Feng Jian: Manufacturing Industry Is Also A Pillar Industry In Dongguan.

Overnight, Dongguan seems to have become the "Red Net" of Chinese cities.

Since March 21st, the central media has focused on Dongguan and reported Dongguan with unprecedented strength and scale.

What attracted the media? Not the collapse of the business, but not.

The rebound is not even the GDP growth rate. It is Dongguan, a manufacturing city under pressure from the foundry industry and under the pressure of subcontracting, in the pformation of the new normal economy.

The prophet of warm spring duck.

Dongguan has always been concerned about the development of Dongguan, noting that behind the curve of change in data is due to the inherent power of pformation and upgrading.

At the beginning of the new year, the Nanfang Daily interview team penetrated into the forefront of Dongguan's economy and touches the deepest side of Dongguan's economy.

We hope to get rid of all kinds of public opinion about Dongguan and discover and restore the real Dongguan economy.

Dongguan in China for over 30 years is a classic sample of catching up and development of backward cities in developing countries.

We want to explore what the demonstration path of Dongguan will be for China in the future.

This is the purpose of this series of reports on the first scene of economic pformation in Dongguan.

Even if NOKIA's living area has been pformed into a large business park with more than 80 enterprises stationed, the shock wave a year ago has not yet completely disappeared. The scene of the auction of the NOKIA Dongguan factory shutting down before the evacuation is still circulating on the Internet.

NOKIA used to be a large taxpayer in Dongguan, and the electronic information industry represented by mobile phones is a pillar industry in Dongguan.

The withdrawal of NOKIA has been interpreted as the decline of the "world factory".

In the factory of OPPO and vivo in the Sha Sha community in Changan, Dongguan, young applicants with resumes are queuing up in the recruitment office.

The vans of the latest smart phones are coming in and out.

Last year, domestic sales of OPPO and vivo surpassed Samsung. These two smart phone companies derived from the pformation of BBK (12.10, -0.10, -0.82%) in Dongguan ranked first in the country.

Facts have proved that NOKIA's fall is not the end of the day, the rise of smart phones is "

"Bringing new glory.

Industrial change

Processing and manufacturing "go out" R & D design remains.

At the beginning of this year, "China made awkward Prada factory" in Dongguan.

Stop production "-- the news of the shutdown of a ten thousand shoe factory in Dongguan exploded the circle of friends of WeChat.

Chen Weidong, a co-founder and founder of Dongguan Zhi Zhi shoe industry technology, revealed that 80% of the production capacity of the footwear industry has been pferred to Southeast Asia two years ago.

With the increasing scarcity of land and the increasing cost of human resources, a number of foundry enterprises, such as the booming footwear industry, have begun to move to Southeast Asia, Africa and other places to seek low-cost depressions.

Liu Wei, Secretary General of Dongguan footwear industry association made the comparison: "Bangladesh, for example, workers earn less than 100 dollars a month, only 1/5 or even 1/8 of human labor cost in Dongguan".

Zhai Su Ling, President of the Dongguan Association of Taiwanese businessmen, said: "because of the difficulty of large-scale automation, Dongguan's environment is not suitable for these labor-intensive industries."

According to the statistics of Dongguan Municipal Bureau of statistics, the peak number of enterprises in Dongguan was 857 in 2008, accounting for 7.1% of the total number of foreign-funded enterprises in Dongguan. By 2015, this figure dropped to 362, accounting for 3.3%.

According to Zhai's collar, the order pfer situation of garments and shoemaking is inevitable, but Dongguan's advantage lies in the integrity of the supply chain.

Liu Wei found that many shoe companies moved the processing links to Southeast Asia, and the design and development links remained in Dongguan.

"The relocation of enterprises is a kind of market behavior. The relocation of enterprises with high labor costs is a way to seek higher profits, pfer orders, and not pfer profits."

Zhou Wenwu, general manager of Nan Xin Chemical Co., Ltd., a manufacturer of water based adhesive for shoes, told reporters.

Zhou Wenwu's enterprises are also going to set up factories in Southeast Asia, and intend to hire local people for their OEM.

"We set up factories in Southeast Asia to expand rather than pfer."

Zhou Wenwu believes that innovation and R & D in Dongguan enable enterprises to take a lasting advantage and position in the supply chain, which is conducive to further embrace the global market.

Hongkai Electronics Technology (Dongguan) Co., Ltd., which manufactures servers, keyboards and other electronic products, has chosen to stick to it.

