Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News The total revenue of the manufacturing industry reaches 95 trillion, but its net profit margin is only 5.9%! What is the reason?

The total revenue of the manufacturing industry reaches 95 trillion, but its net profit margin is only 5.9%! What is the reason?



When it comes to manufacturing, China must be present around the world. After all, “Made in China” is everywhere. This is not a lie. Things made in China have slowly penetrated into the world. aroun…

When it comes to manufacturing, China must be present around the world. After all, “Made in China” is everywhere. This is not a lie. Things made in China have slowly penetrated into the world. around the world. But now China is also facing a rather embarrassing problem, that is, with such a strong manufacturing industry, why have we always been in a “big but not strong” situation?

According to statistics from the National Bureau of Statistics, in the first 11 months of 2019, the country’s The total profits of large industrial enterprises reached 5.61 trillion, a decrease of 2.1% compared with the same period in 2018. And in the first 11 months of 2019, the total revenue of industrial enterprises across the country reached 95 trillion. Calculated according to this rule, the net profit margin is only 5.9%.

In this way, we can easily see that although China is considered a very developed level in the global manufacturing industry, its overall profit level is far inferior to other countries, and can even be said to be very low. This is not an exaggeration, and the profits of manufacturing companies are naturally very low, and the total profits of many manufacturing industries have declined significantly in 2019.

In 2019, in order to support the overall development of the manufacturing industry, some manufacturing companies reduced taxes by 3%, but the net profits were still not high. , the main reason is that the operating costs of manufacturing companies have been increasing, such as labor costs, house rent and other miscellaneous costs. Therefore, the competitive pressure of the manufacturing industry is also very high, but compared with it, profits appear to be very “cheap”. So the question is, what is the future development direction of China’s manufacturing industry?

In fact, manufacturing is a very important industry, which is often the foundation of a country and the foundation of instrument revitalization. No matter which powerful country in the world, manufacturing is indispensable for its “hard support” behind the scenes. However, manufacturing is also an industry and requires very large investment. Whether it is technology research and development or product research and development, this requires a lot of investment. own, but the current low profit margin has put considerable pressure on manufacturing companies. On the other hand, declining profits will lead to lower R&D costs. Therefore, if the manufacturing industry is to rise rapidly, the demand for capital is also very high.

And the long-term “low profit” situation in the manufacturing industry will make manufacturing companies very “vulnerable”. On the one hand, they are easily affected by the global economic situation, and their income will fluctuate greatly. During the ups and downs of the economy, the company may fall into a state of loss, or even directly declare bankruptcy or collapse. In other words, the domestic manufacturing industry has now fallen into a “not so good” predicament.

Domestic technological innovation is insufficient. Let’s take a look at other powerful manufacturing countries in the world. They are relatively developed in science and technology, such as countries such as Germany and Japan. Secondly, manufacturing companies in these countries also have relatively sound industrial systems. Their products can often be sold all over the world. However, for China’s manufacturing industry, it has been “imitation” and “plagiarism”, focusing on the entire market rather than technology. This is one of the main reasons why a few manufacturing companies have difficulty gaining a foothold in the market.

Insufficient brand building of manufacturing companies. It is not difficult to find that the profit and cost of the same product with low technical content are relatively low. If it is a domestic company, it is fine, but if it is an overseas brand, the price can even double. This is how the brand effect is generated. At present, domestic manufacturing brands are not highly recognized in the global market and their competitiveness is not strong. Among the world’s top 500 companies, only 31 Chinese brands are among them.

Finally, the service system is imperfect. When we look at the global manufacturing industry, we attach great importance to the issue of “service”. For a manufacturing company, the most important thing is the quality of the product, followed by high-quality service. If the product is constantly updated and the service is good, the company will be more competitive. </p

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Author: clsrich

 
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