Tough mold manufacturing industry

Housing prices are destroying China’s mold manufacturing industry

As has been the European customer mold manufacturing service plant, we feel the order is very intuitive and sensitive. China’s official manufacturing data released in July rose slightly, with the outside world last month. The Chinese economy had negative growth not as expected.

Independent innovation strategy is hidden behind the most profitable real estate, local governments are keen to engage in real estate development is a typical performance. Of course, the promotion of mold manufacturing processing technology needs to be completed through scientific and technological progress, innovative production services, environmental benefits protection.

Many non-mold manufacturing industries are closed

But the reality of the land finance will be located in Suzhou. The global sportswear brand Adidas announced that due to the reintegration of the strategy of the global resource. Global sportswear brand Adidas will close in the Suzhou Industrial Park, 100% wholly-owned subsidiaries. Also related to at least 300 Adidas generation business, more than 300 thousand employees employment prospects. Unlike the mold manufacturing industry, these labor-intensive enterprises are more vulnerable to price effects

Take the Suzhou Industrial Park, the global brand why suddenly to close their businesses in China? We do not fully understand, is a Chinese wage increase too fast. Adidas production line was forced to move to lower labor costs in Southeast Asian countries. Labor technology promotion can obtain more and more multinational companies will be transferred to the Southeast (Nike factory. Nike closed in March 2019) in China only located in Jiangsu Taicang shoe factory, 1400 workers were forced to disband. The factory production moved to Vietnam. The mainland enterprises listed in Hong Kong underwear said in 2020. They will be the high cost of a production line from Chinese, transferred to Thailand and Kampuchea.

The Competitiveness Challenge of American Manufacturing

The second reason is the quarterly report. The U.S. Department of Commerce, the United States manufacturing foreign investment tax profits decline and the rising trend of American’s quote-industrial quit strategy is in force. The U.S. real economy is showing signs of revival. Though the report does not explicitly mention the manufacturing back trend, it suggests that the United States the “comparative advantage” is picked up. Recently, a factory in Georgia, even to the Chinese export chopsticks stimulates people to understand the news on this topic. Whether it is high or low, China will encounter the competitiveness of U.S. manufacturing challenges.

China’s mold manufacturing industry is at a critical juncture of its boom and bust

The rapid rise in house prices to promote the price of land, factories and housing rental prices, more importantly. Housing prices forced the government to raise the wage unceasingly to promote the rational return of the price. These see the cost of forcing multinational companies to mold manufacturing industry to make evacuation response to the domestic manufacturing industry, is helpless layoffs.

Chinese manufacturers face significant deterioration in the business environment

But by the HSBC (HSBC) at the same time released an independent survey said that. For this argument, China injection molding and mold manufacturers are very much support. Both from China Order injection mold or injection products, this year’s decline in new orders in large quantity. We are still doing the old customer’s order last year, but next year how kind of hard to say.

China officially released on Thursday, July the government purchasing managers’ index (PMI) increased from 50.1 in June to 50.3, which means that manufacturing conditions improved slightly. However, the release of China HSBC PMI index fell to 48.2 in the previous month. But July’s 47.7 for the 11 months to the lowest level.

The slowdown has spread to injection molding and mold manufacturing

For the manufacturing sector, PMI reading above 50 indicates expansion in manufacturing, production is less than 50 indicates contraction. Most analysts had expected in July will be the official index fell below 50, they pointed out that China’s overall economy is continuing to slow.

The mold manufacturing industry is good relative to other industries in China. But now China’s social values are expelling good injection mold manufacturers, which are affecting China’s mold manufacturing and injection molding industry.

The results of the survey determine our future direction

In recent weeks, Chinese officials seem to have begun to take the initiative to stabilize investor confidence of economists and commentators. They believe that despite three years of China’s economic growth to slow down gradually, but the Chinese economy in good condition.

Two findings appear gaps, one possible reason is that the HSBC survey focused on relatively small-scale private manufacturers. While the official PMI index mainly reflects the large-scale state-owned enterprise situation.

Not only is China the actual mold and injection molding industry slowdown in other sectors are not good, but a lot of excess capacity in the current circumstances it is not necessarily a bad thing. China mold manufacturing and injection molding industry need to rely on technology development, rather than by selling mold like selling iron did survive. Labor advantage is gone, China mold making and injection molding industry to rely on technology and management to survive.