Enforcing Zero Waste in Building Design

The Zero Waste movement, originating in the 1980s, has gained significant momentum in the building sector, driven by stricter regulations on carbon emission. Zero Waste is transforming the way we approach waste management with an increasing number of companies embracing environmentally conscious practices and the growing preference of tenants for living and working in buildings with green features.

gtec Zero Waste in Building Design

In a bid to create a circular economy, where over 90% of post-consumer items avoid landfills, the focus is on recycling, reusing, composting, and converting organic material into renewable energy. The real estate industry is taking note, with construction and demolition waste accounting for 25-45% of U.S. landfill waste.

The Center for Zero Waste Design (CFZW) has played an important role, providing a comprehensive 150+ page report on waste management strategies. As waste practices evolve globally, Zero Waste finds more traction in Europe and Scandinavia. Cities like San Francisco and Washington, D.C. are setting ambitious waste diversion targets, signaling a policy shift towards mandatory compliance.

In the quest for sustainability, Zero Waste is set to captivate building owners and office tenants. Technology is aiding progress tracking, and with ongoing advances, we can expect innovative tools to for a transformative journey towards a greener, more sustainable future.

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Noteworthy developments in the global clean-energy landscape!

A recent study for the European Union reveals China’s remarkable lead in research on clean-energy technologies, surpassing the EU and reshaping the dynamics of innovation.

GTEC developments in the global clean-energy technologies

In 2021, China led in peer-reviewed publications covering areas like solar and wind power, lithium batteries, heat pumps, and carbon-capture technology, marking a reversal from 2010 when the EU led in most of these sectors.

The study highlights China’s growing role as a global leader in science and innovation, posing both challenges and opportunities for the EU’s green-tech ambitions. Despite the EU’s efforts to reduce dependencies, the study suggests that gaps in research and innovation could impact the region’s ability to diversify its sources.

Interestingly, the EU is set to unveil new rules aimed at scrutinizing and potentially blocking foreign investments in sensitive industries. The study underscores the EU’s significant import reliance on China, reaching 22% in 2022, with implications for trade diversification. Chinese inputs are particularly integral to EU industries such as basic metals, chemicals, electronics, and electrical equipment.

However, the report also highlights reciprocal trade dependencies, as China’s electronics sector relies on almost 5% of its total output value from EU inputs, similar to the EU’s reliance on Chinese inputs in its overall industrial sector.

Will these measures reshape the landscape of global collaboration in the clean-energy sector?

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A Crucial Step in China Sourcing: Expert Tips for Successful Pre-Shipment Inspections (PSI)

When it comes to international trade and sourcing products from China, making sure they comply with the agreed-upon specifications and quality standards is really important. One key part of checking quality is doing a Pre-shipment Inspection (PSI), standing out as the final check for buyers. This guide explains why PSI matters and offers clear steps for a successful inspection, ensuring a smooth sourcing process.

A Crucial Step in China Sourcing: Expert Tips for Successful Pre-Shipment Inspections (PSI)

All inspections are essential in the quality control process, but the Pre-shipment Inspection, commonly referred to as the “PSI,” holds a unique position. By thoroughly examining goods before they leave the manufacturer’s facility, PSI helps reduce the risk of receiving defective or non-compliant products.

The objective of the PSI is to validate that the goods you have ordered have been manufactured in strict accordance with the specifications you provided to the factory.

What sets the PSI apart is its timing – it occurs when the product is fully completed and packed. In essence, what you see during the PSI is precisely what you receive; there is no room for last-minute changes by the factory.

This inspection serves as the buyer’s last line of defense, ensuring that any quality issues are identified before the goods are shipped. Discovering such issues post-PSI can result in major complications for all parties involved.

The Quality Assurance process follows the principle that “prevention is better than cure.” Success is best achieved through collaborative efforts between buyers and sellers. Factories have a vested interest in ensuring a flawless PSI because it guarantees client satisfaction, on-time shipment, and eliminates additional costs related to reworking products. Ideally, all shipments should pass the PSI, indicating that the quality control process has been diligently managed from start to finish.

How to Perform a PSI

Executing a PSI effectively involves careful planning and coordination. Here’s a step-by-step guide to follow the PSI process:

1. Review Specifications:

  • Confirm product specifications at the time of order placement.
  • Develop a Product Specification Sheet (PSS) and Inspection Specification Sheet (ISS) based on your needs and product requirements.
  • Ensure the factory acknowledges and understands these specifications by obtaining their signatures.

2. Scheduling:

  • Coordinate with the factory to determine a suitable inspection date.
  • Align inspection dates with the shipping schedule and your QC department’s convenience.
  • Confirm the inspection date with the factory and notify your QC department accordingly.

