The Total Revenue Of Manufacturing Industry Is 95 Trillion. Why Is Its Net Profit Margin Only 5.9%?

When it comes to manufacturing, there must be China in the world. After all, "made in China" is everywhere. This is not to say big words. What China has created has gradually penetrated into all parts of the world. But now China is also facing an awkward problem. Why is manufacturing industry so strong that we have always been in a "big but not strong" position?

According to statistics made by the National Bureau of statistics, in the first 11 months of 2019, the total profit of large industrial enterprises in the whole country reached 5 trillion and 610 billion, which was 2.1% lower than that in the same period in 2018. And in the first 11 months of 2019, the total income of industrial enterprises in the whole country amounted to 95 trillion. According to this rule, the net profit margin is only 5.9%. In this way, we can easily see that although China is a very advanced level in the global manufacturing industry, its overall profit level is far less than that of other countries. It can even be said that it is not too low, and the profits of manufacturing enterprises are also very low, and many manufacturing industries have seen a marked decline in total profits in 2019.

In 2019, in order to support the overall development of the manufacturing industry, some manufacturing enterprises cut taxes by 3%, but the net profit was still not high. The main reason is that the operating costs of manufacturing enterprises have been increasing, such as labor costs, housing rents and other miscellaneous costs. Therefore, the competitive pressure of manufacturing industry is also very great. But compared with its profits, it is very cheap. So what is the future direction of China's manufacturing industry?

In fact, manufacturing is a very important industry, which is often the foundation of a country. In the world, no matter which powerful country is indispensable, the manufacturing industry is behind its "hard support", but manufacturing is also an industry and needs a very large investment, whether in R & D or product R & D, which needs to invest a lot of its own, but the current low profit margins bring great pressure to manufacturing enterprises. On the other hand, the decline in profits will lead to lower R & D costs. Therefore, if we want the manufacturing industry to rise rapidly, the demand for capital is also very high.

Moreover, the manufacturing industry is in a "low profit" situation for a long time, which will make manufacturing enterprises very "fragile". On the one hand, they are easily affected by the global economic situation, and their incomes will fluctuate greatly. In the wake of the ups and downs of the economy, enterprises may be in a state of loss, or even declare bankruptcy or bankruptcy. In other words, the domestic manufacturing industry is now in a "bad" dilemma.

Domestic technology innovation is not enough. Let's look at other powerful manufacturing nations in the world. They are relatively advanced in science and technology, such as Germany and Japan. Secondly, the manufacturing enterprises in these countries also have relatively sound industrial systems. Their products can always be sold all over the world. However, for China's manufacturing industry, it has been "imitation" and "plagiarism". It is concerned that the whole market is not technology, and this is also one of the main reasons for a few manufacturing enterprises to gain a firm foothold in the market.

Manufacturing enterprises lack of brand building. It is not difficult to find that the profit and cost of the same product with low technology content are relatively low. If the domestic enterprises are good, if they are replaced by overseas brands, the price can even be doubled. The brand effect is generated. At present, the recognition of domestic manufacturing brands in the global market is not high and competitiveness is not strong, and only 31 brands in China are among the top 500 in the world.

Finally, the service system is not perfect. When we look at the global manufacturing industry, we will attach great importance to the "service" problem. For a manufacturing enterprise, the most important thing is the quality of products, followed by high quality services, constantly updated products, and good service, then the enterprise will be more competitive.