Robots and Software to Eliminate Labor
It seems we are on the verge of shifting manufacturing back from China. Labor cost won't matter anymore. A month ago I had a very interesting conversation with an owner of a factory in Germany. His factory is fully automated and the work is done by robots. One of the products they make are smart light bulbs for IKEA. He says his costs are lower compared to Chinese factories and quality is much higher (the failure rate of finished products is an order of magnitude lower). On another note Elon Musk says he can increase the speed of the Tesla production line in Fremont, California, from the current five centimeters per second to one meter per second. Assuming 6 meters per car, it is 5 million cars per year, per a single production line. Almost what all Ford factories globally could do in 2016 ( 6.5M ). It seems with robots and automated assembly lines, there is no more issue of labor costs and scale. For some products (such as our own smart lighting), manufacturing is one co...