The Recruit Works Institute (RWI) estimates that Japan will face a shortage of 11 million workers by 2040, with the population over 65 years old nearing 30%, peaking around 2042. This labor crisis demands an innovative solution for Japan.
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Challenges in Japan’s automotive and manufacturing industry
Japan has long been a leader in automotive manufacturing. It is the birthplace of renowned brands like Toyota, Honda, Nissan, Mazda, and Suzuki. The automotive sector is vital to Japan’s economy, contributing 2.9% to the national GDP and 13.9% to the manufacturing GDP. However, the industry now faces a severe labor shortage. This issue is compounded by declining birth rates and an aging population.
The shrinking workforce leads to slower production, higher costs, and challenges in meeting market demands. Traditional solutions, such as hiring foreign workers and extending work hours, fall short. Repetitive tasks and high error rates further reduce productivity. As competition intensifies, companies must enhance efficiency and optimize costs.
Applying automation and new technologies to streamline processes and boost productivity
Automation and new technologies present the most effective solutions to the labor shortage in Japan’s automotive and manufacturing sectors. With a well-defined strategy, these industries can achieve greater efficiency despite workforce limitations.
Optimizing processes with automation
Japan is at the forefront of applying robotics in manufacturing. The International Federation of Robotics (IFR) reports that Japan has the highest density of industrial robots per employee, with over 300,000 in operation. These robots not only increase productivity but also minimize errors in factory operations. Beyond physical robots, Japan is advancing the use of RPA solutions to streamline work processes and reduce the burden on the workforce.
Automation is emerging as a comprehensive solution. It replaces repetitive and time-consuming tasks with speed and precision. Virtual assistants execute tasks with 100% accuracy, requiring human intervention only in complex cases or when errors arise. Grand View Research projects that the global RPA market will reach $25.66 billion by 2027. In Japan, automation is already yielding significant results. Hitachi, a multinational conglomerate, has implemented RPA and Intelligent Automation to optimize production and supply chain operations. By integrating AI-powered robots, Hitachi automates tasks such as quality inspection, assembly, and material handling.
The future of automation and robotics in Japan includes the development of collaborative robots, or cobots. These robots perform programmed tasks, allowing humans to focus on higher-value work.
Integrating new technologies
Alongside automation, the Japanese government is investing in the Society 5.0 initiative. This initiative integrates digital technology with human capabilities. It includes investments in Artificial Intelligence, Big Data, and the Internet of Things (IoT).
In manufacturing, AI predicts and prevents errors before they occur. IoT connects devices and systems, creating a cohesive production environment. Big Data provides insights to optimize processes. These technologies are fostering a smarter, more adaptable manufacturing landscape.
Statista predicts that the AI market in Japanese manufacturing will reach $3.7 billion by 2025. Additionally, Fuji Chimera Research forecasts that Japan’s IoT market will grow at an average annual rate of 10.8% from 2020 to 2025.
Success story: Optimizing product design quality inspection with automation
A multinational automotive company with over 400 branches faced low productivity due to the complexity of the product design process, which often led to errors. Senior personnel were required to participate in quality inspections, wasting significant resources.
Solution from akaBot (FPT)
The company adopted automation with akaBot’s global standard RPA platform. akaBot interacts with Catia software to identify product design specifications, compare them with standard specifications, and generate reports. Senior staff only need to check the quality of the drawings.
Process:
Results:
With virtual assistant support, processing time can be reduced from 30-90 minutes to 5 minutes, saving 90% of the time. Potential errors can be reduced from 10% to 3%, making the process more accurate and efficient.
With Japan facing severe labor shortages, automation and new technologies offer a long-term solution for the automotive and manufacturing sectors. This shift prompts business leaders to reconsider the balance between human and virtual labor in daily operations. The collaboration between humans and bots is expected to be a stepping stone for Japan to build a more efficient, productive, and sustainable economy.
References:
Automation and Robotics in Japan
Thiếu lao động, Nhật Bản “nhờ cậy” robot
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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