Chinese manufacturers of industrial and logistics robots are intensively developing their operations in the United States, utilizing increasing request for automation. Both the policies of erstwhile president Donald Trump, promoting reshoring (relocating production back to the US) and the dynamic growth of e-commerce sales, contribute to this. However, customs tariffs and economical uncertainty are a challenge for Chinese companies.
Reshoring drives request for robots
In fresh months, US and abroad companies have announced a number of investments in fresh production facilities in the US. This is the consequence of both Trump's protectionist policy and grants introduced back in Joe Biden's time, which support, among others, the production of batteries for electrical cars and semiconductors.
– The request for robotics is huge – says Joseph Wang, Vice president of BlueSword, a Chinese company specializing in logistics robots. – We see that the manufacture in the USA is reaching highest demand, mainly through reshoring and e-commerce.
BlueSword was 1 of 120 Chinese companies present at this year's fair ProMat in Chicago, the largest production and logistics manufacture event in the USA. That's more than twice as much as in the erstwhile edition.
Challenges: duties and costs of local production
Despite expanding opportunities Chinese companies face advanced duties imposed by Trump administration. Many robots are manufactured in China and only later exported to the US, which increases costs.
– We are considering local production in the US, but only if we supply a unchangeable sales stream – says an anonymous typical of 1 of the Chinese companies.
Some companies, specified as Libya Robotics, they decide to open magazines and showrooms in the US to be closer to customers. The company plans to launch a center in fresh Jersey in May.
Lack of hands to work speeds up automation
According to the study MHI, leading logistics manufacture organization, companies increasingly invest in robotics and artificial intelligence to improve supply chains.
– By 2033, there will be 1.9 million workers in production in the US – warns Carolyn Lee of Manufacturing Institute. – This is not only a staff issue, but besides an issue of economical security.
E-commerce drives the warehouse robot market
Increase in online sales (US$1.1 trillion in 2024, +8.1% y/y) increases request for automation of warehouses. Chinese companies, specified as BlueSword, already supply solutions for American automotive companies and e-commerce giants, and now want to cooperate with logistics operators.
The Chinese robotic manufacture is rapidly entering the US market, but customs barriers and advanced costs of local production can slow this trend down. However, in the face of labour shortages and boom on e-commerce, automation seems inevitable – and Chinese companies intend to be its crucial player.
Sources: Nikkei Asia, MHI, U.S. Census Bureau
Leszek B. Glass
Email: [email protected]
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