Stable development and seeking progress in stability are the main economic tone delivered by this year’s two sessions. The stable development of the manufacturing industry and the promotion of its effective investment are the origin.

According to the National Bureau of Statistics, manufacturing investment in 2021 increased by 13.5% over the previous year, and the two-year average growth rate was 4.8%. After the scale of China’s manufacturing industry ranked first in the world in 2010, the strength of the manufacturing industry has been steadily increasing, and the highest investment growth rate in the year of more than 30%. Compared with the peak period, in the past two years, due to the impact PXIE-5122 of the epidemic and the overall international environment, although the growth rate of investment in the manufacturing industry has fallen, as the manufacturing industry accounts for nearly one-third of GDP, its contribution to GDP is pivotal. In order to achieve the target of GDP growth of more than 5.5% this year, how to boost investment in the manufacturing industry is an important issue facing the industrial field.

The choice of industry

Market demand and cost are undoubtedly two issues that industrial investment needs to focus on.

The new round of scientific and technological revolution and industrial transformation has given birth to new technologies, new industries and new forms of business, giving new impetus to industrial growth and attracting investment. In recent years, the adjustment of the energy structure and the development of green and low-carbon industries have made solar energy, wind power and other industries face new growth space, which has also driven the development of new energy equipment industry PXIE-5122 chain such as photovoltaic, fans and energy-saving motors. In 2021, dozens of photovoltaic manufacturing enterprises have invested more than 100 billion yuan in the development and construction of new production lines, covering the main links of the photovoltaic industry chain such as silicon materials, silicon wafers, cell wafers, and modules. In the same year, the new installed capacity of photovoltaic also hit a record high, and the output value of photovoltaic manufacturing exceeded 750 billion yuan.

In 2021, another industry that will exceed expectations is new energy vehicles. In 2021, the annual sales volume of new energy vehicles was nearly 3 million, an increase of 169% and an increase of 1.88 million. The retail penetration rate of new energy vehicles is 14.8%, which is significantly higher than the penetration rate of 5.8% in 2020. This cannot fail to mention Tesla, the first brand in China’s new energy vehicle market, whose Shanghai Gigafactory has delivered more than 480,000 vehicles by 2021. Tesla’s sales in the Chinese market have soared all the way, thanks to their investment in Shanghai, China, four years ago. Whether it is photovoltaic or new energy vehicles, their industrial explosion is in line with the characteristics of “new technologies, new industries, new formats”, which strongly attract investment to join.

In addition to industrial considerations at the macro level, the PXIE-5122 implementation of the micro level, the grasp of customer needs also affects the flow of funds. For those century-old enterprises, the reason why they have gone through wind and rain is to a large extent their accurate grasp of customer needs. For whether enterprises want to expand, they not only predict the industry trend and market trend, but also carefully study the needs and preferences of customers, targeted research and development of new products, in order to generate greater appeal to customers and gain market growth.

Cost consideration

Cost is another big factor in investment considerations. Since 2021, the price of crude oil, iron ore, copper, aluminum and other commodities has risen sharply, which has greatly squeezed the profit margin of the manufacturing industry, making the investment in the manufacturing industry more prudent.

PXIE-5122

Taking iron ore as an example, the country will import 1.12 billion tons of iron ore in 2021, with an average price of $164 / ton, up 55.3% year-on-year. Since the beginning of this year, in the face of changes in iron ore prices, the National Development and Reform Commission has spoken out 7 times a month to strongly regulate the iron ore market, but so far the iron ore heat has not completely cooled down. In order to ease the pressure of iron ore price increases, steel processing enterprises did not sit idly by, they also participated in the import business of iron ore. The relevant person in charge of the China Iron and Steel Industry Association said that now the major domestic steel mills PXIE-5122 have procurement departments to carry out imported iron ore business. However, unlike ordinary traders, the main task of these purchasing departments is to reduce the import price of iron ore under the premise of ensuring quality, rather than hyping iron ore for profit.

In the face of rising raw material prices, another common practice for manufacturers is to participate in futures trading of commodities. The copper price increase in 2021 once hit a record high, with the annual spot price averaging 68,490 yuan/ton, up 40.5% year-on-year. The cost of copper in the cable accounts for almost 70% of the total cost, so the reaction of the cable manufacturers is very fierce for the slight price changes in the copper price. The “roller coaster” market of copper prices in 2021 has made cable companies complain. Therefore, some powerful cable companies often directly participate in international and domestic copper futures trading to hedge the adverse impact of sharp fluctuations in copper prices on enterprises.

In addition, the cause of the epidemic in the past two years has exacerbated the problem of “PXIE-5122 difficult and expensive recruitment”. Changyuan Group, whose main business is smart grid equipment and smart equipment, recently released a news that the annual loss in 2021 will be more than 880 million yuan, one of the reasons is “due to the increase in personnel preparing for new projects and the increase in human costs caused by changes in social security relief policies during the epidemic stage.” The dividend of China’s population is declining, and the salary of employees can not be unlimited, and a more common way to crack the difficulty of recruiting workers is to replace machines, which is also a reason why the sales of smart devices have been optimistic in recent years. For non-machine operation positions, thinking and thinking about how to establish a stable and long-term relationship with employees, such as providing employees with options and solving the problem of studying the children of remote employees, are the ideas of some entrepreneurs at present.

The composition and change of enterprise cost is a comprehensive factor, which not only involves the upstream and downstream, but also involves the internal enterprise, and is also related to the political and economic environment. In order to ensure the stable growth of the manufacturing industry, the state has given full support in terms of policies. In February this year, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the “18 articles” on industrial policy (namely, “Several policies to Promote the Steady Growth of Industrial Economy”), respectively from strengthening fiscal and tax financial support, tapping the potential of investment and foreign trade, breaking the supply bottleneck, stimulating the vitality of market players and other aspects of the promulgation of 18 policy measures. Its purpose is to safeguard industrial growth.

For the industrial sector, the same is true of this year’s economic growth targets, and the manufacturing sector shoulders a significant and honorable responsibility.