3. Documents and Tools:

Equip the QC inspector with necessary tools and documents, including:

  • Product Specification Sheet
  • Inspection Specification Sheet
  • QC Inspection Checklist
  • Drawings
  • Purchase Order (PO) sent to the factory
  • Packing labels
  • Carton labels
  • Any other relevant documents or tools required for inspection.

4. On-site Factory Inspection:

The QC inspector conducts a comprehensive on-site inspection following the ISS requirements, including:

  • Using the QC Inspection Checklist as a step-by-step guide.
  • Ensuring random sampling for quality verification.
  • Recording all on-site data in a report form.
  • Capturing clear product photos, including the details.
  • Maintaining open communication with the sourcing team.
  • If necessary, select production samples randomly for quality verification and certification.

5. Inspection Results:

  • Complete the PSI report and send it to the buyer before packing and transportation.
  • Include dimension sheets, photos, material certificates, factory QC pass certificates, and any other necessary documents to provide a comprehensive report, as required by the PO or the buyer.

In many cases, factories in China offer self-inspection services. However, it’s crucial to work with factories that have a well-established quality assurance system in place. Even if you have a longstanding relationship with a factory, conducting a thorough third-party PSI remains essential to ensure that your goods conform to your specifications and expectations.

Mastering the Pre-shipment Inspection is a critical skill for successful China sourcing. By following the steps detailed above and maintaining a proactive approach to quality control, you can protect your business from potential quality problems and shipping delays.

This article is inspired by the expertise of Iris Zhou, a highly accomplished professional with a Master’s degree in Logistics Engineering from Beijing Jiaotong University.

For more information, please contact:

Karlheinz ZUERL – CEO of GTEC (German Technology & Engineering Cooperation)

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What are the Alternatives of doing Business outside of China and stay in Asia? Malaysia

One of the most culturally rich regions globally and one of the most open economies has seen a Trade-to-GDP (gross domestic product) ratio of over 130 % since 2010, leads to employment creation and income growth. Like in China, Malaysia´s ongoing economic transformation to high-income-status has been powered by openness to the world. In 2022, GDP will grow between 5.3% and 5.5%.

What are the Alternatives of doing Business outside of China and stay in Asia? Malaysia

Malaysia is now the third biggest economy in the ASEAN bloc and the third wealthiest by per-capita income. The IMD World Competitiveness Center ranked Malaysia in the top 25 most competitive economies in 2021. In 2022, the Milken Institute ranked Malaysia number one with the most potential to attract foreign investors. The reason for this is, Malaysia has some of the best value land in the world, 90% of it freehold. This is a winning combination for foreign investors.

Furthermore, Prime Minister Sabri has committed more support for small and medium enterprises, reduce bureaucracy, provide reliable infrastructure, support private investment and develop a skilled workforce, all in line with the 12th Malaysia Plan.

However, the country´s construction and real estate industry will grow 16.5% this year. EBITDA of property developers is one of the highest in the world, reaching up to 50%, because the cost of land is one of the lowest across the globe, and majority of the land is freehold. YNH Property Berhad, a property developer listed on Bursa Malaysia stock exchange since 2003, who reaches EBITA of 15%, is looking for international business partners with strong track record and brand to help develop more iconic properties.

In the World Bank´s Doing Business Ranking, Malaysia ranks 12th. More and more companies doing business 100% online, approaching customers virtually, and creating partnerships with other companies. For example, NIRWANA, a 30years old care provider with burial and funeral services in Asia. Every year, they increase profit. Now they are looking for new opportunities, e.g. in Vietnam.

For all companies, Malaysia remains the best place to do business, because of a save and stable country, diverse ethnic mix, ample resources, friendly and adaptable people, underpinned by excellent legal and administrative infrastructure. As well as continued support for infrastructure development through government investment. Whereas RM5.5 billion were approved total investments in 2019, of which 24% were foreign investments.

Like in Thailand, the start-up ASCIRA online platform, a partner company of GTEC (German Technology and Engineering Cooperation) who helps people in Asia and worldwide to convert education into profits and lifestyle, with high multiplier effects and strong demand in e-commerce, social media, e-learning, tourism, travelling, WOM (words of mouth), also boosting the economic growth. Details see https://www.linkedin.com/showcase/ascira-asia/?viewAsMember=true.

Automotive Industry

As in Indonesia, India, Thailand, Japan, Hongkong and Singapore, traffic in Malaysia is on the left. However, Philippines and Vietnam drive on the right.

