By Jeffrey A. Newman Esq. JeffNewmanLaw.com
China is expanding its “dark factories”, completely automated facilities that operate only by robotics and without human workers. Powered by artificial intelligence and davnced sensors, these manufacturing plants are dark because the machines do every task including assembly, inspection and logistics and there is no need for humnan presence and as such no need for lighting. China is the global leader in this technological innovation, heavily funded by Government subsidies. Because there is no need for lighting or heat, energy costs are minimized and efficiency escalates.
According to the International Federation of Robotics, China has installed 290,367 industrial robots in 2022, which accounts for 52% of the world’s total number of such devices. The U.S. and Japan aren’t close.
Thomas Friedman, a writer for the New York Times, who has visited China many times in the past two years has visited these factories with “lights out” operating robots. With major government investment these smart factories have helped to spawn new companies like Foxconn and BYD the major electric car manufacturer in China. It is highly likely that the U.S. will follow suit, albeit behind China for now but we have the benefit of observing what these dark factories mean for the economy of China and their workers.
If we study these patterns–with AI, we might be able to head off a major issue that is forming in China around these powerhouse factories. Foxconn is replacing 60,000 workers with robots in a Jushan factory and is planning to automate over 30% of its operationsby the end of this year. BYD is using robotics for EV and Chassis assembly in similar plants in Shenzhen and Xi’an. The International engery Agency, according to reports, estimated that this automation could loawer energy use by 20% by removing the human component.
In China, manufacturing is a critical aspect of its economy employing over 100 million people according to the Word Bank data. There are projections that suggest 12 million manufacturing jobs could be lost by 2030. Because there is intense competition witht he U.S. both China and the U.S. are expected to build these factories in the next few years. The IEA also says that industrial automation could reduce C02 emission by 10% in havy insurties. These facilities run 24/7 with machines that can function with precision hour after hour. Humans cannot.
Here is the point. The U.S. and China will spur each other on to push construction of these automated robotic factories and nothing will stop this. And yet, if we include in our plant projects integrated retaining programs for the workers, as part of the plans for each factory worker, we can deal witht two issues in advance: first the job losses and second filling the evolving need for different tasks and sometimes totally different jobs which may well pay more. In planning ahead we may avoid facing China now and may be able to surpass their present lead or work with China to create more and better products. We can benefit from the fact that we are behind China’s automated dark factoriesby using AI to define the needs of our economy before the need is upon us.
Jeffrey Newman is a whistleblower lawyer representing doctors, nurses and therapists who have become whistleblowers reporting Medicare and Medicaid fraud in False Claims Act (Qui Tam) cases. He also represents whistleblowers in tariff fraud cases and military contract fraud cases. also a frequent writer on issues relating to events affecting the world economy. Jeff can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
