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China low-cost advantage is disappearing

Author: HXJQTime: 9/17/2012 5:47:52 PM

Higher price for raw materials, labors, currency appreciation…… the advantages of China manufacturing “low cost” is disappearing. The manufacturing scale is expanding, but the benefit is declining significantly. The extensive growth of domestic manufacturing industry is coming towards the end as the low-cost advantage disappears. Therefore, our country should make great efforts to realize the transition and upgrade from low-end to high-end.

“The big total workforce and the low cost is our outstanding advantage of manufacturing industry. With the change of population structure, this advantage has been losing.” said by Mr. Liu. The labor shortage in the east coast regions and the increased pay salary are just the examples.

For a long time, China's manufacturing industry win the world's low-end product market depending on idle land, labor-intensive, low-cost and even free natural resources. With the sustained and rapid economic growth, the demand for energy resources continues to rise. The prices of resource products will also increase, directly promoting the rise of manufacturing costs.

For the mining industry, especially the jaw breaker industry, the technological innovation capability is still weak. A large number of enterprises are at the bottom of industrial chain with high-consumption and low value-added characteristics. The mining machinery enterprises emphasis on hardware, introduction and imitate, but have little attention on the software, digestion and innovation.

The mining machinery enterprises should actively practice the internal organs, nurture local market competitiveness, and take international business strategy.