Malaysia has about 800 automotive suppliers. Technology-driven trends such as multi-mobility, autonomous driving, electrification and connectivity are expected to shape the industry in 10 to 15 years. The National Automotive Policy (NAP) said in 2020, further development includes three new elements:

1.      Next-Generation Vehicle (NxGV) such as electric and hybrid vehicles,

2.     Mobility as a Service (MaaS)

3.     Industry 4.0.

Malaysia’s national car company PROTON is expanding production of EEVs. It is located about 5km north of Tanjung Malim, and 90km from Kuala Lumpur, 210 km from Penang. Besides the RM1.8bil Proton car assembly plant, it also houses Universiti Pendidikan Sultan Idris. The PROTON plant in Tanjung Malim is fully automated, using robotic technology and designed for high production volumes and efficiency, using lean manufacturing processes.

Since 2018, Sime Darby Motors and BMW Group Malaysia have officially launched and opened the Sime Darby Auto Engineering (SDAE) Engine Assembly Facility in Kulim, Kedah, which assembles three- and four-cylinder petrol engines, four-cylinder diesel engines as well as three- and four-cylinder petrol engines for plug-in hybrid. This plant is located 35 km distance to Penang. Company ZF, a supplier of BMW, has settled their plant at Kulim as well.

Locations of more automotive companies and their suppliers you will find on following maps:

Additionally, following tables show locations, manufacturers and car types (status 17 February 2022):

Indeed, Full-Year sales for 2021 have been 501,972, reporting a 5.2% decrease compared to 2020.

Brand-wise, this year the leader Perodua (-13.6%) lost 3.6% market share and reported the worst performance on the leaderboard, followed by Proton (+2.9%), which gained 1.8% share. Toyota gained 22.4%, gaining 3.2% share.  Honda fell in 4th place (-12.3%), followed by Mitsubishi which reported the best performance on the leaderboard gaining 90.9% rose 2 spots.

Nissan -down 1 spot- lost 13.2%, followed by Mazda -down 1 spot- which lost 12.2%, and Isuzu which gained 6.9% sales. Closing the leaderboard we have Ford losing 11.7% and rising 1 spot, and Hino entering the leaderboard and gaining 15.1%.

SOURCES:

Source: The International Investor, Newsweek 10.6.2022

For details and sources, please see following additional links:

Karlheinz Zuerl

Asia Expert for Supply Chain, Process Optimization and Business Development/ Executive Consultant Automotive Industry/ Author “Effective Cost Cutting in Asia”, “Management in China”

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Vietnam’s Industrial Real Estate Market

In recent years, the industrial real estate sector has emerged as a bright spot in the Vietnamese market, attracting a significant amount of foreign investment and showing strong potential for growth. However, some experts argue that the industry still faces several challenges that need to be addressed.

Vietnam's Industrial Real Estate Market

Top highlights

  • Vietnam’s development plan for industrial parks reveals that there are currently 563 industrial parks with a total area of 210,900 hectares. Out of the 406 industrial parks that have been announced to come into operation, 361 are situated outside the economic zone, 37 are within the economic zone and eight are located in the border gate economic zone.
  • The country has seen a growing interest from global manufacturers with significant investment needs, particularly in specialized products such as ready-built warehouses (RBW), ready-built factories (RBF), logistics, and data centers.
  • Foxconn, the Taiwanese multinational electronics contract manufacturer, has signed a $62.5 million lease on 45 hectares of land in an industrial park in Vietnam’s Bac Giang province.
  • Giant Manufacturing, also from Taiwan, has invested an additional $13 million in the VSIP2 industrial park in Binh Duong province
  • Matsuya R&D, a Japanese company, has invested an additional $6.7 million in its production line in Dong Nai Industrial Park.
  • Samsung has also increased its total investment in Vietnam to $20 billion, with a focus on developing AI and Big data.
  • Furthermore, major companies such as Boeing, Coca-Cola, Meta, SpaceX, Netflix, and Apple are exploring business and cooperation opportunities in Vietnam, indicating the country’s rising attractiveness for global corporations.
  • The market has experienced steady growth, with rental prices remaining stable at an average of $100-120/m2 per lease cycle.
  • Ho Chi Minh City has recorded the highest average rent, ranging from $180-300/m2, followed by Long An with an average rent of $125-275/m2. In Binh Duong, rental rates range from $100 to $250/m2, while in Dong Nai they range from $100 to $200/m2. These rates are calculated for each rental cycle.
  • In the northern industrial zones, the rental price is slightly lower, between $90-120/ m2 per lease cycle.

The Southern Region

A recent report by VNDirect on industrial real estate revealed that the total land area of industrial parks in southern Vietnam has increased to 41,950 hectares, a growth of 9.2% compared to the same period last year. Furthermore, the proportion of warehouses for lease increased to 66.6%, equivalent to 27,950 hectares, a rise of 8.2%.

The industrial real estate market in southern Vietnam witnessed a supply boom in the first half of 2022, which led to a shortage in the second half of the year when no new industrial parks were put into operation.

