Is The "World Factory" Declining Or Upgrading In Dongguan?

Dongguan's manufacturing needs to be upgraded through independent innovation. Dongguan's upgrading of prefecture level city 20th anniversary series reports the world view of Dongguan's two. After 20 years of development, Dongguan's manufacturing industry has reached a watershed, or is it still upgrading?

It is understood that last year, more than 200 shoe factories in Dongguan went bankrupt, including some three thousand or four thousand factories. Facing the shuffle is not just the shoe industry, but also the furniture, hardware and other industries.

Dongguan has long seen the hidden worries of development, aiming at the high-tech industry, and increasing the efforts to introduce high-tech industries as the engine to boost Dongguan's future economy.

But can the development of high-tech industries drive the upgrading of traditional industries in Dongguan, thus leading to the gradual pformation of Dongguan manufacturing into Dongguan?

This proposition will continue to be a difficult problem for Dongguan's future development.

The current global shoe making base is facing a shuffle. In October 24, 2007, nearly 4000 employees of enterprises often went to shoe factories to close down.

Chang Deng's exit from such a well-known shoe company is seen by many people in the industry as a result of the declining profits of the footwear industry. It is also seen as a microcosm of the footwear industry in Dongguan.

According to Li Peng, Secretary General of the Asian Footwear Association, a large buyer and famous shoe manufacturer in Houjie, Houjie Town, the data of the association's investigation is that last year, more than 200 shoe factories in Dongguan were closed down.

In Li Peng's view, this is the law of natural selection for market economy.

"In the past 3 to 5 years, the number of shoe factories in the whole country has increased by more than 10000."

The rapid growth of shoe factories aggravates the vicious competition in the industry.

In order to fight for orders, production enterprises compete with each other in price war, and when profits are compressed to a certain extent, there will inevitably be survival of the fittest.

"The footwear industry in the future will have a shuffling period of 1 to 2 years."

Li Peng said.

For industry upgrading, the industry believes that the internal strength that shoe companies need to practice is still how to no longer rely on cost advantages such as cheap labor, land and so on, and turn to enter the field operation mode under the high technology conditions, optimize the combination workshop, improve product production speed and product quality, and save costs.

It is understood that due to cost implications, 50% of Dongguan shoe factories chose to set up factories in the field.

Li Peng believes that the current pfer is only a low value-added manufacturing process, and the core technology R & D and procurement trade remains in Dongguan.

Some people in the industry believe that Dongguan is still the R & D center of the footwear industry, which will decide that Dongguan will continue to be the shoe manufacturing base in the future.

As Long Yongtu said in Houjie speech last November, "in the next 20 years, 30 years or even 40 years, China will definitely be the global manufacturing base. Dongguan is also a global manufacturing base and shoemaking base."

In 2007, Dongguan's industrial output value was 665 billion yuan, an increase of 18.4%. Although the growth rate slowed down, a careful analysis of the output structure revealed that the "double pformation of economy and society" proposed at the beginning of the year has shown initial success.

Among them, the role of Songshan Lake Science and Technology Industrial Park is indispensable.

After several years of construction and accumulation, the construction and development of Songshan Lake Park has entered a new stage. However, the development of Songshan Lake has not been plain sailing. The Songshan Lake, which is a high starting point, high standard, high quality and high efficiency, has attracted a lot of achievements since its establishment in 2001, but the road to entrepreneurship is rather difficult.

A returned entrepreneur who did not want to be named told reporters that the biggest problem of Songshan Lake is the failure to achieve cluster effect. At the same time, the related supporting experiments are not mature enough, and there are difficulties in international exchanges. Dongguan's advantage lies in the manufacturing industry. High tech talents and high input are needed for high technology. At present, Dongguan does not have the competitive strength.

Liang Jiayi, director of Dongguan Songshan Lake overseas student Pioneer Park, believes that the biggest bottleneck in the development of new and high technology is the serious lack of technology funds. Songshan Lake can only rely on the limited input of the government, which is far from meeting the capital needs of scientific and technological enterprises in the development stage. The future development direction is to introduce Vc firm, while introducing some local strength traditional industries into the high-tech field.

At the same time, the lack of scientific and technological resources and educational resources in Dongguan is also a difficult problem that puzzles the development of high technology. Even if Songshan Lake has introduced a large number of high-tech talents, but because Dongguan itself lacks the infrastructure for the echelons of science and technology talents, it is very difficult to cultivate and develop talents.

In view of these reasons, the park currently takes the role of technology and business incubators in the introduction of individual or small entrepreneurial teams, and the development of technology enterprises and the formation of radiation industry will take a long way.

Since Dongguan introduced the policy of "double pformation", it has proposed to adhere to the basic mode of introducing digestion, absorption and re creation, and building an innovative city.

"Science and technology Dongguan" policy guidance: the introduction of the "science and technology Dongguan" project 11 supporting policy documents, Dongguan special financial expenditure of 390 million yuan, efforts to support technological innovation and "two self" enterprises.

The platform promotes: Songshan Lake becomes the national Torch Innovation and entrepreneurship Park and the Guangdong intellectual property pilot park.

Dongguan Huazhong University of Science and Technology Manufacturing Engineering Research Institute and other public innovation platform construction accelerated, Humen and Changan were identified as the national torch plan characteristic industrial base.

Cooperation between industry, University and research institutes: 10 approved strategic alliances, 3 demonstration bases and 10 demonstration bases.

Wu Chuanqing, a professor of the regional economic research center of Wuhan University School of economics and management, believes that a city that relies solely on manufacturing is not able to achieve long-term development, "said Dongguan.

For the traditional manufacturing industry, we should "rise" and "go out".

"Up" is the upgrading of the industry, the improvement of the technological content of products, and the increase of the added value of products.

At the same time, in reducing production costs, Dongguan enterprises should also "go out", the R & D and marketing centers of enterprises are still in Dongguan, and production bases can be set to lower labor costs.

From the point of view of the operation of enterprises, on the one hand, we should increase the value of products, and on the other hand, reduce costs, and naturally make more money.

Related links toy industry exports shrink: Dongguan's toy manufacturing industry, initially invested by Hong Kong businessmen to run factories, has experienced nearly 20 years of development. Now it has nearly 4000 manufacturers with Hong Kong funded enterprises as the main body, occupying half of the toy manufacturing industry in the mainland.

But in 2007, the prices of imported raw materials, such as plastics, chemical fiber and copper wire, rose sharply. With the increase of electricity price and wage increase, the production cost of toys in Dongguan increased by nearly 60%, and the order of enterprises decreased rapidly.

In the first 4 months of 2007, the export volume of toys in Dongguan decreased by 6.7% compared with the same period last year, while the decrease in the same period last year was 4.4%, indicating that Dongguan's toy industry accelerated its decline.

Furniture production and marketing encountered "cold current": this year, furniture has encountered cold reception in the market.

According to statistics, Dongguan furniture production and sales decreased by 3 to 4 percent over the same period last year.

By the second half of 2007, large furniture companies, including more than 1000 people, were unable to maintain the timely payment of goods, and the boss had run away ten. Many small furniture factories and supporting factories of furniture factories were even more difficult.