Smart Manufacturing in Jinhua
Trade frictions and movements abroad toward anti-globalization have made China’s manufacturing industry aware of the prospects of smart manufacturing. Since the onset of COVID-19, the earlier a company plans and implements smart manufacturing transformation, the more market shares it is able to gain. The companies that hold onto traditional manufacturing models, however, lose their market shares. Smart manufacturing has become a pillar industry during the pandemic, and will be one of the main engines of economic growth after the pandemic.
Jinhua has vigorously promoted the development of the digital economy in recent years. The city has focused on smart manufacturing and accelerated the digital, networking, and smart transformation of companies, which has improved the quality and efficiency of the development of Jinhua’s real economy. As early as 2013, Jinhua proposed a three-year action plan of “using machines to replace manpower.” For nine consecutive years, Jinhua has cultivated eight batches of demonstration companies and nearly 1,000 pilot companies.
In order to further promote the smart transformation of the traditional manufacturing industry, Jinhua has introduced a series of policies to accelerate the high-quality development of the private economy. In 2019, the number of Jinhua’s companies meeting the standards of the Integration Management System of Informatization and Industrialization ranked first in Zhejiang; the number of newly-adopted industrial robots exceeded 2,000; and Jinhua’s experience in the transformation and upgrading of several industries, such as tools, hardware, and automobile and motorcycle accessories manufacturing, was promoted as a model all across the province.
In companies that have completed smart manufacturing transformation, the labor productivity per capita is more than 30% higher than that of industrial companies above the designated level, and the number of unskilled laborers is down by over 18% year over year. Moreover, their industrial added values have increased by more than 20% and their profits have increased by over 15%.
“Jinhua’s companies have reached a consensus in smart manufacturing: that business processes and equipment automation are the basis for improving smart manufacturing capacity. At present, over 90% of companies in Jinhua are practicing smart manufacturing,” said Guo Weigu, director of the Technology and Investment Department of the Jinhua Economic and Information Technology Commission. He also commented that most of Jinhua’s industrial companies have achieved the digital management of their core processes such as design, production, logistics, sales, and service, but smart manufacturing remains a shortcoming. Many companies are weak in the technologies of industrial sensors and industrial software, so few of their key processes are automated.
Jinhua has promoted the transformation and upgrading of the real economy and improved industrial quality and efficiency through developing smart manufacturing. By improving the core competitiveness of its manufacturing industry, Jinhua is accelerating its pace to become a city with powerful smart manufacturing. To date, Jinhua has implemented 483 key projects meeting the standards of the Integration Management System of Informatization and Industrialization, with a total investment of 1.8 billion RMB, and 64 demonstration projects for digital workspaces and Internet of things factories, with a total investment of 2.1 billion RMB.
Jinhua has proposed another three-year action plan for innovation and smart manufacturing in key subdivision industries to advance the smart transformation of companies across different industries. Jinhua’s goal is to construct industrial clusters with smart manufacturing, build innovative smart manufacturing bases, enhance the competitiveness of its manufacturing industry, and promote the high-quality development of its industrial economy. (By Wang Fei, translated by Jin Haiqiong, edited by Kendra Fiddler)