Dong Nai proved to be an attractive destination for investors in the latter half of the year, absorbing nearly 250 hectares of industrial land, which accounted for 48% of the total net absorption in the region.

Bien Hoa Industrial Park (Dong Nai, Viet Nam)

The warehouse segment in the Southern market continued to show strong growth in 2022, with new supply primarily coming from modern warehouses that utilize dock levelers for cargo handling. Total import supply increased by 28.3% over the same period, reaching 3.87 million square meters.

As land rents and land-use fees rise in southern Vietnam, the market is being positioned to become a new production center, where RBF models are likely to become the preferred asset class in the near future, with a total market supply of around 4.8 million square meters.

The Northern Region

The Northern market recorded a significant increase in new supply during Q4/2022, with approximately 590 hectares of leasable area added, resulting in a 7.9% increase in the total leasable area, reaching 11,923 hectares. Hai Phong, despite having no new supply in 2022, still maintained its leading position in the Northern market, occupying 29.1% of the total land area.

Seven new warehousing projects were added to the Northern market in the second half of 2022, originating from locations such as Hai Phong, Bac Ninh, Hung Yen, and Hanoi. Similar to the South, property developers in the North also focuse on offering modern warehouses, as the new supply in the second half of 2022 has been recorded mainly from this type of warehouses.

Due to limited new supply, the average occupancy rate of RBF remained high, hovering around 97%.

Rising Challenges

New supply decreased due to delays in the approval process

Since the first quarter of 2022, no new proposals to establish industrial zones in both the South and the North have been put forth. Moreover, the number of new industrial parks included in the national master plan for development of industrial parks is limited.

This comes from the fact that the planning of industrial park development is still unstructured, mainly decided by localities. In addition, the change of senior leaders of many localities in the past year has slowed down the approval process of many projects, causing slow site clearance and creating overlaps in planning.

As a result, the market is expected to face a shortage of new supply from now until the end of 2023.

VNDirect’s forecast indicates that the supply of industrial real estate in the southern market is expected to remain limited from 2024 to 2027. During this period, the region is projected to have only 1,134 hectares of industrial real estate, a 76% increase compared to the previous report.

Competitive pressure to attract FDI from neighboring countries

In the first two months of 2023, FDI inflows into Vietnam weakened due to global economic uncertainties, such as slowing global growth, high inflation, and tightened financial market liquidity caused by the Fed’s interest rate hike.

Despite this, Vietnam and Indonesia still receive the most FDI inflows in the region. In particular, Indonesia’s Omnibus Law in 2020 has opened up many investment and operating opportunities for foreign corporations within the country. While Vietnam is focusing on becoming an electronics manufacturing center, Indonesia is aiming to develop an electric vehicle supply chain.

FALL RIVER, MA – MARCH 23: The seemingly endless rows of products with lifts on the way to retrieve them are pictured inside the million-square foot Amazon distribution warehouse that opened last fall in Fall River, MA on Mar. 23, 2017. (Photo by John Tlumacki/The Boston Globe via Getty Images)

As the demand for electric vehicles and renewable energy grows, countries in the region such as Indonesia, Malaysia, Thailand, Philippines have actively promoted FDI attraction in these industries. In this trend, Vietnam is lagging behind other countries, making it less attractive to foreign investors.

The development of electric vehicles and semiconductors is expected to shape the investment landscape in ASEAN. To remain competitive in the fields of industrial real estate, Vietnam needs to act quickly to implement policies that promote investment in these sectors.

The Global Minimum Tax and its impact on Vietnam’s FDI attraction

According to VNDirect, the upcoming application of the Global Minimum Tax (GMT) is expected to pose challenges for Vietnam’s foreign direct investment (FDI) attraction, particularly in industrial parks.

Initiated by the Organization for Economic Cooperation and Development (OECD), the GMT is a global tax reform that targets multinational companies with revenue exceeding 750 million euros to ensure they pay at least 15% of taxes regardless of their location.

The new tax will be implemented by several OECD countries from the beginning of 2024. Applying the GMT too soon would result in Vietnam losing the advantage of preferential tariffs, while delaying the implementation would mean losing out on tax revenue.

Over 100 FDI firms are expected to be affected by the new tax, leading to billions of dollars in lost revenue for the national budget each year. To remain attractive to investors, VNDirect suggests focusing on developing industrial park projects with strategic locations, high-quality infrastructure, and full utilities.

Urgent need to improve transportation infrastructure

Despite allocating 5.8% of its total GDP to infrastructure development, which is a significant amount compared to other Southeast Asian countries, there is still a need for further improvement in highway projects, deep water ports, and service ports. The southern region, in particular, requires better transport networks, especially in terms of road infrastructure.

