Sep 10, 2020

Manufacturing boost in China as EV sales continue to rise

Manufacturing
China
Ev
Sean Galea-Pace
2 min
Manufacturing boost in China as EV sales continue to rise
Sales of electric vehicles in China have risen for the second consecutive month as China recovers from the COVID-19 pandemic...

According to Reuters, new energy vehicles (NEV) sales are anticipated to reach 1.1 million vehicles over the entire year, down 11% from last year, according to the China Association of Automobile Manufacturers. There are a number of NEVs, such as battery-powered electric, plug-in gasoline-electric hybrid and hydrogen fuel-cell vehicles.

“The sales rebound was fuelled by rural NEV sales promotion events and local governments support,” said senior CAAM official Chen Shihua.

This came as US giants Tesla delivered its first cars made in China at the end of 2019. Tesla’s move into the country came as the US-China trade war meant other American companies moved production out of China. However, Tesla and home-grown companies NIO and Xpeng have accelerated their manufacturing capacity in recent months where the government heavily promotes greener vehicles as a way of reducing chronic air pollution. 

“There was a new car effect in August, as a new mini EV model from GM’s local venture and Tesla’s Model 3 both sold well,” commented senior LMC Automotive Analyst, Alan Kang. “Sales at EV startups NIO and Xpeng were stable too.”

The overall automotive sales in China increased 11.6% to 2.19 million from the same month a year earlier, and is the fifth consecutive month of progress following the COVID-19 lockdown at the beginning of 2020. However, in total, sales are still down 9.7% for the first eight months of the year at 14.55 million vehicles.

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May 12, 2021

Gartner: Leaders Lack Skilled Smart Manufacturing Workers

SmartManufacturing
DigitalTransformation
DigitalFactory
ConnectedFactory
2 min
57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support smart manufacturing digitalisation

With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.

While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.

“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.

“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”

Change Management

Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.

“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.

Technology and People

While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.

“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.

Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.

Discover Gartner's Five Best Practices for Post COVID-19 Innovation' in manufacturing.

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