The return of manufacturing industry to the Internet of Things, the life and death of Chinese factories?

After Trump took office, he hung the words "Made in the USA" all the time, and at the same time convinced the expansion of the United States' domestic factories that had been delayed for many years, such as Ford and Intel. Of course, this has made many domestic electronic information manufacturing professionals nervous and uneasy, but how far will this influence be? Is China's electronic information manufacturing industry completely competitive and replacing? At the same time, Ma Yun proposed a plan to connect millions of SMEs in the United States when he visited the United States. In these two things, the industry may be different, but the source of motivation is the same. In fact, this has hidden the relationship between China and the United States in the electronic information manufacturing industry.

When we participated in the design and manufacturing exhibition in the central United States, we negotiated cooperation with nearly 100 US-based ODMs, EMSs, or small-scale processing plants. We discovered that the United States actually has a lot of electronic information related design and manufacturing. From the traditional automobile city of Chicago, Minneapolis, all the way to the south to Illinois, Indiana, Kansas, Atlanta and other traditional manufacturing areas, except for automobiles, especially in heavy machinery, aerospace and medical The supply chain system.

According to the data from the Bureau of Economic Analysis of the United States, the total industrial output of the electronic information manufacturing industry in the United States in 2015 was approximately US$380 billion, accounting for 1.23% of its total industrial output value. According to data from the National Bureau of Statistics of China, in the electronic information industry of China in 2015, the total annual industrial production value of enterprises with a principal business income of RMB 20 million or more is approximately US$13 trillion, accounting for the total value of their industrial production. 8.28%. This data is also difficult to cover all small and medium-sized electronics design manufacturers in Shenzhen, China. There is a gap of about four times between the two. Sufficient to see the United States Although there is no small electronic information related manufacturing industry, but it is still difficult to compare with China.

Although there seems to be a large gap in data, it is worth noting that the U.S. electronic information industry is mainly located in the upper part of the supply chain. They have firmly mastered key resources such as core technologies, brands, and precision manufacturing. Manufacturing and manufacturing processes are mainly outsourced to Asian countries. Therefore, the total production value is lower. China's electronic information industry seems to have a relatively high level of production, but it is in the downstream of the supply chain and undertakes a large number of manufacturing processes with low technological content.

Under the U.S. government's many policies to promote the return of manufacturing, perhaps many manufacturing industries have begun to gradually relocate. However, China's electronic information manufacturing industry is not so easy to return, for the following four points:

Labor costs are temporarily low: Although China’s blue-collar pay has been rising, it is still only 1/8 of the blue-collars in the United States. However, the wave of industrial automation in manufacturing is likely to wipe out this advantage.

Complex supporting supply chain is difficult to transfer in a short time: China has made a factory in the world for nearly 30 years, so that most of the world’s electronic products are printed with “Made in China”, and the industrial supply chain established during this period is complex and huge. It is impossible to return to the United States in a short time;

Skilled industrial workers and manufacturing techniques are difficult to duplicate in a short time: The United States has given up manufacturing for too long. For a long time, American technicians mainly engaged in research and development and design, and many universities have even closed their manufacturing and manufacturing science expertise. course. To return to manufacturing, it requires a lot of manufacturing talent and technology;

Industry atmosphere reasons: It can be said that in the global context, Shenzhen, China has the most hardware engineers, the most active technology atmosphere, the strongest and most flexible manufacturing capabilities. People here have a high degree of enthusiasm for work and a positive and quick response attitude. Regardless of whether their business is flourishing or difficult to manage, they rarely reject new businesses and most people are eager to try new things so that they can learn and grow. This is still more difficult to see in the United States.

Although it is not easy for the electronic information manufacturing industry to return to the United States, under the influence of a series of policies promoted by the U.S. government, the return flow may only be a matter of time. In particular, the recent rise of the global Internet of Things industry has brought many business opportunities to domestic design and manufacturing companies. Many industry professionals are starting to worry about the question: Will the manufacturing industry return to the United States when the wave of the Internet of Things approaches? Will it seriously affect China's Internet of Things-related companies?

