A few years ago we posted a blog on an AGMA delegation visiting Chinese factories and being shocked at the level of automation and robotics in use.
Well, moving on five years or so and we have another seismic shift in the level of robotics and automation employed in China’s factories.
This is the subject of the featured article of another visit by a delegation featuring executives from some of the largest manufacturers in the West, including such icons as Ford.
Ironically, Ford were one of the first companies to adopt mass production techniques. How times have changed as the delegation reeled from the level of robotics present in the factories they visited.
Far surpassing anything that can be seen anywhere in the West. Factories that operate 24 hours a day with the lights out (as robots don’t need to see) with just a few human supervisors to monitor production issues.
This kind of investment was made possible by China’s centralised command structure and in response to their demographic decrease in working age people as much as production capabilities.
However, it does pose significant challenges to the West to play catch-up if they are to compete. The West itself faces demographic challenges and manufacturers find it difficult to recruit skilled workers.
However, the biggest risk is our inability to compete on costs and production capability.
It’s also a false assumption to think that the adoption of robotics and automation means a reduced workforce. Overall, it doesn’t – it helps manufacturing to keep competitive and therefore keep producing enabling more factories to keep open – and possibly increase manufacturing overall.
It was a sobering visit and one that left an abiding sense of urgency for us the address how far we have been overtaken. The key challenge is now to begin the catch-up.
Why Western executives who visit China are coming back terrified.