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AMTech Series Forum | America’s Manufacturing Industry Sees New Opportunities in the Greater Bay Area

ReleaseTime: 2021-04-30

AMTech Series Forum

On the afternoon of April 15, 2021, the Seminar on “New Opportunities in the Development of Advanced Manufacturing Industry in the Guangdong-Hong Kong-Macao Greater Bay Area,” which was jointly  organized by China Council for the Promotion of International Trade Machinery Sub-council, Guangdong-Hong Kong-Macao Advanced Manufacturing  Alliance, and Messe Stuttgart, was successfully held in Beijing. Mr. Li Xingbin, International Director of the Asia/Pacific Region of the Association for Manufacturing Technology (AMT), was specially invited to introduce the new opportunities of advanced manufacturing in the Guangdong-Hong Kong-Macao Greater Bay Area (hereinafter referred to as the Greater Bay Area) from an international perspective.

 

In his speech, Mr. Li, a witness to the development of Shenzhen’s manufacturing in the past two decades, shared his insights into it and used data show the tremendous market and development potential in the field of advanced manufacturing in the Greater Bay Area, the most economically dynamic region in China.

▲ Mr. Li Xingbin, International Director of the Asia/Pacific Region of the AMT

 

Enterprises in the Greater Bay Area thirst for advanced manufacturing technology

As a pioneer standing at the forefront of China’s reform and opening-up, Guangdong Province boasts the highest degree of reform and opening-up nationwide. Its manufacturing industry ranks top in the country in terms of scale, production technology and development speed. Especially in 2019, the central government drew a blueprint for the future development of the Greater Bay Area, aspiring to build it into a world-class bay area like Tokyo Bay in Japan and San Francisco Bay in the United States. For this end, it released the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, clearly setting the goal of building the Greater Bay Area into a world-class cluster of advanced manufacturing and strategic emerging industries with global influence and world-leading innovative capacity. The policy guarantee and support from the central government has ushered in an era of golden opportunity for the area.

Mr. Li said that as far as the AMT sees it, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area will greatly promote economic development and accelerate the digital upgrading of the local manufacturing industry, and provide huge business opportunities for manufacturers of high-quality CNC equipment.

Mr. Li mentioned in his speech, “There are many metal processing enterprises in Shenzhen, such as HAN’S LASER and EVA, whose representatives are present today. Each time I visit these enterprises, I am amazed by their development. With strong demand for advanced manufacturing equipment and technology, they purchase batches of advanced manufacturing equipment, and take the lead in upgrading, which deeply impresses me. I believe that they are an epitome of enterprises in Guangdong, and that there are many such enterprises in the Greater Bay Area. Undoubtedly, such development scale represents a big business opportunity for advanced manufacturing enterprises, especially for those of high-quality CNC equipment.”

Three drivers for the development of advanced manufacturing in the Greater Bay Area

First, in terms of economy, the Greater Bay Area had an economic aggregate of about US$1.7 trillion in 2020. If we take it as a country, it ranks among the top globally, with an economic aggregate very close to that of Brazil, and higher than that of Canada. Since the reform and opening-up was launched, Guangdong Province has been maintaining rapid economic development, and taking a leading position nationwide in term of economic aggregate. In 2020, its GDP was RMB11.076094 trillion, registering a YoY increase of 2.3%, which is the same as the national average growth rate. The economic growth rate of Shenzhen, the core city of Guangdong Province, was 3.1% last year, higher than the national average. Its economic aggregate reached about US$430 billion. To help you get a better understanding, I will compare this with our neighboring country Vietnam. The country’s economic development has attracted worldwide attention in recent years, and manufacturing industries all over the world are moving there. This has brought Vietnam’s economic aggregate to about US$270 in 2020, which is only 60% of that of Shenzhen. So, you can imagine how enormous Shenzhen’s economic size is.

 

▲ Guangdong's GDP from 2015 to 2020 (RMB hundred million)

Second, I want to briefly talk about the manufacturing industry. Engaged in machinery manufacturing, we attach great importance to the development of the manufacturing industry. Here is an example. Among the top ten manufacturing cities in China in 2019, three were from Guangdong, with Shenzhen ranking first, Foshan fourth, and Guangzhou sixth nationwide. Among the top cities, Shenzhen is undoubtedly the No.1 manufacturing city in China, surpassing Shanghai, and Suzhou. In 2020, Guangdong’s manufacturing industry had another three No.1s, which were closely related to us. First, it produced 3.13 million vehicles, exceeding other provinces nationwide. As we all know, more than 60% of machine tools are used in the automotive industry, so we follow closely the development of the automotive industry. Second, it produced the most computer, communication equipment, and consumer electronics products, the so-called 3C products. Shenzhen produced more 3C products than any other city in Guangdong, accounting for 62% of the city’s manufacturing industry, which is very high. Third, as we all know, Guangdong Province has ruled unchallenged the field of home appliances in recent years. Its leading position in these three aspects is very attractive to the manufacturing industry.

Third, in terms of market, China consumes about 25% to 30% of machine tools produced worldwide every year, namely China’s machine tool consumption accounts for 25% to 30% of global machine tool manufacturing, which is a very impressive number. Guangdong Province and Jiangsu Province have always been the top two provinces when it comes to machine tool consumption in China. With it large-scale and rapidly developing manufacturing industry, Guangdong Province has a vigorous demand for high-end CNC machine tools. According to statistics from relevant agencies, Guangdong’s annual consumption of high-end CNC machine tools accounts for 10% to 15% of the country’s total, clearly showing its position as a large consumer of high-end machine tools.

Therefore, the AMT will keep a closer eye on the Greater Bay Area for the benefits of its member companies, and follow closely the AMTech Show. Finally, I wish the AMTech2021 China International Advanced Manufacturing Technology Show a great success!