Economic recession and abnormal property prices in the struggling mold making industry

Mold making industry under the economic recession

China’s housing prices are destroying China’s manufacturing industry include mold manufuring 

As has been the  Europe customer service injection molding and mold making plant, we feel the order is very intuitive and sensitive, China’s official manufacturing data released in July rose slightly, with the outside world last month, the Chinese economy had negative growth not as expected.

The strategy of independent innovation Chinese set is the most profitable real estate behind, the local government is keen to engage in real estate development is all view of the typical performance, of course, “investment cadres” to know the progress of science and technology, innovation and production services, environmental benefits and benefit.

But the reality of the land finance will be located in Suzhou, the global sportswear brand Adidas announced that due to re integration of global resources strategy, global sportswear brand Adidas will close in the Suzhou Industrial Park, 100% wholly-owned subsidiaries, also related to at least 300 Adidas generation business, more than 300 thousand employees employment prospects.

Take the Suzhou Industrial Park, the global brand why suddenly to close their businesses in China? We do not fully understand, is a Chinese wage increase too fast, Adidas production line was forced to move to lower labor cost in Southeast Asian countries, labor technology promotion can obtain more and more multinational companies will be transferred to the Southeast (Nike factory. Nike closed in March 2009) in China only located in Jiangsu Taicang shoe factory, 1400 workers were forced to disband, the factory production moved to Vietnam. The mainland enterprises listed in Hong Kong underwear said on 2011, will be the high cost of production line from Chinese, transferred to Thailand and Kampuchea.

The second reason is a quarterly report, the U.S. Department of Commerce, the United States manufacturing foreign investment tax profits decline and rising trend of american’squotre-industrializationquot strategy is in force, the U.S. real economy is showing signs of revival. Though the report does not explicitly mention the manufacturingback trend, but it suggests that the United States the “comparative advantage” is picked up. Recently, a factory in Georgia, even to the Chinese export chopsticks stimulate people understand news on this topic: whether it is high or low, China will encounter the competitiveness of U.S. manufacturing challenges

At present Chinese manufacturing industry is in a critical period of ups and downs of the watershed “, the rapid rise in house prices to promote the price of land, factories and housing rental prices, more importantly, housing prices forced the government to raise the wage unceasingly promote the rational return of the price, these see the cost of forcing multinational companies manufacturing industry to make evacuation response the domestic manufacturing industry, is helpless layoffs

But by the HSBC (HSBC) at the same time released independent survey said that “Chinese manufacturers face significant deterioration in the business environment.” For this argument, China injection molding and mold makers are very much support, both from China Order injection mold or injection products, this year’s decline in new orders in large quantity, we are still doing the old customer’s order last year, but next year how kind of hard to say.
China officially released on Thursday July the government purchasing managers’ index (PMI) increased from 50.1 in June to 50.3, which means that manufacturing conditions improved slightly. However, the release of China HSBC PMI index fell to 48.2 in the previous month, but July’s 47.7 for the 11 months to the lowest level.

For the manufacturing sector, PMI reading above 50 indicates expansion in manufacturing, production is less than 50 indicates contraction. Most analysts had expected in July will be the official index fell below 50, they pointed out that China’s overall economy is continuing to slow. Injection molding industry with respect to China, the Chinese mold making opportunity is good, but now Chinese social values make fewer and fewer good injection mold maker, this is affecting the Chinese mold and injection molding industry.

HSBC and the differences between the official data will be re-triggered a kind of market speculation: Chinese government is trying to show a more optimistic picture of the Chinese economy, to support the people’s confidence in the Chinese economy, despite slowing economic growth.
ANZ Bank , chief China economist Liu Ligang (Liu Ligang) said that official data “will not change our overall assessment that Chinese economy continues to deteriorate.”

In recent weeks, Chinese officials seem to have begun to take the initiative to stabilize investor confidence of economists and commentators, so they believe that despite three years of China’s economic growth to slow down gradually, but the Chinese economy in good condition.
Two findings appear gaps, one possible reason is that HSBC survey focused on relatively small-scale private manufacturers, while the official PMI index mainly reflects the large-scale state-owned enterprise situation.
Not only is China the actual molds and injection molding industry slowdown in other sectors is not good, but a lot of excess capacity in the current circumstances it is not necessarily a bad thing, China mold manufacturing and injection molding industry need to rely on technology development, rather than by selling mold like selling iron did survive. Labor advantage is gone, China mold making and injection molding industry to rely on technology and management to survive.