where is the future of China's manufacturing industry?

Recently the iPhone's big brother Cook is so annoyed, not because the iPhone fell off the throne of the world's total market capitalization first and annoyed.

Apple's commodity requirements are to have a strong engineering ecommerce payment platforms working ability, a handy supply chain, and a solid quality level, and people will definitely not migrate purely for better cost fees.

Indeed, the iPhone is not easy to migrate for better cost fees, but Cook doesn't say it's not easy to migrate for better order information and revenue.

Dealers, times have changed.

As in the other day, Vietnam released its own export data, the value of exports in March reached $34.71 billion, a year-on-year growth rate of 48.2%, more than the same period of 14% decline in Shenzhen, business services sniffing Li Ka-shing also carried out projects to invest in Vietnam.

Many entrepreneurs and start-ups then wondered a question.

Has China's entire industry chain and companies, have they moved out to Southeast Asia?

In fact, I think this conundrum is not a short answer question, but just an affirmative affirmation.

China's entire industry chain and companies have already moved out to Southeast Asia and other regions.

Naturally, the full industrial chains and companies I am referring to are these prototype fabrication labor-intensive chains that are largely unskilled and undemanding, and do not include upscale full industrial chains like processing chips, semiconductor materials, or new energy technologies.

Why do you say so?

First, labor-intensive industrial chains have been suffering from increasingly serious shortage of workers.

On April 29th, the National Bureau of Statistics released a research report on the survey of migrant workers in 2021.

The average age of migrant workers has been raised again, reaching 41.7 years old, and the number of migrant workers above 40 years old has exceeded more than half.

From the field occupancy, it seems that the human capital of processing manufacturing industry is still decreasing, from 08 to 2018, the average value of the total number of migrant workers engaged in processing manufacturing industry in China decreased by 2.84% every year.

The lack of successors is the dilemma of employing people in the processing manufacturing industry.

Although many authoritative experts and experts and scholars are calling on young people to enter factories more often, a very real problem is that young people would rather go to fast food delivery and express companies than to work in factories.

They do not want to be like their parents again, practicing in the processing plant high toughness overtime, low welfare protection, and boring assembly line work.

Young people also want the casualness of a double day off, the satisfaction of work, a pleasant office environment, emotional fairness, and its most important point, high pay.

And this is another key factor for the whole industry chain to move out.

Second, labor costs and raw material costs are rising at a very fast rate.

In 2021, the average monthly income of civilian workers engaged in processing manufacturing is $4,508, which is 10.1% higher than other industries in the same period.

In fact, in the past 15 years, the income of migrant workers in the processing manufacturing industry has increased four times, which is already a faster growth rate in all industries.

This figure is compared to the wages of workers in Southeast Asia, for example, the average mine box salary of 1,500 in Vietnam, 4,500 in China is certainly considered a high paying position.

However, it is not particularly tempting in relation to today's youth.

If we stipulate that most manufacturing companies, especially labor-intensive companies, come up with a satisfactory salary, such as a monthly salary of 8,000 or 10,000, this is almost an impossible thing.

As many manufacturing companies are still in the low end of the whole industrial chain, their own commodity gross margin is not too high, can not afford the high labor costs, coupled with the new crown epidemic soaring raw materials, let the company live well, not bankruptcy and collapse is already a great fortune.

Third, the development trend of foreign-invested well-known brands in the core migration.

Compared with the company actively moved out, in fact, the core of the whole industry chain migration is like NIKE, Adi, iPhone such a strong well-known brands, not the Chinese company itself, their processing manufacturing "although large but not strong", itself does not have the initiative and dominance of all the industry.

Such brands have the dominant power in supply chain management and pricing power, and they will go to lower labor cost geographies because they ensure smooth order information and profitability.

It is also the nature of assets to build on their strengths and weaknesses, all potential advantages offered by the constant branding of such companies in the past.

Therefore, we are only now many companies have reacted to gradually try to build their own well-known brands, at least first by virtue of the Internet promotion, especially by virtue of e-commerce platforms, short video live room so that their own brand can be shown in front of the eyes of customers, so that customers are more and more diverse, so that business income structure more effective.

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