Rise of the robots: How higher wages are changing manufacturing

Rising labour costs in China means manufacturers have been turning to robotics to save costs. Now, a robotics revolution is underway, driven by smart materials and more sophisticated design. Pieter Busscher from RobecoSAM explains the dynamics.

Labour costs vs. robots The automation industry is already worth more than $180bn and has seen a lot of growth in recent years. This has been driven in part by rising labour costs, as the need to use automation for greater efficiency and quality in manufacturing is gaining importance. Global labour is estimated to cost around $6trn. But even though a lot of manufacturing in the West has been taken offshore, primarily to China, wage rises in the country mean that manufacturing cost levels are now just 5% below the US, according to the Boston Consulting Group. While the cost of labou...