Spotlight on the Market- We Need to Wake Up (Part 2)

According to a discuss released by GIA(Global Industry Analysts), they have concluded some phenomenon through their conducted research on the domestic market. We can see for so far, as they had prescribed companies with research and development investments had arose from the ones with less development capabilities. And the recession also caused companies to compete with technology that combines manufacturing machinery into a complete production system. Also they have found automation development approach that was demanded for replacing out coming increase in laboring expenses. So far, the significant report published in October of 2010, which was titled “Plastics Processing Machinery: A Global Strategic Business Report” had layout possible speculations towards the market after the 2009 recession. The prospects about the post recession actions done by the industry, had been acting accordingly to the analysis research.

We have organized the different topics discussed by interviewing with Taiwan manufacturers, who had experienced the China market throughout the recession. Their opinions about the market in China don’t fall out of the analytic conclusions made by GIA and other observing parties. They all had a shocking “tacit agreement” while talking about the future approaches and market exploitation, and this doesn’t differ with Taiwan or China businesses. They are strategically founding business offices in the local areas, and laying out their services where they could provide directly and intimately to the demanded.

“When we sell the machine we travel through airlines, but when it needs troubleshooting. Do you still travel by plane again? Try adding up the cost of the flights. What is left of the profit?” said James Huang, the General Manager of Alfa Automations.

Secondly they all have been funding development and research projects, to improve their products. Whether they are making the machines free from friction or adding new features to meet different applications. On the other hand, we cannot exclude they are no making the machines for specialized needs. The companies actually welcome customized changes accordingly to the requirements of the clients, even though customization is an extra expense compared with a broadly produced product made to meet common needs.

And by encouraging customization demands, they still have confident in facing the high output low cost strategy of the China market. These companies proclaim they would undergo the search of the most potential industries to invest in, and derive their services to provide only in that certain industry. We can conclude they are going under a complete differentiated approach, rather than the common providers that arose by intensified price-based competition after the recession.

Finally it should come back to emphasize the quantity and efficiency of the developments. These manufacturers are prospecting the uprising of laboring investments in the market, and found a solution for the problem. It was been told to improve energy savings, and build machines that are more environmentally friendly to lower external cost of pollution and quality controls. Automation is not an exception from their conclusions, while this is the main solution to solve the increasing funds on manpower.

After the Chinaplas fair we surely have learned the lesson, of finding uniqueness of one’s business in the tides of globalization, which can be called as “Glocalisation”. And also we have to be progressed in non-stop develop and research efforts, to bring improvements and advance in our products. In order to be excluded from competitive high output strategies, we have to bring qualified and real-time services directly into the local area of our customers, and stick on those who really brings promising profit to your investment. Don’t share the aspect of thinking non specialized common work, would attract any unique clients who has “a deep pocket”.