Your Organization Had Better Be Well Prepared if Ford Already Has Done This in China

Your Organization Had Better Be Well Prepared if Ford Already Has Done This in China

By Fred Leeb, Leeb Partners, LLC 

If you want to know what the future holds for the level of competition in the United States, you must fully comprehend what already is going on in China, the so-called country of unlimited cheap labor.  All you have to do is contrast the video in this article with the other much older picture from my home page of an engine assembly operation (similar to where I started my career). You can easily see how the world has changed radically from one with a significant amount of manual labor to the use of a large number of high-tech robots, even in China.  Ford had to automate in China and rely on technology to reduce labor cost and maintain quality control.

 

If any organization wants to be able to compete, there will be no going back to the good old days here or anywhere else in the world. This is no surprise in the auto industry but it now applies to all types of industries including retail, grocery, fast food, distribution and many others.  Virtually every operation, even service industries, must change dramatically to be able to survive in the future. 

Sarah Li, Guglielmo Mattioli and Veda Shastri of The New York Times provided the fascinating 360 degree video, “Where It’s Made: A Ford Car in China” The video was produced at one of the most automated factories in Hangzhou, China.  With only 1,400 people/shift and 650 robots, this plant manufactures 250,000 cars per year with a starting price of $36,000 per car.  This means that this plant generates revenue of at least $9 billion per year.

 

Click on the video to get an excellent idea of the technology already in use and the relatively small number of factory workers needed.

Call Fred Leeb at Leeb Partners, LLC now at 248-514-3262 for a free initial meeting to begin to discuss how to begin to implement the necessary changes in your organization to maintain your competitive edge.  The meeting will be completely confidential and without further obligation.