By enhancing infrastructure, Vietnam can create a convenient transportation system, making it more appealing to investors.

Conclusion

The demand for industrial real estate in Vietnam is on the rise due to the need for expansion from China to Vietnam and to meet the production supply chain from the Chinese side. Foreign manufacturers, especially from Asia, Europe, and the US, consider Vietnam as their first choice. As a result, the industrial real estate market, including industrial parks, factories, and ready-built warehouses, is expected to grow and attract investment in the future, making it a promising market.

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The most important investment and the best Asset

“The most important investment you can make is in yourself. Very few people get anything like their potential horsepower translated into the actual horsepower of their output in life. Potential exceeds realization for many people … The best asset is your own self. You can become to an enormous degree the person you want to be.”— Warren Buffett

An easy way to understand this is by looking at your to-do list. If you are seeing some items from previous weeks, congrats! You are a procrastinator…

If you are delaying important but cumbersome tasks and focusing on more enjoyable easier tasks, let’s put it like this, you are not lazy but only restricting your potential!

The thing is, labeling yourself as a procrastinator is mentally tiring. Once you accept, it goes all the way to your daily tasks. Everything starts to look like a chore.

Although I have never called myself a procrastinator, I tend to push the limits of deadlines for almost every task by doing almost nothing tangible initially.

So, I have some advice!

Mentally prepare yourself for your tasks! Coming up with a conceptual framework is half of the job at hand, whatever it is.

If you have five minutes to cut down a tree, use your first three minutes to sharpen your axe!

I came across a word of wisdom from an ancient Jewish King, Solomon. He stated: “If the ax is dull and its edge unsharpened, more strength is needed…” (Ecclesiastes 10:10a)

It’s the famous quote from Abraham Lincoln, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

So, if you are going through a period of exhaustion:

  • Layoffs
  • Work Stress
  • Parenting
  • Relational Issues
  • Toxic People
  • All of the Above

Realize that you need to take time to regain strength and energy by renewing yourself physically, emotionally, mentally and spiritually. It’s important. Not just for yourself, but for everyone who depends on you to be at your best.

How to get back to making an impact?

Here are five tips:

1. Set Expectations Early On

2. Set Priorities and Stick To Them

3. Be Proactive

4. Don’t bite off more than you can chew

5. Build your toolbox

If you are a private person want to know more, visit our website https://gtec.asia/profit-growth-academy/partnership-program/ and ask for “MENTORING”

or if you are a company and need support by our experts in industry, please visit our website https://gtec.asia/experts-in-industry/

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Asien-Experte: Familienwirtschaft ist Usus in China

GTEC-CEO Karlheinz Zuerl: „Methoden, die in Europa als kriminell gelten, sind in China üblich.“

Asien-Experte: Familienwirtschaft ist Usus in China
Karlheinz Zuerl, CEO der German Technology & Engineering Corporation (GTEC)

(PresseBox) (Peking/Berlin, 07.09.2023) „Europäische Firmen agieren oftmals mit einer gehörigen Portion Blauäugigkeit in China“, sagt der Asien-Experte Karlheinz Zuerl, CEO der German Technology & Engineering Corporation (GTEC). Vom Personalwesen bis zum Qualitätsmanagement wendeten die Unternehmen in der Regel die in Europa üblichen Verfahren an, ohne dem völlig anderen sozialen Umfeld und den kulturellen Unterschieden ausreichend Rechnung zu tragen, hat Zuerl festgestellt, dessen Firma laut Angaben regelmäßig für „Feuerwehraufgaben“ in China gerufen wird.

Familie statt Firma im Vordergrund bei Entscheidungen

GTEC-Chef Karlheinz Zuerl gibt ein Beispiel: „Der bei uns in Europa negative Begriff der Vettern­wirtschaft stellt in China den Regelfall dar. Wer eine gute Position bekommt, ist seiner Familie verpflichtet, so viele Verwandte wie möglich ebenfalls mit einem Job zu versorgen. Wie gut das gelingt, entscheidet darüber, ob man der Held seiner Familie ist oder das schwarze Schaf.“ Daher sei es kulturell begründet, urteilt der Asien-Experten, wenn „Mitarbeitende auf praktisch allen Hierarchie­ebenen ihren familiären Status vor die Belange des Arbeitgebers“ stellten.

Karlheinz Zuerl verdeut­licht: „Die dabei eingesetzten Methoden würden wir in Europa häufig als kriminell bezeichnen, aber in China gehören sie zum Alltag.“ So seien Kreuz-Einstellungen zahlreicher miteinander befreundeter Familien in China die Regel. Das hat nach Erfahrungen des Asien-Experte zur Folge, dass viele unter­nehmerische Entscheidungen weniger an den betrieblichen Belangen als vielmehr entlang familiärer Verkettungen gefällt würden.

