Foxconn’s recent replacing of 60,000 workers with robots is the taste of a new realityAuthor : AZIndia News Desk
Mumbai, May 26(AZINS) Given the massive demands to produce personal technology devices to meet the needs of growing markets, companies are on the squeeze to deliver more, while lowering production costs to keep ahead of competition. Over the past several years, the answer has--more than ever--veered toward robotics.
With advances in machine control, vision systems, and lower acquisition costs, robots have been a natural choice for manufacturing companies where production largely comprises repetitive, high-volume tasks such assembly and testing. Where human workers are inherently disadvantaged by being, well, human, robotic systems are far more economical and reliable in the long run.
This situation came to stark life recently, as reported by the South China Morning Post, stating that Foxconn--the largest contract manufacturer of electronics on the planet--has replaced 60,000 human workers with robots.
In a story outlining the company’s growth plans in China's Kunshan county, Xu Yulian, a department head at Foxconn’s factory there stated, “The Foxconn factory has reduced its employee strength from 110,000 to 50,000, thanks to the introduction of robots. It has tasted success in reduction of labour costs.”
This is bound to have a huge impact on the largely migrant working population in the area, given that other companies in the region are likely to follow suit.
Steps such as this are becoming necessary in an environment of increasing pressure on manufacturing companies to churn out products, especially at launch. Foxconn is the principle manufacturer of Apple’s iPhone, which is also one of the reasons for this move to further optimize their shop floor for greater production throughput.
The fact that robots are poised to take over numerous previously mundane human functions is inevitable. In a recent interview with Fox Business, Former McDonald’s CEO Ed Rensi stated, “It’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who is inefficient, making $15 an hour bagging French fries.”