September 14, 2015

PRODUCTIVITY IS WEALTH:

In Japan, the Rise of the Machines Solves Labor and Productivity (Yoshiaki Nohara, September 13, 2015, Bloomberg)

Japan is already a robotics powerhouse. Abe wants more and has called for a "robotics revolution." His government launched a five-year push to deepen the use of intelligent machines in manufacturing, supply chains, construction and health care, while expanding the robotics markets from 660 billion yen ($5.5 billion) to 2.4 trillion yen by 2020.

"The labor shortage is such an acute issue that companies have no choice but to boost efficiency," says Hajime Shoji, the head of the Asia-Pacific technology practice at Boston Consulting Group Inc. "Growth potential is huge." By 2025, robots could shave 25 percent off of factory labor costs in Japan, according to the consulting firm.

Automation also has huge potential for distribution. Toho Holdings Co.'s 10 billion yen distribution center, which became fully operational in January, employs about 130 workers, roughly half the number at another one of similar size. Productivity per worker is 77 percent higher with robots handling 65 percent of item-picking, the drug wholesaler says.

"We wanted to lower manpower requirements by using robots because we already found it hard to recruit people, including part-time workers," says Mitsuo Morikubo, the company's executive managing director.



Posted by at September 14, 2015 7:40 PM
  

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