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      Chinese manufacturing should "people-oriented" reshape its own advantages

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      Chinese manufacturing should "people-oriented" reshape its own advantages

      Release date:2019-11-22 00:00 Source:http://www.sxjbzy.com Click:

      The competitive landscape of the global manufacturing industry has changed. The advanced manufacturing technology of CNC machine tool manufacturers has become the key to competitiveness. At the just-concluded sessions, the upgrading of the manufacturing industry became the key word again. The "Government Work Report" proposes the in-depth implementation of "Made in China 2025", and for the first time explicitly developed "smart manufacturing" as the main direction of attack. At the same time, China's economic growth has slowed and Sino-US economic and trade relations have become increasingly complex. In this context, how can multinational companies help upgrade China's manufacturing industry? How to seize new development opportunities? And how can we keenly capture the new demands arising from China's transformation and upgrading?


      CNC machine tool manufacturers


      China is still the source and place of global economic growth

      Fifteen years ago, the world was immersed in the carnival of the concept of "BRICS". These emerging market countries became the emerging growth points of the global economy at that time, bringing tangible benefits to foreign companies. During this period, everyone often overlooked that China's achievements were unprecedented in human history: the wealth created by China accounted for 70% of the total wealth of the BRICS countries; China doubled the income level of residents within 10 years. And achieved 4 times; the large-scale change experienced by Chinese society is unparalleled by other countries in the world.

      Although China's economic growth has slowed down, any industry related to China's urbanization process has growth potential, such as transportation, energy, clean energy, safety and security. In the next 20 years, water and air will become the most concerned issues for Chinese consumers, especially the middle class. Any industry innovation related to water and air quality has growth potential. At the same time, we are also optimistic about industries such as energy saving and emission reduction, pollution control, health, and pensions. We tend to avoid industries that are in the limelight, such as the consumer electronics industry that is redefined every 18 months, and those that do not have the added value of the digital economy. Therefore, no matter how fast the Chinese economy grows, it will not have a profound impact on Honeywell's strategy. In terms of absolute growth, China will still be the source and place of growth.

      However, it is difficult for any country to follow China's success model. First of all, China's rise has broken the inherent view of Western schools that economic prosperity can only be achieved in countries that replicate Western-style democracy. Western countries have long taken a wait-and-see attitude towards China's economic development model. Until the outbreak of the financial crisis in 2008, developed countries generally fell into economic recession. Although China's economy fell back, it was quickly stimulated by strong policies. Western countries at that time almost recognized the fact that China could succeed without copying the Western model.

      The competitive advantage of China's manufacturing industry has changed

      Under the current development situation, China is still the first target country for investment for well-prepared enterprises. Two or three years ago, some multinational companies began to abandon the Chinese market, blaming China's economic downturn, declining investment attractiveness, and government policy constraints. Honeywell is still optimistic about the Chinese market. We strive to be a "Chinese-style enterprise". The Chinese market is the driving force for our growth, not a scapegoat for declining performance.

      Whether China's manufacturing industry has lost its cost competitiveness advantage is debatable. In some industries, China is indeed losing its cost advantage. For example, from the perspective of labor arbitrage, labor-intensive industries in coastal areas and other regions are facing increasing cost pressure. Low-end production with low technological content may and need to be transferred to labor. Lower price countries. It is undeniable that emerging manufacturing countries such as Vietnam and India are on the rise, but it will take a long time for China to run out of cost competitiveness, and China still maintains high competitiveness in some industries. It is worth noting that the labor force alone cannot export commodities and needs to rely on a complete system of machinery, plant, transportation and supply chain. For example, labor costs account for 60% of the production costs of certain Honeywell businesses, but efficiency, logistics, and the supply chain are equally important, and there is a large space for cost reduction, which is expected to become a new cost blue ocean for manufacturing companies. To offset the pressure brought by rising labor prices, corporate countermeasures include building factories near the center of the supply chain to achieve higher logistics efficiency at a lower cost.

      R & D and innovation should be "people-oriented"

      Back to basic needs The Chinese government encourages the knowledge economy and actively promotes China's climb to the high end of the value chain, which means that manufacturing must become more efficient. In the field of intelligent manufacturing, one of Honeywell's latest layout trends is focused on logistics and warehouse automation. As an important part of the manufacturing upgrade, intelligent and connected warehousing can help retailers, manufacturers and logistics providers to increase production efficiency and cut costs.

      China in transition has a series of problems that need to be solved, but in the final analysis, it is "how to truly achieve sustainable development". China's environmental challenges will be a huge stage for innovation, cooperation and growth for both multinational and local companies. In the field of energy and environment, we believe that China can redouble its efforts, such as adopting stricter and leading emission standards, forcing traditional companies to increase innovation and accelerate industrial upgrading. For some emerging fields, such as big data, smart cities, and the Internet of Things, China also has the opportunity to become a pioneer. With the breadth and depth of the market, China can become a great source of innovation for these new technologies and applications.

      If Chinese local enterprises want to improve their competitiveness in the field of intelligent manufacturing. First of all, companies must continue to research and develop, and when they do research and development, they must strive to find the most real needs of a country and a market. R & D is ultimately about serving important people. Therefore, in the long run, R & D and innovation of enterprises should focus on solving the most basic problems in human production and life. They need to adhere to people-oriented and return to the most basic needs. Secondly, innovation needs to be precipitated. Don't innovate for innovation. Experience tells us that if industrial manufacturing companies want to develop a new business, open up a new market, and succeed, they must have a certain amount of technology accumulation and precipitation. effort. In terms of technological innovation, companies do not have to pursue "short, fast," or "disruptive" technological revolutions. Instead, they may wish to grasp macro trends and relatively focus on several areas of strength for strategic and continuous R & D and technological innovation. Relevant processes are continuously improved.

      The interests of China and the United States are intertwined, and win-win cooperation will continue

      Sino-US relations will continue to develop, strengthen, and pay more attention to commerce, which will benefit both countries. As the two largest economies in the world, the interests of China and the United States are intertwined. Although the relationship may sometimes be tense, the actual trend of win-win cooperation between the two countries will continue.

      China and the United States should develop peaceful economic and trade relations and encourage American investors to invest in China and Chinese investors to go to the United States. China and the United States work together to solve problems and build a win-win economic and trade relationship that is important not only for the two countries, but also for the world. Because good cooperation between the two largest economies in the world will bring prosperity to the global economy and people around the world.

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