Thoughts about Impact from the epidemic on domestic manufacturing industry

At the beginning of 2020, the sudden coronavirus disease is a severe test for all walks of life in our country. Thinking of the epidemic from the perspective of China's manufacturing industry will surely accelerate the tremendous transformation of China's manufacturing industry.

1. Speed up the price shopping phenomenon of machine tool manufacturing industry

Price wars will become inevitable, and homogeneous competition for machine tools will become more intense. Especially for traffic products, international first- and second-tier brands will also join in. Market demand will increase in the short term due to the emergence of the epidemic, and will remain at a low level for a longer period (2-3 years). Professor Ming Zeng, chairman of the Alibaba Academic Committee, said: "The easy money is gone, and everyone will have to do more hard work in the future."

2. Innovation is a trend, but also a driving force for enterprise development
The number of patents born in China each year is the first in the world. Chinese people are very innovative. Coupled with the profit-seeking nature of capital, where there is interest, capital will flow into it, making machine tool manufacturing innovation bring time The window period will become shorter, such as three months, six months, and no more than one year. Therefore, homogeneity is inevitable, and the lack of increment can only be a stock game.

Ren Zhengfei said: "Who calls for the artillery fire should be made by those who can hear the sound of the artillery." People who are sleeping cannot see the dawn.

3. The epidemic is a crisis for some machine tool manufacturers, while it is a good opportunity for others
China has been the world's largest machine tool consumer market for many consecutive years. This consumption scale will not be fundamentally changed due to the epidemic. The market scale is still in China. The key is whether individual enterprises have enough stamina and whether they can maintain a steady increase in market share.
Therefore, all machine tool enterprise managers should keep in mind two characteristics of the machine tool industry: one is the incremental characteristic, and the other is the hysteresis characteristic.

1). Incremental characteristics: If the overall economy does not grow significantly, and if the products of other industries are not updated, then the machine tool industry should not imagine prosperity and explosive growth.

2). Lag characteristics: For other industries, especially the machine tool service industry, it is a barometer of the machine tool industry. That is, when the machine tool service industry is heading for a cyclical decline, the winter of the machine tool industry is also coming; when the machine tool service industry starts to pick up, the machine tool industry is bound to usher in spring. Therefore, whether it is a crisis or an opportunity, it will greatly increase the brand concentration.
When the market is prosperous, there will be a scene of galloping horses, and in a crisis, there will surely be companies leading the way. At this time, the competition is the internal strength of the enterprise and the wisdom and determination of the enterprise leaders. Crisis is a war opportunity for companies that are prepared, and every crisis is an opportunity to change the pattern of the industry. How many people are disappointed in the future, so many people are full of hope for the future!
Mrs. Curie said: The weak wait for good opportunities, and the strong create opportunities. Bacon said: Only fools wait for opportunities, and wise men create opportunities. The wisdom of thinking is the same, and successful companies will be the same: practice and continue to practice on the correct development path, and constantly approach the correct goal.

4. The epidemic will change the strategic rhythm and action capacity of machine tool manufacturers
The machine tool manufacturing industry is a capital-intensive and talent-intensive industry. Due to irresistible factors, the cash flow of machine tool manufacturers will undergo a huge test. In one month, two months, three months, how many machine tool manufacturers can handle it? Can funds be obtained? Even if funds are obtained, can the resulting financial costs be absorbed?
The fuel consumed by stopping and restarting a car is several times that of normal driving. How machine tool manufacturers avoid stopping operation under the influence of irresistible factors will be a topic that every manager must face. It will be difficult for machine tool manufacturing companies to survive, let alone develop, if they follow the traditional way of unchanging and adapting to changes. Whether it is the machine tool product itself, or the delivery date, technical service, after-sales service, and even various decisions, it will be closely related to the survival and development of the enterprise, and it will be based on the core concept of quickly adapting to customer needs.

Darwin said in "The Origin of Species": The species that can survive is not the strongest, nor the smartest, but the most adaptable to change.

5. The epidemic has restricted population movement and accelerated the upgrading of machine tool automation
With the disappearance of the demographic dividend, the increasing labor costs, and the rapid development of electronic and information technology and the reduction of costs, this epidemic will undoubtedly accelerate the market's demand for automated and intelligent machine tools to get rid of excessive dependence on labor. Customers' needs for online training, online testing, online maintenance, and even online control of machine tools will become more and more urgent; simplicity, practicality, economy, and reliability will become the most satisfying needs of customers.
Wei An said: This world pays attention to efficiency and results, sometimes it seems a little cold and ruthless.

6. It is the internal foundation of the enterprise that determines the future survival of machine tool manufacturing enterprises
After all, the development of an enterprise must return to following the laws of market development. The internal foundation of an enterprise is commonly known as "internal strength." The so-called mid-to-high-end products produced by the domestic machine tool manufacturing industry, such as CNC systems, linear guides, ball screws, bearings, tool holders, hydraulic parts, pneumatic parts, etc., are almost identical to those of foreign first- and second-tier enterprises. Why are the assembled machine tools , Whether it is accuracy or failure rate, compared with foreign first- and second-tier brands, there are different degrees of gap? Even if parts are processed, even if they are imported equipment of the same grade, why do domestic processed parts still have many problems? The reason lies in the process control. Each link of processing, department assembly, and final assembly is passed, and the final product is a summary of these links, and the result is self-evident. The so-called miss is a thousand miles away.
In fact, there is no high-end and low-end machine tools, only complex and simple points, only good quality and bad, only powerful and missing points. Just as ordinary people do all ordinary things well and they will become extraordinary, it is not a simple enterprise to make even simple machine tools perfect. What is the process control of the enterprise? Former GM CEO Jack Welch said: unanimity, simplification, repetition, persistence, it is that simple.

7.The core of whether China's manufacturing industry can win the future is brand
The so-called brand is the recognition of users and the recognition of the market. Only when the brand is recognized can traffic products receive continuous orders, brand power can be improved into the conversion power of traffic products, and brand power can bring product premium capabilities. President Xi Jinping emphasized the need to "promote the transformation of Chinese manufacturing to Chinese creation, the transformation of Chinese speed to Chinese quality, and the transformation of Chinese products to Chinese brands." These three changes will be the goals for China's machine tool manufacturing industry and even the entire machine tool industry for a long period of time! It is hard to do industry, and it is even harder to do the machine tool manufacturing industry. I wish all colleagues in the machine tool industry not to live up to our own suffering, let alone our original intention. We hope to make concerted efforts to realize China's long-cherished wish from a manufacturing country focus on QUANTITY transferring to QUALITY.