Friday, May 29, 2015

Introducing the Zero Labor Factory: Robots at Chili's, Applebees, Panera

Mish's Global Economic Trend Analysis ^ | 05/29/2015 | Mike Shedlock 

Dongguan-based private company Everwin Precision Technology Ltd is pushing toward putting 1,000 robots in use in its first phase of the zero-labor project, China National Radio reported. It said the company has already put first 100 robots on the assembly line.
"The 'zero-labor factory' does not mean we will not employ any humans, but what it means is that we will scale down the size of workers by up to 90 percent," said Chen Qixing, the company's board chairman.
After the work on smart factory started, Chen predicted that instead of 2,000 workers, the current strength of the workforce, the company will require only 200 to operate software system and backstage management.
"It is necessary to replace human workers with robots, given the severe labor shortage and mounting labor costs," said Di Suoling, head of Dongguan-based Taiwan Business Association.
Shortage of Labor?
There is no shortage of labor. There is no shortage of skills either. Rather, there is a shortage of people willing to work for what factory owners are willing to pay.
And with cheap money everywhere you look, there is plenty of money at low rates to buy robots.
Meanwhile, back in the US, McDonald's employees think they are worth $15 an hour for taking orders and handing people a sack of crap.
High wages means fewer jobs. CNN accurately reports Robots will Replace Fast-Food Workers.
Panera Bread is the latest chain to introduce automated service, announcing in April that it plans to bring self-service ordering kiosks as well as a mobile ordering option to all its locations within the next three years. The news follows moves from Chili's and Applebee's to place tablets on their tables, allowing diners to order and pay without interacting with human wait staff at all.
(Excerpt) Read more at globaleconomicanalysis.blogspot.com ...

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