Unfavorable status of China’s manufacturing industry

Before explaining the urgency of technological innovation for China mold industry, let's review the current unfavorable status of China's manufacturing industry, which is also looking at the overall picture.

According to Dr. Wang Xi Wen, Ministry of Industry and International Technical Cooperation Center for Economic Research Institute of E-Commerce, China even is a manufacturing country, but manufacturing industry is "big but not strong", manufacturing productivity still has a big gap with other developed countries. Currently, the manufacturing industry in China has many problems, but the most basic of which consists of three issues:

a / Irrational industry structure 

From the perspective of production, China’s manufacturing industry has irrational industry structure while the capacity is still low, there is a surplus in the region, simultaneously high consumption manufacturing, the high cost. Specifically, many important industries depend heavily on foreign technologies, the self-development capability is still weak, which cause weakness in the international competition.

b/ Low value added

So far, Chinese companies have mostly been OEMs, which is low in the global value chain. Meanwhile, product design, components, and equipment technology still rely mainly on imports. Even owning a certain part of products on the international market, Chinese manufacturers often do not grasp the core technology, the key components and technologies are still mainly imported.

To see more clearly the low value added of China’s products, we can refer to the report entitled "Profits of global supply network of Apple", researching on distributed profits for iPhone in 2010, showed each an iPhone that Apple sold will account for 58.5% of monopolize profits, but meanwhile profits of Chinese workers get only 1.8%. Because there is no technical advantage in the value chain so the benefits that Chinese enterprises can get have been still very meager.

c / Large energy consumption, serious pollution

Dubbed as “the world's factory”, We could see that China has been consuming a huge energy. Only in 2013, the consumption of primary energy was used up to 3.75 billion tons of standard coal, equivalent to 21.3% of the total energy consumption of the world, generated 11.6% of world GDP. Currently, China is leading the world in terms of carbon dioxide emissions, smog, water pollution, excessive heavy metal soil which has become a social nuisance. In addition, China’s manufacturing industry has great demand for natural resources, but has been using with low efficiency, leading to the process of economic development with the excessive consumption of natural resources. 

China’s mold industry need innovate technology

Standing before this situation, if China’s mold industry wants to develop well and sustainably, it's essential to innovate technology, invest in developing high-quality human recourses.

In recent years, though China’s mold industry has developed rapidly and achieved good results, it has been still facing many obstacles and applying technology mold manufacturing is still going after many countries around the world. Meanwhile, the international market demands products with higher accuracy and reliability and lower costs. Chinese mold manufacturers that want to have competitive advantages in the international market, they need to constantly develop and innovate.

China’s mold industry has an international market, its export volume reaches more than 30% and has the annual growth rate of 18%, but in terms of the overall situation, there are still a lot of problems. Among them, the mold quality remains low, advanced mold manufacturing is still weak, many important components still have to be imported from abroad. For this situation, Chinese mold manufacturers must now improve technology and train advanced human resources to convert to manufacture high-quality molds.

In parallel with the improvement of technology and advanced personnel training, the mold manufacturers in China should pay more attention to cost control, profit maximization. At the same time, quality standards also need to be increased, while the cost of production remains an advantage.

Besides, Chinese mold manufacturers should take maximally the advantage of the preferential policies of the state for the mold industry. The manufacturers need to consciously develop the intrinsic strength of themselves by constantly innovating, narrowing the gap with developed countries such as Germany, Japan or the US.

(According to mouldpt.com)