The Israeli robotics industry is oriented towards the Chinese vision of robots

Large local companies are currently investing a lot of resources in robotics and automation, because of the dramatic increase in wages for factory workers in China." This is what Zvi Shelgo, chairman of the Israeli Chamber of Commerce in Shanghai and CEO of PTL Group, stated to the managers of Israeli companies, as part of a special meeting of the Israeli Robotics Association iROB chaired by Prof. Zvi Schiller.

"Foxconn is not alone! The giant Chinese company working to replace its workforce with a million robots by the end of 2014 reflects a growing phenomenon in China: large local companies are currently investing a lot of resources in robotics and automation, due to the dramatic increase in wages for factory workers in China." This is what Zvi Shelgo, chairman of the Israeli Chamber of Commerce in Shanghai and CEO of PTL Group, stated to the managers of Israeli companies, as part of a special meeting of the Israeli Robotics Association iROB chaired by Prof. Zvi Schiller.

According to him: "Since the new regulation of labor laws in China, which resulted in a radical increase in the salary rate, many factories have collapsed. Chinese industry sees robots as a solution to the problem of productive manpower in the country and a means of reducing dependence on manpower. Due to the 'one child' policy in China, the working age population is also shrinking, which will naturally lead to the loss of the "demographic advantage".

Shelgo believes that since the issue of robotics and automation is defined in China's five-year plan as a top priority, any Chinese company that wants to acquire technology in this field will receive financial support from the authorities, as much as it needs. Thus, with massive government backing and the adoption of technology, even Chinese companies that are currently considered inferior compared to foreign competitors, will become leading companies with activity volumes of about $XNUMX billion. Israeli companies can and should take advantage of this intersection and their advantages in the Chinese market thanks to technological uniqueness, as well as the great appreciation of the Chinese towards the Israeli industry."

Prof. Zvi Schiller, who opened the meeting, noted that "China is an important target market for the Israeli robotics industry in the fields of industry and defense. Israeli robotics companies excel in developing unique products in the fields of home, medicine, and security that are sold around the world. The tremendous potential in the Chinese robotics market, which is in its infancy, is a window of opportunity that the Israeli industry must exploit without delay." He added that he intends to promote the issue through the Robotics Association and pave the way to the Chinese market for Israeli robotics companies. The union aims to promote the robotics industry through robotics education, encouraging entrepreneurship in the field, and assisting in international collaborations.

Zvi Shelgo presented to the participants of the conference the principles of management in China, which are very different from management in any other market, where the main ones are independence and control. "Your initiative and what you have to give to others is the only working tool you have in China, don't share it with foreign partners." The PTL Group company under his leadership has developed over the years a model that allows an Israeli company to reduce the risk and reduce the investment in the penetration process, alongside responsible growth in China, without the need to hand over the Israeli technology to a Chinese partner. The partnership he does recommend is with the local government in various cities, which is willing to invest in benefits and incentives worth millions of dollars to attract industries with technological uniqueness, but does not require a technological partnership in return.

"The road to independence in China is not easy, but at the end of the day, the failures and hardships that Israeli companies suffer in China are much more expensive than the long and not easy road that an Israeli company must take to achieve independence in China."

Another speaker was Dror Marom, CEO of ACS (Motion Control), which has been operating in China for about two years. The company develops motion control systems for the electronics, semiconductor, medical scanners and digital printing industries. ACS, which operates older branches in the USA and Korea, tried to operate in China through two distributors, but in view of the results, the company realized that only a local presence would bring achievements. The company currently operates in China through PTL Group in order to save itself the investment required to establish its own subsidiary in China. PTL Group provides it with an administrative envelope that includes hiring, handling administration and personnel issues, finance and office management, so that the local employees who have been recruited can be freed up and engage in sales management only. Marom noted that the competition in China is not easy, therefore "as an Israeli company, your advantage is a technological uniqueness that must be preserved."

Erez Dotan, CEO of iScan Robotics told about "a 10-year affair with the Chinese market" and described the way to build branding in China from his experience. The company engages in production systems for flat glass environments intended for the construction glass industry, the automotive industry and the solar (PV) industry. The company managed to recruit the two leading customers in China, and its reputation was built on this basis. "The Chinese don't care if you sell to IBM or any other big global brand. They will be much more impressed if you work with leading Chinese companies in the local market. Dotan also emphasized the company's long presence in China as a key to success. "

Also according to Shelgo, "It is a tragic mistake to fold after 3-4 years in China. Even if there is no profitability in the meantime, you should stay, because persistence will lead to achievements. As an example, he brought one of his clients, the Afimilk company from Kibbutz Afikim, which specializes in computerized automatic milking parlors, which in its first years in China made almost no profit, but in recent years has seen an increase of millions of dollars every year, and recently even signed a huge deal with the largest dairy farm operator in China.

In 2014, China is expected to surpass Japan and become the largest robot market in the world. The Chinese robot market is still in its infancy. Only 28% of the machines in the Chinese factories are digital (in Japan - 83%) huge growth potential. In 2011, Chinese industry had 21 robots for every 10,000 workers. In the coming years, China is expected to reach a ratio of 50 robots to 10,000 workers. (The global average is 55; Japan-339, Germany-251, USA-135) At this point there is almost no domestic competition. The Chinese robotics industry is in its infancy. Most of the robots sold in China are produced by foreign companies.

In the (current) 12th five-year plan, the "industrial upgrade" is marked as a top priority at the national level (incentives). Most of the use today is for robots in industry, but the demand is also great for service robots and personal robots.

In 2011, 166028 industrial robots were sold worldwide, an increase of 38% compared to 2010 and a record amount compared to before. The most significant increase was recorded in China, where 22600 robots were sold, 51% more than in 2010 and four times more than in 2006. In 2014, 32000 industrial robots are expected to be sold in the country.

In 2011, about 16,400 service robots were sold in China with a sales value of 3.6 billion dollars. An increase of 9% compared to 2010. Sales forecast in China for 2015: 93,800 service robots with a total value of 16.3 billion dollars.

Against the backdrop of growth, a Chinese Robotics Association is currently being established.

The China International Robot Exhibition (CIROS) to be held between July 4-3 is expected to attract robot suppliers and customers from all over the world.