A few days ago, several media reported that in order to reduce labor costs, Fuzhikang introduced robots in its factory in Kunshan, Jiangsu Province, and reduced the number of workers by 54% from the original 110,000 to 50,000. Fu Zhikang is a subsidiary of Foxconn Technology. After Foxconn responded, the news was publicly disclosed by the Kunshan Municipal Government and reported by foreign media. Foxconn spokesperson Liu Kun told the China Business News that Foxconn is currently upgrading its industrialization automation. This news is also not from Foxconn. Our reporter called the Kunshan Municipal Government and did not deny it.
However, in recent years, the manufacturing industry has been exposed to information such as downsizing and declining performance. The US has publicly responded that the acquisition of the KUKA Group was due to the rapid rise in manufacturing costs in China, the rise in labor costs, the appreciation of the RMB exchange rate and the rise in energy costs. As a result, rising labor costs faster than productivity growth is the main cause. Liang Zhenpeng, a senior industrial economic observer, said that the upgrading of industrial automation is imperative. Different companies will make different choices in different times, and the industry will also shuffle.
Denying large layoffs
A few days ago, according to the US CNBC website, Fu Zhikang’s industrial area in Kunshan has already dismissed 60,000 employees and replaced the production with robots to reduce labor costs. It is understood that Jiangsu Kunshan City is one of the major electronic product manufacturing centers in China. It is accelerating the strategic transformation of the electronics industry. Fuzhikang replaces human labor with a large number of robots. If the news is true, Foxconn will lay off 50,000 employees. According to the report, the Kunshan Municipal Government survey shows that as many as 600 companies have planned to introduce machine workers in the near future. There are 4,800 Taiwanese companies in Kunshan, accounting for more than 60% of their GDP. If the automation plan goes well, it could force 2.5 million people to lose their jobs. In this regard, our reporter called Foxconn, Foxconn spokesperson Liu Kun responded to this reporter, Foxconn did not make major layoffs, and online reports that Fu Zhikang's industrial zone in Kunshan has fired 60,000 employees as false news," We have noticed the media's recent reports on the operation of Kunshan Park. In fact, the number of employees in Kunshan Park has been the result of natural reduction in the past six or seven years, not layoffs." Liu Kun said. The report said that the data reported by foreign media came from the Kunshan municipal government investigation, and the reporter called the Kunshan municipal government. The Kunshan municipal government also responded that the data was not released.
Foxconn’s “slimming†plan is not a passive layoff and a reduction in losses. Around 2010, Foxconn has already used robots to replace workers' plans, and now the plan is being carried out in an orderly manner. Liu Kun said that industrial automation transformation is to allow enterprises to have a large number of technical talents and patent accumulation to ensure that the Group is in a leading position. In recent years, industrial automation and industrial transformation and upgrading are the development strategies that the country is currently vigorously promoting. The Kunshan Municipal Government is also encouraging local enterprises to carry out industrial automation upgrades. In addition, rising labor costs and low labor efficiency are also measures to promote industrial automation upgrades. Instead of labor, the machine can free some employees to complete more complicated work and improve production efficiency, thus ensuring the quality of the company's employees. Foxconn continues to introduce robots and reduce the number of employees in order to reduce company expenses and increase company profits.
It is understood that Foxconn also has a situation of disguised slimming in the near future. As Apple announced its first quarter 2016 earnings report, sales declines caused concern, and the performance of the entire smartphone and PC market was not optimistic. Foxconn’s orders for some PCs and mobile phones assembled for OEMs such as Apple, Huawei and Lenovo also decreased. However, there are also labor losses on some production lines. Foxconn Shenzhen Park flat-panel appearance production line line told reporters that his department is mainly responsible for the film on the Apple mobile phone glass, the first half of the season to receive orders, the peak season after August, in the past off-season, generally need six There are more than a dozen workers, and today there are only twenty workers left. At present, the salary of Foxconn workers' wages is mainly composed of basic salary and overtime pay. The interviewee said, “There are fewer orders in the past few months, and we have less overtime pay. We don’t have to work overtime, so we’ll lose less. Some people leave their jobs automatically."
"Lowering staff" accelerates industry reshuffle
There is less and less labor required, and more and more robots have clearly become the trend of manufacturing upgrades.
It is understood that with the large-scale home appliance enterprises and manufacturing industries in recent years spare no effort to automate the transformation of production lines, large-scale manufacturing industries such as Foxconn, Midea and Haier have been exposed to attrition plans. But at the same time, machine replacement is not new in many companies. In 2015, the company established an industrial robot and service robot company with Yaskawa Electric Co., Ltd., one of the “four major families†of the global robot. In this year, it acquired the German robot KUKA company for 29.2 billion yuan.
At present, the layoffs of Chinese companies are strictly not called "reductions" and should be called downsizing. Layoffs are active behaviors, and attrition is a passive behavior. Attrition is mainly the result of the implementation of the robot replacement program. The more robots are used, the greater the reduction in the number of employees. The choice of robots to replace people is mainly due to the shortage of labor in recent years and the rapid rise of labor costs in China. Liu Buchen, a senior observer in the home appliance industry, believes that there is a big difference between robot manufacturing and manual manufacturing, that is, robot manufacturing is standardized for production. There are benefits, and standardization is precisely the most critical element of large-scale industrial manufacturing. It can improve product uniformity and yield, thus enhancing the competitiveness of “Made in China†in the world. In fact, attrition is the inevitable result of enterprise transformation, not just a crisis, but perhaps an opportunity. “Enterprises have a direct relationship with layoffs and smart manufacturing 2025, factory automation.†Liu Buchen believes. In addition, Liang Zhenpeng also said: "The automation upgrade of enterprises is the trend of the times. The enterprises will automatically upgrade and upgrade the production lines, improve the input-output ratio, improve production efficiency, improve the business operation of the enterprise, and do not need so many employees. The layoffs are normal. At the same time, Liu Buchen predicted that different companies have different approaches to the new era, and some enterprises will naturally be eliminated in this round of automated upgrade competition. "Because of the strength of enterprises, there are funds to achieve robot production, thereby reducing labor costs and improving corporate profitability; those enterprises without strength, without the financial strength to buy robots, will have to bear the labor shortage and high labor costs at the same time, leading to competition. The power is further reduced. This creates a stronger situation and a weaker situation. This is shuffling."
It is worth noting that "currently, the mainstream enterprise's robot program is still in the process of implementation, the industry reshuffle is still in progress, and it has not yet reached the time when the dust settles. It is expected to see the results after three years." Liu Buchen said.
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