Pick up any financial paper and the economic forecasts will have you believe that electronic manufacturing in China in 2019 is set to decline. We’re told that a slow demand from the West, increased labour costs and a drop in production standards has had a twofold effect: further automation of the manufacturing industry and large multinationals toying with the idea of moving their production lines to sites elsewhere, namely India, Thailand, Vietnam and the Philippines.
But step away from the scaremongering headlines and the view from the ground is very different.
On the production floors of Shengyi Technology in Dongguan, southern China, staff work around the clock manufacturing circuit board components to be used in home appliances, portable electronics, mobile phones, computers and other high-end electronic products.
According to the Wall Street Journal, the company has seen year-on-year growth since 2014. With growing demand and a strengthening reputation, the Shenyi Group has opened a further nine subsidiary companies and now has operations in neighbouring Taiwan and Hong Kong. The workforce is expected to exceed 10,000 in the current year. Shenyi Technology exports their products worldwide and has a client base that includes technology giants Huawei, Nokia, Lenovo, Sony, Samsung and Philips.
Head south and Deren Electronics are experiencing similar growth. The Shenzhen based company produce connectors and components for home appliances, computers, automotive electronics, smart mobile phones and lighting systems. Sales revenue almost tripled between 2013 and 2017, allowing the company to expand to 26 locations across China. Their impressive customer base includes the likes of Philips, Sony, Haier, Continental, Bosch, Audi, Allianz, Ferrari, BMW, Maserati and Samsung. Despite this success the company isn’t resting on its laurels, but instead hopes to become the global leader in providing total solution connectors in the coming years.
Shengyi Technology and Deren Electronics are by no means isolated examples. Economic growth for companies manufacturing in the electronics industry is emulated across China, particularly in the south, dubbed the new Silicon Valley of the East.
Any slowdown caused by a weakening demand from the West – or potentially the hard-hitting tariffs many expect the United States to impose on Chinese imports – should be masked by the might of the Chinese domestic market. The manufacturing industry in China is a tried and tested model, one that many multinationals now rely on and one that few other countries can replicate.
Swisstank provides a range of services based on years of experience and in-depth understanding of markets from around the world. If you’re wondering how the electronic manufacturing industry in China can help you, please don’t hesitate to get in touch.
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