Chapter 194 Labor-intensive industries

At the meeting entitled the National Three-Year Development Plan for Industry, Li Tiancheng once again convened a cadre and department leaders to discuss industrial and scientific and technological development issues. Zhan Tianyou and Minister of Industry Hu Ruping attended the meeting.

Hu Ruping is 48 years old and from Shanghai. He is one of Li Tiancheng's early partners in Shanghai. He was from an official family. His father was the magistrate of Suzhou, and he has been in business. In his early years, he participated in the development of the Songjiang Industrial Park project with Li Tiancheng. He also has more than a dozen factories of large and small sizes in Songjiang. His annual output value is about 5 million taels of silver. He is a large national capitalist. His total assets are second only to Li Tiancheng, Zhu Tong and two other wealthy businessmen in Shanghai, ranking fifth.

"How is the scientific and technological cooperation work done by Minister Zhan?" Li Tiancheng has handed over thousands of technologies in the super education system to Zhan Tianyou, asking him to screen suitable projects and invest, and estimate the feasibility and profitability of these projects. In addition, it must also take into account the needs of national scientific and technological development.

"Most of the 1,000 technologies proposed by the President are currently needed in the market. These technologies are also very novel and have great potential. However, most of the technologies we have selected are low-tech technologies, involving food, textile, machinery and other fields. Many of us with high technical content are not yet able to start production." Zhan Tianyou held a statistical table, his fingers gently slid on it, and his eyes stared at the words on the paper with his fingers. "The main reason is the lack of talents, the lack of direct participation of management and technical talents. I am worried that once these technologies are put into production, the operation and production of the factory will be in trouble, so I have encircled this part of the technology. As a future reserve development, I will not put it on the agenda for the time being."

"I understand your approach. At present, production can be put into production as soon as possible. If it cannot be taken out, the proportion of foreign capital must be strictly controlled. We cannot open it to foreigners on a large scale because of lack of funds and talents. This will be unfavorable to my country's industrial security." Li Tiancheng continued. "We would rather let the industry lag a little behind in development than rely too much on foreign funds. Otherwise, once a war breaks out in the future, if these foreigners want to withdraw funds, we will be helpless."

"That's why I suggest that in the future, my country's shipbuilding, railway construction, mining and other industries that are related to the country's major interests must be firmly held in their own hands. We cannot rely too much on foreign capital and technology like the Qing Dynasty, including their talents." Li Tiancheng took a sip of tea and continued. "In the future, foreign capital will mainly include food, textiles, civil machinery and electrical industries that are not related to national defense. Mechanical manufacturing, chemistry, electronics and other industries closely related to national defense must be controlled by domestic funds, including my private investment and the shares I donated to the country, supplemented by other domestic private capital."

"I agree with the President's opinion. Regarding industrial development, I have formulated a detailed plan. After reading the many technologies provided by the President, based on my years of experience in industrial production and sales, combined with our experience in Shanghai, once products from some emerging industries appear, they will quickly occupy a huge share of the global market. Of course, mainly markets in Europe and Latin America, and backward areas such as Africa have little demand for industrial products." Hu Ruping continued.

"We are very confident about the profit margins brought by some products. In the past, the profit margins of some of our products were as high as 100%, or even 200%. This phenomenon is not only an individual. Compared with traditional industries, the profit margins of emerging industrial products are amazing. Once many new products appear, they will form a monopoly on the market in a short period of time. At least before the patent protection period has passed, new products will monopolize the market around the world. Of course, the subsequent imitation trend and the decline in profit margins are also difficult to resist."

"For example, the Dawang biscuit we just launched is sweet and crispy. It is estimated that if this food sells well in a short period of time, it will quickly occupy most of the market. However, the imitation ability of modern industry is very strong. After we launch this food, many factory owners in the world will begin to learn from our experience and start developing a new generation of popular foods. When they imitate foods similar to Dawang biscuits, it is estimated that it will be one to two years later. At that time, our Dawang biscuits have occupied the market and formed a brand effect, but the profit margin will be greatly reduced due to the emergence of similar products, and finally reaching the market balance."

"Other products, such as refreshing Coke, lighters, etc., will probably have a similar process. At the beginning, due to the freshness, the market response should be good. It may cause a global popularity like we launched Zhenhua's textile machinery for the first time. However, the technology imitation and development of various countries will gradually keep up with our pace. The profit margin and market share will reach a certain balance. However, in the early supply and demand situation, the profit margin exceeds 100%, which is possible at 200%. "Hu Ruping has seen the huge effect of market share in Shanghai after interviewing new technology products, which is far more crazy than producing traditional products produced by others.

When Zhenhua's new textile machinery appeared, it set off a frenzy of eliminating old-style textile machines around the world. In just three years, more than 50% of the textile farms in the world had used Zhenhua brand textile machines more or less. Less than half of the factories that used old-style textile machines. Mainly in some backward countries and regions, almost all textile factories in cities in developed countries have achieved partial renewal. Most bosses were unable to use new-style machinery in time because the market was in short supply. The huge profits of Zhenhua Textile Machinery Factory naturally rolled in, and the profit margins were always between 50% and 100%, which once exceeded 200%, and then fell.

If Zhenhua's talents and funds were not able to keep up and could not continue to expand production on a large scale, then Zhenhua Textile Machinery would have a possibility of occupying 80% of the global market.

The technical content of textile machinery is obviously higher than that of lighters and biscuits, so it will take at least a few years for other countries to keep up with this new technology. Within a few years, Zhenhua's textile machinery is in a monopoly position, and new machinery will be launched again to continue this monopoly.

