Manufacturing News

Uptake of robotics could see auto companies reshore labour

The deployment of robots could help automotive companies bring manufacturing closer to their headquarters, a US executive has predicted.

Reuters reports that Donald Walker, CEO of Magna, said import costs and the spread of intelligent robots could shorten supply chains for companies in high-wage nations like the US and Germany. He cited heavy items such as batteries, with the uptake of hybrid and electric cars meaning more demand for larger batteries.

"I think you will still see cars made where the market is. And based on that, the big bulky parts and a lot of the technology in there, will probably be made locally," Walker told Reuters at the Frankfurt auto show.

Research from Boston Consulting Group has predicted the cost of manufacturing wages will decrease 18 – 33 per cent by 2025 for countries which are already using industrial robots.

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