The answer is: difficult. In essence, the IoT hardware features are small and varied, and the IoT services account for about 35% of the hardware. The rest is software and services. Therefore, the hardware does not need to be preoccupied, and perhaps a double-digit profit is most suitable for moving back to the United States. Design and production. However, there are several characteristics of the Internet of Things that are not limited to geographically limited manufacturing:

IoT applications are cross-domain and cross-technology: a complete IoT solution must integrate multiple technologies, hardware and software, and their business logic;

The Internet of Things and its applications are regional: The IoT medical applications in the United States are certainly different from Chinese needs. The same device may have 70% of the components are the same, but not like a computer, where is a screen and a keyboard and host;

The IoT hardware needs to face the customer directly: The recruitment and cooperation of the supplier partners is very complicated, because the customer's demand is no longer just what kind of memory the tablet is to be loaded with, how big the screen of the mobile phone should be, and whether the shell is metal or glass. Instead, it is completely planned from scratch, without standards and architecture.

Where are we seeing the opportunity? Back to Ma Yun's idea: The Internet connects the world. Through the Internet to build and improve the ecosystem of the Internet of Things supply chain, and establish the cooperation and complementarities between China and the United States in the electronic information industry. For example, China's experience and data in high-voltage grids, high-speed railways, and large-scale personnel management can become the core of the vertical application of certain Internet of Things. At the same time, the elastic design and manufacturing capabilities in Shenzhen, China, can be combined with the United States hardware and software vendor portfolio, allowing the United States to extend its use of small-scale Internet of Things applications in medical management, smart cities, and science and technology to a larger market.

Just as a few recent giant U.S. companies are practicing smart cities, they have done several pilot projects. Combining major manufacturers such as GE, AT&A, Intel, and Advantek, combined with local software services, use smart streetlights to land. This is a good U.S. pilot but it cannot be launched on a large scale. There are several reasons:

Landed hardware needs to be adapted to local conditions: For example, in the United States, the data to be monitored is different from that in China. In China, PM2.5 may be just a need. Street lamp structure, power system, and environment are also different;

Data logic analysis and operation methods are different: the focus and feedback mechanism of post-data acquisition analysis needs to consider the actual situation in the local area;

Software and network services are also different: AT&T obviously cannot enter domestic operations, and software management systems are not the same.

Considering the above points, it is not difficult to find that domestic suppliers, especially those located in Shenzhen, can do flexible and rapid support response on hardware. Overseas operators can license software modules and core hardware to the domestic market, and the two parties can work together to attack the global market. .

After the establishment of cloud services and business intelligence, different intelligent hardware and sensors are used to enhance service value and breadth. All of these require a complete, fast-response, smooth-running supply chain network to connect suppliers from end to end, from small to large, and across technologies and fields. These suppliers also need close communication and cooperation with customers.

The concept of “Made in China 2025” has been proposed in China, and clearly points out the direction of supply chain upgrading and service. In this respect, Haier has demonstrated how home appliance factories are upgrading to embrace smart. Trump's Made in USA will also promote the early implementation of smart factories. The vertical market tide of the Internet of Things is also in sight. We look forward to linking China-US design and manufacturing cooperation through the Internet and jointly promote the goal of the Internet of Things to change the world. Only on the basis of the Internet can it be possible for partners from Silicon Valley, Ilion, Shenzhen, and Beijing, who use the day-to-day development cycle, to develop and produce applications solutions such as intelligent health management Internet of Things.

At the same time, China's design and manufacturing companies should also invest in this cooperation. In the cooperation, they will use the advanced technologies of the United States and the experiences of startup companies to improve high-end manufacturing technologies, improve service quality and response speed, and accelerate industrial upgrading and transformation. Enterprise's comprehensive competitiveness and irreplaceability. Therefore, it has repeatedly stressed that the concept of low manufacturing cost in China needs to be changed. Chinese companies also need to re-recognize the opportunities that US manufacturing backflow brings to China.

Portable Fan

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