Industry 4.0 Manufacturing in Asia

In the event you are not aware, industry 4.0 manufacturing is rapidly becoming a reality in the U.S. and overseas. As the next major technological disruption, industry 4.0 manufacturing is unlocking new abilities and expectations from consumers. Of particular interest is China’s reaction to industry 4.0. Chinese manufacturers moving quickly to embrace new technological capabilities to remain relevant and competitive after the fourth industrial revolution.

Chinese Manufacturers are Moving Towards Industry 4.0

Though Industry 4.0 is a German idea, the concept of this industrial revolution is gaining traction. For instance, it’s especially gaining traction in the China manufacturing process as well as around the world. Most people commonly associate cutting-edge manufacturing techniques with the West but China manufacturers are also embracing them.

According to The World Bank, Chinese manufacturers are focusing more on the development of Industry 4.0 technologies especially those powered by the Internet of Things (IoT). Industry analysts note that, in order to position itself as an Industrial IoT superpower, China is attempting to leverage the fact that 40 percent of its GDP comes from its manufacturing industry.  In other words, China sees Industry 4.0 as a perfect opportunity to cement its position as the leading economic power in the world.

China’s emphasis on Industry 4.0 will make its adoption a critical element of survival. Manufacturers – both in Asia and the West – must prepare for and welcome this next industrial revolution into their respective business processes.

TEDA & the Intelligent Industrial Zone

In 2017, TEDA – the Tianjin Economic-Technological Development Area – introduced the Intelligent Industrial Zone. The TEDA is a 20 square kilometer area – almost 5,000 acres, or about 2,222 city blocks – designed to host companies that are developing new technologies that will directly support the country’s movement to Industry 4.0 manufacturing. These technologies include artificial intelligence, automation, and the introduction of smart recognition technology in the country’s manufacturing ecosystem.

TEDA, which was formed in 1984, is part of an ongoing strategy known as Made in China 2025. With this strategy, China is positioning itself to move away from the production of cheap, low-quality goods and towards high-value products that take advantage of Industry 4.0 technology.

The Impacts of Industry 4.0 Manufacturing on American Manufacturers

Industry 4.0 manufacturing holds opportunities for American manufacturers as well. Whereas manufacturing in Industries 3.0 and earlier created processes designed to produce the maximum amount of goods in the fastest and cheapest way, the leveraging of smart technology will not necessarily pursue the same goals.

As China’s long-term vision shows, Industry 4.0 will be uniquely oriented towards sophisticated manufacturing. Furthermore, this will lend itself to high-quality goods in smaller quantities. China has opened the door for intercorporate collaboration with western countries through TEDA.  This will create an opportunity for American manufacturers to level the playing field in many industries.

How an Offshore Manufacturing Liaison Can Help

However, as TEDA and the Made in China 2025 plan show, China is not necessarily interested in competing with American manufacturers any more than it is with other Asian countries. Instead, China has opened the door for interconnectivity, communication, and collaboration. And this opportunity has now invited American manufacturers to join in.

ITI Manufacturing helps companies achieve reliable and competitive offshore manufacturing.  For example, we manage the entire process so your company won’t have to.  We also guarantee no manufacturing defects.  Contact us today to learn how we can help your business thrive. For immediate assistance, call us toll-free at 281-242-7030.

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