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Introducing the Zero Labor Factory: Robots at Chili's, Applebees, Panera
Mish's Global Economic Trend Analysis ^ | 05/29/2015 | Mike Shedlock

Posted on 05/29/2015 6:55:36 AM PDT by Rusty0604

Dongguan-based private company Everwin Precision Technology Ltd is pushing toward putting 1,000 robots in use in its first phase of the zero-labor project, China National Radio reported. It said the company has already put first 100 robots on the assembly line.

"The 'zero-labor factory' does not mean we will not employ any humans, but what it means is that we will scale down the size of workers by up to 90 percent," said Chen Qixing, the company's board chairman.

After the work on smart factory started, Chen predicted that instead of 2,000 workers, the current strength of the workforce, the company will require only 200 to operate software system and backstage management.

"It is necessary to replace human workers with robots, given the severe labor shortage and mounting labor costs," said Di Suoling, head of Dongguan-based Taiwan Business Association.

Shortage of Labor?

There is no shortage of labor. There is no shortage of skills either. Rather, there is a shortage of people willing to work for what factory owners are willing to pay.

And with cheap money everywhere you look, there is plenty of money at low rates to buy robots.

Meanwhile, back in the US, McDonald's employees think they are worth $15 an hour for taking orders and handing people a sack of crap.

High wages means fewer jobs. CNN accurately reports Robots will Replace Fast-Food Workers.

Panera Bread is the latest chain to introduce automated service, announcing in April that it plans to bring self-service ordering kiosks as well as a mobile ordering option to all its locations within the next three years. The news follows moves from Chili's and Applebee's to place tablets on their tables, allowing diners to order and pay without interacting with human wait staff at all.

(Excerpt) Read more at globaleconomicanalysis.blogspot.com ...


TOPICS: Business/Economy
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To: PGR88

“the cost and barriers to hire labor is actually very high.”

Indeed. Wages are just a part of the cost. All the other benefits including health insurance and taxes, volumes of regulations, and insurance against frivolous lawsuits are just a few barriers to hire labor here.


21 posted on 05/29/2015 7:26:37 AM PDT by Rusty0604
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To: PGR88

“how many Americans want to work making sneakers or stitching garments?”

Exactly. Most people who bemoan the loss of jobs in textile or garment factories never worked in one.


22 posted on 05/29/2015 7:34:55 AM PDT by riverdawg
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To: Rusty0604

Let’s say Chilis and Applebees are forced to pay $15/hr to the restaurant help, what about the people who actually made that pre-made, pre-cooked and quick frozen food at a plant far away that are making less than that?

We have a food processing factory in our small town that makes the entrees and soups and other things for chain restaurants all over the midwest. I don’t think anybody there makes more than about $12/hr


23 posted on 05/29/2015 7:36:32 AM PDT by digger48
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To: central_va
I want an answer as to why we need to OFFSHORE robo- factories?

Three letters: EPA.

Three more letters: OSHA

Then there's also taxes. US tax law imposes taxes on the value of unsold inventory. if the factory, and warehouse, are overseas in a tax-friendly locale, then you can ship stuff over as it is being sold, and avoid inventory tax.

other reasons exist.

24 posted on 05/29/2015 7:43:36 AM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: digger48

Good point. The unions are behind the fast food workers because there are millions of them and that means many millions of union dues.


25 posted on 05/29/2015 7:46:45 AM PDT by Rusty0604
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To: Rusty0604
Speaking of Chili's, last week the wife and I ate at a Chili's in Ankeny, Iowa coming back from Branson. They had a little device at the table that looked like a play station or something.

Actually, it was a device where we could pay the bill without having to interact with the waiter or cashier. We liked it a lot.

26 posted on 05/29/2015 7:48:24 AM PDT by driftless2
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To: digger48
I ate at a Chili's two weeks ago...was out with some friends fro a ball game, and that's where they wanted to go. I hadn't been to one in years. On the able, they have a small touch screen tablet..you can get sports scores, news headlines, play some games, order drink refills, and pay your check. It even prints out a receipt

Doesn't take much to see that they are close to eliminating waiters..if they want to...just have runners to bring the food and drinks from the back..

27 posted on 05/29/2015 7:48:38 AM PDT by ken5050 (If Hillary is elected president, what role will Huma Abedin have in the White House? Scary, eh?)
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To: All

Productivity is no longer linked to humans being present.

More Humans meant more production.
introduce better tools
Fewer humans equal same production
introduce automation
Even fewer humans means even more production
introduce robot automation
The link to humans and production is gradually eliminated.

we need an addition to the three laws of robotics.
“thou shalt not eat the couch potatoes”


28 posted on 05/29/2015 8:18:58 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: central_va

Taxation, the cost of regulation compliance, liability insurance, start up costs, etc, etc are all much higher here.


29 posted on 05/29/2015 8:19:08 AM PDT by SoCal Pubbie
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To: central_va

labor laws and unions.

Unions are all about pensions.
control the pension, control the union.


30 posted on 05/29/2015 8:19:57 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Rusty0604

LA Times: “Governor Moonbeam yesterday established the robot production study committee to analyze the productive output in human labor units to establish a tax based on generated sales”


31 posted on 05/29/2015 8:29:01 AM PDT by bert ((K.E.; N.P.; GOPc.;+12, 73, ..... No peace? then no peace!)
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To: central_va

There’s always some level of labor needs. Add in the EPA and other regulatory bodies and there’s lots of good reasons to build your factory anywhere not America.


32 posted on 05/29/2015 8:32:23 AM PDT by discostu (In fact funk's as old as dirt)
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To: Rusty0604

They already have kiosks at Outback restaraunt and that weird gas station/sandwich shop called Wawa.


33 posted on 05/29/2015 8:35:17 AM PDT by subterfuge (Minneseeota: the laughingstock of the nation - for lots of reasons!)
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To: SoCal Pubbie

Exactly...a statists dream!


34 posted on 05/29/2015 8:37:10 AM PDT by subterfuge (Minneseeota: the laughingstock of the nation - for lots of reasons!)
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To: bert

Is that for real or are you foreseeing the future?


35 posted on 05/29/2015 9:00:47 AM PDT by Rusty0604
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To: Rusty0604

Thanks, Obama- The Newly unemployed


36 posted on 05/29/2015 10:11:53 AM PDT by JimRed (Excise the cancer before it kills us; feed & Ifwater the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: Rusty0604

for seeing the future


37 posted on 05/29/2015 10:24:29 AM PDT by bert ((K.E.; N.P.; GOPc.;+12, 73, ..... No peace? then no peace!)
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To: Rusty0604

Looks like the era of free trade is coming to an end.

Robots cost the same just about anywhere, removing one of the last excuses for off-shoring manufacturing and production.

What’s the point? After the introduction of total automation, the biggest cost of importing goods from Red China is solely in shipping and transport—pure profit that is being funneled out of the country.

IMPORT TARIFFS NOW!

(I think that’s the whole issue, in a nutshell)


38 posted on 05/29/2015 1:13:32 PM PDT by __rvx86 (Ted Cruz: Proving that conservative populism is a winning strategy. GO CRUZ!)
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To: discostu

You are biased against American industry. It is a built hatred and you hate America. Disgusting.


39 posted on 05/29/2015 4:20:33 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: longtermmemmory
What is the percent of the manufacturing force in a union?
  1. 10%
  2. 20%
  3. 30%

40 posted on 05/29/2015 4:21:54 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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