Häufig falsche Einschätzungen westlicher Manager

Karlheinz Zuerl spricht aus der Erfahrung dutzender von Beratungsmandaten seines Unternehmens für europäische Unternehmen: „Viele westliche Manager leiten in China einen Familienbetrieb und wissen es nicht einmal.“

Die interkulturellen Missverständnisse machen allerdings bei der „Familien­wirtschaft“ nicht Halt, stellt der GTEC-CEO klar. So kommt es nach seiner Erfahrung auch beim Qualitätsmanagement häufig zu völlig falschen Einschätzungen westlicher Führungskräfte bezüglich der Anforderungen und Erwartungen in chinesischen Produktionsstätten.

Karlheinz Zuerl erklärt: „In China herrscht beim Einkauf eine Zero-Fehlertoleranz, das heißt, es dürfen null Fehler beim Kunden ankommen. Aber bei der Fertigung wird es selbst bei glas­klaren Vorgaben nicht immer so genau genommen. Angesichts dieser Situation sind viel häufigere und viel strengere Qualitätskontrollen als in Europa notwendig, um den Kundenansprüchen zu genügen.“

Fehler werden aus der Ferne zu spät erkannt

Der Asien-Experte weiß aus seinen Erfahrungen, dass Qualität in der Fertigung nicht nur in China nur mit einer stetigen Präsenz vor Ort zu erreichen ist. „Entweder entsendet man Führungskräfte, die einige Jahre Erfahrung mit der dortigen Kultur besitzen sollten, oder man findet einen vertrauens­würdigen Repräsentanten vor Ort, der allerdings in keine familiären Bande eingebunden sein darf“, sagt Karlheinz Zuerl. Er weiß: „Genau daran scheitern viele Unternehmen, weil sie in der Firmen­­zentrale im Westen zu spät erkennen, was in der Ferne tatsächlich passiert.“ Das Berichtswesen aus China verschleiert in vielen Fällen die wahre Situation über Monate und gelegentlich sogar Jahre hinweg, hat der GTEC-Chef im Rahmen von Beratungsprojekten festgestellt, bei denen es darum ging, die Scherben zusammenzukehren und das betroffene Unternehmen wieder auf Wachstumskurs zu bringen.

„Die in Deutschland häufig anzutreffende Mentalität, den Finger in die Wunde zu legen und die Probleme anzupacken, ist in China wenig verbreitet“, erklärt Karlheinz Zuerl. Er führt aus: „Vielmehr ist es Teil der dortigen Kultur, Unschönes zu verstecken und die Situation rosig zu malen. Daher gilt es bei Berichten aus chinesischen Niederlassungen vor allem zwischen den Zeilen zu lesen, was in der Regel nur mit einem tiefgehenden Verständnis über die dortigen Gepflogenheiten gelingt.“

GTEC (https://gtec.asia) hilft westlichen Unternehmen, Herausforderungen in Asien zu bewältigen. Der Schwer­punkt liegt dabei auf der Geschäftsentwicklung, dem Auf- und Ausbau von Niederlassungen und Produktions­stätten, sowie Sanierungs- und Turnaround-Maßnahmen, um Firmen in kritischen Phasen wieder in die Gewinn­zone zu bringen. Unter der Leitung von CEO Karlheinz Zuerl ist ein Team von Beratern, Experten und Interim Managern aktiv, das im Bedarfsfall beim Kunden vor Ort zum Einsatz kommt. Der Chef selbst steht für Aufgaben als Interim General Manager und für Executive Consulting zur Verfügung. Auf der Referenzliste von GTEC stehen Konzerne wie bspw. Atreus, BMW, Bosch, General Motors und Siemens, große Mittelständler wie Hella, Schaeffler, Valeo und ZF sowie kleinere Mittel­ständler, die wenig bekannt sind, aber umso erfolgreicher in Asien agieren.

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Asien-Experte: KI hält massiv Einzug in China

GTEC-CEO Karlheinz Zuerl: „In China gilt Künstliche Intelligenz als ein Schlüssel zur nationalen Entwicklung und internationalen Wettbewerbsfähigkeit. Die meisten chinesischen Fertigungs­unternehmen streben autonome Produktionsanlagen mit KI als Herzstück an.“

Asien-Experte: KI hält massiv Einzug in China

Peking/Berlin, x. Oktober 2023 – „Während viele Bürobeschäftigte in europäischen Firmen mit KI-Tools wie ChatGPT und Google Bard experimentieren, hält Künstliche Intelligenz in chinesischen Unternehmen auf breiter Front Einzug“, hat der Asien-Experte Karlheinz Zuerl, CEO der German Technology & Engineering Corporation (GTEC), festgestellt. „In Europa sucht vor allem die mittleren Managementebene die Vorteile von KI für sich zu nutzen, aber in China ist Künstliche Intelligenz beim Topmanagement angekommen. Ein Großteil der chinesischen Firmen folgt einem von der Unternehmensspitze vorgegebenen KI-Fahrplan“, berichtet Zuerl, dessen Firma das China-Geschäft für viele westliche Unternehmen auf- und ausbaut oder bei Bedarf saniert.

