An old friend who owns two huge factories in China told me recently that he has managed to cut his labor force by nearly 50%. He has done it by introducing robotics into his system. He is delighted with the cost savings, but on checking his online published price lists I can see that he is pocketing the big savings and is not passing them on to his customers.
In recent years his workers have become more demanding, and government policies have been requiring employers to provide more benefits and better working conditions. Because of this, my friend is relieved to be able to reduce his labor requirements.
I asked how common is the use of robots in Chinese manufacturing, and his answer was very interesting. He said that there are thousands of factories that once had very big numbers of workers but now that they have changed to robotic production those numbers are very small.
He couldn't give me numbers, but he named some of the companies that he knew I was familiar with, and frankly, I was shocked. Some of them produce items that would seem to require skilled hands to produce, but robots have been successfully programmed to take over the role of humans.
Nearly 30 years ago I saw automated machines operating on production lines, and it is still commonplace today. Much of the tedious and physically demanding work was being done by machines 30 years ago, but the processes have been steadily improving. The few human workers are now only needed to program those machines, and in some case, to feed the supply line.
Not every process can be automated. On my many visits to factories in China I have also seen humans working like robots. Often the work they do is brain - numbingly repetitive, but sometimes it requires skill also. In one industry I know well, there have been many attempts to automate the process using robotics, and they have all been a total failure, mainly due to a huge reject rate. The robots can't seem to detect tiny faults in the work.
What I see happening now is that a lot Chinese companies are coasting along on the country's reputation as a low labor cost manufacturing center, and racking up bigger profits by getting rid of human labor as much as possible.
Walter
In recent years his workers have become more demanding, and government policies have been requiring employers to provide more benefits and better working conditions. Because of this, my friend is relieved to be able to reduce his labor requirements.
I asked how common is the use of robots in Chinese manufacturing, and his answer was very interesting. He said that there are thousands of factories that once had very big numbers of workers but now that they have changed to robotic production those numbers are very small.
He couldn't give me numbers, but he named some of the companies that he knew I was familiar with, and frankly, I was shocked. Some of them produce items that would seem to require skilled hands to produce, but robots have been successfully programmed to take over the role of humans.
Nearly 30 years ago I saw automated machines operating on production lines, and it is still commonplace today. Much of the tedious and physically demanding work was being done by machines 30 years ago, but the processes have been steadily improving. The few human workers are now only needed to program those machines, and in some case, to feed the supply line.
Not every process can be automated. On my many visits to factories in China I have also seen humans working like robots. Often the work they do is brain - numbingly repetitive, but sometimes it requires skill also. In one industry I know well, there have been many attempts to automate the process using robotics, and they have all been a total failure, mainly due to a huge reject rate. The robots can't seem to detect tiny faults in the work.
What I see happening now is that a lot Chinese companies are coasting along on the country's reputation as a low labor cost manufacturing center, and racking up bigger profits by getting rid of human labor as much as possible.
Walter
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today