Chinese factories must bet big on digital technology for industrial reinvention
Accenture research suggests firms in the industrial-equipment sector could save more than US$43,000 per employee if they combined robotics, AI, blockchain, big data and 3D-printing technologies
China remains the manufacturing powerhouse of the world, but many of its leading players are facing challenges such as overbuilt capacity and weak demand.
Revenue growth has slowed, and profitability has stagnated and in some cases declined.
While China enjoys some advantages such as mature manufacturing bases, fiscal support, a large base of tech-savvy consumers and more platform players, it also has hurdles such as increasing labour and material costs.
Plus, the piecemeal deployment and implementation of investments in digital technologies hinder the ability of Chinese businesses to innovate with connected and intelligent products.
Recognising the challenges, in 2015 China launched “Made in China 2025” as part of a road map for the country’s latest industrial modernisation. The strategy focuses on developing an advanced manufacturing sector through innovation-driven development and applying smart, eco-friendly technologies.
Its business leaders understand the power of digital and the importance of the goal of making the ethos of “Made in China 2025” a reality. They see the potential for digital technologies to bring about transformation and growth and are making big investments in a variety of leading technologies.