A top executive at UBTech, a leading Chinese robotics producer, admitted its machines are only about half as efficient as human workers. This candid assessment comes as the company, known for its humanoid and service robots, continues to expand production to meet soaring demand from factories and tech firms.

Despite this efficiency gap, manufacturers across Asia and globally are racing to order robots to automate assembly lines and warehouses. The push stems from chronic labor shortages, rising wages, and the pursuit of supply chain resilience, even if the return on investment for complex tasks remains longer than hoped.

The admission underscores the current limits of automation for nuanced jobs. Investors should watch how UBTech and rivals like Tesla and Boston Dynamics bridge this gap through software advances and cheaper hardware. For now, the global manufacturing sector's robot deployment will likely continue accelerating, driven by necessity over pure efficiency gains.