Deutsche Bank highlights equipment manufacture and supply as keys to China’s IM future
But latest report also warns development of the domestic intelligent manufacturing sector is still well behind global rivals
China’s rapid development of intelligent manufacturing (IM) presents attractive investment opportunities, according to a new report from Deutsche Bank.
But those will only be realised, if the country urgently addresses key issues within the industry, and further promotes the sector, which the report warns is under-explored and still well behind the development stage of global leaders.
IM refers to advanced manufacturing systems and business modes that possess self sensing, intelligent optimisation, and accurate control and execution functions.
The Deutsche study suggests, for instance, that China’s levels of numerical control penetration and industrial robot adoption are still 30 years, and 25 years, respectively, behind Japan.
This explains why Chinese manufacturers have been struggling with lower efficiency and quality, the study said.
IM equipment offers imminent investment opportunities and this market can grow by 17 per cent annually over the next five years
And with manufacturing costs such as labour continuing to creep up, China’s lower-cost model has also become increasingly unsustainable.