China's logistics costs remain high

According to the Analysis Report on development Prospect and Investment Strategy Planning of Logistics Equipment Manufacturing Industry released by Foresight Industry Research Institute, the high logistics cost has always been a major problem in China's manufacturing industry. The proportion of logistics cost in China's product cost is between 30%-40%, while in developing countries, it is generally 15%-25%, and in developed countries, it is as low as 10%-15%. Compared with other countries, there is room for my logistics cost to fall.

The Boston Consulting Group estimates that average manufacturing costs in China are now only 5% lower than in the U.S. By 2018, the U.S. is expected to be 2% to 3% cheaper than China. With the rise of labor costs, logistics automation equipment is conducive to logistics operation and production enterprises to reduce costs, improve competitiveness, which promotes its accelerated development.

The future of logistics automation equipment is promising

Automated logistics warehousing is the use of software technology, Internet technology, automatic sorting technology, optical sorting, RFID, voice control technology and other advanced technological means and equipment for the entry and exit of goods, inventory, sorting, packaging, distribution and its information for effective planning, implementation and control of logistics activities. Typical logistics automation equipment mainly includes: automatic three-dimensional storage system, automatic conveying system (including mobile robot system AGVS), automatic identification system and automatic sorting system, and other auxiliary systems of robot operating system, etc

Compared with traditional logistics and storage facilities, the advantages of automated logistics and storage system are mainly reflected in the aspects of saving labor cost, saving rent cost, and improving management efficiency. It is estimated that automated storage can save more than 70% of land and more than 80% of labor force under the condition of ensuring the same storage capacity.

In addition, the automated storage system can maximize the accuracy of storage management, as well as the identification, sorting, processing speed of incoming and outgoing, reduce inventory turnover, to meet the needs of modern fast logistics such as e-commerce, fresh distribution.

Based on the following aspects, we believe that logistics warehousing automation is the most stable growth in the entire automation, growth space is one of the largest sub-plate, is expected in the next five years, domestic logistics warehousing automation market can still maintain a growth of more than 20%, is expected to grow to more than 200 billion yuan in 2021.

（1）The downstream market is more stable: benefiting from the vigorous development of modern logistics industry, the downstream logistics investment is more certain than the general manufacturing investment, so the automated logistics is relatively less disturbed by the economic cycle;

（2）Adapt to the needs of new logistics: third party logistics, e-commerce, full cold chain fresh delivery and other emerging logistics are profoundly changing the downstream market, in addition to the need to save increasing labor costs, customers for processing speed, management efficiency and user experience demand is sharply rising. Automated logistics storage system is the ultimate solution to adapt to the emerging logistics mode;

（3)Rapid technological progress: with the application of the Internet of things, machine vision, storage robots, drones and other new technologies, logistics warehousing automation technology is changing at a fast speed.