How Motor Companies Should Stay In The Wave Of Escape From Manufacturing

- Nov 16, 2018-

How motor companies should stay in the wave of “escape from manufacturing”

In September 2016, the ex-factory price of industrial producers nationwide rose by 0.5% month-on-month and rose by 0.1% year-on-year, which was the first time since March 2012. The purchase price of industrial producers rose by 0.4% month-on-month and fell by 0.6% year-on-year. From January to September, the ex-factory price of industrial producers fell by 2.9% year-on-year, and the purchase price of industrial producers fell by 3.8%. The sluggish data reflects the difficulties encountered by the manufacturing industry.

Regarding the predicament of the manufacturing industry, the Minister of Industry and Information Technology, Miao Wei, admits that the return of manufacturing in developed countries competes with emerging market countries for medium and low-end manufacturing transfer, which creates a "two-way squeeze" for China.

"Made in China is not as strong as we think, and Western industries have not declined to rely on China. Our manufacturing industry has not yet upgraded, and manufacturers have begun to withdraw." Miao Wei’s remarks about China’s manufacturing industry are embarrassing.

Why do you escape from the manufacturing industry?

The reality is also as Miao Wei said, the trend of “escape from manufacturing” is getting worse. A large number of manufacturing enterprises have closed down, and more and more escapers have been established: Suzhou Lianjian Technology, MasterCard, Liansheng, Dongguan Aosidui Shipu Electronic Technology, Zhaoxin Communication, Shenzhen Fuchang Electronics, and China Microscope. All the powerful enterprises have closed down. Then, under the trend of “escape from manufacturing”, what is the current status of the micro-motor industry?

"Our motor industry, unless it is really not going to pass, there should be not many companies that have taken the initiative to withdraw." Lu Guobiao, engineer of the technical department of Shunde District, Foshan City, said.

He Jianqiao, senior engineering manager of Jiehe Motor, said: "In recent days, there is a relatively large motor factory in Shenzhen that has withdrawn from the industry. Because they produce a lot of mid-range products, there are fewer high-end products, and the profits are very small, which is not enough to bear high. Cost. The increase in human and material costs is a heavy burden for companies."

"It is true that the economic situation this year is not very good, but my company's business, I personally think, is better than last year. Like some growth points such as high-efficiency motors and long-life motors, this one is still good, and the customers are very satisfied. Many customers have gone away before, but now they are back, because the quality of our products is guaranteed.” He Jianqiao continued, “We started investing a lot of money in automated production lines this year. For example, a production line originally needs 60 people. 10 people will be enough. It will reduce labor costs and improve product consistency, and real-time monitoring and transmission of data will greatly benefit product upgrades."

He Jianqiao believes that the phenomenon of “escape from manufacturing” has provided an opportunity for the development of the motor industry to a large extent: “There are people who have withdrawn from the industry, but we have not, we are still sticking, we are still trying hard to find a way to do better. Do product development, invest in automated production lines to reduce costs, etc. This is an opportunity for industry professionals who are determined to do technology, and companies can learn from them."

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