Since the reform and opening up, China has developed into a major industrial country, becoming the world's largest manufacturing nation by 2010, and has maintained this position for five consecutive years. However, that's about it. Due to a lack of core technologies and equipment, and insufficient independent innovation capabilities, China has remained a manufacturing giant, but has not been able to become a manufacturing powerhouse.
The First Industrial Revolution occurred in Britain, driven by steam power and ushering in an era where machines replaced manual labor. The Second Industrial Revolution was propelled by electricity, ushering in the "Electrical Age." The Third Industrial Revolution was driven by electronic information technology, leading to automation . Now, the Fourth Industrial Revolution—intelligentization—has arrived. According to current classifications, China's main industrial sector is currently in the stage of "catching up on Industry 2.0, popularizing Industry 3.0, and simultaneously developing towards Industry 4.0."
So, how exactly should Chinese companies pursue Industry 4.0?
I. Deeply understand the concept and connotation of Industry 4.0.
"Industry 4.0" is a concept proposed by the German Federal Ministry of Education and Research and the Federal Ministry for Economic Affairs and Energy at the 2013 Hannover Messe. It outlines a future vision for manufacturing, proposing that after the three industrial revolutions of the steam engine, mass production, and electronic information technology, humanity will usher in the fourth industrial revolution, based on cyber-physical systems (CPS) and characterized by highly digitized, networked, and self-organizing production. The "Industry 4.0" concept has attracted significant attention and recognition in the industrial sector in Europe and globally.
The core of Industry 4.0 is connectivity, which tightly connects equipment, production lines, factories, suppliers, products, and customers. Industry 4.0 adapts to the development trend of the Internet of Things, forming an intelligent network through cyber-physical systems (CPS) by connecting ubiquitous sensors, embedded terminal systems, intelligent control systems, and communication facilities. This enables interconnection between products and production equipment, between different production equipment, and between the digital and physical worlds, allowing machines, working parts, systems, and humans to continuously exchange digital information through the network.
Second, we must earnestly and practically cultivate talent.
Germany and the United States have unparalleled technological advantages in manufacturing, but their stories are not as numerous as those of China. Of course, there are certainly fewer accidents in their manufacturing industry as in China. After all, we rely on the hands of natural people, who will feel tired and bored, experience psychological fluctuations, and have emotional needs.
But now no one dares to underestimate Chinese manufacturing. Whether it is production capacity, efficiency, or price competitiveness, China is not inferior to the United States and Germany. They use robotic arms to assemble 249 units per hour, while Chinese assembly line female workers assemble 350 units per hour with their bare hands. In order to achieve production capacity, everyone will voluntarily shorten their rest time after a period of high-spirited music.
This explains why grassroots employees in the manufacturing industry often prefer to work overtime. Employees living in such an environment are unlikely to develop a sense of belonging. Once the workforce becomes unstable, skill development, professional dignity, or other higher aspirations become impossible. Over time, China's manufacturing industry has unknowingly hindered the growth of several generations. And in the future, Industry 4.0, automation , or other smart factories will still require talented people to accomplish these goals.
Instead of blindly following trends and pursuing smart factories, Chinese manufacturers should focus on cultivating talent. With a mature system, they can then imitate, catch up, or innovate on their own. Otherwise, they will remain at the low end of industrial processing and miss out on high profits.
Third, it's not just about selling hardware, but also about creating more added value through soft manufacturing, such as after-sales service and other follow-up services.
In the past, during the Industry 1.0, 2.0, and 3.0 eras, the process involved five fixed modules: raw materials, machinery and equipment, factories, transportation, and sales—each indispensable. Industry 4.0, however, utilizes the Internet of Things (IoT), artificial intelligence, and other new technologies to improve manufacturing, transforming it towards intelligent manufacturing. Through network technologies that determine the production process, it achieves real-time management. This bottom-up production revolution not only saves on innovative technologies, costs, and time but also possesses the potential and opportunity to cultivate new markets.
The difference between German manufacturing and Chinese manufacturing lies in the fact that Chinese manufacturing relies on low labor costs, while German manufacturing relies on creating products with high added value.
Take the Harley-Davidson motorcycle manufacturing plant in Germany as an example. Before Industry 3.0, it took 21 days to produce a Harley-Davidson motorcycle because its entire production process was fixed and mechanized. However, in the era of Industry 4.0, when a customer places an order for a personalized motorcycle at 9 a.m., all five modules become "active." According to the customer's needs, the plant finds the raw materials, locates factories to repackage and reassemble the motorcycle, and delivers the customized motorcycle to the customer within 6 hours. This not only increases efficiency but also significantly reduces costs.
Business models are crucial for manufacturing. In the era of Industry 4.0, the future business model of manufacturing will focus on solving customer problems. Therefore, future manufacturing companies will not only sell hardware, but also obtain more added value by providing after-sales service and other follow-up services—this is soft manufacturing.
Fourth, the transformation from "Made in China" to "Intelligent Manufacturing in China".
" Intelligent manufacturing " is considered the core of future industrial transformation. The direction of China's manufacturing transformation and upgrading is manufacturing informatization, specifically digitalization and intelligentization. The development of intelligent manufacturing not only means increasing the level of intelligence, but also better meeting consumer needs.
In the past, manufacturing was characterized by large-scale, low-cost production. In the future, intelligent manufacturing can address consumers' demands for low-cost, high-quality, and personalized products. Perhaps, with the current sharp rise in labor costs and the impetus of new technological and industrial revolutions, coupled with the transformation and upgrading of industrial structures, robots will add momentum to "intelligent manufacturing." Currently, China's robot industry is developing rapidly. Industrial robot design technology is basically mature, pioneering companies have embarked on a path of independent development, and the service robot industry is also in its infancy.
In short, Industry 4.0 presents us with more opportunities than challenges. We believe that this new round of industrial revolution will bring about tremendous changes in production methods, lifestyles, and organizational structures. As long as we seize these opportunities and respond calmly, "Made in China" will successfully transform into "Intelligent Manufacturing in China," and Chinese industry will surely usher in a bright future.
