During the process of reindustrialization, it is claimed by many enterprises in the United States that they will adopt more robots in the manufacturing industry of which the Chinese enterprises must be alert. For a long time, the made-in-China products enjoy the advantage of low price, but the low price has been achieved depending on the low labor cost. As long as the robot has been adopted in the manufacturing industry, although the cost for development and research is rather high, for a long run, robot will prove to be cheaper than the human labor. Anyway, the robot can work for 24 hours a day without asking for a rise of salary.
Then, a severe and urgent question has been put before the Chinese entrepreneurs: should the made-in-China products armed with the robot? As an old saying goes in China, to do anything great is like to sail against the current tide; one has to move forward, or he’ll fall behind. Obviously, the competition in the market has told us that he who does not advance loses ground. Such being the case, it is necessary as well as urgent for the Chinese enterprises to catch up with the speed at which the robot has been adopted on the production line.
The largest processing Company Foxconn has announced that it would employ 1 million industrial robots within 3 years, with the main purpose of controlling costs. They even invest in a robots industrial park in Jincheng, China’s Shanxi Province, simply to produce its own industrial robots.
Since the “suicide” incident, the company has repeatedly raised the employee’s wages, and expanded to build the factory in inland provinces. More than 1 million workers have been employed by Foxconn in mainland China, and according to plan, in the future, the number of industrial robots will be not be less than the number of workers.
According to the analysis, Foxconn is currently using “low-end robot”-manipulators, each cost more than 100,000 yuan, and the mechanical arms can work for 24 hours a day continuously and theworking time is three times of that of the ordinary workers’. In accordance with the average annual salary of the ordinary workers’ at Foxconn, that is approximately from 30,000 to 40,000 Yuan calculation, cost of mechanical arms is equivalent to the cost of employing three workers a year, such being the case, the cost can be recovered during the first year and after in the following years, the company can make profits.
Industry insiders said rising wages of China’s labor pushed up the cost of the made-in-China products, and “robot plans” if implemented successfully, would allow Foxconn to “break through the ceiling of needs for labor”, and to realize the “global strategy”. Foxconn has made it clear to invest $ 12 billion in Brazil building plants, while in Viet Nam and India it has also started to layout.