Topmanagement in China: In KI investieren oder untergehen

GTEC-Chef Karlheinz Zuerl weiß aus Gesprächen mit vielen chinesischen Unternehmenslenkern: „Das Topmanagement in China geht in weiten Teilen davon aus, dass KI, Big Data, Robotik und andere Aspekte der digitalen Transformation ihr Geschäft fundamental beeinträchtigen werden. Viele haben schlichtweg Angst davor, dass ihr Unternehmen binnen weniger Jahre vom Markt verschwinden könnte, wenn sie nicht massiv in die neuen Technologien und allen voran in Automation und Künstliche Intelligenz investieren.“

Europäische Unternehmen, die mit Zweigniederlassungen in China aktiv sind, sollten sich dieser „chinesischen Angst vor den Folgen von KI“ bewusst sein, mahnt Asien-Experte Karlheinz Zuerl, und stellt klar: „Vor den Folgen des Nicht-Einsatzes, nicht der Anwendung“. Nach Analyse des Fachmanns gelten die unübersehbaren Erfolge beim Robotereinsatz in der Produktion dem chinesischen Management als Blaupause für KI-Anwendungen.

Karlheinz Zuerl sagt: „Automatisierung ist das große Thema in China. In immer mehr Fabriken werden menschliche Arbeitskräfte durch Industrie­roboter ersetzt oder ergänzt, um die Produktionskosten zu senken, die Qualität zu erhöhen und die Produktionsmengen zu steigern. KI stellt in diesem Zusammenhang eine wichtigen Schritt auf dem Weg zu autonomen Produktionsanlagen dar.“

KI wird in China derzeit fast flächendeckend eingeführt

Der Asien-Experte umreißt das Thema: „Im Reich der Mitte wird Künstliche Intelligenz nicht nur als technologische Errungenschaft verstanden, sondern als Schlüssel zur nationalen Entwicklung und internationalen Wettbewerbsfähigkeit. Daher wird KI in China derzeit fast flächendeckend über beinahe alle Sektoren hinweg eingeführt, von der Fertigung und den Finanzsektor über Logistik und E-Commerce bis hin zum Gesundheitswesen und der öffentlichen Verwaltung. China will die KI-Nation Nummer eins auf der Welt werden.“

Schrittweises Vorgehen empfohlen

Ausländischen Firmen empfiehlt der CEO der German Technology & Engineering Corporation ein schrittweises Vorgehen bei der KI-Einführung in China. So sollten europäische Unternehmen zunächst ihre eigene firmenweite KI-Strategie entwickeln. Erst im zweiten Schritt ist nach Zuerls Einschätzung eine Implementierung in China angebracht – allerdings mit den dort verfügbaren KI-Tools. „Die in Europa verwendeten KI-Algorithmen aus amerikanischer Entwicklung bewähren sich in China nicht“, warnt Karlheinz Zuerl davor, ChatGPT und andere US-geprägte sogenannte Large Language Models (LLM) nach China zu bringen. Am wichtigste KI-Modelle in China nennt der Asien-Experte ERNIE (Enhanced Representation through kNowledge Integration) von Baidu, AliNLP von Alibaba und NeuraLM von Tencent.

„Für internationale tätige Unternehmen besteht eine große Herausforderung darin, KI-Systeme aus unterschiedlichen Herkunftsregionen unter einen Hut zu bringen“, umreißt Karlheinz Zuerl einen Aspekt, den nach seiner Erfahrung „noch kaum jemand aus dem Management auf dem Radar hat“.

GTEC (https://gtec.asia) hilft westlichen Unternehmen, Herausforderungen in Asien zu bewältigen. Der Schwer­punkt liegt dabei auf der Geschäftsentwicklung, dem Auf- und Ausbau von Niederlassungen und Produktions­stätten, sowie Sanierungs- und Turnaround-Maßnahmen, um Firmen in kritischen Phasen wieder in die Gewinn­zone zu bringen.

Unter der Leitung von CEO Karlheinz Zuerl ist ein Team von Beratern, Experten und Interim Managern aktiv, das im Bedarfsfall beim Kunden vor Ort zum Einsatz kommt.

