Dongguan'S Manufacturing Industry: The Trouble Of Upgrading

One afternoon after the rain, Liang Zhongming came out of his office and got into his "one country, two systems" car on the right side of the steering wheel, heading for the Bank of downtown Dongguan.

As the general manager of Long Chang International Holdings Limited, Liang Zhongming has gone through a period of intense pain. However, the reduction of profits and the upgrading of equipment still make him nervous.

A Book

The book is inlaid in the frame of the door.

Two days ago, Liang Zhongming bought dozens of pages of the new book.

At present, many managers engaged in manufacturing industry talk about the Internet and create customers have become the trend. Some people have begun to change in this direction, but they are still in the exploratory stage.

From the Changping town of the Long Chang Group to the 40 minute drive from downtown Dongguan, Liang Zhongming talked with reporters.

He mentioned several times the pressure brought by the increase in manpower costs and various technological changes.

Sometimes he has some complaints: the cycle of enterprise capital turnover is usually 60 days, and the wages of employees have to be distributed monthly.

Sometimes, if the money withdrawal period is not yet reached, the enterprise's capital chain may be broken due to the payment of wages.

However,

The change of development environment is irreversible.

The wages of workers are rising, and the awareness of rights protection is also improving.

There are signs that China's manufacturing industry is no longer an era of corporate governance.

Replace or escape?

Dongguan is a microcosm of China's manufacturing industry.

In this city, any sample of Chinese manufacturing industry can always find corresponding analysis samples.

Gong Jiayong, assistant director of Dongguan Strategic Emerging Industries Research Center, is not pessimistic about Dongguan's manufacturing industry.

He said that Dongguan's manufacturing industry is not as bad as the external rendering, which is just a worry in the process of China's manufacturing industry.

At this stage, we must adjust the industrial structure and eliminate some industries, but "

It did not hurt the foundation of Dongguan's manufacturing industry.

The Dongguan municipal government's research report shows that in 2014, the value added of the advanced manufacturing industry increased by 13.9%, accounting for 47% of the above scale industries, and 145 new industrial enterprises above Designated Size, and the proportion of Industrial Enterprises above designated size increased to 52%.

Billion yuan level enterprises reached 10, fifty billion yuan level enterprises to achieve zero breakthroughs.

At the same time, a number of strategic emerging industries have begun to take shape. The annual output of smart phones reaches 230 million, accounting for 17.7% of the world's total. More than 2000 enterprises are engaged in cloud computing applications, and the annual output value of the Internet of things and related industries reaches 68 billion yuan.

Dongguan has become the second national two level deep fusion and intelligent manufacturing test area.

The report also showed that in 2014, there were 7 new and domestic listed companies in Dongguan, with a total number of 29.

There are 15 new listed companies in the national share pfer system and nearly 200 listed regional equity trading centers, ranking first in Guangdong provincial and municipal level cities.

China's manufacturing industry is in the era of Phoenix Nirvana, some enterprises will be eliminated, can stay, resistance has increased.

"I am replacing myself by myself and changing my life by myself."

Against this background, Liang Zhongming learned how to replace himself instead of escaping.

His native Changping town can no longer leave Changping as she left Hongkong.

In addition to the feelings of his hometown, there is also the foundation and complete matching of his existence.

He is located in the Changping branch and began to sell domestically and increasingly rely on the mainland market.

Liang Zhongming is the beneficiary of the demographic dividend, just like all manufacturing owners in China during that period.

In those days, Liang Zhongming and other entrepreneurs who came to invest and run factories in Dongguan mainly saw the bonus of labor force.

In the 80s of last century, the cost of manufacturing in Hongkong was high, and the shortage of workers was serious. The toy processing enterprises founded by Liang family also encountered this problem.

At this time, some local villagers in Hongkong who went to invest in Dongguan found him.

But Liang Zhongming was hesitant at first because of concerns about China's development environment at that time.

Until one day, the director of the Dongguan Foreign Trade Bureau personally told him, "I assure you with my life, no problem.

As a result, the development mode of "three to one complement" manufacturing industry has been determined, and Dongguan has become an experimental site for incoming processing, sample processing, incoming assembly and compensation trade, and even machinery and equipment are directly supplied by buyers.

In addition to providing manpower and factory buildings, these enterprises in China need not invest in any other way to become a real processing base.

There is no pricing mechanism in this way, and it can only get cheap profits by cheap labor and factories.

Many foreign-funded enterprises have gradually entered Hongkong as a springboard to the mainland of China.

