The road of industrialization corresponding to the world factory. In the twentieth century. A big country like Song Yibao may no longer get through. The large-scale development of traditional heavy industry and chemical industry will consume a lot of resources and require huge sacrifices to the ecological environment, which is unbearable for China's fragile ecosystem. It is also one of the reasons why the West calls China the factory of the world while constantly producing various versions of the China threat theory.

Fan Wubing said with great anxiety, "Unfortunately, some people in the country can't hear the ridicule and evil in this. On the contrary, they feel that they have won the approval of foreigners, and they feel a little self-satisfied. It is really ridiculous!"

Another meaning of the so-called China becoming the world’s factory is that China’s dependence on foreign trade has further increased. At present, China’s dependence on foreign trade has reached 70%, and import and export trade is still growing at a double-digit annual rate. .

This economic structure is similar to a small country, not a big country.

The demand of the United States and Japan is mainly from domestic, not foreign, and the dependence on foreign trade is only between 20 and 30%. If consumer demand is overly dependent on exports, then the potential economic risks and external shocks will be great.

In China's economic development, one of the problems that should be solved urgently is to increase the share of domestic demand in total demand. Establish a. An open, big country economy that matches China's population size, territory, and international status.

China's urbanization and industrialization process, population size, and employment pressure require the establishment of a manufacturing industry that can produce everything from socks to computer chips.

The World Factory used to be praise in the nineteenth century, but now it is not a commendation.

The nineteenth century was the era of industrial production. The country with the strongest industrial production capacity was the strongest country at that time, so the world factory of that year was also an empire that never sets.

However, after entering the 21st century, the world economy is no longer an era when industry is king. The name of China's world factory is just another term for foundry. It is synonymous with low value-added. It is by no means a sign of a powerful country.

After entering the age of industrialization, technology can be materialized in machinery and equipment. The social division of labor has been further refined, and an assembly line production model has emerged. In the beginning, European and American companies adopted a vertical production model integrating design, manufacturing, and packaging. With the changes in market demand and the advancement of science and technology, some companies began to seek production models to meet the needs of multi-variety and small-batch products. Change, design, manufacturing, packaging: the situation of industry separation appeared, and the OEM industry emerged as the times require.

OEM is to produce products in accordance with the exact specifications proposed by foreign multinational companies. The products are purchased by multinational companies and sold to the market under their own brands.

With the further acceleration of the trend of economic globalization, OEM demanders may choose OEM suppliers on a larger scale, especially to countries and regions with low processing and manufacturing costs.

In the 1960s and 1970s, the economic structure of Darfur countries changed from labor-intensive and capital-intensive to technology-intensive. These labor-intensive and capital-intensive companies turned to neighboring countries and regions for development. Many countries and regions such as Asia Xiaolong, Brazil and Argentina in South America have all benefited from this, and export-oriented manufacturing has been moved to areas with lower labor costs.

"In Asia. In order to attract capital and technology, Japanese companies quickly occupied the market, and first adopted the international OEM production and trade form. The take-off of the four Asian dragons is inextricably linked to OEM. Among them, Taiwan has long become the world's largest market. As an foundry base, India has also become the world’s largest exporter of computer software through foundry.” Fan Wuyao cites Shen Ying as an example. A production factory. It only focuses on research, design and marketing, and all products adopt OEM methods. Most of its OEM factories are located in East Asia, such as China. What we lack today is not manufacturing technology, but the brain and consciousness that can make money. "

Shen Ying nodded and agreed. As the boss of a series of companies, she also knew this very well.

For foundries, cost is the core and the key competitiveness of foundries. Cost directly determines the survival of an enterprise. The reason is simple: If OEM is more expensive than its own production, then why should OEM work? In addition, management is the key, because the quality of management directly determines the cost and product quality. The management mentioned here includes financial management, personnel management, production line management and many other aspects.

From an economic point of view, the foundry model is relatively simple. The value created by the company is the value of the processed product, and this value includes costs and profits, and its abundant equipment costs and labor costs are the most important costs. In other words, some of the value created by the foundry is the value brought by hardware investment such as equipment and workshops, and another important part is the value created by the workers.

