It is ridiculous that China’s manufacturing industry is in a trough and seems to have become a sunset industry. In fact, what the manufacturing industry needs is an upgrade, not a destruction. Abandoning the exploitation and speculation under the rules of competition, the manufacturing industry can be reborn. Mr. Wu Jinglian repeatedly quoted Professor Bosh from the US President’s Council of Economic Advisers during President Reagan’s words—whether it’s a silicon chip or a potato chip, as long as it makes money, it’s a good film. Good and bad companies are not divided by what they produce, but by profitability, management ability, and responsibility. Manufacturing industries that are in line with world trends are still promising. The new trend in global manufacturing is the re-industrialization of Europe and the United States, China's mechanization to improve efficiency, reduce the negative impact of rising labor costs, and foundry companies to Southeast Asia, South Asia and other places. The shuffling of foundry companies, under the pressure of internal and external forces, through the light asset strategy to raided small towns in the Mainland, its organizational structure, management methods, etc. are undergoing profound changes. The author visited Dongguan search special company, turning the heavy assets of traditional clothing enterprises into light assets, and organizing the local end-of-life manufacturers to build their own brands. The company's main design, brand and management, with a three-month cycle of products from Designed to go to the cabinet, launch dozens of new products one day, at the same time the company also has the nature of financial enterprises, the cost of brand franchise stores to obtain cash support, and guarantee loans for OEMs to solve the financing problems of downstream manufacturers. The company integrates upstream and downstream industrial chain resources, wins with low-cost fashionable products that operate at high speed, and takes the road of rural and small towns surrounding the city. The transformation of integrated manufacturing enterprises has two major characteristics: one is fast, the other is light, and these two points cannot be achieved, and will be eliminated by the market immediately. The core of fast fashion brand is the concept of clothing fast-moving goods, ZARA, H&M, Uniqlo, etc. all go this route. This autumn, the price of fast-moving consumer goods has started to fight. Like e-commerce, companies have entered the speed, management, and capital limit wars. From product design to arrival, the fastest time is only about a week. In the field of mechanical manufacturing, it is another escalation battle. Mechanical manufacturing enterprises are located in the middle of the industrial chain and are sensitive indicators for export and manufacturing. Chinese companies are expected to compete for the share of mid-end machinery manufacturing after Germany and Japan. The medium and high-end manufacturing industry is still the future development trend of China. The global manufacturing downturn is unobstructed in the mechanical engineering industry. As a traditional mechanical engineering manufacturing country, on October 11, the Ministry of Internal Affairs of Japan announced that core machinery orders in August fell by 3.3% month-on-month, which was more than the median value (down 2.5%) expected by Reuters survey analysts. The decrease was 4.6 in July. %, down 6.1% year-on-year. This order data is an advanced indicator of capital investment in the next six to nine months. According to statistics released by the Japan Machine Tool Equipment Industry Association on the 10th, the total order for machine tool equipment in September was 107.024 billion yen, down 3% year-on-year, and fell for the fifth consecutive month. Orders for machine tool equipment in Japan fell by 13.2% year-on-year, and fell for the fourth consecutive month. Let us mourn for the Japanese machinery manufacturing industry, and then turn our attention to another traditional machinery exporting country - Germany. German machinery exports account for about 20% of the world's total machinery exports. Among the 31 product fields of the machinery and equipment industry, German products rank first in the world in 21 fields, and almost all of them rank among the top three in the world. The machinery and equipment manufacturing industry has always been the most employed industry in Germany. According to the German Machinery Manufacturers Association, in 2010, there were 908,000 people working in more than 6,000 companies in the industry. According to the German Machinery and Equipment Manufacturing Association, in the first half of 2011, the industry achieved a turnover of 94 billion euros, an increase of 18.5%; exports totaled 68.9 billion euros, an increase of 18.2%, of which exports to China was 9.325 billion euros, accounting for 41.5 of the total. %, China became the largest export market for mechanical equipment in Germany, with a market share of 13.5%; employment was 923,000; equipment operating rate rose to 89.9%. The growth of industrial robots is a bright spot. Due to the rising labor costs and the replacement of manpower by robots, there are currently about 50,000 industrial robots in China's domestic market, accounting for 4.5% of the global total. Third in Asia, market demand growth ranks first in the world. Statistics show that since 2004, the annual growth rate of the domestic robot market has reached more than 40%; in 2011, the growth rate reached 51%, and the number of new robot installations reached 23,000. The International Robot Federation predicts that by 2014 China will become the world's largest robot market. This is a huge market share. In the field of mid-end machinery manufacturing, China is gradually catching up. China's machinery products are 20% cheaper than Germany. After the traditional foundry companies moved to Southeast Asia, China's low-end machinery and equipment needed to have great advantages. In India, for example, according to the Gardner Publishing Company of the United States, India was the world's seventh largest machine tool consumer in 2011. Its machine tool industry ranked 16th in the world and relied on imported machine tools for 77%. According to the Indian Automobile Parts Association, by 2018, India's auto, motorcycle and parts industry will need at least $1.5 billion a year to purchase production equipment. Due to the lack of a complete supporting industrial chain and precision components, India will also import a large number of machinery to meet the needs of machinery and manufacturing companies. This is an opportunity for the Chinese machinery and equipment industry. In the mechanical manufacturing such as cutting, the breakthrough in the robot high-performance AC servo motor and precision reducer, will become the winner of the future. The eight A-share listed companies that have entered the Apple industry chain have risen sharply. So, what are the future prospects for companies that truly master core technologies? The two armies fought, and they saw the right direction and occupied the commanding heights.
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