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Ceramic sanitary enterprises face talent crisis
In 2012, China experienced a significant demographic shift when the number of laborers in the high-quality age group—typically considered to be between 15 and 60 years old—began to decline for the first time. This was unexpected, as population growth should have naturally increased the size of this working-age group. However, the reality was different: the population dropped by 3 million, and according to official projections, within a decade, the workforce could shrink by nearly 30 million people. This development poses serious challenges for industries that rely heavily on manual labor, particularly the ceramic sanitary ware sector.
Currently, many ceramic sanitary enterprises depend on a large pool of low-cost labor to maintain their production processes. As the available workforce shrinks, these companies will face two major pressures: a shortage of workers to meet production demands and an inevitable rise in wages as competition for skilled labor intensifies. The combination of these factors is likely to drive up production costs, making it harder for companies to remain competitive in an already crowded market.
Moreover, the loss of the traditional demographic dividend—the economic advantage derived from a large and growing workforce—has led to a talent crisis in the industry. Although university graduates are increasingly entering the job market, the overall demand for skilled workers far outstrips supply. In the coming years, this gap is expected to widen, making it more difficult for companies to find qualified candidates. This scarcity of talent will further push up wages, adding another layer of financial pressure.
The production of ceramic sanitary products is still largely labor-intensive, with limited automation compared to other industries. As a result, companies must rely on human labor for most tasks, which makes them especially vulnerable to labor shortages. With more companies entering the market and rising consumer demand, the industry is becoming increasingly competitive. In this environment, the only viable solution is to invest in modernization and automation. However, for many private enterprises, this transition requires substantial upfront investment, which may not be feasible without compromising current operations.
Additionally, companies need to recruit and train individuals who can manage automated systems, which adds to the complexity and cost of the process. These challenges make it difficult for many firms to implement large-scale changes at present. As a result, many businesses are caught in a tough position: they need to invest in technology to stay competitive, but they lack the resources to do so effectively.
Despite these difficulties, the situation also presents opportunities for skilled workers. As labor becomes scarcer, companies will have no choice but to offer better wages and working conditions to attract and retain talent. This shift could lead to a more equitable and competitive job market in the long run, benefiting both employees and employers. For the ceramic sanitary ware industry, preparing for this future is essential. Those who fail to adapt may struggle to survive, while those who embrace innovation and modernization will be better positioned to thrive in the years ahead.