Published Date : Sep 14, 2015
Leading manufacturers of industrial robots located in the southern province of Guangdong, which is the manufacturing hub of China, are witnessing decline in profits as the demand for products dwindle in tandem with the economic slowdown in the country.
A senior salesman working for LXD Robotics, the ace robot maker based in Foshan, a city that exhibits whopping 7 million population, forecasted that only a five per cent of the companies engaged in robot manufacturing will remain around in the next two years.
Such reports suggest that the economic slowdown in China may have deeper repercussions than what was thought before. Given the fact that China is on the verge of automation revolution, makers were touting robotics as the means to overcome labor shortages and fuel innovation amid escalating wages and in coherence with the central policy.
Earlier this year, the authorities announced their plan of spending over 943 million yuan to speed up replacing the conventional manpower with the technology requiring electricity or batteries, and which will work round the clock without complains or demand for a raise.
Such endeavors by the government encouraged several manufacturers of robots in the region to set ambitious targets for themselves, since investment in the sector was tipped to hit high altitudes.
But following the economic slowdown registered by the country, much of the optimism has ebbed as the companies missed their sales targets, subsequently drying up their revenue stream.
He Zexian, a salesman in LXD Robotics forecasted back in April that the annual output of the company will reach 300 million yuan in 2015, exhibiting a remarkable jump from 20 million yuan in 2013.
However, he was forced to change his estimate and on Thursday he conceded at the Foshan Intelligent Equipment Industry Conference and International Internet Plus Exposition at Guangdong. Citing fierce competition in robotics manufacturing he said that the manufacturers of industrial robots were impelled to engage in price wars.