Current status of China's manufacturing industry

youlian

√. Recently, I observed the various manufacturing companies in our industrial park and found three remarkable features:

The performance of factories that mainly sell domestically has generally declined, and the magnitude is very large. It is not surprising that it exceeds 50%. The export-oriented factories are half and half, half are doing well and half are declining. Foreign-funded enterprises are relatively normal and relatively busy.

1. In markets where domestic sales are the mainstay in industrial parks, workers generally do not work overtime, and even take 3-4 days off. I think the home appliances and ancillary products are better, with weekends off at most, but the off-season is about to begin. Most of those who work in the automotive and parts categories, as well as CRRC equipment, only work three or four days a week.

2. The domestic sales market of our factory has declined significantly year-on-year and it is not appropriate to make multiple statements. Fortunately, foreign trade orders are not bad, not much different from the same period in previous years, which is a comfort.

3. Several foreign-funded enterprises in the industrial park are quite good and work overtime every day, but I think they have a rest this Sunday.

√. When I don’t have many orders, I chat with friends when I have nothing to do. The conversation ends with: What will the company do in the next three years?

The manufacturing industry may not be very prosperous in the next three years. Holding on and waiting for death, breaking through and innovating feel like courting death. You always have to find a way to survive between life and death:

1. Even if you are struggling to support, you must find a way to support it: a friend has closed the factory, and only earns the difference in entrusting processing orders. A friend's factory has moved its production to the town below, greatly reducing production and operating costs. Most companies are still watching, almost dying of thirst, hoping for some rain from God to bring about a turn of events. Of course, the anxiety and confusion are still quite strong.

2. After this economic downturn in the domestic market, companies with inherently unhealthy operations, poor scientific research and quality assurance capabilities, or disorganized management will be closed down. The clearing of the market naturally gave way to specialized and innovative enterprises. Business owners who find themselves at risk of being eliminated should prepare early to see whether they are waiting for death or seeking death.

3. Foreign trade companies are divided into three thirds: orders from the first third are still relatively stable or even increasing. The second third has a shrinking market but no problem surviving. The third third, especially the middle and low-end, labor-intensive business orders will slowly be transferred to Southeast Asia, and there is no hope of early planning.

√. Make a bold prediction about the development trend of the manufacturing industry in the next three years:

1. Three years later, the cold winter passed and the market cleared. Those companies that persist in specializing in new technologies are waiting for spring to bloom.

2. There will definitely be breakthroughs in new business formats and new technologies, and winter is also the season of gestation. I am optimistic about the diligence and resilience of domestic entrepreneurs. After three years of dormancy, there will definitely be a blockbuster moment.

3. Three years later, Mr. Wang’s Indo-Pacific strategy collided with ours and was rebalanced, and it has basically stabilized. Vietnam is too small. If we add Southeast Asia and India and accept orders from Europe and the United States, it seems to be no problem. However, these countries each have their own weaknesses. I think the results may not be as good as expected. Of course, they will put great pressure on our market.

√.The market is cruel competition and the pressure of life and death. The outcome depends on competition and scientific research strength. In the face of strength, everything is nonsense. What we are doing now is both a crisis and an opportunity during a century-old period of great change. We need to reorganize our thinking and business owners of all sizes should act quickly. There is not enough time and the crisis is already in front of us.

https://www.toutiao.com/article/7100820031793054246/