[Industrial Revolution] Interpretation of Dongguan's "Machine Substitution Plan"

 The "Dongguan Wayfinding" article of the Economic Observer pointed out that since 2008, due to the impact of the financial crisis, the demand in the European and American markets has generally been insufficient, and the shrinking orders have also been plagued by Chinese suppliers. The continued relocation or bankruptcy of giant companies has triggered a wave of bankruptcies in Dongguan's electronic instrument and meter manufacturing companies. Statistics show that since 2013, industries such as electronic instrument and meter manufacturing, textiles, clothing, shoes and hats, plastic products, and metal products have accounted for 44.1%, 11.8%, 7.6%, and 7% of the total number of closed and closed enterprises in the city, respectively. 70.5%.
   Low-end manufacturing and foundry companies are losing the soil for industrial development. This is enough to give Dongguan manufacturing and even manufacturing in China a wake-up call. What they are facing is the change of industry, a challenge in the environment where human resources, land and other elements are completely changed. "What is certain is that those foundry companies that have not improved their own operating level and have no brand and technology are withdrawing, and the era that belongs to them is over. "Zhu Keli, Executive Dean of the Zhishi Economic Research Institute, visited the Pearl River Delta around 2008 for research.
   The official may not agree with this statement. In July last year, when the current wave of factory closures was getting worse, Dongguan Mayor Yuan Baocheng publicly stated that the development of Dongguan must never leave the manufacturing industry. It is necessary to keep this "root", as long as this "root" is maintained. An industrial chain based on manufacturing can exist.
  Dongguan’s plan is to replace the increasingly costly labor with machines, that is, the “machine substitution plan”. Dongguan plans to allocate 200 million fiscal funds every year to support small and medium-sized enterprises in technological transformation, which is also a path choice for Dongguan's manufacturing industry to upgrade.
  In fact, the limitation of enterprise strength is also a key condition for the ability to carry out "machine substitution" transformation. The results of a sample survey published by Dongguan show that the more powerful companies are, the more obvious the trend of “machine substitution” will be. The survey results also show that the biggest obstacle for companies to implement “machine substitution” is funding. Of the more than 150 sampled companies that have not carried out the "machine substitution", nearly half of them have been suspended due to the large amount of funds required.
From the perspective of industries, the two pillar industries of electronic information manufacturing, electrical machinery and equipment manufacturing have participated in the "machine substitution" projects the most, accounting for 33% and 37% of the total respectively; packaging is used in specialty industries. The printing industry has the most projects, accounting for about 6% of the total. "It is the strategy of Dongguan's manufacturing industry to retreat and stay. There are nearly 300,000 small and medium-sized enterprises in Dongguan. It is impossible for every one of them to carry out machine transformation. This is unrealistic, and a number of enterprises will definitely withdraw. "Some scholars close to the government analyzed that," On the other hand, the New Social Security Policy shows that the government can no longer provide cheap policy dividends for a large number of workers. Enterprises must make a choice to retain skilled workers and give up Workers of low-end labor".
   After the 2008 financial crisis, the entire Dongguan manufacturing industry was hit by the waist collectively. The pressure of the appreciation of the renminbi, the improvement of workers' awareness of rights, and the gradual improvement of the social welfare system are all reshaping the ecological soil of the manufacturing industry. The external business environment has been deteriorating sharply. Back then, the advantages they depended on for survival, the preferential policies that they used to grow, and labor costs are now a quagmire trapped them by a lake. "Whether it is government policies or market forces, the living space of small and medium-sized enterprises and low-end labor has been exhausted." The above-mentioned scholars said, "This sounds a bit cruel, but it is necessary for the upgrading of China's manufacturing industry. A step taken”.
  Source: Economic Observer (Beijing)
The trend of the times allows machines to gradually replace manual work. Dongguan Yipin’s automation equipment has gradually transitioned from the main semi-automatic labeling machine to the main automatic labeling machine, and even in the future, it will provide customers with professional packaging solutions and provide matching Equipment as the target. Some people may ask, why is there a shortage of recruitment when the tide of bankruptcy is approaching? Does machinery replace labor, will it cause unemployment or solve employment? The next issue of [Industrial Revolution] Yipin Xiaobian will discuss related issues with you~


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