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Why doesn’t anyone talk about industry, such as manufacturing?

MapleLast Seen: Mar 6, 2024 @ 1:43pm 13MarUTC
Maple
@Maple

6th March 2024 | 1 Views
Milyin » 576245 » Why doesn’t anyone talk about industry, such as manufacturing?

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My family’s small processing factory has an annual turnover of less than 3 million yuan. My uncle is one of my clients, and if he gave me all his orders, it could generate over 2 million yuan for me annually, almost doubling my output. He lends me money for operations and strongly supports me. Everyone in the management team knows him well. However, for nearly ten years, I have only received orders worth around 100,000 yuan from him each year. Why?

 Because there is no profit. Other suppliers’ prices are now more than ten percentage points lower than mine, lower than my cost price. If I were to take on a large number of orders, my prices would have to be close to those of other suppliers, which means working for nothing. My uncle often hopes that I can grow and become stronger, asking me why others can do it but I can’t. I say that I lack a skilled worker, whose annual salary would be around 150,000 yuan. He tells me to hire a skilled worker and promises me orders worth 100,000 yuan per month.

生成一个工厂的图片.png

The problem is, even without this worker, it’s uncertain if I can make a profit with orders worth more than 1 million yuan per year. This is the reality of the manufacturing industry. Without loans, cash payments in advance, ready-made machinery and equipment, self-owned factory buildings, and free spring water, even with the owners working overtime every day, there is no profit. This makes me increasingly disheartened about the manufacturing industry.

I also want to upgrade the industry and grow bigger and stronger, but what can I do? The profits in the real economy are even lower than putting money in the bank and earning interest every day. The current profit is supported by extremely low costs and almost full-capacity production. Any additional hiring or orders would add significant pressure.

MapleLast Seen: Mar 6, 2024 @ 1:43pm 13MarUTC

Maple

@Maple

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