America's manufacturing future still needs foreign robots

The Trump administration's vision for a U.S. manufacturing renaissance includes highly automated factories and a more efficient American workforce — all of which will still require tons of foreign robots.Why it matters: The administration is trying to fix decades of disinvestment in domestic manufacturing, but can't, for now, without relying on foreign companies to supply the advanced robotics needed to catch up with the rest of the world.The big picture: Re-shoring U.S. manufacturing is deemed critical to national and economic security.But labor shortages and pressure from lower-cost competitors mean those factories will need to be more automated than ever. Automation is no longer a luxury, it's a necessity."This is how you compete today," Jeff Burnstein, president of the Association for Advancing Automation, tells Axios. "You have to take advantage of the best tools available." Where it stands: Trump has pushed hard on carmakers in particular to build domestically. The U.S. auto industry is already highly automated, ranking fifth in the ratio of robots to factory workers (tied with Japan and Germany and ahead of China), according to International Federation of Robotics data.While other industries like pharmaceuticals, agriculture and logistics are rapidly adding automation, the U.S. lags behind other nations in non-auto sectors.Yes, but: The majority of industrial robots used in America are imported.Japan, China, Germany and South Korea produce 70 percent of the world's robots, according to IFR.Swiss giant ABB says it is the only major global robot company with a U.S. manufacturing base. About 75% of the robots it sells in the U.S. are built in Michigan.Others like Fanuc and Kuka manufacture most of their robots overseas, then ship them to the U.S. for final assembly and testing. (Fanuc does export some paint robots from the U.S., however.)U.S.-based robot system integrators then install the automation systems in American factories.Flashback: The U.S. used to dominate the robotics industry in the 1960s, starting with the world's first industrial robot installed at a General Motors plant in 1961.Union resistance, along with a lack of investment or government support, left an opening for Japan, which by the late 1960s saw robotics as a growth strategy. European companies soon followed.Now, Chinese robot manufacturers are growing rapidly, in part because China's government has made robotics—including humanoid robots—a strategic priority under its Made in China 2025 initiative.What they're saying: White House officials acknowledge that reshoring manufacturing will require significant upfront investment in fixed equipment like robots, but insist those cost pressures will ease with tax incentives in the budget that just passed the House.As to the reliance on foreign suppliers, a White House official said "our efforts to reshore manufacturing that's critical to national and economic security directly address this."What's next: Many U.S. companies are developing futuristic factory-focused robots, particularly in humanoid form factors, including Agility, Apptronik, Figure and Tesla."It's another chance for the U.S. to lead," says Burnstein, whose organization is calling for a national robotics policy similar to China's. Morgan Stanley predicts a $5 billion humanoid market by 2050, but the future is no substitute for demand now.

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