Since the cost of equipment is dead, the key to whether an enterprise can make a profit depends on the value of the training created by the laborer, and an important source of enterprise profit is the laborer's indispensable foundation. That is, wages, benefits, etc.

The comparative advantage of China's labor price is the main factor for China's contract industry to maintain profitability. However, the labor price advantage is not sustainable for a specific enterprise. With the development of China's economy, the comparative advantage of labor price must be weakening day by day.

Now, due to rising labor prices. Many companies have been troubled by the decline in profit margins. Secondly, because the cost advantage derived from labor prices is the advantage of Chinese export-oriented companies over similar production companies in other countries, rather than the unique advantage of a specific Chinese company, Within the scope of domestic competitors, this overall advantage does not constitute a competitive advantage of a specific enterprise.

The core competitiveness of a successful foundry company is to minimize labor costs, and the maximization of this value often requires the most stringent management, and many contradictions result from this.

For companies operating in the OEM business model, they must implement an operating strategy of three highs and one low. That is, high delivery, high quality, high flexibility and low cost. Therefore, with the human sea tactics, round-the-clock shifts, multi-variety and multi-batch mass production, quick conversion, short product life cycle, from order to delivery in one go, let customers take the lead.

A notable feature of foundry companies is that each position is a part and screw on the company's large machine. The process is simple and repetitive but must be done step by step. The management mode is basically paramilitarized or militarized. Strict hierarchy and discipline. High pressure and high obedience make the work behavior of employees seriously lack freedom and personality.

In foundry companies, high-pressure management abounds, such as equipped with dormitories and collective canteens. This not only ensures that employees can go to work on time at any time, but is also a requirement put forward by many brand customers when placing orders, so as to maximize the protection of the company's pursuit of efficiency.

"From the logic of new institutional economics, the reason why enterprises exist is that there are transaction costs in the market. The internal command and obedience system of enterprises can save a large amount of transaction costs from market bargaining to guaranteeing contract execution, thereby reducing the production process. Uncertainty and various risks. This kind of centralized management is just to internalize transaction costs, so as to achieve the highest level of cost control.

Fan Wubing said with emotion. "Foundry companies are at the end of the industrial chain, relying on reducing labor costs to make profits, so that their management model has been extended to the extreme, which has promoted the alienation of people, semi-militarized group dormitory life, on the surface, voluntary but in fact hard to get rid of overtime work. Plus, a high-pressure, high-obedience work model. The simple and insignificant and insignificant personalities of the never-ending assembly line. For every employee on the foundry assembly line, this is the worst paradise and the best hell. "

"At present, most of the domestic foreign companies are foundries? Especially Taiwanese and Japanese companies, which are basically the most harsh and squeezed factories. I also hear people call those companies sweatshops!" Shen Ying Said to Fan Wuyao.

Fan Wubing nodded and replied, "This is normal, because Japan has ruled Taiwan for 50 years, so the corporate structure is in the same line. Not only is the phenomenon of family management serious, but the underworld management model is also criticized. There is something in it. Darkness is not something ordinary people can say clearly."

"But, in the current China, is it possible not to engage in subcontracting industry?" Shen Ying asked Fan Wuyi.

After thinking about it, Fan Wubing shook his head and said, "It's not impossible, but it depends on whether the government's role is reflected?"

"What do you mean?" Shen Ying didn't understand the meaning of Fan Wubing's words.

"In the past, when the Internet started a market economy~lightnovelpub.net~, there was a saying that shouted loudly, called looking for the market if there is a problem, not looking for the mayor. You should have heard of this, right?" Fan Wubing asked first Shen Ying

question.

"I've heard that this is a very classic sentence, which directly pushed the company to the market." Shen Ying nodded and replied, "But what does this have to do with what you said? "

"Of course there is a connection," Fan Wubiao replied, "When the economy is in transition, this is true. We need to let everyone have the awareness to solve problems on their own, instead of waiting for the government to provide relief, and the government does not have it. Such a great ability."

Shen Ying nodded and agreed.

"But now that this sentence is still being repeated frequently, there is something wrong." Fan Wubing continued.

"Why is there something wrong?" Shen Ying didn't feel that there was anything wrong with this sentence, she looked at Fan Wuyao with confusion. I want to hear him carefully explain the difference here.

Fan Wubing was about to issue it, and his cell phone rang again.