"Now, simply doing foundry is not profitable, but we are not going to leave."

Zhang Canneng, chairman of the company, said that more than 20 of the company's team designed and developed mechanical keyboard, and now the mechanical keyboard has become one of the company's most profitable products.

Next, the private brand game keyboard will be listed in the United States, while entering the Chinese market to promote a new round of growth.

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Changes in Enterprises

Old foreign companies turn to a group of local businesses.

In order to rapidly generate capacity, vivo, a leading smartphone maker in China, has been "robbing" factories in recent years.

Hu Baishan, senior vice president of the company, said: "the development speed of enterprises in these two years is very fast. In Changan Town, there are enterprises withdrawing and factories vacant. Enterprises will rush to rent immediately, and we will rent another one."

NOKIA and other enterprises to evacuate the space to be occupied by more competitive private enterprises in Dongguan.

The industry "metabolism" is taking place behind every move.

"Falling down a NOKIA, Dongguan has produced a lot of powerful mobile phone companies.

The market share of these enterprises in the domestic market has increased more than that of NOKIA.

Data statistics show that HUAWEI mobile terminals, OPPO, vivo and so on have more than 260 million giant smartphone giants, occupying half of the Chinese market.

From NOKIA to OPPO, vivo also makes mobile phones, but products are completely different.

According to the insiders, NOKIA Dongguan factory has been operating for nearly 20 years before shutting down, and the production line is relatively old. It mainly produces low-end Asha series mobile phones.

OPPO switched the production line in 2011, and independently developed the world's thinnest smartphone from the mobile phone, which is only 6.6 millimeters.

In 2015, 8 of the 10 mobile phones made in Dongguan were smartphones, and smart phone shipments accounted for about 1/6 of the world's total.

Data also showed that the total annual output value of smart phones in Dongguan has increased by more than 15% over the past three years, rising from 140 billion yuan in 2013 to 2100 billion yuan last year, accounting for 140 billion of the total industrial output value of the city from 12.7% in 2013 to 16.5% last year.

A more central change is that the core links of the supply chain such as design and R & D of these smart phones are in Dongguan.

In the OPPO research and development headquarters of the Wu Sha community in Changan, Dongguan, more than 4000 R & D personnel have submitted 7500 patent applications so far, 85% of which are invention patents.

Zhu Gaoling, vice president of OPPO, said that they kept up with the market demand and continuously developed new functions, including the most popular beauty self timer and 15 minutes fast charging. After the international mobile phone brand was surrounded, the company sold a blood route. OPPO's sales in the Southeast Asian market ranked third, and it was a local high-end product.

Li Yuan, deputy director of the Institute of enterprise research of Guangdong Academy of Social Sciences, seems to be represented by OPPO and vivo. Private enterprises rooted in the mainland and have independent intellectual property rights and well-known brands are becoming the new leading force in Dongguan's economy.

According to the statistics of Dongguan Municipal Bureau of statistics, in 2015, Dongguan increased the added value of private industrial enterprises by 92 billion 564 million yuan, an increase of 16.7% over 2014, and the increase was 11.4 percentage points faster than the average level of the whole city.

Change of efficiency

Demographic dividend decreases, labor productivity increases.

In the ruyda plant workshop located in Songshan Lake, the manipulator operates orderly in the process of cutting, carving, cleaning and so on.

Because the robot (53.980, -1.14, -2.07%) is striking the clock, the company, which has a reputation for listing the new three boards, has upgraded its touchscreen glass from about 1000000 to 8 million pieces through its equipment pformation.

There are numerous examples of automation development in Dongguan, such as ruby.

More and more Dongguan enterprises devote themselves to the wave of automatic production, and increase labor productivity and core competitiveness through large exchange of processing equipment.

Enter Jinsheng precision located in Dongshan Niu Shan pilot project workshop, the machine roars, occasionally can see one or two technicians take tablet computer in remote control manipulator and six axis robot, drilling machining center shuttle.

As a consumer electronics manufacturer that occupies the 15% market share of the global mobile precision structure, Jinsheng precision pformation of the production line automation equipment, is changing from electronic parts manufacturers to intelligent technology equipment and solutions service providers.

Cao Haojie, chief executive of Jinsheng precision president office, calculated an account: after the whole project was put into operation, the production efficiency increased by 20%, the operation cost reduced by 20%, the product development cycle shortened by 30%, and the bad rate decreased by 30%.

