Only These Two Businesses Survive

- Oct 17, 2018-

In a major manufacturing city today, local friends say that in traditional manufacturing, about 20 percent of small and medium-sized enterprises are expected to be shuffled out.There are two data to confirm that, on March 8, import and export data for the first two months and February were released, and in February there was the first trade deficit since February 2014.


The data of deficit plus the data of trade in goods in 2016 shows that the manufacturing industry has entered the cold winter unconsciously.China was overtaken by the us in 2016 after three consecutive years as the world's largest trading nation in goods since 2013.


February's import and export figures also confirm that raw materials will continue to rise sharply, and that the purchasing power of money will continue to fall in the medium term.Imports of raw materials have risen sharply, some say because the real economy is better.


The result, which many had not expected, was that the price of raw materials would rise first, first in the futures market and then in the spot market, and now in the terminal market.The traditional cost-dependent manufacturing industry faces many pressures, such as rising prices of raw materials, rising labor costs, no fall in taxes, and uncertain exchange rates.


Small and medium-sized manufacturers without technology, brand or advantage are the first to be sacrificed.There are two types of enterprises that can survive. First, enterprises with technical strength have completed brand building and international layout.The second is small and beautiful, others can not replace the enterprise.