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The boundaries of services and manufacturing are disappearin

In the past five years, China's economic structure has undergone considerable changes. The proportion of services in GDP has risen from 45.3% to 51.6%, ranking first in GDP contribution for five consecutive years. According to preliminary accounting, the value-added of service industry in 2017 was 42703.2 billion yuan, up 8.0%, much higher than the 6.1% and 3.9% growth levels of industry and agriculture. The status of the three major industries in the national economic structure has changed from "two, three, one" to "three, two, one" in sequence. Service industry has become the main driving force of economic growth. China's economy has begun to transit from the "industrial" era to the "service" era.
Over the past ten years, converged development has become a trend. In the upstream and downstream of the industrial chain, between old and new forms of business, between enterprise organizations, and even within the enterprise business sector has shown a greater degree of integration and synergy. In the future, it will be a challenge to research and define the characteristics of an industry.
In the extension of the industrial chain, the integration of manufacturing and service industries, and then the emergence of manufacturing services and service manufacturing phenomenon, which is motivated by three aspects.
Firstly, with one-stop and integrated services widely recognized by the market, as well as constrained by the low-end smile curve low-profit predicament, manufacturing enterprises actively act as a strategic upstream and downstream expansion in the industrial chain, improve their competitiveness. For example, the Shaanxi Drum Group, which started with equipment manufacturing, has gradually developed into a system solution provider and system service provider for users to provide distributed energy. Industrial services have become an important pole of Shaanxi Drum.
Second, with the continuous advance of the reform of the national economic system, some state-owned enterprises have lost their monopoly right to operate, and enterprises are actively seeking transformation. For example, in the past 20 years or so, foreign trade rights have been liberalized from the central to the local level, to all kinds of goods and enterprises of various ownership, and trade enterprises have blossomed everywhere. State owned large trading enterprises, with trade advantages as the starting point, strive to expand upstream and downstream. For example, COFCO embarks on the development of the whole industry chain from "farm to dining table" from the perspective of big health needs. State Machinery Group extends from trade to manufacturing, and now machinery and equipment manufacturing has already surpassed service trade to become the top two industries.
Thirdly, in the Internet era, business models and value creation methods are constantly being reshaped. Internet-related services face consumers directly, but also empowered manufacturing enterprises, relying on this, manufacturing and service enterprises are more qualified to extend to each other, mutual integration and help to enhance the service capacity of consumer terminals. Ma Yun said that the future manufacturing industry must be the service industry, and the future service industry must be the manufacturing industry.
Traditional manufacturing and traditional services are disappearing. It is difficult to find a single manufacturing or service mode among the large enterprise groups in China. Most of them have achieved a related diversified and integrated development. If it is necessary to distinguish between manufacturing and service, the connotation of manufacturing and service itself needs to be redefined.



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