The following report presents a justification for repatriating electronics manufacturing from China to the United States, by recommending a technological framework that serves to neutralize the benefits, namely lower labour costs, that lead to its original transition and expansion. This justification is specifically based on the premise that due to the expansion of global communications channels that have greatly improved the diffusion of new technological concepts, China’s access to technological innovation is not unique, and that its competitive factors of production are increasingly capable of being neutralized through the deployment of modern technological advances, including automation, artificial intelligence, 3D printing/adaptive manufacturing and others, and through a reduced level of human labour input. Further enhancing the desirability of this model are advantages that would be gained in operational efficiency, reduced energy usage, stability and time-to-market, through their deployment.
Table of Contents
1. Introduction and Background
1.1 Research Question
1.2 Background/Literature Review
2. Research Project Description
2.1 Methodology
2.2 Analysis
2.2.1 Automation and Adaptive Robotics
2.2.2 Additive Manufacturing
2.2.3 Mass-Customization
2.2.4 Distributed Manufacturing
2.2.5 Big Data, Artificial Intelligence and Technological Convergence
2.3 Conclusion and Future Research Direction
Research Objectives and Core Topics
This paper examines how a convergence of modern technological innovations can neutralize the historical cost advantages of offshoring, thereby providing a robust business case for repatriating electronics manufacturing from China to the United States.
- Technological enablers such as automation and adaptive robotics.
- The role of additive manufacturing in simplifying production processes.
- The impact of mass-customization on supply chain architecture.
- Data-driven decision making through Artificial Intelligence and Big Data.
- Strategic implications for the future of manufacturing and supply chain localization.
Excerpt from the Book
2.2.1 Automation and Adaptive Robotics
A key innovation that is presently reducing the labour input required to manufacture goods, and therefore shows the most promise for repatriating offshored production, is in the realm of automation. While automation may technically involve mechanizing any process so that it minimizes or eliminates human intervention, the most influential form of automation for the purposes of our topic, involves the application of robotics.
While industrial robots have been in use since the Unimate was deployed at General Motors in 1962 (Harford, 2017), until recently robots were segregated from human workers, were typically large and stationary, and were largely assigned to repetitive and high-volume tasks. Manufacturers including ABB, Bosch, Fanuc and Kuka have been historically dominant in this market. However, new startup companies such as Rethink Robotics and Universal Robots have recently pioneered the concept of the co-bot, a robot designed to work collaboratively with humans. Now, with improved sensors and programming that provides them with a modicum of intelligence and capacity to learn, robots are increasingly mobile, and frequently work alongside and in collaboration with humans, in warehouses and factories (Opher, 2016). Following the lead of these new upstarts, industry leaders are pivoting their resources to respond in kind.
The cost of industrial-grade robots is becoming increasingly affordable, further reinforcing their application as a replacement for human workers. This is again largely due to the influence of newly arrived innovators. Presently, an advanced industrial robot, such as the Rethink Robotics’ Baxter, can be bought for as little as USD 22,000 (Opher, 2016). Factoring in required accessories and a software service contract increases the price to $36,000, which translates to an operating cost of $4 per hour, based on 40 working hours per week, and a 3 year life span (Thayer, 2017). Rethink’s newest Sawyer robot, released in 2015 and designed for electronics production, is priced about $7,000 higher, but based upon its much longer estimated useful life of 35,000 hours (Rethink Robotics, 2015), the net cost of operation is reduced to approximately $1.25 per hour.
Summary of Chapters
1. Introduction and Background: This chapter defines the theoretical framework of comparative advantage and poses the research question regarding how emerging technologies can facilitate the return of manufacturing to the U.S.
2. Research Project Description: This section details the methodology and provides a comprehensive analysis of technological drivers, including robotics, additive manufacturing, mass-customization, and data integration, followed by a conclusion on the viability of reshoring.
Keywords
Reshoring, Electronics Manufacturing, Automation, Adaptive Robotics, Additive Manufacturing, 3D Printing, Mass-Customization, Distributed Manufacturing, Big Data, Artificial Intelligence, Industry 4.0, Supply Chain Management, Technological Convergence, Comparative Advantage, Repatriation.
Frequently Asked Questions
What is the core focus of this research paper?
The paper explores how modern technological advancements, when converged, can neutralize the traditional labour-cost benefits that led companies to offshore electronics production to China, thereby supporting a case for reshoring to the U.S.
What are the primary thematic pillars discussed?
The main themes include industrial automation and robotics, 3D printing (additive manufacturing), consumer-driven mass-customization, distributed production networks, and the integration of Big Data and AI.
What is the primary research question?
The research asks if current or emerging technologies in automation, robotics, AI, and logistics can converge to facilitate or accelerate the return of electronics manufacturing capacity from China to the United States.
Which scientific approach does the author use?
The study utilizes a systematic review of secondary qualitative research material, incorporating scholarly articles, consultant reports, and industry news to illustrate current trends and real-world context.
What does the main body analyze?
The main body examines specific technological enablers—such as co-bots, cyber-physical systems, and digital manufacturing platforms—and analyzes their collective ability to increase operational efficiency and minimize dependency on low-cost foreign labor.
Which keywords best characterize this work?
The work is defined by concepts like reshoring, Industry 4.0, additive manufacturing, and the strategic technological convergence that impacts global manufacturing location decisions.
How do 'co-bots' differ from traditional industrial robots?
Unlike traditional, stationary, and segregated industrial robots, co-bots are designed with advanced sensors and mobility to work collaboratively alongside humans, offering greater adaptability and lower operating costs.
What role does 'Mass-Customization' play in reshoring?
Mass-customization meets the consumer demand for personalized products while reducing waste associated with inventory. By building products on-demand, manufacturers can localize production closer to the end market, which naturally favors a reshoring strategy.
How does the author view the potential impact on future job growth?
The author argues that while reshoring is practical through efficient technological deployment, the resulting return of jobs will likely be modest rather than massive, as the primary shift is in the method of production rather than a return to traditional manual labor.
- Citation du texte
- Jason Belsey (Auteur), 2017, Reshoring. Convergence of Technological Innovations that Support a Business Case for Repatriating Offshored Electronics Production, Munich, GRIN Verlag, https://www.grin.com/document/384542
