China - Heightened Competition In The Manufacturing Sector With IOT

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Asia Pacific Legal Updates


23 May, 2019


China - Heightened Competition In The Manufacturing Sector With IOT


China is already widely viewed as a leader in IIoT applications within the Asia-Pacific region. The rapid development of the manufacturing sector has created heightened competition, with players exploring IIoT in the pursuit of efficiency gains.


Bay McLaughlin, the co-founder of accelerator, manufacturing studio and distribution company, said: “There’s such pressure on price, scalability and efficiency. Now, consumer demand is what drives a lot of the industrial innovation.”


Telecommunications equipment manufacturer Ericsson has implemented IIoT applications at its assembly factory in Nanjing. In partnership with China Mobile, the company converted the facility into a smart wireless manufacturing plant by connecting more than 1,000 high-precision screwdrivers using narrowband IoT (NB-IoT) and Long Term Evolution (4G), category M1 (LTE Cat-M1) networks to communicate with integrated motion sensors, with the data analysed in a secure cloud omy shifts away from a reliance on heavy industry towards demand-driven growth. This rebalancing saw China’s GDP grow by just 6.6% in 2018 – its lowest level since 1990. Made in China 2025 and BRI represent opportunities for manufacturers to expand domestic and foreign market shares by travelling up the sophistication curve.


The screwdrivers had required routine calibrations and lubrication based upon the amount of usage, which had previously been manually recorded.


Warren Chaisatien, Ericsson’s global head of IoT customer engagements, said: “Once those screwdrivers were connected, we could then monitor how they were being used, the force being applied, etc. Not just for maintenance purposes, but also to monitor how efficient they are, as well as for training and replacement purposes.”

Chaisatien added: “In our Nanjing plant, we have realised significant savings: a 50% maintenance workload reduction and a 10-12% cost reduction, which is quite substantial.”


The company revealed in 2018 that the project reached break-even in less than six months and delivered a 210% return on investment (ROI) within its first year.


Premium electric vehicle maker Byton, was founded in 2016 and has been built from the ground up to deliver intelligent vehicles for the future that integrate advanced digital technologies with a focus on user experience and connectivity. Byton has seven locations worldwide, with R&D, design and manufacturing operations in China, a design studio in Germany, an R&D centre in the US, as well as an investors relations unit in Hong Kong. Gerald Krainer, Byton’s director of digitalisation, said: “We are definitely working on manufacturing standards 4.0 in order to have a fully-connected plant and manufacturing process. It’s not about different departments working on individual requirements. In the end, it’s one architecture, one infrastructure that is going to ensure all the systems and the cloud infrastructure are connected from end to end.”


Read full China report here.


Our new report reveals the readiness of Asian manufacturers and supply chain enterprises in the adoption of innovation in the Industrial Internet of Things (IIoT) and how businesses plan to solve market-specific challenges.


The report, produced in association with Osborne Clarke, produced key insights into how the internet of things is changing the face of global business, creating new opportunities in automation, smart manufacturing and predictive asset management. Focused on China, Hong Kong, India and Singapore major IoT manufacturers provided their learnings and thoughts on how Asian governments are striving to stay ahead of the fourth industrial revolution as greater industrial connectivity offers up unique opportunities for Asian markets.




To find out more, please visit report here.


For further information, please contact:


Stephen Lai, Managing Director, Conventus Law