligence technologies to supplement their existing workforce. Since the COVID-19 pandemic hit in March 2020, already existing employ- ment challenges like a lack of skilled laborers and too many open positions have only been exacerbated. With more than 100,000 jobs currently available in the state, investment in automation and AI — in industries ranging from manufac- turing to insurance — has become more commonplace over the past several years, experts say, and will likely continue into the future. Even restaurants, which have been among the hardest hit from pandem- ic-induced labor shortages, have focused on technology investment. For example, a New London-based eatery — Shaking Crab — gained statewide attention over the past year after it purchased robots that serve food to tables and return dirty dishes to the kitchen. Experts said new workplace tech- nology creates a shift in employees' skill sets, not necessarily a loss in jobs, freeing up humans to do more complex tasks. "It's a pretty interesting moment in time — we have a strange, and hope- fully once-in-a-century labor shortage associated with the pandemic and the outcomes of that, but we also have a demographic shift coming in the labor pool as Baby Boomers retire," said John Bourdeaux, president of AdvanceCT, the state's not-for-profit business recruitment arm. "Even prior to the pandemic and prior to the current labor shortage, I think there was a lot of thinking going on around automation." Manufacturing Automation is nothing new in the manufacturing sector. Bourdeaux said aerospace and defense compa- nies have implemented Industry 4.0 initiatives that aim to update factories. Manufacturers are at the forefront of adopting automation technologies, he said, including things like robots, cobots, 3D printing and design software. Half of the 607 U.S. manufacturers recently surveyed by accounting firm Marcum said they have taken on new technology over the past 12 months, while 61% said they plan to launch a new automation or technology project in the coming year. Mark Auletta, president and chief operating officer of Bristol-based manufacturer Bauer, said his company is finishing up a multimil- lion-dollar facility expansion. Part of the project includes adding new automated robots that can do tasks like cut metal to help the company's existing workers be more efficient. "This new equipment is light-years ahead of what our guys use now," said Auletta, whose company makes aircraft component testing equip- ment for commercial and military aviation industries. The 30,000-square-foot expan- sion will more than double Bauer's existing manufacturing space and include about $1 million in new sheet metal fabrication and welding equipment that will make the plant more efficient. "Two key pieces are a sheet metal laser cutter and a press break to break metals," Auletta said. "It's highly-automated equipment." Bauer workers currently cut metal "by hand," Auletta said, and the company has had to historically outsource some fabrication work. The new machinery will help change that. "The other significant thing is we can't hire people to run our anti- quated equipment because it's so old school," Auletta said. "When I think about the workforce, what advanced manufacturing programs are training students on today is how to use the new CNC machines and the new automated fabrication machines." Connecticut Center for Advanced Technology President & CEO Ron Angelo said technology advancements like automation and AI create new opportunities for workers. It could be a way industries deal with a challenging labor market. "They could be taking high-value employees, upskilling them to a high- er-value job and replacing that with an automated process," Angelo said. "It does not matter what industry you're in, that's what every industry is looking at right now and it's here to stay." Bourdeaux said he expects a continued shift from creden- tial-based to skills-based hiring across manufacturing, life sciences and technology. For example, rather than wanting to hire someone with a degree from a specific institution, companies want prospects who have a certification for the work they'll be doing. In his day job, Manufacture CT Executive Director Jamison "Jamie" Scott is exec- utive vice president of Woodbridge-based manufacturer Air Handling Systems. He said smaller manu- facturers have been investing hundreds of thousands of dollars in automation machines over the past several years. "Years ago I started investing in automation more and more at my business," Scott said. "What used to be done 100% by hand, like welding, is now two-thirds automa- tion, and other manufacturers say the same thing." He said companies will continue to turn to automation as workers are harder to find. The state's Manufac- turing Innovation Fund offers loans and grants to companies that want to update their facilities, and Scott said almost every manufacturer he knows makes use of the program. "Now every machine I buy, even the new machines that go to replace older machines, are completely auto- mated today and the technology just didn't exist before," Scott said. Auletta, who is also president of industry group Manufacture CT, said he's seen companies such as Assa Abloy and Honeywell invest in automation. Northford-based Honeywell and Assa Abloy's Connecticut facilities, including one in Berlin, have installed John Bordeaux Jamison Scott