China's equipment manufacturing industry is not competitive
Over the past 30 years, Chinese manufacturers have been able to hit almost every invincible hand in the world with a smooth wind and feel the power of "made in China" anywhere in the world.
With the help of price tools, Chinese manufacturing has swept the world for more than a decade. Especially in the last five or six years, the status of "world factory" has been beyond doubt and cannot be safeguarded. In the field of equipment manufacturing, a symbol of national strength, Chinese manufacturing has also constantly surprised the Chinese people.
Since last year, however, the price of the invincible Chinese sword began to dull, the RMB appreciation, export tax rebate cut become more expensive, raw material prices, labor force, a number of factors, like clothing toys shoe these typical "made in China" costs rose by about 30%. As the global recession returns more than two decades after the end of the world economy, it is hard not to escape the cloud of "made in China", which is highly dependent on external demand. How will companies respond to rising costs three or four times their profit margins?
The upgrading of China's manufacturing industry has been going on quietly for a long time.
In the field of ocean engineering, Shanghai waigaoqiao shipyard and yantai cimc raffles and deepwater semi-submersible drilling platform in the shipyard, jiangsu rongsheng heavy industries of deep-sea lifting pipelaying barge, Shanghai Chinese hudong zhonghua shipyard production of LNG ship, zhenhua port machinery heavy industry, has the world advanced level.
In terms of production equipment, China million kilowatt ultra supercritical thermal power generating units, the million kilowatt advanced pressurized water reactor nuclear power station complete sets of equipment, 1000 kv uhv ac power transmission and transformation equipment, plus or minus 800 kv dc power transmission and transformation equipment, etc., have reached the world first-class even leading level.
Jinan 2 machine tool group co., LTD. In the same competition victory over Germany, Japan and other international machine tool giants, ford company for two factories in the United States all five large fast intelligent stamping production line contract order. The world's largest single-unit capacity of 800, 000 kilowatts of hydro-turbine generators built by Harbin electric power group has just completed the final assembly of xiangjiaba hydropower station. China's second largest heavy machinery group is independently designing, manufacturing and installing the world's largest 80, 000-ton large die forging press, which will provide a solid foundation for China's development of large aircraft and other projects.
China's aviation industry is not as famous as the space industry, but it has made remarkable progress in recent years. In terms of military products, a series of new weapon equipment, such as the j-20 stealth fighter, with world-class class or even leading level, has been introduced. In civil aviation, the gap with the us and Europe is still large, but the progress in the manufacture of large passenger aircraft is also worthy of recognition.
At present, Chinese enterprises not only occupy most of China's high-end equipment manufacturing market, but also have a growing share of the world market. Australia exports ore to China and imports mining and transport machinery from China. The United States has increased its exports to China by adding products like sanitary chopsticks and importing more and more electromechanical products. Norwegian oil companies use Chinese deep-sea oil production equipment and so on.
Like shan drum, Shanghai electric, shenyang machine tool enterprises, are no longer stay in manufacturing, but to the design, development, service such extension on both ends of the "smiling curve", they have crossed the survival stage entered the development stage, although from the real "created in China" and distance, but they have already put the fate in their hands.
Made in China, number one in the world?
When analyzing the global manufacturing industry development pattern, we make such a judgment: at present, the basic pattern in the equipment manufacturing industry in the world without fundamental changes, China is still in the catch up.
At present, the basic pattern of the world's equipment manufacturing industry has not changed fundamentally
Global development of equipment manufacturing industry is still can be divided into three of the world: the developed countries such as America, Japan, Germany was the first world, though these countries economic development temporarily encounter some difficulties, but still holds the development direction of world manufacturing industry and the core technology, is dominant; China, India, Brazil and other countries are the second world. These countries have a huge manufacturing market. Other early industrialized countries of the third world, these countries have neither the advanced technology and not too strong industrial base, is a supplier of raw materials and energy, and the first two world gap widened gradually.
Despite China's machinery industry sales is ranked the first in 2009, the United States, Japan, Germany, France, Italy and the UK manufacturing output of developed countries such as the combined still account for 70% of the total, has a prominent position in the national economy. High-end manufactured goods, in particular, remain firmly under the control of developed countries.
After years of development, China's equipment manufacturing industry has formed an industrial system with complete categories, large scale and certain technological level, and become an important pillar industry of the national economy.
In 2010, China's manufacturing output reached us $1.955 trillion, accounting for 19.8% of global manufacturing output. By contrast, the United States produced $1.952 trillion in manufacturing output in 2010, accounting for 19.4 percent of the total. China has become a major equipment manufacturer.
After the previous development cycle of explosive growth, gradually appeared: the disadvantages of China's equipment manufacturing industry is big but not strong, weak innovation ability and basic manufacturing level behind, low level repeated construction, serious, innovative products is difficult for the popularization and application, belongs to the extensive growth.
