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Free Web Novel,Novel online - All in hlnovel.com -> Romance -> Brilliant Life of Rebirth 98 Current situation of China¡¯s manufacturing industry
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Yi Xiaohai was speechless as he watched Mr. Xiao¡¯s assistant come over with a pile of materials.
The old man has been prepared for this.
It seems that he is going to be requisitioned today.
What the Xiao family does are typical traditional industries, almost all of them manufacturing.
Electronic OEM, clothing and textile, furniture, food and non-staple food processing were all the most profitable industries in the late 1980s.
At that time, the domestic economy was booming and the manufacturing industry was booming.
Seeing the number of factories owned by the Xiao family's company, Yi Xiaohai could see the strong strength of the Xiao family.
But in terms of management, it¡¯s a bit miserable.
There are more than 30 registered companies alone, and several processing plants of the same type belong to different companies.
If it weren¡¯t for the summary table he was looking at, Yi Xiaohai might have wanted to die.
"Old man, I saw that the Xiao family has more than 40 clothing and textile factories. Are these factories making finished products or raw materials?"
Yi Xiaohai asked questions while looking at the materials.
The old man knew a lot about the Xiao family¡¯s industry, so he said:
"Yarns, threads, natural silk textile raw materials, knitted fabrics, woven fabrics, non-woven fabrics for industrial use, agricultural and medical textiles, etc., finished products such as clothing, home textiles, gloves, hats, socks, blankets, etc. As long as it is related to clothing and textiles, spinning, weaving, and finished products are all made"
"Those more than 40 factories belong to more than ten companies. Do they have common sales channels?"
"Each factory has its own sales staff and does not affect each other"
There is a black line on Yi Xiaohai's forehead.
"I saw three home textile processing factories. If they fancy a certain sales channel, do they all go there to discuss cooperation with them?"
"certainly¡¡"
Yi Xiaohai finally figured it out, just playing the piano randomly.
These processing plants of the Xiao family are actually very valuable, but there are many problems.
Of course, it¡¯s not just management issues, but also some general environmental issues.
Since the mid-1990s,
In order to reduce manufacturing costs, developed countries began to de-industrialize and relocate industries.
A large amount of foreign capital has poured into China, forming a huge number of foreign-funded and joint venture manufacturing companies, as well as an equally large number of Taiwan-funded and Hong Kong-Island companies.
Especially in the southern coastal areas, the manufacturing industry has developed rapidly, and Madeinchina is world-famous.
These companies have given full play to their low-cost advantages, gradually formed international competitiveness, and received a large number of OEM orders. China has gradually become a production outsourcing base for international manufacturing.
What supports the low-cost advantage is the modernization of manufacturing equipment, production efficiency has been greatly improved, and economies of scale have gradually formed.
Electronic OEM, which has a relatively high proportion of Xiaojia¡¯s industry, has been significantly affected.
"Old man, the Xiao family's electronic manufacturing sector involves a relatively deep level. I need to understand each factory in detail to give you a more overall plan, so I will tell you about the clothing and textile sector first"
Electronic manufacturing is a very promising industry in the future, but the threshold requirements are relatively high.
Yi Xiaohai needs to know what valuable things are in factories like the Xiao family in order to make a more appropriate plan.
So today, he focuses on the clothing and textile industry.
"When it comes to clothing and textile processing, let me first talk about the current situation of the domestic textile industry"
Yi Xiaohai didn¡¯t care where the data in his mind came from, he started:
"There are currently 15 million employees in the textile industry nationwide, accounting for 12.5% ??of the total number of industrial employees in the country. The output and export volume of textiles rank first in the world. my country's textile industry is an industry with comparative advantages, but there are currently outstanding problems. The problem is also very prominent"
" There is excess low-water productivity, insufficient production capacity for high-end products, and backward textile industry production technology. The country's cotton spinning capacity is 41 million spindles, of which 10 million spindles are backward equipment that need to be eliminated. Wool spinning production capacity is 3.6 million spindles, which has reached the international advanced level. Only 15% of the total. Among the printing and dyeing finishing equipment, only 6% have reached the international cash level, and 60% have exceeded their service period"
"Although our country has the advantage of cheap labor, due to the low labor productivity of the textile industry, the advantage of cheap labor has declined. Those foreign cotton spinning industries employ more than 100 people per 10,000 spindles, and our country needs more than 400 people. Most of the textile industry products are medium and low-end products. ¡¡±
¡°¡Textile production capacity is severely overcapacity, and the mid- to high-end clothing fabrics imported every year account for the largest share of the textile system¡¯s imports.30% of the total, domestic wage costs and raw material prices are rising year by year, technology and product upgrades are slow, and the textile industry faces the challenges of other developing countries"
"At the same time, domestic industrial development has shifted from shortage to relative surplus. Under this condition, the existing asset stock must be reorganized, production and sales must be concentrated on advantageous enterprises through market competition, and a group of companies with poor efficiency and lack of market competition must be eliminated. With backward enterprises and backward products, enterprises are the first to bear the brunt of the adjustment of existing asset stocks"
Yi Xiaohai calmed down for a moment:
"I looked at the situation of Xiaojia's clothing and textile processing. More than 60% of the equipment was eliminated by state-owned enterprises in the 1960s. The maintenance cost should be very high"
He has no idea about the cost of machine maintenance, but he knows it just by thinking about it.
Those old equipment must have frequent failures.
"You are right, the maintenance costs of equipment are increasing every year"
Mr. Xiao confirmed this.
"Also, this cotton spinning processing factory employs more than 500 people, which is about 100 more than the more than 400 people I just mentioned. This production efficiency is too low."
Mr. Xiao smiled.
He has never read any books, and his current fortune is all due to his courage.
So he knows nothing about management.
Xiaojia Industry is actually a microcosm of the current domestic manufacturing enterprises.
In that era, those who were brave got rich.
The times have created them.
But they have no concept of management. When the company reaches a certain scale, their shortcomings begin to be exposed and are slowly magnified.
By the late 1990s, the economy was developing rapidly.
The traditional manufacturing industry is facing industrial structure adjustment and economic transformation.
The characters created by these times began to decline because they could not keep up with the times.
Only a small number of people who are enterprising or predict in advance eventually survive.
Although Mr. Xiao is not very capable, he has a vicious vision.
He clearly knew that there was a problem with the Xiao family's industry.
As for what the problem is, he doesn¡¯t know.
Therefore, when he saw the corporate industrial restructuring plan written by Yi Xiaohai to Gu Huajun, he was ready to make Yi Xiaohai a young man.
"Xiaohai, I haven't read any books, so I don't know much about business management, but I know that the Xiao family's industry must make changes. Last year in Xiangdao, I made a lot of money, so now I have that Have the confidence to make changes"
Industrial restructuring will face risks.
Sufficient funds can make a company invincible
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