How can China's manufacturing enterprises save themselves under the financial crisis?

The ever-increasing global financial crisis has affected the real economy. External market demand has been greatly weakened, and the impact on the manufacturing industry is bearing the brunt. In the 5th China Manufacturing Management Forum held in Tianjin recently, representatives of participating companies said in an interview that in the global financial crisis, manufacturing companies should not complain too much about the external environment, but they also need to “actively save” thinking. mode. In the face of the crisis, we actively rethought corporate issues and quickly made strategic adjustments. We further increased our efforts in independent innovation and refinement management. At the same time, we seized the opportunity brought by the country’s policy of expanding domestic demand and international industrial transfer to gain new opportunities for expansion and development.
Calmly rethinking issues and quickly adjusting strategies
Under the background of the global economic slowdown, the external demand of the manufacturing industry has weakened and it has become more and more difficult to create benefits. Manufacturing capacity is facing a new readjustment. Calmly facing the crisis, quickly adjusting the corporate strategy to deal with the crisis has become the choice of many outstanding companies.
Xie Kejun, Chief Technology Officer of Aiborui Management Consulting Co., Ltd., said that companies need to rethink their strategic direction, adjust their financial and cost, reduce cash release from inventory, eliminate waste, shrink activities that do not create value, and do a good job for future survival. ready. Look for strategic opportunities based on these adjustments.
Bundy Automotive Systems Co., Ltd. China Automotive Powertrain is a multinational company that is specialized for the Toyota Plant. Feng Chengyu, general manager of the Northern Region, stated that the company has established a global response team composed of senior management organizations to respond to the crisis and has formed three directives. . First of all, we must pay attention to influence and make rapid adjustments. We must respond to the second positive attitude to increase our R&D efforts. Third, identify new opportunities in the crisis. After European and American markets shrink, exports have decreased, Toyota has adjusted its global sales plan, and its sales target in China has fallen by 10%. This is Toyota's first decline in sales adjustment in China, and Bondi quickly adjusts production plans to avoid real waste. .
According to Kang Yicheng, president of JAC University of Anhui Jianghuai Automobile Group Co., Ltd., Jianghuai Automobile Group actively responded to the crisis by rethinking the strategic direction and identifying problems in the implementation of the strategy. At the same time, it implemented a tight financial policy and re-sorted the budget at the beginning of the year to reduce various expenses. The third is a substantial reduction in the cadre of human resources.
According to business experts, the crisis has exposed the existence of extensive basic management and short-sighted strategic planning in China's manufacturing industry, and it is time to look at it calmly.
Hiroshi Hamada, Toyota Production Technology Consultant of Hirayama Japan Co., Ltd., said that there will be a strong manufacturing industry in the event of a crisis, and Toyota’s production methods will be generated under the harsh environment. At present, manufacturing companies face the common phenomenon that the market demand is small. Therefore, how to preserve strength, effectively arrange surplus personnel, and improve production efficiency are the most important. However, there is too much waste in China's manufacturing production methods and it should be reconsidered.
Kang Yicheng said that when the crisis came, first of all, it revealed the lack and weakening of some basic management of the enterprise. At this moment, it should calm down and make up the basic management. For example, lean management is a good method for the production of enterprises. However, many companies do not have a good position and waste a lot of costs. This makes it difficult for companies to do so because profits are low. If the enterprise has refined the basic management from the beginning, it will be able to deal with the crisis more easily.
Second, there are problems with corporate strategy. Many companies only see the immediate interests and can't plan for the future. Companies should be able to predict future problems and make preparations for the response. If there is a pre-determined capability before the crisis, they will not be rushed.
Strive for internal strength and increase independent innovation and lean management
The interviewed enterprises believe that every economic crisis is a process of survival of the fittest. Good companies continue to innovate in production R&D, improve their management models, and increase their talent pool. Competitive advantages will be fully reflected, and companies that only rely on low-cost expansion will soon be eliminated. Loss, this orderly and orderly manufacturing economic order can be established. Therefore, companies need to improve their internal skills in order to better adapt to changes in the environment.
Wang Hongyan, general manager of Aiborui Management Consulting Co., Ltd. pointed out that under such a big crisis situation, implementing lean management is very necessary. The first lean management is self-help mode of thinking. When Toyota got out of the crisis, it relied mainly on the self-help mode of thinking. It concretely represented process optimization, avoided waste, greatly improved efficiency, and created value. When the market shrinks, it takes internal potential and avoids waste to increase profits and increase efficiency. It is true for all companies regardless of manufacturing industry. And the service industry is very necessary.
