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    Home > Coatings News > Paints and Coatings Market > Five possible changes of made in China after the epidemic

    Five possible changes of made in China after the epidemic

    • Last Update: 2020-02-12
    • Source: Internet
    • Author: User
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    Five possible changes in made in China after the outbreak Change 1: the speed of industrial Internet practice will be accelerated The manufacturing industry that suffered the greatest impact due to the restrictions on the commencement of the epidemic was the enterprises with the most workers and the enterprises with more traditional management methods The most typical example is just after the sixth day of the lunar new year, a large number of workers from other places, especially Hubei workers, poured into Wenzhou, resulting in the rapid "closure" of Wenzhou, which shows that most factories in Wenzhou still use a large number of workers and traditional management Rationale The so-called traditional management method is to use more workers in the workshop The supply chain, operation platform and marketing system still rely on the traditional on-site and off-line human resources for processing The whole value chain is basically dominated by human resources and requires on-site operation, resulting in the high overall operation cost In special circumstances, this situation also reduces the efficiency and flexibility of the entire operation Therefore, no matter large-scale enterprises or small and medium-sized enterprises, the industrial Internet system based on digitalization, networking and intelligence will undoubtedly make the operation of manufacturing industry faster, more flexible, and the overall cost lower, and also make the total assets lighter, and more effectively face various market situations and emergencies Therefore, after the epidemic, made in China may usher in a wave of industrial Internet landing Change 2: global distribution of value chain may be accelerated The shutdown caused by the epidemic not only brought direct losses and crises to the manufacturing industry, but also sounded an alarm: if your factory is only in one place, or even all in China, the losses suffered are comprehensive, if your layout is global, in North America, Europe, Southeast Asia, or the Middle East, then your operation will have flexibility, and you will take it easy This kind of regional objective environmental crisis (this is the so-called force majeure, but it may happen, and once it happens, some enterprises will "die suddenly") Therefore, after the epidemic, many manufacturing enterprises, not only large enterprises, even some small and medium-sized enterprises, may also think about the global layout of their own value chain, or closer to the target market, or closer to the supply chain, or more cost advantage Change 3: cost reduction and efficiency improvement activities based on lean manufacturing will be more common Due to the gradual increase of the overall cost (mainly labor cost, tax cost, and environmental governance cost), in recent years, Chinese manufacturing enterprises have been reducing costs and increasing efficiency to varying degrees, all of which are nothing more than reducing labor force as far as possible, no longer spending the cost of indirect production and effective benefits as far as possible (many enterprises began to cut training fees), and lean practice in production workshops The more lean thinking boss introduced consultants from Japan, Germany and even South Korea to carry out continuous lean manufacturing and production improvement, from workshop site, production process to supply chain management, marketing management, logistics management and other key links in the value chain However, many manufacturing enterprises are lucky They even think that lean manufacturing itself costs a lot of money They would rather waste the business links than systematically carry out lean manufacturing practice After the epidemic, lean manufacturing in the whole link of the value chain may become the mainstream consensus of the manufacturing industry, because the cost problem can't be solved only by cutting down the training and spending less transportation fees, because the most important waste link is the same, only by establishing systematic lean concept and practical overall practice, can the overall cost be effectively reduced I see that some manufacturing enterprises have high gross profit of products, but their net profit is very low Even more than 20% of gross profit is not profitable It can be imagined how the cost control consciousness is The shutdown caused by the epidemic has taught all manufacturing bosses a bloody crisis course, which must change the cost concept of operators, so that the concept of lean is deeply rooted in the hearts of the people Change 4: industrial restructuring aiming at improving value chain capability is inevitable After the epidemic, there may be an unexpected change in China's manufacturing industry, that is, the industrial restructuring activities aimed at improving the value chain capacity will increase, because some enterprises may have survival crisis for the epidemic, especially small and medium-sized enterprises, it is difficult to recover operation by themselves, only to accept the restructuring, and some stronger manufacturing enterprises may take the opportunity to "copy" Use this opportunity to strengthen your value chain control ability In fact, it is a false proposition From a historical point of view, once there is a crisis or a management dilemma, the so-called group heating is a dead end Isn't it more difficult for a group of manufacturing industries with difficult business to hold together? Self rescue is a false proposition If we can help ourselves, it's not a dilemma It's a difficulty at best In the face of difficulties, small and medium-sized enterprises can only have a way to survive if they "rely on large funds" or find a strong external force In China, what the government can do is to reduce taxes at most, which can't solve your survival problem If it's government subsidies, the few who can get subsidies can't solve the survival problem of a large number of small and medium-sized enterprises Or it depends on partners Such partners must be powerful business partners or capital partners, otherwise, they can't How can we care about your life and death Change 5: business model with enhanced cash flow as the core will be sought after Almost many bosses know that cash flow is important, but without a deep crisis, they will not have a personal experience Previously, many manufacturing industries knew that cash flow is important, but in reality, operators are still engaged in naval warfare and asset tactics, especially some listed companies, who rely on their relatively easy financing ability and the mentality of shareholders' funds not spent in vain As a result of continuous expansion, we are not willing to pay much for lean manufacturing of the whole value chain In case of crisis, the capital chain often breaks This has been seen in the listed companies that have collapsed in recent years What's more ridiculous is that a group of small and medium-sized manufacturing enterprises that are not listed are also big spenders To engage in this business and that business is to have no cash flow strategy In case of crisis, it will collapse immediately, and then the reason is attributed to "bad environment".
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