Automation may also improve consistency, or quality.
There are two basic outcomes regarding labor:
One is to reduce labor and ride on productivity / efficiency.
The other is to work differently, better. Head count may or may not change.
In terms of which is better, there are strong arguments either way.
Everything costs something.
The first scenario is easy. Margins go up, labor costs go down. However, cost of change, maintenance, quality, business expansion may carry much higher costs and risks too.
In the second scenario, margins likely increase, but not as dramatically. People are free for other work, training, to innovate, etc...
There are two basic outcomes regarding labor:
One is to reduce labor and ride on productivity / efficiency.
The other is to work differently, better. Head count may or may not change.
In terms of which is better, there are strong arguments either way.
Everything costs something.
The first scenario is easy. Margins go up, labor costs go down. However, cost of change, maintenance, quality, business expansion may carry much higher costs and risks too.
In the second scenario, margins likely increase, but not as dramatically. People are free for other work, training, to innovate, etc...
Lots of ways this can all play out.