Junda Motor Announced The Closure Of The Electronics Manufacturing Industry

- Nov 15, 2018-

Junda Motor announced the closure of the electronics manufacturing industry

Junda Electric (Shenzhen) Co., Ltd., located in Fuyong, Baoan, Shenzhen, posted a notice and officially ceased operations from November 8, 2016. Junda Motor announced its collapse as a microcosm of China's manufacturing industry, and a large number of influential companies have closed down or evacuated from Shenzhen.

After the National Day holiday, Junda Motor (Shenzhen) Co., Ltd., located in Fuyong, Baoan, Shenzhen, posted a notice stating that the company experienced difficulties in the global economic downturn and rising raw materials and labor costs in recent years. The management managed to take various measures, however Without reversing the dilemma, he decided to withdraw from the motor manufacturing industry, stop operations (dissolution in advance) and cancel Junda Motor (Shenzhen) Co., Ltd., and set up a liquidation group to enter the liquidation and cancellation procedures, and officially from November 8, 2016. Stop operating.

According to reports, at this time a year ago, on October 7, 2015, Junda Motor (Shenzhen) Co., Ltd. had a general strike due to employees’ dissatisfaction with the factory’s pay cuts. After one year passed, Junda Motor (Shenzhen) Co., Ltd. was finally defeated by the economy and the growth of material human resources costs.

Most of China's motor industry is small and medium-sized enterprises. Such enterprises are inferior to large enterprises in terms of technology, scale and strength. The products are basically low-end micro-motor products, with serious homogenization, large market competition and low profit. . Coupled with the overall slowdown in China's economic growth in recent years, many SMEs are still very difficult to operate.

In fact, it is not just the difficulties faced by motor companies. The announcement of the collapse of Junda Motor is more like a microcosm of China's manufacturing industry: Wanjingchi Technology, Shenzhen Hongyuxing, Shenzhen Fuchang Electronics, Dongguan Ytong Optoelectronics, Dongguan Mingpu Furniture, Dongguan Yulianxin, Dongguan Zhenhai, Dongguan Jinbao (partial production line), Jiangsu Zhonghao, Guangzhou Ruihua Shoes, Huizhou Hongqiao Clothing, Nanhai Jiarui Shoes Factory, Huizhou Chuangshi Technology, Zhongjing Group, etc. Influential companies have closed down or evacuated from Shenzhen.

As China's natural energy consumption and resource-based product prices are irreversible, manufacturing production costs are rising, and China's manufacturing low-cost advantage is being lost. More importantly, China is also faced with the dual pressure of developed countries to return to manufacturing and accelerate the catch-up of developing countries. Their traditional extensive growth mode is full of urgency. In addition to the cost issue, the manufacturing industry is still facing a serious problem: China is now experiencing a structural shortage of labor, and is experiencing a shortage of migrant workers and a shortage of senior technicians.

In addition, we can also see that before the collapse of the big factory, the government often tried to save, but now the situation has changed. Now the government is advocating economic transformation and promoting "Industry 4.0."

Reducing expenditure on labor, increasing expenditure on automated production, and pushing the industry toward Industry 4.0 are of great significance to the future development of the company. Under the background of national policy support and realistic requirements, the motor industry, which is a member of the manufacturing industry, also needs to pay attention to and develop automated production.


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