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Chapter 62 Prospects of the Machinery Industry

At the dinner table, Zhao Guoyang, Hua Guosheng and others toasted Liao Jingsheng and Ning Xiaohong from time to time, expressing their gratitude.

Zhao Guoyang knew that these two people were huge, so when he toast, he would never ask someone to drink a drink, just a small mouthful.

Hua Guosheng was not good at drinking. In addition to the first two drinks, he was also more reserved afterwards. However, Xu Dongfeng seemed to really like Ning Xiaohong and began to toast to the other party.

When Zhao Guoyang saw this guy hitting the gun himself, he was secretly amused.

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

When Xu Dongfeng toasted her again, she blinked at Zhao Guoyang, meaning "This kid is seeking death by himself, don't blame me."

Next, Ning Xiaohong began to clink with Xu Dongfeng one by one. Seeing the hero who was drinking until he drank the glass, Zhang Chaoyang, who had originally wanted to join in the fun, was so scared that he stuck out his tongue and became cowardly.

When Ning Xiaohong and Xu Dongfeng were having a drink, Zhao Guoyang talked to Liao Jingsheng about the prospects of the machinery industry.

To be fair, Liao Jingsheng is indeed a businessmate and a very qualified entrepreneur.

Although his factory is not large in scale, some of his ideas and ideas can be said to be relatively advanced.

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

After Liao Jingsheng finished speaking, Zhao Guoyang squinted his eyes and nodded in agreement, saying, "Director Liao is right. As the pace of reform and opening up in our country accelerates, many state-owned enterprises with poor efficiency are urgently needed to transform or reorganize."

"The days of eating big pots are out of date and cannot keep up with the pace of development of the times. Private enterprises that represent advanced productivity will soon usher in a golden period of rapid development."

Every word of Zhao Guoyang hit Liao Jingsheng's heart. Looking at the young man who was slightly drunk next to him, he was secretly surprised.

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

After hearing Zhao Guoyang's talk, Liao Jingsheng couldn't help but ask: "Guoyang, what you said makes sense, but do you think our machinery manufacturing industry is suitable for private enterprises to survive?"

Zhao Guoyang put down his chopsticks and said unintentionally: "I understand that Director Liao's concerns are often a big investment in the machinery manufacturing industry. Especially in terms of equipment, investments of hundreds of thousands or millions can't even beating up if they go down."

"However, while we see that the investment threshold in the machinery manufacturing industry is high, we should also see the lucrative profits brought by it."

"Then, let's give a simple example. Let's talk about the agricultural equipment made by Xiangyang Machinery Factory. The material cost of a hoe is less than 20 cents, right? But after you make it, how much can one be sold? One or two yuan! Putting aside labor costs and machine losses, the profit return rate can be said to be extremely generous."

Zhao Guoyang paused and continued: "Moreover, the machinery manufacturing industry is not just as simple as agricultural equipment. The higher the technical content, the more likely the product it produces to overflow the commodity value."

After Zhao Guoyang finished speaking, Liao Jingsheng sighed: "Guoyang, you are saying this too right."

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

Liao Jingsheng's slightly loud voice attracted both Ning Xiaohong and Hua Guosheng.

Under the gaze of everyone, Liao Jingsheng continued: "There is a Xiangyu mold factory in the place I went, which has just been transformed from a private business to a private business."

"This factory used to be a board-shaped factory, and the profit was just that. After the reform, they recruited several top students from famous universities and started to build motorcycle plastic parts, which became popular all of a sudden. Last year alone, they sold 30,000 sets of plastic parts, which shocked me at that time!"

After listening to Liao Jingsheng's speech, Ning Xiaohong was shocked. She opened her mouth and said, "Master, the price of plastic parts of motorcycles is not cheap. How much does Xiangyu Mould Factory have in a year's sales?"

Liao Jingsheng was not in a hurry to answer Ning Xiaohong's question. He looked at Xu Dongfeng who was already talking nonsense there, then looked at Zhao Guoyang who was slightly drunk, and asked, "Guoyang, you should be the one who knows the best here. Guess how much money can this Xiangyu mold factory make in a year!"

Zhao Guoyang narrowed his eyes and thought for a while, and said with a little confusion: "If, as Director Liao, you said just now, they sell 30,000 sets of motorcycle plastic parts a year, the sales should be more than 6 million. As for the profit, if they are private enterprises, they will probably have 10,000 or 2 million."

Liao Jingsheng glanced at Zhao Guoyang in surprise and said, "Guoyang, you have been to this factory, right? Why are you so clear about this data?"

Zhao Guoyang shook his head and smiled, "This account is not difficult to calculate. The market price of plastic parts on a motorcycle is around 200 yuan."

"If the annual production of this Xiangyu mold factory is 30,000 units, their sales are almost like this. In addition, they are now private enterprises, and their profits must be higher than those of state-owned enterprises, so I estimate that one or two million are about the same."

"How many employees do they have to produce 30,000 units a year? It's really hard to understand how many people a private enterprise can recruit so many people." Hua Guosheng next to him sighed when he heard this.

Zhao Guoyang turned to Hua Guosheng and explained: "Master Hua, you don't know this. Plastic parts products do not require much manpower."

"As long as the other party comes in, just open the mold directly. After opening the mold, this kind of plastic piece does not require many people at all, and hundreds of sets can be produced in a day."

"In addition, Master Hua, don't underestimate private enterprises. Nowadays, the scale of many private enterprises is much larger than you think."

After Zhao Guoyang finished speaking, he secretly thought to himself: Master Hua, you don’t know the May Day Heavy Industry and those multinational giants in the future. That scale will scare you!

After Zhao Guoyang's long discussion, Liao Jingsheng sighed: "Hey, college students are college students, and they know a lot."

"Guoyang, you are right. There are not many employees in Xiangyu Mould Factory, and there are only about one hundred people in total. But they only have more than forty people in one technical department. This is what surprised me."

Zhao Guoyang smiled when he heard this: "This is normal. The manual labor in the mold factory is actually not complicated. The most important thing is the mold design."
Chapter completed!
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