Companies have been using China for manufacturing, partly because of the cheap labor. Robots have become cheap enough that they’re cheaper than Chinese employees. At least one company is going to replace 1,600 of its 1,800 workers with robots. This displaces many people in China, but has implications around the rest of the world. The price of labor may be tied to a place and its population, but the price of equipment is much more stable. If robots can beat cheap labor in China, they can compete anywhere – and be relocated closer to the customer thereby reducing transportation costs, and speeding service. Manufacturing may shift again, without much of an impact on jobs, except in places that relied on cheap labor.
“A Chinese Company Is Replacing 90% Of Its Workers With Robots” – Fusion
Pretending Not To Panic 