According to the data of the Dongguan Municipal Bureau of letters, after the completion of the "machine replacement" project in 2015, the unit product cost decreased by 11.05% on average, and the labor productivity increased by an average of 1.66 times.

In the wave of automation, government, enterprises and workers are beneficiaries.

After training, Yang Wei, a technical worker of ruby post, has become a skilled worker who can manage 18 robots at the same time. The salary has changed from about 3000 yuan to 6000 yuan.

The structure of the workforce in Dongguan has changed quietly.

According to a survey conducted by the Employment Management Office of Dongguan City, 5 million 377 thousand and 300 people registered for real name employment in the city showed that the education level of senior high school was increased by about 2%, and the number of professional certificate holders increased by nearly 10%.

During the "12th Five-Year" period, the total labor productivity in Dongguan increased from 71 thousand and 400 yuan / person in 2010 to 95 thousand yuan in 2015.

Li Guochen, a member of the verification team of Dongguan's "machine substitutions" project, said that repetitive production processes in the production line were replaced by machines, improving product quality and stability, enhancing enterprise competitiveness and expanding production capacity, forcing the development, technology and other sectors to increase personnel. "Ultimately, the change of talent structure and efficiency in Dongguan".

Zhang Guojun, executive vice president of the Manufacturing Engineering Research Institute of Huazhong University of Science and Technology in Dongguan, also believes that the relocation of enterprises can not reflect the reality of Dongguan, and "Dongguan is creating greater value".

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Observation

Improving efficiency and reshaping manufacturing competitiveness

In the investigation of Dongguan enterprises, we often see such scenes: in the workshop, robots, robots and automated tractors are working efficiently.

Hu Jiada, chairman of Dongguan Rui Da Da Polytron Technologies Inc, told us that after the pformation of production equipment automation, the yield of products increased from 80% to more than 90%, which brought considerable profits to the enterprises. These dividends were shared by workers.

The wages of "90 after" and "85 after" workers are "bright and blind" - the average wage is five thousand or six thousand yuan, and the most can get seven thousand or eight thousand yuan.

From the change of production workshop in Dongguan, due to the extension of machine function, the demand for people in a single production unit is relatively lower, and the cost of labor and management has dropped significantly. But it also requires higher quality and system handling ability of industrial workers.

Industrial workers can only acquire more decent labor value by upgrading their labor skills.

In Guangdong Zhitong Vocational Training Institute, a person in charge told us that in recent years, training courses related to robotics applications such as electrical engineering have been increasing year by year. The number of weekend classes commissioned by enterprises has been significantly increased, and many of them are replaced by machines.

Dongguan has put forward the 5 year goal of the development of skilled talents, and the total number of skilled personnel in Dongguan is expected to reach 1 million in 2020.

These skilled talents represent the more advanced productivity of the world's factories and the future of higher form industries.

The machine revolution in the workshop, the change of the talent structure of the world factory, in a sense, not only deeply reconstructs the shape and structure of China's manufacturing industry, but also profoundly changes the connotation and denotation of Chinese manufacturing.

With the combined influence of internal and external factors such as the substantial increase in factor costs and the decline of environmental carrying capacity, the manufacturing industry represented by Dongguan is moving forward to the new industrial age characterized by digitalization, intellectualization and networking. It is necessary to speed up the production efficiency and reshape the new competitiveness of the manufacturing industry.

To the world's manufacturing power, production efficiency has gradually become the Achilles heel of China's manufacturing industry to a certain extent.

Recently, the Oxford Institute of economic research, a global economic research firm and a government enterprise advisory body, released a research report. At present, the labor cost of China's manufacturing units has approached the US, and the productivity difference between the two countries has not improved at all.

From 2003 to 2016, the productivity of American manufacturing units increased by about 40%, more than that of Germany and the United Kingdom.

Although the efficiency of India and China has nearly doubled over the same period, the productivity of us unit labor is still 80% to 90% higher than that of China and India.

How to continuously improve the productivity of China's manufacturing industry is a big proposition that needs time and wisdom to respond.

The history of previous technological revolutions has proved that new technologies and new demands brought about by new technologies will lead to more new jobs.

From this perspective, the decline of the so-called demographic dividend is only a demographic dividend, and the demographic dividend in quality is just beginning.

The improvement of production efficiency and the further improvement of productivity will result in more powerful development momentum.