Der Chef selbst steht für Aufgaben als Interim General Manager und für Executive Consulting zur Verfügung. Auf der Referenzliste von GTEC stehen Konzerne wie bspw. Atreus, BMW, Bosch, General Motors und Siemens, große Mittelständler wie Hella, Schaeffler, Valeo und ZF sowie kleinere Mittel­ständler, die wenig bekannt sind, aber umso erfolgreicher in Asien agieren.

Karlheinz Zuerl gehört zu den profiliertesten Beratern und Interim Manager für Turnaround und Geschäftsentwicklung in Asien. Er lebt und arbeitet seit über 15 Jahren in China und Asien kennt daher die Gepflogenheiten in den Ländern wie kaum ein anderer deutsche Manager.

Asien-Experte Karlheinz Zuerl, ist Mitglied bei der UNO-Denkfabrik Diplomatic Council, DDIM und United Interim, sowie Mitautor von „Personalwesen in Krisenzeiten (DC Verlag), Autor der Fachbücher „Management in China“ (DC Verlag), „Effective Cost Cutting in Asia“ und „Erfolgreich in China“ (beides Springer Verlag), sowie zahlreichen weiteren Ratgeber-Ebooks (siehe https://www.gtec-shop.de/)

Weitere Informationen:

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Sourcing products/markets: China vs. USA – Which is Better?

The ongoing debate between American-made and China-bought products has captured the attention of importers, especially recent political tensions, trade wars, and tariffs. But should they buy directly from China or invest in American-made products?

Sourcing products/markets: China vs. USA - Which is Better?

We’ll explore this issue by looking into an interesting analysis about the differences in costs of American Made vs. Bought in China by Westrom, a company that delivers parts and products from China to US buyers.

Previous comparisons between US-made and China-bought products often focused on limited factors like first costs, shipping costs, lead time, etc.. However, for a thorough cost analysis, Westrom highlights a broader range of key components, including those mentioned below:

  • Direct & Indirect Materials
  • Production Scheduling
  • Capital Asset Costs
  • Finished Goods Inventory Holding
  • Raw Materials Holding
  • Supply Chain Responsiveness
  • Obsolescence and Trading Position

By taking these aspects into account, you can make a more informed decision about where to source your products.

Why Choose American Made?

American-made products offer several compelling advantages:

  • Simplicity: They require less management and are less labor-intensive, which is particularly beneficial for businesses that can’t handle the complexities of outsourcing.
  • Control: Keeping your supply chain closer to home allows for better control over quality, logistics, and intellectual property.
  • Cost Savings: Reduced logistics costs, lower tariffs, and shorter lead times can lead to significant cost savings, which also minimizes the need for large inventories.

Why Consider China Direct Buying?

However, there’s a strong case for China direct buying:

  • Cost Efficiency: For many products, buying directly from China can be considerably more cost-efficient.
  • Lower Capital Requirements: China’s lower labor costs are sometimes offset by lower productivity. Still, this is balanced by significantly reduced capital expenditures (CAPEX) in China, which can be up to 46 times less than in the USA.

In conclusion, Westrom’s case study points out that there’s no universal solution when deciding whether to buy direct from China or bring your supply chain home. It depends on your specific circumstances and the factors that matter most to your business. Careful consideration of these variables is essential for making the right choice in today’s global market.

In the coming weeks, we will continue exploring this important issue, uncovering more details and tips to assist importers in making the right decision. Stay tuned for more insights.

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China Sourcing Alternatives: Is it Time for a Shift? (Part 2)

“After years of ‘Made in China,’ supply chains consider alternatives”

Let’s take a closer look at factors to consider when evaluating the possibility of shifting your supply chain away from China:

When to consider moving your supply chain

  • Tariffs and Cost-Efficiency: Evaluate whether tariffs are currently impacting or are expected to affect your product significantly. Additionally, if other countries offer lower labor costs and evidence suggests that the product can be produced at an equivalent quality level for less, it’s worth considering a move.
  • Shorter, Competitive Supply Chains: If shorter, more competitive supply chains, like those in the USA or Mexico, this can be a strong motivation to relocate your supply chain.

When not to move your supply chain

  • Your product relies on a complex, highly specialized supply chain.
  • Moving your supply chain would be a lengthy, capital-intensive endeavor without guaranteed long-term cost benefits.
  • Quality standards and expectations are not met.
  • Overall costs increase due to lower productivity in alternative countries.
  • You still rely on raw materials and resources imported from China.
  • Tariffs could potentially affect your chosen alternative.
  • China remains the best sourcing choice for your products.

While the allure of China sourcing alternatives is strong, careful consideration and thorough analysis are essential before taking the leap.

I would love to know your thoughts in the comments below. 👇🤝

GTEC WHEN TO CONSIDER MOVING YOUR SUPPLY CHAIN:

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