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Industry News

China"s mold industry into the depth of the transition period of adjustment

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[ time:2013-08-16 16:05:27 Visits:1635 print Collection ]

The latest June manufacturing and non-manufacturing PMI index has come down from the previous month, a small manufacturing enterprises PMI for 15 consecutive months at the critical line, and caused a lot of people on Chinese manufacturing concerns. "We want to pay close attention to new trends in global manufacturing competitiveness and take active measures to optimize the credit support, to reduce the burden on enterprises, but also soberly aware that China is entering a deep transformation of manufacturing adjustment period, without some increase in business difficulties or pressure and large “pains”, but is not normal. "in International Mould & Metal & Plastic Industry Suppliers Association executive vice president and secretary general Luo Baihui opinion, Chinese manufacturing market position and role in the world is quietly changing, transformation and upgrading trend has been irreversible.

Manufacturing is the main body of China”s real economy, but also in the international competition has a comparative advantage. China”s economy to achieve rapid development over the past 30 years, its growth has a direct relationship flourished. Luo Baihui that previously relied on to win the China mold manufacturing cost advantage is diminishing, and the cost of entering into a new stage of development rising. There are estimates that nearly 10 years, China”s labor costs increased more than four times. Wage increase every year is economic development to benefit the people of the benign outcome, but it does mean China mold manufacturing challenges. Supported by low-cost market competitiveness, with the cost of upgrading will definitely lower. Since the international financial crisis, a number of labor-intensive areas of the manufacturing sector multinationals lower labor costs to Southeast Asian countries, have explained the problem.

Transformation is not a free lunch, is a price to pay. Increased overcapacity is one common consideration. New technologies replace old products, old and new technologies will naturally appear coexistence of production capacity, new energy is very typical. "As an important form of transformation and upgrading of industrial gradient transfer, the objective will cause overlapping of old and new production capacity, production capacity of away is a difficult process. From this perspective, PMI manufacturing to high-end data down is “transformation” process in the most natural thing to do. "Luo Baihui that has experienced the growing pains, China mold manufacturing will go more solid and robust. Transition towards "labor pains" often have two attitudes. One is to open the monetary floodgates, on large projects, to take administrative measures to artificially human, material and financial resources to manufacturing up. One is to guide enterprises through fiscal environment and social capital to greater efforts on the development of advanced productivity, the use of market mechanisms to achieve manufacturing survival of the fittest. Lessons from the domestic and international experience, an attitude before the content is easy to see short-term results, but also easy to operate, but not sustainable, and even so the risk of deterioration of overcapacity.

Face during this painful period of Chinese manufacturing, should dare to let go, a reasonable tolerance manufacturing growth declined, tolerate some backward business failures, bankruptcies, so that the Government can focus more on macroeconomic regulation, market supervision, social management and public service on macroeconomic policies to stabilize truly, micro policies to liberalize, this is a rational approach and stronger Chinese manufacturing. Only do so, Chinese manufacturers succeed in the new round of industrial revolution brought about by the transformation and upgrading of historic opportunity is not out of date. (Gold Mode Network)

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