Wen Jun Guo

Reading Dongguan

During the "12th Five-Year" period, Dongguan's gross domestic product increased from 427 billion 821 million yuan in 2010 to 627 billion 506 million yuan in 2015, which has crossed 500 billion and 6000 billion steps.

The increase in industrial added value from above scale increased from 170 billion 831 million yuan in 2010 to 271 billion 109 million yuan in 2015, a cumulative increase of 44.8%. The added value of service industry increased from 206 billion 986 million yuan in 2010 to 335 billion 159 million yuan in 2015, with a cumulative increase of 45.4%.

The proportion of Dongguan's advanced manufacturing industry added value to above scale industrial added value increased from 40.5% in 2010 to 47.9% in 2015, and increased by 7.4 percentage points in five years. The proportion of industrial added value of high-tech manufacturing industry increased from 26.3% in 2010 to 37.2% in 2015, and 10.9 percentage points increased in five years.

This led to the optimization of investment structure. In 2015, the R&D ratio of the city's GDP accounted for 2.3%, up 88.5% from 1.22% in 2010.

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Dialogue

Feng Jian, deputy director of Dongguan Statistics Bureau:

Manufacturing industry is also a pillar industry in Dongguan.

Reporter: in the past two years, on the one hand, the news of the closure of Dongguan enterprises has been coming continuously. On the other hand, Dongguan's GDP grew by 8% last year, and entered the 600 billion yuan "club".

Why does Dongguan's economy have such a "double heavy day" situation?

Feng Jian: from the speed point of view, the overall economic development of Dongguan is slowing down, which is related to the whole environment at home and abroad. Dongguan's slow growth of foreign capital led economy is also a natural process.

It is said that many enterprises in Dongguan have gone bankrupt. But in 2015, 55 thousand new registered enterprises in Dongguan increased by 20.4% compared with the same period last year, and the total number of registered enterprises was 256 thousand.

In addition, in 2015, the output value of more than 5300 Industrial Enterprises above designated size increased last year than in 2014.

So aggregated, there is a large number of decimal problems, the overall economy is still going up, including its profit is also growing.

Last year, Dongguan's GDP growth rate was 8%. There are several major support: manufacturing sector can only be said to be stable overall, and the industrial output value of above scale keeps 5.3% growth rate. Compared with 2014, the service sector has a recovery growth rate of 10%, of which there are relatively good real estate, finance, and some leasing, producer services and cultural industries, which is an important factor for Dongguan's economy to maintain a rapid growth.

Reporter: Dongguan is known as the "world factory", we are more concerned about the "Dongguan manufacturing" situation.

Feng Jian: manufacturing industry is still a pillar industry in Dongguan. It still accounts for more than 40% of the total economic structure. Dongguan's economic performance also depends on manufacturing industry.

Last year, some industries were good, for example, the growth of the entire supply chain around the production of mobile phones, such as raw materials and components, was good.

Of the top ten brands of mobile phones in China, six or seven are in Dongguan.

Last year, in Dongguan's industrial growth above Designated Size, the contribution rate of mobile phone industry exceeded 60%, and its growth rate exceeded two figures.

But relatively speaking, some traditional industries, especially wool, clothing, shoes and other labor and cost sensitive enterprises are not so good.

In addition, there are some relatively large enterprises, such as Samsung, which are affected by the layout factors of the parent company.

Some of my understanding is influenced by TPP and pferred to Southeast Asia, and the cost sensitive part has also been shifted.

This part of the production capacity, orders, the pfer of enterprises, the entire manufacturing industry in Dongguan also has an impact.

Reporter: in addition to the growth of the smart phone industry, what other manufacturing enterprises can support the fundamentals of Dongguan's economy?

Feng Jian: there are also some equipment manufacturing industries, such as some companies that produce machinery and equipment for smart phones, though they are small in scale, they grow very well.

In addition, the growth rate of the whole private enterprise last year was also very fast.

Reporter: what changes have these new economic situations brought to the enterprises themselves?

Feng Jian: first, the brand awareness of enterprises is getting stronger and stronger, including some traditional industries, such as wool weaving industry.

Two, the technological content of enterprises has increased.

Today, the electronic information industry has a complete industrial chain from raw materials, components, design and R & D in Dongguan. There are a number of upstream and downstream enterprises serving the industry with their own technological content.

Nowadays, the demand for skilled workers is relatively large, and the level of education is higher. This also shows that enterprises are in pition.

There are also a number of enterprises, they need not many people, but lack of research talent.