Demographic Dividends and The Industry 4.0 Impact in Asia
When we talk about the rise and fall of a specific technology, we look for reasons to support it. The reasons usually vary from the feasibility to the user.
Updated
On this page
Key takeaways
- When we talk about the rise and fall of a specific technology, we look for reasons to support it.
- are skilled workers who support the nation’s economy, and the companies that have generated thousands of employment, including Google, Intel, PayPal, eBay, and Yahoo, were started by immigrants.
- Corporate leaders must, however, grasp not only the ideas that are guiding the operational transformation but also how those ideas appear and operate on the manufacturing floor.
When we talk about the rise and fall of a specific technology, we look for reasons to support it. The reasons usually vary from the feasibility to the user segment. But one point that generally goes unnoticed is the changing demographic dividends of a place. What is it? Let us have a brief idea of what the ‘demographic dividends of a place’ imply.
The term “demographic dividend” describes economic expansion brought on by a population’s age distribution shift. A fall in fertility and mortality rates often causes a change in age structure. So, now with a clear idea of what demographic dividends are, let us move forward to a quite important case study of a continent that covers one of the largest consumers of the technology industry.
In this article, we will talk about Asia’s demographic dividends in the context of the ready-to-thrive Industry 4.0. Starting with the prospect of industry 4.0 in Asia, it is one of the few perfect ideas to work on. The reason is closely associated with the changing demographic dividends of the continent.
Demographic Dividends of Asia and What it Means #
With the clock ticking, we see a lot of changes in the largest continent out there. While talking with a perspective of the fourth industrial revolution and the developments around it, the prime focus will remain on India, some parts of east Asia, and China. Asia, as a continent, relies primarily on youths for its workforce and economic development. Taking the example of India, the average age of the population has declined, which proves to be a booster for the Indian economy. In China, the workforce is getting bigger, resulting in a rise in manufactured goods at a faster pace.
Two demographic changes that are extremely significant to national economies are being witnessed in Asia currently. The population of the elderly is growing more quickly while the working-age population is growing slowly. The findings in this article discuss how these changes will impact the economy and offer solutions.
Starting with the fact that institutions and policies must be changed for the elderly, enabling them to contribute more to society than previous generations. Smaller cohorts of working-age individuals can create the workforce as much as or even more than bigger numbers of working-age adults did in the past with effective human capital investments. Seniors and others close to retirement might mobilize their financial resources to ensure financial stability and promote faster economic growth.
Expanding regulated immigration can be profitable for nations with declining workforces, like Japan and Singapore, notwithstanding the variations in their immigration laws. Younger workers can relieve the strain on pension systems and the cost of caring for the elderly, thus resulting in a strain-free development. Over a third of immigrants in the U. S. are skilled workers who support the nation’s economy, and the companies that have generated thousands of employment, including Google, Intel, PayPal, eBay, and Yahoo, were started by immigrants.
But, all said and done, some things still fail to grab the notions of this demographic dividend of Asia nurturing Industry 4.0. But let’s understand the catch here, the workforce is increasing, and with an increasing workforce, one knows that an industrial revolution is underway.
The Entry of Industry 4.0 #
In the third industrial revolution, the world went through a phase of constant upgradation and experiments. In closed rooms, strategic measures were taken, and terms like product design and engineering of datasets peaked. But when the ground reality was looked at, it was found that there was a huge gap between the strategies and the final product. This gap resulted from huge investments in technology, engineering, and product, the reason being that the human capital wasn’t utilized according to the capabilities, and even if it was, it wasn’t looked after for efficient functioning of the manufacturing unit.
Here just at the time of the introduction of Industry 4.0, we, in this article, decided to point out exactly where 3.0 fell short for the industry to help the fourth industrial revolution to achieve what it intends to do. We discussed Asia’s demographic advantages while enumerating its constituent nations, from India to Singapore, China and Japan. We learned that two of the greatest economies in the world and a large number of potentially booming economies are located in Asia.
Talking about economies, we reach the 2nd most crucial factor. After the economy, what differs here from various countries is the affluent demographics of the continent. The working population is ready to storm into the workforce and make industry 4.0 a success. This doesn’t require a working population but upskilling this workforce to run the industry efficiently.
Asia’s Prospect of Industry 4.0 #
As 300 million more individuals enter the labor over the next 20 years, Asia will benefit from a demographic dividend. These digital natives, who are more educated and aspiring, anticipate fulfilling careers in cutting-edge fields, the kind that Industry 4.0 can offer. But the number and quality are not always the same. Companies must understand that the greatest talent will always be in short supply. Adopting initiatives that draw in skilled workers is therefore essential before rivals snatch them up.
This leads to the fact that the retainment of these workers is equally important as, in any phase of the industrial revolution, an unskilled workforce is seen to be like that last slice of pizza that everyone wants to eat, but for that, the person owning it needs to abandon it.
Conclusion #
Industry 4.0 is ready to climb up the ladders much quicker than industry 3.0. One of the reasons behind it is the workforce targeting and then the introduction of faster internet connectivity. All these feels like a combined push for it and is giving hope of some really amazing result.
One thing that needs to be looked at more precisely is that talent in Industry 4.0 won’t be reporting to managers in Industry 3.0 for very long. Leadership for this organizational change must come from the top. Corporate leaders must, however, grasp not only the ideas that are guiding the operational transformation but also how those ideas appear and operate on the manufacturing floor.
Related reading