CHARTS: China Is Replacing Its Workforce With Robots
Max Nisen | Aug. 15, 2012
Credit Suisse is out with a massive report on the growth of industrial automation. Yesterday we highlighted their favorite seven stocks in the sector.
The most interesting part of the report points out that China appears to be nearing an inflection point that we've already seen in Japan and Korea called the 'Lewis Turning Point'.
Those countries once relied on cheap rural labor to fuel their economies, then reached a point where it dried up, and began to automate.
China's manual labor force is rapidly declining as the population ages and more people go to school. That trend, and government programs, are pushing up wages. In order to remain competitive, the country is going to have to invest an incredible amount in modernizing its industries.
The size of China, and the fact that it is only now beginning to ramp up its transformation means that there is enormous room for growth.
The great infrastructure boom in China might be slowing, but the automation boom is just starting.