Although China's total equipment manufacturing industry is huge, its industrial competitiveness is not strong. Meanwhile, the global economic crisis has forced China's equipment manufacturing industry to accelerate its transformation and upgrading.
According to China's first "report on China's industrial upgrading, the world is structural adjustment, technology innovation boom, this is for the future development of a new round of competition, will largely affect national strength contrast. If a country lingers at the middle and lower end of the international industrial chain for a long time, it will hardly have a place in the future global economic and political map.
There is no doubt that all countries in the world regard technology as the first element of industrial upgrading, and China is no exception. It is experiencing a "critical period" of development from low-end manufacturing to high-end manufacturing. Eighteen big report, grasp the "strategic emerging industries, advanced manufacturing, including energy conservation, environmental protection, a new generation of information technology, biology, high-end equipment manufacturing, new energy, new materials, new energy vehicles, such as industry, or timing, catch up with the new round of competition.
Only by successfully realizing the strategic goal of transformation and upgrading can the "three worlds" pattern of equipment manufacturing be changed.
Future manufacturing model: small batch, multiple varieties, high quality, low cost, short research and development period, flexible production, friendly environment, service manufacturing.
With production to mass customization mode, the profit space is more and more of the product are squeezed, and value-added services, in the process of manufacturing accounts for more and more big, gradually formed new industrial form of integration of manufacturing and service -- a service-oriented manufacturing.
Service manufacturing provides customers not only with products, but also with product-dependent services, or overall solutions, as well as services built around products.
The "four ends" of manufacturing industry and the upper and lower reaches
Manufacturing activities extend forward and backward, gradually forming the modern manufacturing service industry.
In this way, the manufacturing industry has been upgraded from the low end of the world manufacturing value chain to the high end.
The upstream and downstream of manufacturing industry refer to the industries related to manufacturing industry -- "elongating the industrial chain".
"Elongate the industrial chain" ≠ We will develop modern manufacturing and service industries
The "low end" puzzle needs to be solved
It is impossible to understand the "low-end" nature of Chinese manufacturing without the extensive participation and cooperation of modern manufacturing services.
The success or failure of manufacturing matters to China, and "low-end manufacturing" has long been a puzzle. In 30 years, China's manufacturing industry has achieved a rapid development. Objectively speaking, China is far from a manufacturing powerhouse. Although China has become a large manufacturing country, it must be pointed out that China faces a serious imbalance in the distribution of manufacturing interests in international trade. China's manufacturing industry is still in the middle and lower reaches of the world's manufacturing industry chain due to its low economic creativity and low value-added of the manufacturing industry as a whole.
Why has China been wandering around the "low-end manufacturing" region? In fact, according to the change of industrial chain profit curve and manufacturing development to a certain stage, its profit will inevitably to the research and development, design, consulting and other modern manufacturing service industry transfer, modern manufacturing service industry will become a new growth point of economic development. In particular, the modern manufacturing service industry, which mainly focuses on finance, logistics and information, has increasingly close relations with manufacturing industry and shows a trend of interactive development. In recent years, the proportion of productive services in the manufacturing sector of developed countries such as the United States, Japan and Germany has been increasing. It can be said that the integration of manufacturing industry and service industry is increasingly evident.
The industrial form of manufacturing in developed countries has experienced three stages of change. The first stage is that manufacturing companies only provide products. Traditional manufacturing enterprises mainly focus on mass production of high-quality products to meet users' demand for durable products; The second stage is that manufacturing enterprises provide products and their additional services, such as after-sales service. What they provide to users is the service accompanying the products. The main function is to promote the products. The third stage is "product + service" provided by manufacturing enterprises. At this time, products and services are integrated, and services have become an important part of products.
At present, foreign advanced manufacturing enterprises have changed to service manufacturing, and the pace is accelerating, and have entered the service manufacturing stage of "product + service". Service orientation of manufacturing industry has become an important force leading the upgrading and sustainable development of manufacturing industry. Many well-known multinational enterprise group, such as international business machines (IBM), general electric (GE), NIKE (NIKE), ROLLS - ROYCE aviation engine company (Rolls-Royce), Michelin tires and so on all have successful transformation. Its original main business was concentrated in the manufacturing sector, but now it has realized the transformation from traditional manufacturing to manufacturing service.
For example, the total service revenue of GE company in the United States accounts for over 60% of the total revenue. IBM, whose total service revenue accounted for 54.6% of total revenue in 2005. Alstom, France, accounted for 36.0% of its electricity generation equipment business in 2005/06. German industrial giant thyssenkrupp group, service revenue accounted for 32.3% of the group's sales revenue in 2007.
The German association of machinery manufacturers (VDMA) conducted five investigations between 1995 and 2004. The results showed that in German machinery equipment manufacturing enterprises, the proportion of service business income in turnover increased from 13% in 1999 to 20% in 2005. Enterprises are paying more and more attention to value-added services. More than one third of enterprises regard services as an independent business. More and more service departments of enterprises become service companies, service business more and more professional, international.
