Connecting the Dots for Re-industrialisation: The Greater Bay Area Landscape

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In a 2016 study, researchers at McKinsey reported a 20% improvement in Operational Equipment Efficiency (OEE) in factories that embraced smart technologies. They also suggested that factories using virtual prototyping or augmented reality enjoyed a 5-10% higher productivity level. Another study, by the International Data Corporation (IDC), predicts that by 2020, 60% of factory workers in the world’s 2,000 biggest manufacturers will work alongside automated assistance technologies such as Robotics, 3D Printing, artificial intelligence, and augmented or virtual reality. It is clear - a colossal transformation of the global manufacturing sector is underway.

A global leader in manufacturing, China has an ambitious plan to revamp its manufacturing sector. Its ‘Made in China 2025’ plan rides on the concept of Industry 4.0 - upgrading China from a manufacturer of big quantity to one of high quality. The ambitions involve innovation-driven development, application of smart technologies, a highly trained and skilled workforce, and green development. Hong Kong, with its strategically important geographic location next to Southern China’s vibrant manufacturing cluster, has much to gain from this transformation. With massive development efforts underway across the South China Greater Bay Area, Hong Kong must adopt a tailored approach to enhance the city’s competitiveness and power its economic growth in the next decade. As Asia’s global city, and also an SAR of China, Hong Kong must grab these phenomenal opportunities and re-examine the potential of reindustrialisation.

Speaking at the recent ‘ASTRI Industry University Collaboration Forum 2017’ event, Mr Nicholas Yang, Secretary for Innovation and Technology of the HKSAR Government, reinforced the importance of diversifying Hong Kong’s economy in the face of global competition, citing the development of high value-added industries as a potential driver. By actively participating in the Greater Bay Area development, “the Government will create favourable conditions for diversifying the economy, in particular for promoting innovation and technology development,” Mr Yang said. The event’s speakers discussed future economic growth powered by innovation and technologies, in the context of re-industrialisation of Hong Kong, Made in China 2025, and the Greater Bay Area. Talking about the city’s past heritage of industrial development, Mr Wong Ming-yam, Chairman of ASTRI, referred to “Hong Kong’s industrial sector that went through a golden era back in the 1950s through the 70s.” Almost a quarter of the population was engaged in manufacturing which contributed around 30% of Hong Kong’s GDP in the 1970s. “The recent decades saw factories migrating to Southern China as Hong Kong excelled in financial and professional services. However, we see a growing opportunity to explore and drive re-industrialisation in Hong Kong, thanks to our strategically advantageous location, the emergence of smart factories powered by cutting-edge technologies, and a burgeoning market for advanced tools, technologies and solutions.”, Mr Wong added.