Foxconn provides timely boost to linear motion and linear & torque motor markets
Date: 04 October 2011

The recent news that Mr. Terry Gou, Chaiman of Foxonn, plans to increase automation in the company’s Chinese factories will provide a timely boost for the linear motion products and linear & torque motors markets. These products are important components in electronics production machinery and are used widely in other types of industrial machinery as well.

Two recently published reports by IMS Research found that the electronics production machinery sector accounted for nearly 9% of the linear and torque motors market and over 6% of the linear motion products market in 2010.

The news that Foxconn intends to increase the number of industrial robots in their Chinese factories from 10,000 currently, to 300,000 in 2012 and 1 million by 2013 will provide an immediate boost to manufacturers of industrial automation machinery and is an indicator of a wider trend. The author of the two recently published reports, James Dawson, believes that as labor becomes more costly and less available, Chinese factory owners will invest in automated machinery in-order to increase productivity.

According to The United States Bureau of Labor Statistics, the hourly compensation costs in manufacturing for China increased from US$0.62 in 2003 to US$1.36 in 2008. Estimates indicate the hourly rate reached US$1.98 per hour in 2010. Indeed, in February 2011 it was reported that Wuhan, capital city of Hubei province in China, held eight job fairs in one day, and that Foxconn Technology Group set up booths at the railway station to hire migrant workers as they arrived in the city. More than 80% of enterprises in Wuhan have raised salaries to attract workers.

Increases in factory automation in Chinese factories across all industry sectors will drive growth in the linear motion and linear & torque motor markets worldwide for many years to come. The World Market for Linear Motion Products considers how this and other trends will affect the development of the market through to 2015.

Editors Note :

This edition is an interim update of the 2010 three volume report presented as a single world volume. The report considers how the linear motion market will develop in terms of region and industry sector, as well as how the demand for different product types will change. The impact of these changes on the product mix and resulting pricing trends is also discussed. This report provides marketing and technical executives with a focused and detailed examination of the linear motion products market, with revenue and unit growth forecasts through to 2015.

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, bespoke research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, Japan, China, Taiwan and South Korea. To find out more, contact IMS Research:
enquiries@imsresearch.com;
T: +44 (0) 1933 402255;
http://imsresearch.com

Related Reports

Linear Motion Products - World - 2011

Linear and Torque Motors - World - 2010