Small and Medium Enterprises Using Robotics to Cut Costs and Battle Labor Shortage

Small and Medium Enterprises Using Robotics to Cut Costs and Battle Labor ShortageBased on the report released by the Shenzhen Robotics Association the annual output of the automation and robotics industry in Shenzhen has exceeded its target of 20 billion yuan as of last year. Bi Yalei the Secretary General of the association stated that the robot usage rate of several enterprises in the Pearl River Delta has increased by roughly 30 percent each year and in some industries the growth was up to 60 percent.

Automated equipment that is usually used and afforded by large enterprises are used by an increasing number of small and medium enterprises in their efforts to further reduce costing and to deal with the shortage in labor. Taiwan based electronics manufacturer Foxconn is using around 10,000 robots in their factories in Shenzhen and is planning to add more robot and bring the total number to a million in three years. Fukucima a industrial robotic enterprises said that their company sold around a hundred robotic products in 20o1 and numbers tripled in 2012 to 300.

But even with local robotic manufacturers, foreign robotic firms still take 90 percent of the market share in China as most of the local manufacturers are still in the starting stage. Shenzhen has 10 laboratories that are closely related to the robotic industry, robotic industry incubators and industrial alliances. And the city is planning to build more public infrastructures that will provide these small and medium enterprises with equipment and technology in robotic related industries and create a platform that will allow sharing of ideas as well.

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