King of Industry

Chapter 62 – Prospects For The Machinery Industry

Chapter 62 Prospects of Machinery Industry

Wang Da Restaurant, at the dinner table, Zhao Guoyang, Hua Guosheng and others toasted Liao Jingsheng and Ning Xiaohong from time to time, expressing their gratitude in various ways.

Zhao Guoyang knows that these two are huge, so when he toasts, he absolutely does not ask for a dry cup, but just a small sip.

Hua Guosheng is not very good at drinking, except for the first two drinks, he is more reserved afterwards, but Xu Dongfeng seems to really like Ning Xiaohong, and he starts toasting to him non-stop.

Seeing this guy slamming himself into the muzzle of the gun, Zhao Guoyang was secretly amused.

Sure enough, Ning Xiaohong was finally provoked by Xu Dongfeng.

When Xu Dongfeng toasted her again, she winked at Zhao Guoyang, meaning “This kid is looking for death, don’t blame me.”

Next, Ning Xiaohong started to bump into Xu Dongfeng cup by cup. Zhang Chaoyang, who wanted to join in the fun, stuck out his tongue in fright when he saw that the heroine of the female high school was drunk to the brim.

While Ning Xiaohong and Xu Dongfeng were fighting wine, Zhao Guoyang and Liao Jingsheng talked about the prospect of the machinery industry.

In all fairness, Liao Jingsheng is indeed a man of business and a very qualified entrepreneur.

Although his factory is small in scale, some of his ideas and ideas can be said to be relatively advanced.

For example, he mentioned the impact of the restructuring of state-owned and private enterprises on the machinery industry, which is very insightful.

After Liao Jingsheng finished speaking, Zhao Guoyang squinted his eyes and nodded in agreement, “Master Liao is right. With the acceleration of our country’s reform and opening up, many state-owned and private enterprises with poor returns are in urgent need of transformation.” Or reorganize.”

“The days of eating big pot meals are outdated and unable to keep up with the pace of development of the times. Private enterprises representing advanced productivity will soon usher in a golden age of rapid development.”

Every sentence of Zhao Guoyang’s words hit Liao Jingsheng’s heart. Looking at the drunken young man next to him, he was secretly surprised.

If Zhao Guoyang is said to be very good at technology, Liao Jingsheng still thinks he can understand it. Then it is really incredible that he is so insightful in corporate management and development.

Listening to Zhao Guoyang’s eloquent talk, Liao Jingsheng couldn’t help asking: “Guoyang, what you said has some truth, but do you think our machinery manufacturing industry is suitable for private enterprises to survive?”

Zhao Guoyang put down his chopsticks, seemingly unintentionally said: “I understand Director Liao’s worry. Machinery manufacturing usually requires a lot of investment. Especially in terms of equipment, hundreds of thousands or millions of investments are often required. I can’t beat the water.”

“However, while we see the high investment threshold in the machinery manufacturing industry, we should also see the huge profits it brings.”

“Then, let’s use a simple analogy. Let’s say the agricultural equipment made by your Xiangyang Machinery Factory. The material cost of a **** is less than 20 cents, right? But after you make it, how much can you sell for a hoe? Two yuan! Leaving aside labor costs and machine wear and tear, this rate of return on profit can be said to be extremely generous.”

Zhao Guoyang paused, and continued: “Moreover, the machinery manufacturing industry is not just as simple as agricultural implements. The more technical the product is, the easier it is to overflow the commodity value it produces.”

After Zhao Guoyang finished speaking, Liao Jingsheng felt a burst of emotion: “Guoyang, what you said is so right.”

“A while ago, I went to Zhejiang Province in the south and saw a lot of advanced things. Let’s just talk about the private machinery factories there. In just one year, a large number of them have appeared, and the number is still growing among.”

Liao Jingsheng’s slightly high-pitched voice attracted both Ning Xiaohong and Hua Guosheng.

Under the gaze of everyone, Liao Jingsheng continued: “The place I went to, there is a Xiangyu mold factory, which has just been restructured from a private enterprise to a private enterprise.”

“This factory used to make plate shapes, and the profit was just like that. After the restructuring, they recruited a few high-achieving students from famous universities, and started to produce motorcycle plastic parts, and it became popular all of a sudden. Only last year, their plastic Thirty thousand sets were sold in one piece, which shocked me at the time!”

After listening to Liao Jingsheng’s speech, Ning Xiaohong was stunned. She opened her mouth and said, “Master, the plastic parts of motorcycles are not cheap. How much does Xiangyu Mold Factory sell in a year?”

Liao Jingsheng was not in a hurry to answer Ning Xiaohong’s question. He looked at Xu Dongfeng who was already talking nonsense over there, and then at Zhao Guoyang who was slightly drunk, and asked, “Guoyang, you should be the most knowledgeable here. Now, guess how much money this Xiangyu Mold Factory can make a year!”

Zhao Guoyang squinted his eyes and thought for a while, then said with a little doubt: “If according to what you said just now, Director Liao, if they sell 30,000 sets of motorcycle plastic parts a year, the sales should be more than 6 million. As for In terms of profit, if they are a private enterprise, it is estimated to be one or two million.”

Liao Jingsheng glanced at Zhao Guoyang in surprise and said, “Guoyang, you have been to this factory, right? How do you know this data so well?”

Zhao Guoyang shook his head and said with a smile: “This account is actually not difficult to calculate. The market price of plastic parts on a motorcycle is around 200 yuan.”

“If the Xiangyu Mold Factory has an annual production capacity of 30,000 sets, then their sales will be about the same. In addition, they are now a private enterprise, and their profits must be higher than that of a state-owned enterprise, so I estimate that it is about one or two million. “

“To produce 30,000 sets a year, how many employees do they have? It’s hard to imagine how a private company can recruit so many people.” Hua Guosheng, who was next to him, felt a burst of emotion when he heard the words.

Zhao Guoyang turned his head and explained to Hua Guosheng: “Master Hua, you don’t know that. Plastic parts don’t require a lot of manpower.”

“As long as the other party’s quantity comes up, we can directly open the mold. After the mold is opened, this kind of plastic parts does not need many people at all, and hundreds of sets can be produced in a day.”

“In addition, Master Hua, don’t underestimate private companies. The scale of many private companies is much larger than you imagine.”

After Zhao Guoyang finished speaking, he thought to himself: Master Hua, you don’t know about Wuyi Heavy Industry and those multinational giants in the later generations. I’m afraid the scale will shock you to death!

Liao Jingsheng sighed after Zhao Guoyang made a long speech: “Hey, a college student is a college student, and he knows a lot.”

“Guoyang, you are right. There are not many employees in Xiangyu Mold Factory. There are only about a hundred people in total. But they only have a technical department, and there are almost twenty people. This is what surprised me. place.”

Zhao Guoyang just smiled when he heard the words: “This is normal. The labor of the mold factory is actually nothing complicated. The most important thing is the design of the mold.”

”The production of a mold requires many technicians to design together and finalize the final shape in order to maximize cost savings and increase profits. Therefore, it is necessary for their technical department to have a large number of people.”

(end of this chapter)