Foxconn gives boost to linear motion and linear & torque motor markets
These products are important components in electronics production machinery and are used widely in other types of industrial machinery as well.Two recently published reports by IMS Research found that the electronics production machinery sector accounted for nearly 9% of the linear and torque motors market and over 6% of the linear motion products market in 2010.The news that Foxconn intends to increase the number of industrial robots in their Chinese factories from 10’000 currently, to 300’000 in 2012 and 1 million by 2013 will provide an immediate boost to manufacturers of industrial automation machinery and is an indicator of a wider trend.The author of the two recently published reports, James Dawson, believes that as labor becomes more costly and less available, Chinese factory owners will invest in automated machinery in-order to increase productivity.According to The United States Bureau of Labor Statistics, the hourly compensation costs in manufacturing for China increased from USD 0.62 in 2003 to USD 1.36 in 2008. Estimates indicate the hourly rate reached USD 1.98 per hour in 2010.Indeed, in February 2011 it was reported that Wuhan, capital city of Hubei province in China, held eight job fairs in one day, and that Foxconn Technology Group set up booths at the railway station to hire migrant workers as they arrived in the city. More than 80% of enterprises in Wuhan have raised salaries to attract workers.Increases in factory automation in Chinese factories across all industry sectors will drive growth in the linear motion and linear & torque motor markets worldwide for many years to come. The World Market for Linear Motion Products considers how this and other trends will affect the development of the market through to 2015.