Mr. Wang Jian, general manager of Shields Valve Co., Ltd., a large private enterprise in Zhejiang, introduced that the financial crisis is coming, and the cost pressure on Zhejiang's small and medium-sized family-owned manufacturing companies is even greater. In just a few months, the price of raw materials fell sharply. In October of this year, electrolytic copper fell from 60,000 yuan per ton to 30,000 yuan per ton. Raw material prices continued to fall and brought about product price cuts. Coupled with market expectations of price cuts, many products were sold. Going out, inventory pressure has increased and some companies have closed down. It was precisely because the company discovered problems in enterprise management earlier and implemented lean management reforms that effectively circumvented the crisis facing many companies.
He said that since April this year, although corporate orders are still good, but with the decline in housing prices, some products are not marketable, and gradually found that the company's inventory began to increase, corporate management determined to completely change this issue from the management, positive The promotion of lean production increased the turnover rate of accounts receivable, and the inventory was greatly reduced. Inventories fell by 40% from June to October this year, which just solved the negative impact caused by the falling raw material prices caused by the financial crisis. "As a result, companies are very confident in the future development. We are not afraid of changes in the external environment."
Many of the companies interviewed stated that the financial crisis actually has little effect on some manufacturing companies. The biggest feature of these companies is the possession of core technologies. Even if there are changes in the Chinese market in Europe and the United States, the value-added core technologies cannot be replaced. Therefore, companies with strong independent innovation ability have strong vitality.
According to Qi Ershi, President of the China Society of Industrial Engineering and Dean of the School of Management of Tianjin University, at present, although the technological innovation in China’s manufacturing industry has improved, the capacity for self-development is still weak, the total investment in research and development is insufficient, and there is a lack of world-class research and development. Resources and technical knowledge, lack of digestion, absorption, and innovation of foreign advanced technologies need urgent improvement. Not only does it have a big gap with the developed countries in the world, but it also has a certain gap with the emerging market countries. According to a report from the Korea Research Institute of Industry, the technology gap between Korean and Chinese companies in the manufacturing sector was 3.8 years in 2007, the biggest technological gap between Korean and Chinese manufacturing companies was in the steel and textile industry, and South Korea was the leading country in China for 4.1 years. In the electronics sector, the gap between the two companies is 3.4 years.
Policy Opportunities, International Industry Transfer Opportunities
Behind the crisis means opportunities. Experts and business people analyzed that in this crisis, excellent companies can quickly seize the opportunities behind the crisis, which need to pay close attention to the country’s policy opportunities to stimulate domestic demand and the opportunities for international industrial transfer caused by the crisis.
First, the country implemented loose monetary and fiscal policies and introduced ten measures to stimulate domestic demand. On the one hand, it eased the financial pressure and on the other hand opened up the market for enterprises. On the other hand, due to the continuous deterioration of the economic situation in Western countries, the sluggish manufacturing industry in Western countries has brought historic development opportunities to China's manufacturing industry. The global manufacturing industry will be re-arranged. Under the pressure of survival and profit, the manufacturing industry in western countries will accelerate the transfer to emerging markets in the Asia-Pacific region, which will inevitably promote the optimization of the structure of China's industrial sector, especially the manufacturing industry.
Wang Jianbiao stated that the government’s policy of stimulating domestic demand to increase investment takes more into account the development of the company. After the adjustment from production-based value-added tax to consumption-based value-added tax, the previous company’s investment in good equipment has a large financial burden, and the current tax revenue can be deducted. Part of the cost, so that companies will increase their willingness to invest. In addition, the rural market is the key to the development of China recently, and the development of the rural market requires a lot of production materials. Many products of our company open up the market in rural reconstruction.
Feng Chengyu pointed out that the policy support for boosting domestic demand will undoubtedly increase the intensity of corporate investment. We can quickly move production lines from abroad to China and move the headquarters of the core business R&D center to China. It is also a strategic move to promote the transfer of core technologies. The transformation.
He said that tax deductions and equipment tax cuts can save some capital investment, 17% of equipment tax can be deducted or deducted from some taxes, so that when the company analyzes the project, it is easy to get the approval of the board of directors, is very good for domestic strategic transfer Great promotion. At the same time, the competitiveness of the auto industry is reflected in R&D. The focus of R&D was on the US and Europe. It is now time to use this opportunity to adjust R&D to China and set up an R&D center in China to start this strategic adjustment.

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