(Economic Observation) China's economic "restart in place" after the new year, strong market demand drives companies to rush to work
China News Service, Beijing, February 26 (Reporter Liu Yuying) Due to strong demand growth, after the Spring Festival of the Year of the Ox, Chinese manufacturing companies have "restarted on the spot", increased labor, and rushed to work.
By the 15th of the first lunar month of February 26, He Weiping, director of the Human Resources Center of Lenovo (Hefei) Industrial Base, finally breathed a sigh of relief and completed the largest Spring Festival recruitment in the history of the base, with nearly 10,000 new employees.
The in-situ Chinese New Year initiative triggered an in-situ economic restart.
In previous years, the Lenovo (Hefei) industrial base started construction on the fourth day of the Lunar New Year at the earliest, but this year, in the face of strong market demand, the factory decided to suspend operations for only two days and fully started construction on the second day of the Lunar New Year, setting a record for the earliest start in factory history.
"At most more than 2,000 people have been hired a day, which is a very big challenge for the human resources department," He Weiping said. This is due to the factory’s talent reserve in advance. The recruitment started on the third day of the lunar new year and a series of incentives were launched. Policies for returning old employees to work and attracting new hires.
Under these measures, during the Spring Festival, about 60% of Lenovo Hefei factory employees chose to celebrate the New Year locally, and the return rate of old employees after the holiday rose from 92% in previous years to 98%.
Under the epidemic, demand for electronic products has grown strongly.
Wen Xiaojun, director of the Institute of Electronic Information of CCID Think Tank, told a reporter from China News Agency that the first reason is that foreign demand increases during the Christmas and New Year consumption seasons each year; the second is that China's domestic epidemic is well controlled and a large number of foreign orders are transferred in.
Among the consumer electronics products, the demand for PCs, color TVs, and mobile phones has increased, which also reflects the confidence of the market and the entire industry in growth throughout the year.
Qu Songtao, senior director of the Intelligent Manufacturing Center of Lenovo (Hefei) Industrial Base, told China News Agency that the base can download 2 computers every 1 second on average.
Even so, it cannot fully meet the market's strong demand for PCs.
According to incomplete statistics, more than tens of millions of orders are being queued, and the current orders have been queued to the third quarter of this year.
As Lenovo's largest PC R&D and manufacturing base in the world, for every 8 laptops sold worldwide, one comes from the Lenovo (Hefei) industrial base.
In 2020, the base will achieve operating income of 101.6 billion yuan, a year-on-year increase of 41%.
The Lenovo (Hefei) Industrial Base has been the largest export company in Anhui for 7 consecutive years. Over the years, it has driven upstream and downstream supplier partners to invest and set up factories in the surrounding area.
Many of these upstream and downstream material suppliers also choose to start work simultaneously in the second and third grades.
Driven by leading enterprises, the overall manufacturing industry in Hefei ushered in a "good start."
As of 17:00 on February 22, Hefei Economic and Technological Development Zone has 573 "four-up" enterprises that have resumed work and production, with a total of 139,218 workers.
Among them, 274 industrial enterprises above designated size have resumed work and production, with a resumption rate of 95%.
According to media reports, in Dongguan, a major manufacturing town in China, according to a survey covering 200 large manufacturing companies in the city, about 60% of the companies were operating normally during the Spring Festival this year.
In addition, many factories quickly resumed production after the holiday, at least two weeks earlier than in previous years.
These are the epitome of China's manufacturing industry.
According to data from the National Bureau of Statistics, China's manufacturing PMI was 51.3% in January this year, down 0.6 percentage points from the previous month, and was above the threshold for 11 consecutive months, indicating that the manufacturing industry continued to expand.
The "Observation of Employment Trends in the First Week of Resumption of Work during the Spring Festival of 2021" shows that the demand for recruitment in the market has grown rapidly one week after the resumption of work during the Spring Festival, an increase of 124% over the same period in 2020 when the epidemic is enveloped.
The call of governments at all levels to "Celebrate the New Year on the spot" changed the situation of "labor shortage" after the Spring Festival in previous years.
Big data monitoring by the Ministry of Human Resources and Social Security of the People's Republic of China shows that more than 87 million migrant workers will spend the New Year in their places of employment this year, an increase of nearly 40 million over the previous year.
The fiery scene of factories running at full capacity in various places fully demonstrates the vigorous vitality of China's manufacturing industry, and will also give the first shot to China's economic growth in 2021.
The latest report of the Chinese Academy of Social Sciences predicts that the world economy will start to recover in 2021, and China's economic performance will be relatively better.
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