The “2016-2020 China Smart Factory In-depth Survey and Investment Prospect Forecast Report” published by the China Investment Adviser pointed out that China’s demographic dividend has gradually disappeared and smart production has replaced people’s labor.

Robot machine substitutions

The advantage of demographic bonus is no longer, and China's manufacturing industry is facing enormous challenges. In the past, the cost of personnel in a traditional production line was very low, and the labor market was far greater than the demand market. In recent years, there have been problems in the recruitment of employees across the country. Due to the reduction in the supply of labor force, the demand for salary increases has gradually become stronger. The cost of personnel has gradually increased, while the global economy is slowly recovering and the domestic economy is declining. Many companies have experienced internal and external problems, and their profitability has declined, which has been unable to meet the demand for rigid wage growth. On the other hand, due to labor shortages, the competition for labor resources in all regions has become increasingly strong. Small and medium-sized cities in the third and fourth line have encouraged local residents to work in their hometowns. The migrant population working in first and second tier cities has gradually returned to support hometown construction. The manufacturing industry in big cities is facing a shortage of laborers. In addition, due to the vigorous development of finance, the Internet and other industries, fresh graduates are trying hard to enter these industries when they choose to work. They are reluctant to develop in the real manufacturing industry. The main reason is that they are not willing to do boring manual work, and at the same time think that finance, the Internet, etc. The salary of the field is higher than that of the manufacturing industry. To sum up, because the supply of the labor force can not meet the current market demand, China's manufacturing industry urgently needs a transformation - a machine to replace the transformation of human labor.

The “2016-2020 China Smart Factory In-depth Survey and Investment Prospects Forecast Report” released by China Investment Advisors pointed out that in the future China’s manufacturing factories, robots will replace the labor of more than half of the people, and “machine substitution” is becoming more and more The more the consensus of the transformation and upgrading of the enterprise. At present, many companies have a relatively strong desire for machine substitution, and some companies are waiting for the introduction of supporting policies. After the “machine substitution”, 61.5% of the enterprises reduced their first-line employees by at least 10%, and 16.3% of them reduced their first-line employees by more than 30%. This not only reduced the labor cost, but also greatly relieved the pressure on personnel and increased the number of employees. Production efficiency reduces accidents.

The domestic "machine substitution" boom has swept across major cities, mainly in the Pearl River Delta and Yangtze River Delta. In particular, Guangdong and Jiangsu and Zhejiang provinces are at the forefront. Major companies are actively deploying robots in the production line. The municipal government is also actively promoting the development of smart production. From this we can see that Chinese cities are thinking about solutions to the current pattern of declining labor force, and the strong desire of the market has prompted the replacement of machinery to become the “operator” of the industry.

Under the joint efforts of the government and enterprises, the next three years will be the stage where the “machine substitution” plan is vigorously implemented. Each municipal government has issued corresponding documents and guidance to help key enterprises achieve rapid replacement of production lines. The transformation of the manufacturing industry in the future has been actively implemented. We are optimistic about the future development blueprint.

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