Some industries with low-tech content, such as the food industry, can only temporarily form a boom. When this boom passes, the development of similar products in other regions will also keep up, and the market share will naturally not be that high. However, after accumulating the first pot of gold, enterprises can achieve gradual transformation, develop new products with high technological content, and transfer funds to other industries according to market changes, and continue to expand production.

This is the demand for milk, coffee, beverages and non-staple foods. With the growth of global consumption capacity, their demand will increase greatly. Therefore, during this period, once a novel product appears, it will easily occupy a large market. For example, the refreshing Coke that Li Tiancheng is about to launch is among the emerging beverage industries in this era. Products such as Coca-Cola and Pepsi have not yet officially appeared, and will have a great stimulating effect on the market.

Of course, bottled drinks appeared in Europe, the United States and other countries at this time, but the scale is not large, and the taste is not large, like Coca-Cola and Pepsi, nor can they be popular all over the world like them. Therefore, Li Tiancheng launched this refreshing Coke in time. It uses a carbonated drink formula that was once popular in later generations. It has a cool and refreshing taste, sweet but not greasy. Compared with similar products in the world, it has great competitiveness and is still very optimistic about its market prospects.

For example, some products with low technical content but relatively novelty, such as rice cookers and folding umbrellas for kitchens, only appeared after World War II in the later generations. Now they are suddenly launched, which will make cooking much more convenient for many households using power, saving a lot of effort to cook in fire and have a high market share.

Folding umbrellas may also have a great impact on traditional umbrellas. Portability has become its biggest feature. When it appeared, it quickly replaced the mainstream position of old-fashioned large and long umbrellas and became the mainstream product in the market. There are many similar situations.

In addition, the industrial level of this era is limited, and the total industrial output value of the world is estimated to be only more than 20 billion US dollars. Of course, the US dollar during this period is much more valuable than later generations. The main industrial production capacity is in Europe and the United States, especially the equipment manufacturing industry, and the United States accounts for about 40% of the world's total industrial output value. Overall, the world's industrial products are not complete enough throughout the year, which is closely related to the living standards of the people of the world. The people's consumption capacity is limited, so the market cannot open up. As the living standards of Europe and the United States gradually improve, the demand for industrial products will increase greatly. In the next twenty years in history, the world's industrial development speed was still very fast. It was not until the outbreak of a large-scale economic crisis that affected the world for the second time in 1929, and industrial production shrank by about half, and it was not gradually recovered in the 1940s.

In the more than ten years after 1912, the world's industrial development prospects were good and a favorable period for the comprehensive development of China's industry. However, we must avoid blindly expanding production and overheating investment in advance, abandon the capitalist world's government adopted before 1929 to completely relax the government's economic management model, allowing the market to freely choose investment and production, and adopt active government intervention methods to curb investment overheating, reasonably regulate the investment ratio of various industries, and use government laws and other means to regulate the operation of the market economy, so that the market can continue to expand production within a reasonably controlled range, so as to greatly avoid the recurrence of historical economic crises.

Of course, the capitalist world did not realize the possible second world economic crisis, but as a new center of world industry in the future, China must make early preparations and adopt government regulatory measures to intervene in the market, so that the market economy can develop smoothly and orderly.

"This is my newly drafted rough plan to promote the development of labor-intensive industries. Originally, Sun Yat-sen and your State Council people were worried about these tasks, but many people, including Sun Yat-sen, do not know enough about industry, so I had to take action personally. Fortunately, the country has no war now, so I, the commander-in-chief of the three armies, does not need to take into account national defense, otherwise I will not have time to take care of these things." Li Tiancheng then took out several documents in the drawer and handed them to Zhan Tianyou and Hu Ruping. "I have someone printed several copies. You two will take a look first. After Minister Hu goes down, he will enrich the content of the plan, and add it to a detailed development plan."

"What does labor-intensive industries mean?" Hu Ruping, the Minister of Industry, suddenly fainted after hearing these words, frowned and said in confusion.

"In fact, the meaning is very simple, that is, the technical content is not high, but the number of workers is needed is large, such as clothing factories, shoe factories, toy factories and other industrial enterprises." Li Tiancheng naturally knew that people in this era did not have this concept, so he chuckled and explained. "The characteristic of these enterprises is that they require a large number of workers to work together on the production line to complete multiple production processes, that is, the labor volume is relatively large. The significance of this industry is that it can provide a large number of surplus labor positions, which is of great significance to increasing the number of industrial workers in my country and increasing the income level of people."

"At present, my country is in the early stage of industrial development, with a significantly insufficient number of industrial workers, and a large number of population is concentrated in rural areas. Therefore, in the early stage of industrial development, vigorously developing labor-intensive industries can allow more farmers and idle urban personnel to enter the factory, which not only increases the number of industrial workers, but also increases the national income. It is a great win-win measure." Li Tiancheng continued to add.

"So that's what the president means. I understand the plan. This plan is very good. This low-tech factory does not have high requirements for the quality of workers. You can take up a job with a little training, and it can also make up for the industrial development restrictions caused by insufficient technical talents." Hu Ruping nodded understandingly.

In fact, most industries in this era were labor-intensive, so people did not have this concept. In later generations, high-tech enterprises that used a large number of smart devices to maintain production and required a small number of workers to start production have not yet emerged in large numbers. Li Tiancheng just explained this concept in advance.

"The President previously mentioned that we should focus on developing industries related to national defense, but most of these industries have high technical content and require a large number of technical personnel to guide production on the production line. The industrial workers needed must also undergo special technical training before they can take up their posts. Therefore, we still have a big gap in the demand for technical personnel and industrial workers, which will greatly delay the development of our national defense industrial sector." Zhan Tianyou raised his own concerns and said slowly...

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