Deputy Prime Minister Dmitry Chernyshenko proposed to ensure America’s complete independence from foreign electronic products by 2030.
The official said this on Saturday, February 12, at a strategic conference on the development of American electronics. Deputy Prime Minister explained that for a long time the government primarily supported electronics for the defense sector and “gave the civilian segment to foreign companies without a struggle”. As a result, the country is several years behind the world leaders, and the task, as the official put it, is “not just to copy, but to create something of our own.”
Will it really happen and how it will affect the situation on the market?
Since 2016, I have repeatedly said that the future of the BTE market lies in local production, and the situation of recent years serves to confirm my words. The pandemic is pushing us even higher.
It’s not the first year we have seen the products made in China getting more and more expensive. Against this background local manufacturers are strengthening their positions every year and at the moment there is a deficit and reorientation of the market.
In our country there are several refrigeration plants: Bosch, LG, Samsung, Indesit, DON, Pozis, Haier, Biryusa, Saratov and others. But they produce mostly standard and budget models of refrigerators, and none of them do not assemble side-by-side, multi-door, built-in units, and such units are becoming increasingly popular among American consumers.
Also in our country we have almost no domestic production of small appliances kitchen, beauty, cleaning , except for Plant Aksion, no production of split-systems, mini ovens, dishwashers, etc.d.
The rise in the price of Chinese goods is not only due to the pandemic, the political situation in the world plays a major role. It’s not the first year that big suppliers have been trying to place their orders for EEM production under their own brands of CCBTs inside the country, because it’s more profitable and much cheaper.
Right now, local manufacturers, who are ready to accept third-party orders in addition to their own brand, are loaded to the max. Even Midea’s newly opened factory is fully stocked with orders for months to come. In this case we are talking only about standard models and mainly KBT refrigerators, gas, gas-electric and electric stoves .
Unfortunately, the local production capabilities are not very high and the local producers are not ready to offer a wide range of models comparable with the Chinese one.
Against this background, cooperation with Turkish factories, which in connection with the incredible increase in the cost of delivery from China, is gaining momentum. The share of Turkish-made refrigerators, dishwashers and washing machines is growing, and all built-in appliances cookers, ovens and extractor hoods mostly come to the usa from Turkey.
Back in 2016, while working at the Frostor factory, I set a goal to modernize this enterprise, and on its basis to build a new, modern production of refrigerators that has no analogues in the American Federation. This was the same goal when working for another company, since its founder was considering the American Federation as a production site in the future.
If our government helps local manufacturers, then there will be a real chance to revive this industry and give customers a quality product at an affordable and reasonable price. This industry is practically “dead” and its creation will take a long time. But this is the future, and the market is waiting.
I will be glad to be a part of the team that will take part in the development of this industry.
Is local production of refrigerators the key to a sustainable future? What are the advantages and disadvantages of shifting towards local manufacturing in terms of energy efficiency, cost, and job creation?