Rising wages in China may be squeezing the profits of many manufacturers -- but they are also feeding a boom in the robotics industry . Wages in China 's cities rose 12.4 % last year , while in rural areas they were boosted by 21.9 % , according to figures from China 's National Bureau of Statistics . While that may be good for workers , manufacturers are softening the blow to their balance sheets by turning to robotics -- which are cheaper , faster and deliver high quality . China is the fastest growing market in robotics , and by 2014 it will top the global market , according to the International Federation of Robotics . One company seeking to tap this demand is German-based KUKA Robotics , which is setting up a regional hub in the country . `` With the increase in the wages we can see a big automation wave coming , '' said Till Reuter , chief executive of KUKA Robotics . `` China is the market that is still growing , and growing at a fast pace compared to Europe and the U.S. , `` he said . `` China will be the biggest robotic market , so it is important to be here . '' The auto industry , for example , is becoming increasingly reliant on robotics . China is the world 's largest auto market and European car manufacturers are setting up facilities in the region , all of which will be reliant on robotics . BMW opened a new plant in Shenyang last month and Volkswagen plans to double its capacity to four million cars by 2018 , by investing in three new plants in Yizheng , Foshan and Ningbo and upgrading existing ones in Changchun , Nanjing and Chengdu . China 's robotics industry still lags that in other countries . In Japan , for example , there are 306 robots working per 10,000 people while in China there are currently only 15 . KUKA plans to capture the potential by producing more efficient models that will continue to drive down costs for manufacturers . `` Our advantage is innovation , '' said Reuter , `` we need to keep it alive and work towards the next generation . It gives us an advantage in China , but also in the rest of the world . '' As China 's robotics industry catches up with others , the country 's manufacturers are also looking at other ways to bring in income . Investment in branding and marketing is one way to boost profits , according to Alistair Thornton , a senior analyst at IHS Global Insight . `` Manufacturers will think -- - hold on , if we put money into branding and charge more for products , we can retain our margin , '' said Thornton .
China 's rising wages are squeezing the profits of many manufacturers . They are also feeding a boom in the robotics industry . One company seeking to tap this demand is German-based KUKA Robotics . KUKA plans to produce more efficient models to drive down costs for manufacturers .