LED display "not strong first"
Once upon a time, with the advantages of low cost, China once attracted many foreign investors to invest in China's manufacturing industry, and the demographic dividend once supported China's economic development. However, to this day, the cost advantage of China's manufacturing in the past is being lost. According to a 2013 study by the Boston Consulting Group, the average cost of manufacturing goods in the US was only 5% higher than in China. By 2015, production in low-cost regions of the United States has become as economical as production in China. Even more shocking is that by 2018, the cost of manufacturing in the United States will be 2-3% cheaper than China. At present, it is an indisputable fact that domestic manufacturing costs have risen sharply in successive years. China's manufacturing has been "not strong first" may cause many people to worry about China's manufacturing, but from the LED display industry, it is in such a cost situation, China's LED display companies can still be strong Live and live very well: China's LED display sales are rising year by year, from 10 billion yuan in 2008 to 12 billion yuan in 2009 and 18.5 billion yuan in 2011. The total sales in 2012 has reached 21.9 billion yuan; The annual export volume of China's LED display industry, from 2009 to 2013, was 1.628 billion, 2.02 billion, 2.6 billion, 2.85 billion, and 3.1 billion; Nowadays, in the world-class events, such as Rioyo, there are also many Chinese LED display brands. This must be given to Chinese LED display companies by one point! Where is the manufacturing cost gap between China and the United States? ▌ Land cost: China is 9 times that of the United States Domestic land prices are nine times the US land price, and the United States is a permanent property right. We are 50 years of property rights. ▌ Logistics cost: China is twice as large as the United States Domestic logistics costs are twice the cost of logistics in the United States. Taking oil prices as an example, China's oil price is twice that of the United States, with high oil prices and high logistics costs. What's more, China still has some tolls and bridge fees in the world. Is the logistics cost low? The logistics cost in the United States is mainly composed of three parts, one is the inventory cost, the other is the transportation cost, and the third is the management fee. Compared with the changes in the past 20 years, it can be seen that the proportion of transportation costs in GDP remains largely unchanged, and the main reason for the decline in the proportion of total logistics costs in the United States is the reduction in inventory costs. Bank borrowing costs: China is 2.4 times that of the United States The cheapest domestic borrowing cost is 6% per annum, which is 2.4 times the US annual interest rate of 2.5%. According to the 7,000 yuan per ton or US$1,100 funds, 4 months a week, the domestic borrowing cost annual interest rate of 6% and the US cost annual interest rate of 2.5% respectively calculate the company's working capital financial costs: domestic is 7,000 yuan * 4 * 0.06 / 12 = 140 yuan, equivalent to 22.58 US dollars. The United States is $1,100*4*0.025/12=9 dollars, which is 1.5 times higher than the United States. This is still a normal bank loan. If the funds come from bank wealth management products with an annual interest rate of more than 10%, private equity funds with an annual interest rate of 15%, and even private usury loans with an annual interest rate of 20%, the company is overwhelmed. ▌Power/natural gas cost: China is more than twice as large as the US Domestic energy costs are more than twice the cost of the United States. In addition to the particularly expensive electricity prices in the United States (the island area is not expensive), the electricity prices in other states are not expensive. In Texas, for example, the electricity price is equivalent to 2 cents. Due to the direct pricing of electricity and natural gas in China, the price of gas for oil used by enterprises is high. Calculated according to the domestic electricity consumption of 450 degrees per ton and electricity price of 0.76 yuan / kWh, the unit production cost is 342 yuan, equivalent to 55.16 US dollars. The degree of automation of equipment in the United States is relatively high, and the unit electricity consumption is increased by 10%. From ton to 500 degrees, according to the electricity price of 0.05 US dollars / kWh, the unit production cost is 25 US dollars, and the domestic price is 1.2 times higher than that of the United States. ▌ Steam cost: China is 1.1 times that of the US There is also steam, domestic thermal power plant steam, 1.6 tons of steam per ton, unit price of 190 yuan / ton, unit production cost of 304 yuan, equivalent to 49.0. US dollars, the United States with natural gas boilers homemade steam, according to natural gas price of 0.48 US dollars / Therm, unit price of 14.52 US dollars / ton, unit production cost of 23.23 US dollars, domestically 1.1 times higher than the United States. ▌Accessories cost: China is 3.2 times that of the US The cost of domestic parts is 3.2 times the cost of US parts. The performance of domestic equipment is slightly worse, workers' operating habits are poor, the cost per ton of parts is about 100 yuan, equivalent to 16.13 US dollars, while the performance of American production line equipment is good, workers' operating habits are good, the cost per unit of unit parts is 5 US dollars, domestic is higher than the United States. 3.2 times. ▌ Tax cost: US tax incentives are strong In China, all kinds of taxes are constantly on the rise, and the company is overwhelmed. A logistics company in Guangzhou, which transports a batch of goods to Hainan, has a total income of 19,000 yuan, but the profit is only 216 yuan, of which 1,260 yuan is taxed. The US state government is most concerned about employment, and often gives preferential tax policies to enterprises. For example, property tax concessions are valid for 30 years. If the company reaches production, it will give 30 million U.S. dollars in tax relief within 30 years. ▌Customs clearance costs: the United States does not have to pay for import and export customs clearance costs There is no need to pay for import and export customs clearance costs when investing in the US. The raw materials of domestic enterprises are all imported. It is assumed that the cost of the incoming goods does not include inland freight, customs duties, value-added tax, and the cost of all kinds of formalities is about 3,500 yuan/cabinet. For each cabinet, 20 tons of equipment is 175 yuan/ton. 22.58 US dollars / ton. The export of finished products of the enterprise, assuming that the export link costs do not include land freight, only the cost of various procedures is about 1,600 yuan / cabinet, and the cost per cabinet is 20 yuan / ton, equivalent to 12.9 US dollars / ton. If you add freight, etc., the cost will increase significantly. ▌ Labor cost: China's cost advantage weakens Fiber Optic Wall Box,Fiber Optic Wall Box Cable,Fiber Optic Wall Box Connector,Fiber Optic Wall Box Cabinet Huizhou Fibercan Industrial Co.Ltd , https://www.fibercannetworks.com