3. Dances with Wolves: Strengths & Weakness in Local Industrial Robotics  Dancing with “the Wolves:” Strengths & Weakness of Industry Domestic Industrial Robotics Industry 1. Huge gap between university research and industry needs in terms of knowledge and research interests 2. The core parts and components industry is at its early stage and needs time to grow 3. High cost structure in body plants, lack of competitive advantage 4. Insufficient system integrators in terms of quality & experience. E.g. For example, there were 100 system integrators working with ADEP Therefore, 20+20=40 body plants require 4,000-8,000 integrators, compared to 1,000 integrators at present 5. Though users face enormous pressure in productivity, labor and competition, they still have their concerns in potential risks brought by new technologies. Manufacturing cost in Small-size production Yaskawa’s 2009: cost in 2012: manufacturing cost: RMB320K RMB254K RMB168K Sold at RMB220- 270K