Over the past few decades, the rapid development of China's manufacturing industry has attracted worldwide attention. In 1990, the proportion of China's manufacturing industry was less than 3%, due to the relatively cheap labor and undervalued value of the Chinese yuan. With the influx of a large number of manufacturers, it stimulated the rapid growth of the domestic manufacturing industry; In 2010, the proportion of China's manufacturing industry further increased to 19.8%, ranking first in the world; In 2018, it exceeded 30% and remained stable in the world for several consecutive years.

In recent years, factors such as the disappearance of the demographic dividend, the increase in real estate costs, and the rise in the RMB exchange rate have led to a gradual slowdown in the development momentum of the domestic manufacturing industry.

Digital transformation is imperative

China's manufacturing industry has undergone tremendous changes in the past decade. Nowadays, domestic consumers have long been accustomed to the convenient lifestyle brought by e-commerce. In addition, consumers are also willing to obtain free content through various digital channels. It can be said that due to the continuous improvement of consumers' expectations through digital shopping experience, the word "cheap" is not enough to meet the growing needs of consumers.

However, for Chinese manufacturers, while gaining profits is important, it is also necessary to change the value chain of the enterprise through digital transformation and promote its long-term development. This means that manufacturers must constantly innovate in their production processes and management systems to maintain competitiveness in the market.

At present, the Chinese government has realized the importance of digital transformation to improve the competitiveness of the manufacturing industry and maintain the status of the world's jei. The Guiding Opinions on Deepening the Development of Industrial Internet by "Internet+* Manufacturing Industry" issued in 2017 aims to create an industrial Internet ecosystem suitable for economic development and promote the development level of China's industrial Internet to take the lead. In addition, the 2019 government work report stressed that it is necessary to promote the transformation and upgrading of traditional industries, strengthen the industrial foundation and technological innovation ability, build an industrial Internet platform, expand "smart+", and promote the integrated development of manufacturing and modern service industries. From this, it can be seen that the government's policy system for developing the intelligent manufacturing industry is gradually improving and creating a favorable market environment.

The Chinese government attaches great importance to the development of the Internet of Things, especially in terms of productivity, production efficiency, and cost-effectiveness in the manufacturing industry. At the same time, domestic manufacturers are actively seeking suitable digital solutions, applying digital technologies such as mobile services, robotics, 3D printing, cloud computing, big data, and the Internet of Things, in order to build themselves into technological innovations in their respective fields and produce more profitable and refined products for the market.

The Internet of Things empowers traditional manufacturers

*Based on the powerful data analysis capabilities of the Internet of Things, manufacturers can effectively collect data from production lines, analyze and predict it, thereby effectively helping enterprises achieve sustainable development and enhance their core competitiveness. In addition, IoT technology also allows manufacturers to track energy consumption, allowing high energy consuming assets to operate during off peak hours, thereby reducing energy costs and once again improving profitability.

According to relevant statistical data, manufacturers who adopt IoT technology can achieve energy savings of 10% to 20% in their factories, and labor efficiency can be improved by 10% to 25%. In the next decade, by saving energy consumption and reducing costs, up to $4 trillion in value can be created for the market. Jiangsu Jianheng expects that Chinese manufacturers will invest $128 billion in IoT technology from 2016 to 2020 to continuously enhance their competitiveness and maintain their position as the "world's factory".

Nowadays, China has deeply implemented the practice of "intelligent manufacturing". By leveraging IoT solutions, Huawei is using digitalization to improve its production lines. Based on this, Huawei plans to connect all equipment in the manufacturing process through digital technology to improve production efficiency, reduce costs, and minimize pollution emissions. These innovative practices are expected to help Huawei save up to $500 million in production and operational costs annually.

It is not difficult to see that digital transformation has become a part of China's manufacturing industry to maintain innovation, improve and enhance service levels, and stay at the forefront of the manufacturing industry. In the process of digital transformation of manufacturing enterprises, finding suitable partners will definitely achieve twice the result with half the effort.