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Will China's LED manufacturing competitiveness be overtaken by the US in 2020?
China, which is known as the world's manufacturing plant, has been the world's leading manufacturing power, accounting for nearly a quarter of the global manufacturing value added. The cheap labor force has always been China's advantage, and this advantage also helps domestic LED lighting companies to enter overseas. But in recent years, China’s advantage has been waning. China, which is known as the world's manufacturing plant, has been the world's leading manufacturing power, accounting for nearly a quarter of the global manufacturing value added. The cheap labor force has always been China's advantage, and this advantage also helps domestic LED lighting companies to enter overseas. But in recent years, China’s advantage has been waning. According to a joint report by China Information Technology 100 and Deloitte, China is still the most competitive manufacturing country in the world, but it is expected that by 2020, the United States will surpass China and become the first. Predictive analysis, as manufacturing is currently in the process of transition to sustainability, intelligence, and security, the industry-connected network (also known as the Internet of Things), smart products and smart factories characterized by Industry 4.0, and advanced materials are A crucial factor in the development of global manufacturing competitiveness, which may make US manufacturing back strongly in the next five years. It is expected that China's manufacturing competitiveness will be overtaken by the United States in 2020. In this paper, Charlie Szoradi, CEO of Independence LED Lighting, wrote on the blog that the cost of LED lamps produced by US manufacturers in the future will be lower than that imported from China. . He said that the manufacturing automation of the US manufacturing industry is very high, which can significantly improve work efficiency and greatly reduce labor costs. At the same time, LED luminaires can be designed in a modular way, more cost-effectively integrated with automated production lines, and production costs are further reduced. Charlie Szoradi further pointed out that US LED lighting companies are more competitive in the high-end customized market, and have longer shelf life than Chinese LED lamps, which will become the advantage of the United States beyond China. He said that because China's lighting exporters attach great importance to shipments, it is impossible to carry out custom design and product line development for this purpose. Therefore, in the high-end market, American LED lighting companies have great advantages, and the longer warranty period will be Let customers be more willing to choose American LED lamps. Tim Hanley, a leading partner in global consumer and industrial products at Deloitte, believes that the United States is developing advanced manufacturing technologies, including smart connected products and factories. At the same time, the United States is also a world leader in predictive analytics and advanced materials, and these factors are the core competencies of the future. In addition to the rapid development of US manufacturing 4.0, China's rising labor costs, population aging, and economic slowdown have also caused Chinese LED companies to gradually lose their advantage. During the decade since 2005, China’s labor costs have risen five-fold: due to rising labor costs, the cost arbitrage between China and developed economies has fallen, and some advanced economies have shifted their production to costs. Lower countries or move back to their own country.