The “Made in China 2025” initiative is a comprehensive, nationwide upgrade for Chinese industry. This is a bold initiative based upon and is planned to surpass Germany’s “Industry 4.0” plan. The core of the German plan was intelligent manufacturing. The plan relied heavily on information technology, and the ‘Internet Of Things’ (IOT), to connect companies via networks spanning the globe to enhance the ease and efficiency of product customization, as well as enhancing mass production capabilities.
The “Made in China 2025” Initiative
U.S. manufacturers and retailers depending on products made in China have an interest in the “Made in China 2025” initiative unveiled recently. China does not want to continue to be thought of as simply a big manufacturing nation, but to become a truly reliable manufacturing superpower. China’s economic experts believe the implementation of this initiative will enable China to maintain an acceptable level of economic growth, and prevent the pitfalls presented by a stagnant economy.
Western manufacturers are well acquainted with the dangers posed by maturing industries and economic slowdowns. China’s leaders are addressing their concern for their slowing economy with a comprehensive and ambitious plan to upgrade their manufacturing base. Some of the key factors of Made in China 2025 are:
- Focus on manufacturing as a whole, not just innovations.
- All industries will be affected – hi-tech and traditional.
- Greater focus on market mechanisms than previous proposals including the international standards system. Chinese consumption goods standards will be brought in line with international norms. Enterprises will play a main role in the efforts promoting a spirit of craftsmanship.
- Benchmarks and goals are set until 2025.
- Specific measures address quality, innovation, green production, and intelligent manufacturing.
- The professed goal is for “Made in China” to reflect quality instead of quantity, by having Chinese manufacturers become more integrated as well as efficient; and occupy the top levels of global production chains.
Priority Sectors Identified in “Made in China 2025”
The plan identifies the following as integral to the initiative:
- Utilizing advanced information technology.
- Increased use of robotics and automation.
- Increased focus on aerospace, aeronautical and maritime equipment.
- Modern rail transport and high-tech shipping.
- Production of agricultural and power equipment.
- More emphasis on biopharma and technologically advanced medical products.
- Development and use of new materials.
Surmounting the Challenges of Manufacturing in China
Companies headquartered in the USA that see China manufacturing as part of their international supply chain can be optimistic about China’s first high-level plan focusing solely on manufacturing. There most likely will be rough spots as the changes are implemented but the goals of the program are worthy and seek to improve the quality of products “Made in China”.
The Made in China 2025 initiative is exciting; but real-world success using China manufacturing depends more than ever on a company’s ability to seek out the Chinese manufacturer that is the right fit. There are many variables to consider:
The large number of manufacturers from which to choose, combined with language and cultural differences, can be overwhelming for a USA based business wishing to take advantage of the benefits of manufacturing in China. Flying to China and visiting the Canton fair is one way to choose a manufacturer. Unfortunately, spending that time and money is typically wasted, because there is no way to know by talking with someone at the show if a particular factory is the best fit for your particular product and business needs. Uncertainty will remain regarding the supplier’s expertise, reliability, and ability to maintain quality throughout the life cycle of the product. Then there are always concerns, such as… What happens when something goes wrong? Who will step in and manage the issue? Will you need to fly back to China to negotiate?
ITI Manufacturing has been successfully and professionally managing our customer’s Asian manufacturing since 1974. Our high level expertise and experience have been integral for many US based businesses that are benefiting from manufacturing in China. We work hand in hand with our US customers, as well as with Chinese factories. We speak the language and understand the cultures of both China and America.
By contacting ITI Manufacturing, you will learn if your product and particular business situation is right for taking advantage of and benefiting from China manufacturing. One size does not fit all. China manufacturing is not right for every company or every product. Save time, money, and frustration by speaking with one of our experts first.