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Published byClaud Wiggins Modified over 9 years ago
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Competing in the the New China Russell A. Meade CEO China Business Network
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CBN - Who We Are
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Founded in China 1978 US-owned Shanghai-based Engineering Company We manage sales, marketing and manufacturing operations for western manufacturers
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CBN - Partner Operations
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Identify, qualify, due diligence on Chinese manufacturing partners Manage day-to-day operations of manufacturing projects Direct sales and marketing to China-based Western & Global OEM’s and major Chinese customers Assist in salvaging failed or underperforming China projects Perform pre-investment planning for large-scale manufacturing, sales and distribution operations Provide on-site Process and Quality Control
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CBN - How we do it
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English-speaking project managers and engineers “Boots-on-the-ground” Strong relations with Western-Global OEM’s in China Develop long-term mutually beneficial partnerships between Western and Chinese manufacturers Develop non-capital intensive SMA’s
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China: Economic Overview
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US - China GDP 1960-2010 Source: World Bank 2011
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China: New Economy Infrastructure Government Growth Plans RMB Inflation Labor Costs Manufacturing Moving Inland
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Everything is NOT cheaper in China
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Everything is NOT cheaper in China Food: McD, KFC, Starbucks World’s largest luxury consumer goods market Real Estate Material Increases-Fluctuations
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China: Gear Industry
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Chinese Gear Manufacturers: At-a-glance Over 1000 manufacturers 55 with annual revenues over $16m 2005 - world 4th largest gear producer 2009 - world 3rd largest gear producer 2010 - world 2nd largest gear producer 2010 - world’s largest automotive manufacturer Source: China Gear Manufacturers Association
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Motor Vehicle Production by Country
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Chinese Gear Manufacturers: - numerous manufacturers Local Gear Industry: - generally low-grade product and technology - targets customers with low-grade requirements Majority of high-grade gears are imported into China - import value and size increases dramatically each year - only a small % of Chinese manufacturers compete in the high-grade segment of the market Source: China Gear Manufacturers Association
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Chinese Gear Manufacturers: By region 6.6% 12.4% 41.9% 19.6% 16.5% 3%
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Chinese Gear Manufacturers: 10 fastest growing industry segments 1. Automotive: Annual growth 25%. 2. Wind energy: estimated $2bn by 2020 3. Nuclear energy: 40 Mkw plants next 10 years 4. High-speed rail: 300 new train units per year 5. Coal mining: equipment for 3.8 bn tons output 6. Heavy-duty agricultural equipment 7. Engineering equipment 8. Large metallurgical machinery 9. Advanced CNC machinery 10. Chemical and oil refining equipment Source: China Gear Manufacturers Association
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Chinese Gear Revenues: (including import volume) Source: China Gear Manufacturers Association
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Chinese Gear Revenues: (including import volume) Source: China Gear Manufacturers Association
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Chinese Gear Revenues: Imports vs. Exports Source: China Gear Manufacturers Association
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Chinese Gear Revenues: % Imports by country 2008 vs. 2010
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Chinese Gear Revenues: Auto & Industrial - Imports vs. Exports Exports Imports
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Chinese Gear Exports: (by country destination) Source: China Gear Manufacturers Association
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Chinese Gear Manufacturers: % Analysis by ownership Source: China Gear Manufacturers Association
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Chinese Gear Manufacturers: CGMA Gear Industry 5 Year Growth Projections Source: China Gear Manufacturers Association
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Chinese Market Challenges:
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Communications Working with the RIGHT partners Quality Control Intellectual Property Negotiating “Best” Pricing Personnel Turnover
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Chinese Market Opportunities: Selling Into China - “Boots-on-the-ground” Key Success Factors - Contingencies - A long-term strategy Price Advantage exporting to the West? Why Your Customers Need You More in China Than in the US
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CBN China Manufacturing Report -Every 2 Weeks -Key Economic Indicators: Shipping vs. Currency -Weekly Material Cost Updates -RSS newsfeed - Article Archive
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Q & A
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