The Development and Pattern of Equipment Manufacturing Servitization in Northeast China Based on Input-output Tables

Abstract

An increase in manufacturing-related service activities being provided by internal departments of manufacturing enterprise has been observed. This trend appears to be strengthening in the context of the “Made in China 2025”. The purpose of this paper is to investigate to what extent and in what field the domain of equipment manufacturing in Northeast China is transitioning into a major service-oriented field and what pattern is most suitable for future servitization. Northeast China, significant manufacturing industry area, is currently faced with problems such as fierce market competition, low product added value, and economic slowdown. The research analyses the progress of manufacturing transformation from manufacturing-oriented to service-oriented based on the input-output tables, whereby we can draw conclusions on how this field may further develop in future. Four servitization patterns were presented based on the data quantitative analysis and qualitative analysis. The result and the suitable mode contribute to developing reasonable strategy of manufacturing servitization, whilst ensuring new service innovations match the current business model of enterprise and current situation of Northeast China.