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Chapter 424 The crisis of Dongxiang Machinery Factory

"The business is insufficient, and the factory can't pay wages."

Feng Fei said to Feng Xiaochen with a sigh.

It turns out that the Dongxiang Machinery Factory where Feng Fei is located is a third-tier military-industrial enterprise. Like many third-tier enterprises today, they are facing the dilemma of a significant reduction in military-industrial orders and unsustainable business operations.

Since the 1950s, China has implemented an industrial development path of focusing on the first and then neglecting the military and then the civilians. The so-called focusing on the first and then neglecting the development of heavy industry is to give priority to the development of heavy industry and ignore the development of light industry; while the so-called military and then the civilians means giving priority to the military industry, and civilians often make way for the military industry.

In the 1950s and 1970s, such a strategic choice certainly made sense. New China was established on a poor and blank foundation. As a big country, it must have an independent heavy industry system and a military industrial system, so as to avoid the "largest democratic country" with a population of 1.2 billion, as our South Asian neighbors in later generations, even bullets must be imported from abroad.

However, the road of focusing first and then light, and military first and civilians has a very great impact. Light industry not only has the function of meeting the daily needs of the people, but also an important department for accumulating funds. Ignoring the development of light industry has forced China's industrial accumulation to rely on the "scissor gap" for agriculture for a long time, and the support that agriculture can provide is limited after all, and the development of heavy industry will eventually become increasingly difficult to sustain.

The impact of military first and civilians is even greater. Military industry is a purely consumer industry and it is difficult to create profits. The state invested a large amount of capital in the military industry and established a strong military foundation, including two bombs and one satellite. However, the corresponding civil industry failed to develop, resulting in a deformed industrial structure.

China's strategic model back then was largely learned from the Soviet Union. As a teacher, the Soviet Union, because of its long-term neglect of light industry and civilian industries, led to the people's resentment about the country's economic development, and eventually led to the disintegration of the Soviet Union.

In addition to the economic system changes, China's reform and opening up also has another important aspect, which is the adjustment of industrial strategy. In the late 1970s, the country resolutely abandoned the "Ten Angang and Ten Daqings" concept of heavy industry priority development, and dismissed a large number of heavy industry enterprises to support the development of light industry, provide the people with rich necessities of daily necessities, and also increase the country's financial resources.

By the mid-1980s, the country made another decision, which was based on the strategic judgment that "large-scale wars would not occur in the near future", and proposed to let the army suffer some grievances, abandon the traditional idea of ​​first military and then civilians, and transfer the funds originally used for military industry development to civilian use. During this period, many military-industrial projects were shelved, and some third-tier enterprises were in operational difficulties, and Dongxiang Machinery Factory was one of them.

There are many comments about the military making way for economic construction in later generations. Some people believe that this move has greatly affected China's military industry development, leading to the further expansion of the military gap between China and the West, which is a short-sighted move. Some people have cited the example of two bombs and one satellite, saying that as long as everyone tightens their belts and saves a little money, they can ensure the continuation of a certain project, and then China will be able to master certain technology several years in advance to achieve the goal of destroying Japan and slaughtering the United States.

This statement is actually just a complaint from military fans. Without economic accumulation, the development of military industry cannot continue. Tightening the belt can create two bombs and one satellite, but it is impossible to explode a sea of ​​tanks and airplanes, and it is impossible to support the construction of warships like dumplings. This is like playing the Red Alert. If you don’t build ten or eight mining cars, just knowing that you have some money to build a tank, you will be done in the end.

Feng Xiaochen is a man with two lives. Before he traveled through time, he had witnessed the revival of China's military industry, so he was not resistant to the current policy of making the military industry give way. However, he also knew that there were many regrettable things during this period. If he could be foresighted and do some necessary remedies, the result of the matter might be better.

Feng Fei didn't know Feng Xiaochen's idea, but he was still muttering: "In the past two years, the country implemented policies and raised wages for everyone, and allowed the factory to build a house with production profits. Everyone thought life was better than in the past. Who knew that the good times did not last long. Since last year, the country's orders have been reduced, and the task volume has been less than half of the past. In the first half of this year, orders have been further reduced. The funding for the development of new equipment that was originally developed every year has also been interrupted, and the factory's life has suddenly become sad. At present, it is still barely able to pay wages. If it delays for a few months, it is estimated that it will be difficult to even pay wages."

