Here Come the Androids: Millions of Humanoid Robots Could Solve the Factory Labor Crunch

Humanoid robots, a.k.a. androids, could achieve a massive leap in automating many jobs because they fit into the complex work environments we’ve carefully shaped over the years around human bodies and how they work. Add the unarguably cool Star Wars/C-3PO sci-fi angle, and it’s easy to understand why people have tried for years to make these machines a reality. Now a report in industry news site Automotive News shows how wage costs could spur automakers to send more of these robots marching onto factory floors to help fill out their production line capacities—something that’s been difficult due to higher labor costs and worker shortages. The report sites recent analysis by U.K. consultancy firm IDTechEx that predicts that some 1.6 million humanoid robots could be working in the automotive factory sector by 2035. U.S. Bureau of Labor Statistics data show that in the manufacturing sector as a whole in 2024, employers spend $45.29 per hour on average on workers. But conversely, Automotive News says venture capital firm UP.Partners predicts the “labor” cost for humanoid robots would be around $1.29 per hour. That equates to under 3 percent of the cost of human labor—on an hourly basis at least. This statistic alone is a compelling reason why carmakers will adopt robots, especially when recent research shows most Americans don’t want to work in factories, even though they approve of the idea of boosting U.S. manufacturing. As the market now stands, factory labor shortages aren’t likely to diminish. But there’s another reason carmakers may be on the front line of adopting humanoid robot workers: Because they can use their expertise to make and sell robots to other people. Automotive News quotes David Kehr, president of humanoid robotics at the Germany-based drivetrain maker Schaeffler, who explained “We’re a motion technology company, and what do humanoids do? They utilize motion. This is in our DNA.” This stance echoes many bold predictions made by Tesla CEO Elon Musk, who’s staked the future of his EV company on humanoid robots, rather than cars—and has promised to test Tesla’s Optimus robot on factory floors in very large numbers. Other reports highlighted the presence of Chinese-made humanoid robots at the recent Shanghai Auto Show, with numerous automakers talking about billion-dollar-scale investments, vowing robots will soon actually be put to work in factories. But robots are expected to mechanically stride into other industries as well, and perhaps sooner than the general public might think. Industry news site TheRobotReport recently noted that Houston-based humanoid robot and AI developer Persona AI had just raised a $27-million funding round to help it develop robots to work on shipyards. The company said its machines would marry the high-precision actions of typical industrial robots with the kind of subtle dexterity that humans possess, making the robots suitable for the rugged and demanding environments of manufacturing ships. It also highlighted worker safety in its plans—essentially moving fragile humans from the riskiest environments. The company has already signed an agreement with HD Hyundai, the Korea-based manufacturer that holds about 10 percent of the global ship-building market share. It expects to be ready to sell humanoid robots for shipyard work in about 18 months. Meanwhile, speaking at the Computex 2025 trade show (which markets itself as the “World’s Largest AI Exhibition”) this week, Nvidia CEO Jensen Huang also painted a bold picture of humans working alongside robots. Describing data centers of the future as “AI factories”—because AI is now infrastructure “just like the internet, just like electricity”—Huang spoke of a future where people worked alongside AI agents and robots and machines fill job gaps left vacant by people. Why should you care about this? For one simple reason: Even if your company isn’t directly involved in the manufacturing industry, what’s happening there is a litmus test for almost any workplace in the future. Carmaking is already highly robotic, so the industry is ready to adopt the next-generation of robots in humanoid form, and once they’ve demonstrated their value in these scenarios, they’ll be adapted for many other jobs. If you’re building a long-term business plan for your company, you might want to think about how robots could help. BY KIT EATON @KITEATON