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- ROI China: 5 years anniversary

2017 marks the 5th year of ROI in China, and to celebrate industrial progress, for the first time this year we carry out the ROI Industry 4.0 Awards in China, too. So far 21 companies have signed up for the competition – a resonance we did not dare to foresee even in our most optimistic expectations.  

It reflects the speed of Chinas industrial transformation: The early days as sweat shop for the world are over. The good news is, they have been replaced by something far better: Fully established and integrated supply chains, economies of scale unheard of, and the catch-up of second-tier cities which keep the economic engine humming.   

And I would like to add here that it is good that the pace has become more reasonable in recent years, as the over-excited growth of China had previously put a strain on the world economy with soaring raw material prices (Remember the steel hike in 2009: 1,200 $ per metric ton. Then, for a time in 2014, China steel had become as cheap as cabbage. Today it is at a more reasonable – and still amazingly low –  350$ per metric ton).  

Yet, neither fluctuating raw material prices nor rising labor costs present an issue, because they effect all companies equally. The biggest issue by far is the emergence of new players. As always with competition, from an overall market perspective it does result in a better yield: Fewer resources used, more value gained. Yet from a company perspective it means enormous pressure to improve: of course in terms of quality, value, and delivery, but equally in terms of innovation and product superiority.   

We can literally feel this market pressure in our client structure: It consists of both multi-national as well as Chinese companies, some of which were incorporated just 6 years ago. While bringing in a consultancy to improve is still kind of a novelty in China, I would like to invite you to involve our heads and hands: there is simply no better way to make your team and company stronger in the long run.   

ROI was founded 20 years ago, and over 2000 successful assignments make me confident that we are able to improve the performance of your company, too: Be it in manufacturing productivity, supply chain agility or R&D effectiveness.  

Looking forward to hearing from you,
I remain with best regards,  

Timo Schneemann

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