The research also shows that in the global industry, the ratio of service income of all manufacturing enterprises to sales revenue is 26% on average. Service businesses account for the top 10 per cent of all sales, all of which exceed 50 per cent. This is enough to show that the transition from manufacturing to service manufacturing is an inevitable trend in the development of manufacturing industry.
For ambitious manufacturing enterprises, only from the "made in China" to "created in China" is not enough, also redefined, deal with their own business only provide products, that is, from extension to provide services including relying on the products or the overall solution.
Modern manufacturing services provide intermediate input, for production or final consumption can support architecture of manufacturing cycle, reduce the variable cost, improve production efficiency, and further enhance the competitive advantage in manufacturing.
With the widespread penetration of information technology, informatization and industrialization after fusion of advanced manufacturing industry, is not a large resource consumption, but in advanced manufacturing as the core, the high technology industries to provide upstream support, downstream of modern manufacturing services to provide support, through the ascension of the value chain, smile curve, can be an advanced manufacturing industry, modern service industry and high technology industries tricycle driver system of modern industry.
General electric: capital services provide a growth engine for electrical manufacturing
In the 1980s, ge owned 113 manufacturing plants in 24 countries, accounting for 85 per cent of traditional manufacturing output and 12 per cent of services. At present, ge's "technology + management + service" has created an output value of 70% of the company's total output.
The shift stems from Mr Welch's new service strategy. The vigorous development of ge's capital services company has provided growth impetus for ge's industrial sector. Ge makes everything from refrigerators and lights to jet engines. Capital services operates from credit card services to computer programming to satellite launches. It has been estimated that if capital services were to be spun off from ge, it would rank 20th in the fortune 500 with $32.7 billion in turnover. Capital service company currently has the world's largest equipment rental company, owns 900 aircraft (this is more than any other airline), 188000 trains (more than any of the railway company), 759000 cars and 12000 trucks and 11 satellites, it also has the third largest insurance companies in the United States. Capital services companies are also expanding into computer services and life insurance. These figures may not be the latest, but they speak volumes about the strength of ge's services sector.
How does capital services, a subsidiary of general electric, repay ge? That is to provide a large number of valuable customers. Capital service company for ge's other subsidiaries of customers (such as airlines, electric power and automation equipment company) to provide a large number of loans, think that these subsidiary pave the way for major contracts with customers. A typical example: in 1993, intercontinental airlines was on the verge of bankruptcy, and capital services provided loans to bring it back to life. Then came a flurry of orders to buy ge's jet engines from intercontinental airlines, a subsidiary of general electric. "This practice of raising chickens for eggs has made capital services one of jack Welch's strongest trump CARDS against his competitors," analysts said.
Rolls-Royce: manufacturers do not sell products and services
Rolls-Royce is the world's largest manufacturer of aircraft engines. As suppliers of Boeing, airbus and other aircraft manufacturing companies, rolls - Royce company does not directly sell their engines, but sold in the form of "renting service time", and promised in the other side of the leasing period, for all maintenance, repair and service.
In the event of engine failure, it is not the aircraft manufacturer or airline that repairs the engine, but the engine company has a special person in each large airport. As a result, engine companies have been able to keep improving in the engine market, and aircraft manufacturers have been "comfortable". That's why budget airlines have room to grow because they don't have to have a dedicated fleet of engine maintenance crews.
In recent years, the company by changing the operation mode of rolls Royce, extend engine maintenance, leasing and management services such as engine data analysis, through a service contract binding users, increase the service income. More than 55 percent of the modern jet engines the company sells have service agreements. Over the past 18 months, 80% of civil engine orders have included service agreements. In 2007, revenue from services reached 53.7% of the company's total revenue.
IBM: a successful transition from hardware manufacturer to IT service provider
IBM, once a pure hardware manufacturer, has successfully transformed itself after more than a decade of consolidation into "an integrated solution provider for hardware, network, and software services". In 2005, IBM's service revenue accounted for more than 50%, and its profits grew by more than 10% a year.
More than a decade ago, when all IT vendors were building PCS, IBM had quietly transformed IT services. Today, as more and more IT vendors begin to realize the strategic importance of IT services and the strong ability to generate revenue, IBM turns around again and starts to move into service productization.
About 55 per cent of IBM's global revenues come from IT services. According to IDC's research report, China's IT service market as a whole grew 19.7% in 2006, with a market size of more than 95 billion yuan, which is expected to exceed 200 billion yuan by 2010. In the future, China will overtake Australia to become the largest IT service market in the asia-pacific region. Faced with such a huge market space, IBM has proposed to innovate IT service strategy by "service productization". "Service transition, with the perspective of a transition IT service will make IT to the demand of the market to grasp more accurately, the speed of response to market will also increase, which can clearly define the product, the quality is defined clearly, can make to improve service quality. At the same time, IT is also conducive to IT service providers to achieve scale, expanding benefits.