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Automation Technologies 4/2015

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Automation Technologies 4/2015


NEWS AND MARKETS China: factory of the world, undergoing Automation The law of large numbers says that, as the economy gets larger, it becomes further difficult to grow at previously possible faster rates. This is exactly what is happening to China. But more important question is why and what are its effects on the industries and businesses associated with China. F or the last 30 years or so, China has been consistently growing at 10 % or more. But this year, China has cut its growth target to 7 %, this means it is the ‘slowest’ growth in the last 20 years. Even at its modest 7 % growth it is the envy of most countries. But this might not seem much to fret about, right now. To a certain extent, this slowdown of growth is what the Chinese government wanted to achieve. The Chinese government are looking to change its economic growth model. They want to shift from investment based model to the ‘more innovation based on more consumption’ type of model. They want to transform this resource driven economy into a more innovation driven economy. China’s manufacturing firms that make labor intensive goods are rapidly losing its competitiveness due to the rising wages and other costs. This is popularly known as ‘ middle-income trap’. Therefore the industries are realizing the need to upgrade in order to stay competitive. This is where the Industrial automation shows like the ones in Beijing, Shenzhen and Shanghai come in to picture. Regarded as the Asia’s largest industrial trade fair, Industrial Automation Show - Shanghai is a perfect platform for China’s in- 01 Sector-wise market share for Factory automation and process automation AUTOMATION TECHNOLOGIES 4/2015

NEWS AND MARKETS dustrial transformation and upgrading. Shanghai, with its $ 350 billion GDP is the most important city in China in context of economy. With more than 32 million containers every year, it is also the world’s busiest container port. The Shanghai & Yangtze river delta economy circle has the best industrial clusters of automobile, shipbuilding, metallurgy, aerospace & aviation, clean energy, die & mould, power generation, IT etc. The economic and industrial importance of Shanghai in China cannot be rivaled by any other city. Therefore it is an unparalleled location for an industrial trade fair. The IAS has been a convenient place for the industry leaders to present and demonstrate the latest technologies, equipment and the market ready solutions. With more than 120,000 visitors and 500+ exhibitors, IAS – Shanghai has become a must attend event in the eastern hemisphere for the automation industry. Production and process automation In 2013, the automation sector in china created businesses worth $ 34 billion and posted an annual increase of 14.9 %. In 2014, though the rate of growth may have declined to single digit, it still is a significant increase. The Chinese automation market is very fragmented, 82 % of the domestic companies being small and only a 2 % domestic companies as large players in the market. These domestic companies lag behind their foreign counterparts in terms of technology, brand, product range and innovations. But they do have advantages in terms of cost, distribution channels, market segments, and personalized services. Domestic Chinese companies account only for a 30% share in the Chinese markets, this leaves a huge scope for the foreign players to improve their standing in china. The IAS facilitates the exhibitors with a chance to tap in this enormous market. The trade fair in Shanghai offers both, the domestic as 02 The year on year growth statistics for various automation sectors well as the foreign companies a chance to connect with their clients in east china. It also provides the domestic Chinese companies with a great opportunity to get acquainted with the products and the advanced technologies from the international markets. Robotics China has been responsible for more than 20 % of the worldwide robots and robotics systems, with such a huge market share in a rapidly growing sector, the IAS Shanghai becomes an extremely important event for the companies from the industrial robotics division. 17 % of the trade visitors at the IAS in previous years have been interested in finding new innovations, while 15 % of the total trade visitors were seeking solutions to their special requirements, this provides a good opportunity for the masters of the robots to impress and showcase their technological advances. At the Shanghai new international expo centre, it’s not just the industrial automation show, but a bunch of other events as well like the Metalworking and CNC Machine Tool Show (MWCS), Energy Show (ES). This creates a crossover interest generated by the concurrent trade shows. With total space of 150,000 square meters, and more than 1,500 exhibitors, IAS makes “One-Stop-Procurement” really work. Statistics: Credit Suisse 'Global Industrial Automation' , teaser fotolia AUTOMATION TECHNOLOGIES 4/2015


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