In the 90s of last century, the wave of work in China began to rise. At that time, there was a very new TV drama "foreign girl", which depicts the scene of that era.

And when more enterprises grow up, recruitment becomes more and more difficult.

Liang Zhongming is now a member of the Guizhou provincial CPPCC Committee. He used this official relationship to cooperate with the labor export agencies stationed by local governments in the Guangzhou office and began to recruit workers to inland provinces.

In this process, the government helped export the surplus rural labor force, and the large number of farmers in the inland provinces became workers.

At this point, the labour market is still a buyer's market.

Around 2005, due to the lack of labor, Liang Zhongming stripped off the supporting production business of toys, and processed agents by other enterprises.

The new generation of migrant workers shows some characteristics different from those of the previous generation.

In January 1, 2008, the labor contract law, which tended to protect workers' rights, came into being, and the manufacturing industry had to pay social insurance for workers.

Due to the rise of labor costs, some manufacturers began to work hard.

"This Law stipulates the standard of workers' basic salary and overtime pay, which is not as much as the wages paid to workers by the enterprises themselves."

Cai Zhizhong, who invested in a number of companies, told reporters.

He used to run clothes in Dongguan, and now his main business is to invest in emerging industries.

Wang Lei, a migrant worker from Zhanjiang, Guangdong, is 42 years old and works as a grinder in a plastic product company in Tangxia Town, Dongguan.

His income is paid overtime, less than 5000 yuan a month.

He told reporters: "the new recruits will not give social security in one year.

This part of the social security costs will be fully deducted from the workers' wages, and will be paid in full after one year. "

Gong Jiayong said that in recent years, the average labor shortage rate of manufacturing industry in Dongguan was over 30%.

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Robot post

In the context of rising labor costs, a large number of manufacturing industries began to flow to Southeast Asia and South Asia.

Gong Jiayong does not think China is losing competitiveness. After all, the technology level of Chinese labor force is relatively high compared with those places, and the supporting industry chain has already formed.

"In India, the train takes 60 kilometers per hour. Is it not increasing the cost of time?"

Based on the increase of human cost, Liang Zhongming began to consider the automation of posts before 2010.

With the toy robot manufacturing foundation, the dragon group began to develop a series of industrial robots.

In the workshop of Changping town dragon group, the reporter saw that besides the relatively concentrated manpower of the packing station, there were many machines and equipment in the other working places.

Liang Zhongming said the problem now is to increase machine equipment or move.

He said that now the factory's basic wage, overtime pay and all kinds of subsidies and benefits are calculated, the actual monthly expenditure of each general worker is generally over 3000 yuan, and the expenditure of technical work is higher and rising year by year.

If you still do the same as the previous recruitment scale, enterprises can no longer afford it.

"Now, we have 4 automatic magnets, each of which can replace 7 assemblers.

This not only reduces the manpower but also avoids scalding accidents in the process of sorting plastic parts. "

In 2009, Long Chang Group independently developed automatic beer T nail machine and automatic beer shaft machine, and the enterprise paid about 1000000 yuan for this purpose.

For small businesses, such spending is still unbearable.

Although this is a government subsidized project, many business owners say that after the application cost is removed, the subsidy will be minimal.

But Liang Zhongming did benefit a lot.

Now, there are more than 2000 employees in Changping Long Chang Group, and the efficiency has increased 4 times after using automation equipment.

In recent years, the Dongguan municipal government has made a series of efforts around the industrial pformation and upgrading. Among them, the robotics industry has been included in the key industry direction of the city's future development.

Reporters in the Dongguan municipal Party Committee Propaganda Department learned that the Dongguan municipal government invested 2 billion 700 million yuan, is building Songshan Lake robot industrial base.

Since the application of special fund for machine substitution in September 2014, as of April 2015, 505 effective projects have been received.

Preliminary statistics show that the total investment of these projects is 4 billion 260 million yuan, and 34378 people are expected to be reduced.

It is undeniable that machinery is a trend instead of manual labor, but it will not enter the era of robot OEM.

Liang Zhongming said he is also making industrial robots like machine arms.

"I am not only a toy, but also a revolution."

Replicated mode

Houjie Town, Dongguan, is a famous manufacturing base. The town, which has a population of over 3 million, has five five star hotels. It was once famous for its flourishing pornography.

Nowadays, not only the service industry has become depressed, but also a large number of manufacturing industries have begun to escape.

At the same time, the exhibition economy has been developing here. Every day, there will be various exhibitions, especially the home show. Although the furniture manufacturing industry has been declining.

