New increment: The manufacturing industry is returning to super and megacities

How to find new urban value increment, we must first see the driving role of the secondary industry on the city. The “14th Five-Year Plan” (planning) and last year’s “two sessions” have mentioned the problem of enhancing the competitiveness of urban manufacturing, and the international manufacturing industry has also returned. There are several trends in the return of manufacturing

First, it flows to small and medium-sized cities with traditional manufacturing advantages; The second is to go to big cities, megacities or megacities. It may not be easy to understand, but it’s a trend that’s happening.

For example, London proposed zero reduction in industrial building area in 2021, it stipulates that industrial space should be mixed in the urban large commercial development, and the United States has appeared the “artisan zoning law”, which is to embed some light manufacturing into the city, and has gotten some effects, including a series of start-ups settled there. The European Union has also put forward the concept of developing “productive cities”.

The creators of Made in NYC say urban manufacturing is the solution to slowly pulling us out of the recession, and that creating jobs requires a solid manufacturing base. This manufacturing is not traditional manufacturing, but some high value-added manufacturing that can rebuild the vitality of the community.

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Japan recently appeared to have emerged from a 20-30 year growth trap, with its stock market and job creation almost through the roof. Instead of young people looking for jobs, young people are being taken for jobs. Japan created the concept of the “machi factory.” “Machi” is our neighborhood office, which recreates the “neighborhood factory” in Tokyo.

“Street factory” is our early reform and opening up in order to solve the employment problem of educated youth created some job opportunities, which is called street factory, actually appeared in Japan. But it’s small, high value-added, and it has a lot of hidden champions. Because of its small scale and specialized skills, the town factory is based on the industrial chain formed by the localization of the network of acquaintances in the neighborhood. In Japan, Ota Ward is the most densely populated area of “Machi factories”.

The service industry is divided into producer service industry and living service industry. There are two statistics in the United States, although the service industry in the United States accounts for 80%, 70% of the 80% is producer services, which are directly related to the manufacturing industry. So 56% of its services sector is actually related to America’s $25 trillion GDP. It’s a pretty big number, it’s not all McDonald’s and KFC, it has a lot of services that are production-related, that’s 1.3 billion dollars that are manufacturing related.

In our service industry, the life service industry far exceeds the production service industry, about 20% higher. This is our gap, what we have to chase, what we have to diagnose.