mar 20, 2020
shanghai, march 20, 2020——according to cushman & wakefield’s recent report looking beyond covid-19: going for industry 4.0 in china, industry 4.0, the latest revolution in the manufacturing industry, is where factories integrate production machines, wireless connectivity and sensors and link these to a system platform ecosystem that can oversee the whole production line process and execute decisions autonomously.
industry 1.0, 2.0, 3.0 and 4.0
source: spectral engines, cushman & wakefield research
following the covid-19 outbreak, supply chains in china have experienced enormous stress as production and the goods distribution network have been interrupted by factories in the region closing on a huge scale and transportation linkages being severed to contain the virus.
with temporary production stoppages and longer lead times to receive essential raw materials and parts, manufacturing performance in china over the outbreak period has taken a hit. as evidenced by official numbers, factory activity in china contracted at the fastest pace on record in february this year.
source: researchgate.net, cushman & wakefield research
given the covid-19 impact, in the mid- to long-term future, we expect many manufacturers operating in china to adopt industry 4.0 operating procedures to become more agile and to mitigate production and distribution shortfalls should an event like this ever happen again.
shaun brodie, head of occupier research, greater china, head of research, east china, cushman & wakefield, said: “just as more manufacturing plants in china are expected to adopt industry 4.0, so too do we expect the logistics industry in china (and premium warehouses in the region in particular) to do so in the form of logistics 4.0. with logistics 4.0 fully integrated with industry 4.0, the logistics industry in china (and premium logistics warehouses specifically) will be smarter, more networked, and more technologically advanced.”
the logistics 4.0 ecosystem
source: semantic scholar, cushman & wakefield research
tony su, managing director, head of industrial & logistics property service, china, cushman & wakefield, said: “today, the fourth industrial revolution is underway and many manufacturing plants and premium logistics warehouses in china have already adopted intelligent systems and technologies. given the impact the covid-19 outbreak has had on manufacturing and supply chains within the country, we do expect many more factories and logistics warehouses in china to follow and implement industry such system and technology, respectively. by doing this, manufacturing and supply chains in china will be able to better ensure that goods and products make their way from production facilities to customers in the most efficient manner under any situation and at any time.”
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cushman & wakefield (nyse: cwk) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. cushman & wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. across greater china, there are 22 offices servicing the local market. the company won four of the top awards in the euromoney survey 2017 and 2018 in the categories of overall, agency letting/sales, valuation and research in china. in 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. to learn more, visit www.cushmanwakefield.com or follow @cushwake on twitter.
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