In Houjie Town, there were many Taiwanese businessmen who mainly exported shoes.

Some of these enterprises have moved production plants to Southeast Asian countries such as Indonesia and Malaysia, where they draw demographic dividends.

The seed garment factory is the first batch of beneficiaries of Dongguan's "three to one patch".

When the fire is booming, workers need special government approval to enter factories.

Now, in the face of rising labor costs, we have to gradually reduce the number of workers in China.

Cai Zhizhong was an early participant in the enterprise. He told China News Weekly that at present, seed garments have opened factories in India and Kampuchea.

At the same time, China's inland provinces are still in the stage of large scale investment.

Reporters learned from Shandong province that many provinces in the province are making great efforts to attract investment.

Among them, Juye County of Shandong Province set a business mission for public servants, and the land rent and tax were exempt from the enterprises. Jiyang County of Shandong province built up a large area of Taiwan industrial park with the opportunity of expanding the northern part of Ji'nan, and reduced the rent and tax for the Taiwan enterprises.

In the face of these preferential policies, many Taiwan textile enterprises and food processing enterprises are moving to the relatively backward areas of the second industry.

Although manufacturing industry has been in deep adjustment in many parts of China's coastal areas, inland provinces are still replicating the previous models.

And when these inland provinces offer many favorable conditions for investment promotion, the attraction of coastal cities such as Dongguan is becoming less and less attractive.

After the closure of NOKIA's mobile phone factory in Dongguan, thousands of people were laid off.

At the same time, more manufacturers of smart phones have emerged, and gradually formed a huge industrial chain from mobile phone plastic film, mobile phone abrasives to mobile phone jackets.

Some small and medium-sized enterprises are adapting to this situation.

Wang Lei, a migrant worker from Zhanjiang, is responsible for collecting abrasives. The update speed of the intelligent machine is very fast, and the renovation speed of the abrasives is very fast.

Liang Zhongming is still working on his toy industry. Only in 2005, Malaysia's enterprises began to put into production, and the proportion of their output value was increasing. By 2015, the output value of the Malaysia factory had been equal to that of the factories in the mainland of China.

In 2007, the proportion of Malaysia's production was still less than 30%.

At the same time, his factory in Changping also began to strategically adjust from export to domestic sales.

In 2008, when the global financial crisis broke out, Liang Zhongming set up a regional marketing center in China, covering 80% of the wholesale channels of major provinces across the country.

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Environmentally friendly business

In the context of more and more attention to environmental protection, many traditional manufacturing industries are turning to environmental protection industry.

Pan Tianming, general manager of Dongguan green giant Environmental Technology Co., Ltd., was engaged in motor production, and now several interested manufacturers have set up the company.

The company is mainly engaged in water pollution treatment of enterprises.

Pan Tianming told reporters that at present, there are nearly 1000 water treatment companies in Dongguan, and nearly 400 of them are on the scale.

In terms of water pollution treatment, the price of equipment abroad is relatively high, which is not very suitable for China's water treatment.

This gives local enterprises great opportunities for growth.

Pan Tianming, for example, produces heavy metals in workshop cleaning and forging cooling processes of many manufacturing enterprises in China, which gives water treatment enterprises great market opportunities.

Alan Tang, a former air conditioner accessory, voluntarily gave up the pformation of enterprises in this round of manufacturing upgrading and played the "Internet", opening up a E hotel in this mode.

This hotel is also a joint venture of several manufacturing owners.

The hotel has coffee shop, The Inn Boutique, book bar and so on, mainly to meet the needs of individuality.

At the age of 18, Luo Jiabin came to Dongguan from Chongqing. He first worked in a factory, learned some skills and accumulated some customer resources, then he started his own business from the factory.

During the period, he improved the glutinous rice mortar used in the ancient city wall of China, and produced Fuwa brand glutinous paint, which became the original green product of furniture industry.

For him, more profits come from technological innovation and growing demand for environmental protection.

At present, there are dozens of workers in his factory.

And in his three storey office building, he is trying to build an electronic platform covering the whole industry of green paint.

Wu Songhua is the boss of a solar energy company in Dongguan. He has studied the technology of solar energy utilization.

In July, he just won a 30 ton hot water renovation project in Inner Mongolia.

One of the reasons why the solar energy producers in Dongguan cluster are not as obvious as Dongguan's manufacturing industry is declining is that the government's policy orientation is favorable to them.

But this market is not very optimistic compared with the previous years.

Facing the future, manufacturing industry in Dongguan is still full of uncertainty.