"No way? You are a third-tier company, and your salary can always be guaranteed, right?" Feng Xiaochen asked.

Feng Fei said: "It is guaranteed at present, but the superior department said that the country is calling on our third-tier enterprises to engage in diversified operations and generate income by themselves. The superior has assigned us a task that the annual revenue generated by the company accounts for 30% of the total expenditure of the factory, and the country will reduce the allocation by 30% accordingly. But what revenue can we generate in the big valley?"

Feng Xiaochen thought for a while and said, "Uncle Second, I have also heard of this. The country encourages some third-tier enterprises to convert military to civilians and develop civilian products. Do you have no measures in this regard?"

Feng Fei said: "This is why I came to you. The factory leaders also said that the country wants the military industry to give way, and the military to the civilians is our only way out. But where to go is a big problem. We went to the system to inquire about it. There are all brothers who do everything, some make motorcycles and refrigerators. The radar factory in Shancheng used its expertise and built TV sets. It heard that the benefits are pretty good. There are also some who are hungry and make children's toys, gas stoves and other places. What do you think this is? We are also a key military-industrial enterprise in the country. Our technology is not worse than that of the Soviet elder brothers. Can we compete with township enterprises for food?"

"But I still don't understand, what can I do to you?" Feng Xiaochen asked. He actually guessed Feng Fei's purpose, but it was not convenient to say it himself.

Feng Fei said: "The factory now decides to develop private products, but it is not certain what to do. The factory leaders proposed to brainstorm and ask everyone to go out to find the market and see what good products there are on the market. I think you have worked in the reinstallation office and are familiar with domestic companies, so I volunteered to come to Beijing to ask you if you can give us some advice."

Looking for me is considered to be the right person. Feng Xiaochen thought in his mind. In fact, whether he is reinstalling the work is not his biggest advantage. His advantage lies in his understanding of the future market. In the 1980s, it was difficult for people to think of what products they need in the future. Most people can only bump around like headless flies based on their performance in the market and pay a lot of tuition. Feng Xiaochen is different. He knows the market trends. When necessary, he can also propose some new products that will appear in later generations, so that Feng Fei and his factories can seize the opportunity. However, before this, he still needs to know one thing, that is, what is the Dongxiang Machinery Factory doing and what advantages it has.

"Uncle Second, I have been talking for a long time. I don't know what your factory does. Is this matter confidential?" Feng Xiaochen asked with a smile.

Feng Fei shook his head and said, "This is not confidential. Our factory makes artillery, specifically howitzers, and other artillery can also be built."

"Howitzer..." Feng Xiaochen was speechless. It seemed that this was a bit inconsistent with Minpin.

"Uncle Second, what technology do you mainly need to build a cannon... or what advantages do you have?"

"This is too much." Feng Fei was excited, "Xiaochen, I tell you that artillery is the god of the battlefield. All countries attach great importance to artillery, and the development of artillery technology is changing with each passing day. To build a good artillery, specifically, it involves artillery design, materials, precision processing, and large casting and forging manufacturing. Our technology in these aspects is very good. You haven't visited our workshop. In recent years, imported machine tools have been replaced with water. The machining accuracy is second to none in China."

"That's right?" Feng Xiaochen murmured to himself. He is familiar with precision processing and large castings and forgings. The equipment companies contacted by the reinstallation office need such technology. Since the country's artillery orders have been reduced, it seems that it is OK to let professional artillery factories help those equipment companies do some outsourcing processing of precision components.

However, it is really troublesome to contact such a business, because each company can definitely solve the mass-produced parts themselves. The number of parts produced by a single piece is too small, which means that it is necessary to contact many customers. Feng Xiaochen has contact with many equipment companies, and it is also OK to help Dongxiang Machinery Factory. But it is hard to work. Each company has just a few sporadic small orders, and the input-output ratio is too low. To be honest, Feng Xiaochen is really unhappy to do such a job.

"Our factory now has some ideas." Feng Fei said naively. He was not a good person at speaking, and he was asking his nephew for help, so he couldn't hold back his face and spoke even more embarrassedly.

"Motorcycles are now in short supply on the market, and there are companies in our system that are working on motorcycles. Our factory manager said that we can also try it." Feng Fei said.
Chapter completed!
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