Made In China To Seek A New Strategy &Nbsp; 2012 Quietly "Winter"

The world economic situation is still ups and downs.

And China's manufacturing industry is brewing a new test.

In a recent survey released by IDC, a research firm commissioned by Cross Nor, 31% of the 120 Chinese manufacturing enterprises surveyed were already considering some form of low cost strategy, and 64% of them were looking for ways to increase productivity.

"In the past, China's manufacturing industry has been growing at a high level.

Since reform and opening up, the advantages of abundant resources and low cost labor force have boosted China's rapid development into a "world factory".

Xiao Hongliang pointed out that, at the moment, the "world factory" advantage of Chinese enterprises is rapidly disappearing.

The gradual decline of demographic dividend and the rapid rise in labor wages have become problems.

Foxconn technology is the best example of the manufacturing industry. Foxconn has doubled its wages for its 800 thousand workers in 2011, due to the frequent exposure of the management crisis caused by cheap labor by the global media.

It is estimated that salary increase will increase Foxconn's labor cost by 5 billion.

In addition to labor costs, the cost of raw materials and equipment costs brought by inflation has changed the geographical distribution of China's manufacturing industry. In order to avoid the high labor costs in the coastal areas, many manufacturing industries, including toy industry, garment industry and other foundry factories, have accelerated the pfer to factories in the inland areas in 2011.

This is followed by the migration of manufacturing industries caused by the lack of low cost labor force in China.

As China's manpower costs continue to expand with neighboring Asian countries such as Vietnam, Indonesia and India, it has already threatened the competitiveness of China's manufacturing industry.

The trend of manufacturing industry returning to the United States is also spreading. For example, Ford motor company announced that it was preparing to manufacture some automobile parts in the United States, after which China was the first choice for building new factories.

Xiao Hongliang believes that the solution to the pain of China's labor force is clear. Chinese manufacturing enterprises need to consider the next solution: finding a better way to manage the labor force requires more flexibility in the way of operation and management of enterprises, controlling labor costs and increasing labor productivity, paying more attention to productivity and production efficiency, which in turn will make enterprises more sensitive and responsive.

Compliance management and optimization of resource allocation are key to improving production capacity and working conditions.