[Analysis] Can the Northeast Base of the recession catch the train of Industry 4.0?

Before the 1990s, the Northeast region was also the most important industrial base in China as a region with developed economy. At present, Northeastern crude oil production accounts for two-fifths of the country's total, timber production accounts for one-half of the country's total, automobile production accounts for a quarter of the country's total, and shipbuilding output accounts for one-third of the country's total.

However, since 1990, due to the emergence of institutional and structural contradictions, the equipment and technology of the old industrial bases in the Northeast have become aging, the competitiveness has declined, the employment conflicts have become prominent, and the resource-based cities have led the industry to decline. The pace of economic development is still relatively slow. The gap between developed coastal areas is expanding: in the early days of reform and opening up, Liaoning's GDP was twice that of Guangdong, and now Guangdong is twice as large as Liaoning. In 1980, Heilongjiang's GDP was equivalent to the average of the six eastern provinces, and now it is 46.2. %, per capita GDP is only a quarter of Shanghai.

What is the reason, is the Northeast economy being "fallen" from "Tianting"? With the continuous deepening of the reform of heavy industry manufacturing, is the old industrial base in Northeast China still keeping pace with Industry 4.0?

Northeast economic recession is very serious

Xiao Bian learned the following information from a survey of the Northeast industry:

Among the foreign enterprises (including foreign capital) that invested or had actual operations in the Northeast during the period 2001-2011, 461 companies were willing to accept research. Among the 461 companies, 306 companies are “has actually withdrawn/stopped operations in the Northeast” or “have a willingness to leave in the next five years (2012), accounting for 66.38% of the “not leaving the Northeast region within five years”. 155 companies accounted for 33.62%.

Among the 306 companies are: manufacturing industry (especially clothing, shoes and hats, leather manufacturing; general equipment and special equipment manufacturing; communications equipment, computers and other electronic equipment manufacturing), 91 wholesale and retail industries 79 service industries (especially information transmission, computer services and software industry; education service industry).

The remaining 155 companies that have "not left the Northeast Region within five years" are mainly: 74 real estate industries, manufacturing (chemical raw materials and chemical products manufacturing; ferrous metals, non-ferrous metal smelting and rolling processing industries, non-metals) 69 mineral products industry).

As the foundation of the Northeast economy, the industrial growth rate in the Northeast has been lower than the national average since 2012, and only increased by 0.5% at the end of 2014, while the national average was 7.7%. It is predicted that under the circumstances that the overall economic situation this year is severe and the real economy is shrinking, the actual industrial output value of the Northeast may be negative.

Northeast industrial output may have negative growth

It can be seen that the old base, which once held the lifeline of China's industrial economy, has lost its glory and may even die.

Where does the cause of the Northeast come from?

The reason for the economic recession in the Northeast is not a "world problem." In fact, the cause of the economic recession in the Northeast has been repeatedly analyzed by experts, scholars, or investigators in recent years. The cause of the disease is obvious:

1. Poor location

Throughout the history, the regions where the economy is developed and can maintain stability are not the coastal areas but the rivers, as is the case in the Pearl River Delta and the Yangtze River Delta. Singapore has a small population, a small country, lack of resources and no core technology. However, it has become a toll booth in Asia with a toll station in the Straits of Malacca. The fundamental reason is that economic development depends on trade, and the lowest cost of trade is water transport.

Although the manufacturing industry in the northeast is developed, its manufacturing cost is high. Because it is located inland, industrial equipment in the northeast can only be transported by land. Therefore, regardless of whether the equipment is bought or sold, its price is higher than that of the coastal areas. With the continuous development of reform and opening up, the intention of the market and capital has turned to the greatest benefit. Therefore, the coastal areas rely on superior geographical location and open technical environment to compress industrial manufacturing costs. In contrast, the manufacturing advantages of the Northeast have ceased to exist.

2. Talents and policies have a big impact

In the survey of the Northeast industry mentioned above, the biggest obstacles encountered by Northeast enterprises in the development of the Northeast region came from:

“Local government and related policies” reached 51.33% (the highest problem in the country);

“Talent and technical support” reached 23.75%;

“Labor quality” 13.82%”;

In the other six regions, “the local government and related policies” in North China “is 40.12%, Northwest is 39.93%, Southwest is 38.62%, Central China is 29.75%, East China is 18.93%, and South China is 17.59%.

The industrial bases in the northeast set the strength of the state, and a large part of them are state-owned enterprises. The early support of national policies led to the superior survival environment of state-owned enterprises, and the lack of progress, coupled with the long-established industrial environment that was criticized, bureaucratized and corrupt, which intensified the excellent enterprises and talents in Northeast China. Loss.

According to statistics, the population of the three provinces in the “Five-Pu” and “Six-Pu” provinces has reached a net outflow of about 1.8 million. Among them, Heilongjiang and Jilin are both provinces with a net outflow of population.

3. Problems with the industrial structure

The Northeast is the earliest industrialized area in China, and the level of urbanization is also generally high, but the industry has a mature transitional aging.

The primary industry in the Northeast is mainly agriculture. In recent years, the impact of inverted genetic foods, coupled with the environmental degradation caused by the early development of development, has led to a growing shortage of regional resources. If there is no state support, it will fall into a very passive situation.

The secondary industry in the northeast is heavy industry equipment manufacturing, and the low-end manufacturing capacity is already oversupplied, and it has entered the extreme elimination of technology. In the new technology industry, the Northeast has no advantage in competing with domestic coastal areas or foreign industries at key points of geography, capital and talent.

The tertiary industry such as finance, trade, and logistics in the Northeast is based on the secondary industry. When the secondary industry is declining, the development of the tertiary industry cannot be discussed.

Transformation and upgrading can keep up with Industry 4.0

In order to save the Northeast industry, the state has also proposed the "Revitalization of the Northeast Old Industrial Base Strategy", aiming at "accelerating the economic structure and establishing a modern industrial system", "accelerating technological progress of enterprises, and comprehensively improving the capacity for independent innovation" to "accelerate the development of modern agriculture and consolidate The basic position of agriculture "strengthen the construction of infrastructure, create conditions for comprehensive revitalization", "actively promote the transformation of resource-based cities, promote sustainable development" and other initiatives to revitalize the old industries in Northeast China.

On January 15, Jilin Province held a meeting of the Standing Committee of the Provincial Party Committee to hear the report on the Outline of the 13th Five-Year Plan for the National Economic and Social Development of Jilin Province (2016-2020). From January 11th to 13th, Heilongjiang Province solicited the "Thirteenth Five-Year Plan for National Economic and Social Development of Heilongjiang Province" (draft for comments) for consideration at the fifth meeting of the 12th People's Congress of the province. suggestions.

Documents issued in the past more than a month have found that the direction of economic revitalization in the Northeast has been clear in the coming period. Among them, the transformation and upgrading of traditional industries, the adjustment of economic structure, and the opening of cooperation in various fields to overseas have been mentioned many times.

The transformation and upgrading of enterprises is the key to industrial revitalization. With the continuous deepening of "Made in China 2025", Xiao Bian believes that the Northeast industry can catch up with the train of Industry 4.0 in time and return to the important position of the industrial industry.

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