Industries to watch in 2009

Thread Content

1. Fast-moving consumer goods see the fastest growth The fast-moving consumer goods sector (food, beverages, personal care products, tobacco, alcohol, etc.) is closely related to people’s basic living needs, and therefore is not greatly affected by economic cycles. In recent years, thanks to the convenient services provided by online recruitment, the number of job postings in the fast-moving consumer goods industry on the internet has been increasing steadily. It reached a peak in July and August of 2008, remaining at the top of the list regarding talent demand across various industries; the proportion of talent required in these sectors accounted for 8.80% and 13.18% of the total talent demand respectively. After declining in September, demand increased again in October and November, accounting for 9.50% and 9.97% of the total talent demand respectively. Although it did not rank first, it still came in third and second place respectively. From September to November, its ranking in terms of industry demand for talent soared from twelfth to second, showing the fastest rise; it is also expected to perform well in 2009. 　　The marketing and sales departments in the fast-moving consumer goods industry hold an extremely important position within the overall company structure. Key positions in this field include: Sales Manager, Marketing Manager/Director, Brand Manager, Media Manager, Promotion Manager, Research Manager, Customer (Retention) Manager, etc. In the fast-moving consumer goods industry, the total annual pre-tax cash income for sales directors ranges from 195,000 to 550,000 yuan ； The regional sales manager’s salary ranges from 108,000 to 158,000 ； The total annual pre-tax cash income for an ordinary sales representative ranges from 30,000 to 50,000 yuan. In terms of the market, the total annual pre-tax cash income for regular market commissioners ranges from 45,000 to 85,000 ； The market manager’s salary can range from 100,000 to 170,000 yuan, with top earners reaching up to 300,000 yuan. 　　2. The IT industry impacts rankings once again 　　In November 2008, the demand for IT industry jobs across the country continued to decline compared to October, but there was a significant increase in December, setting the stage for an upward trend in 2009. In previous industry rankings, the IT sector (computer hardware and software, the Internet, e-commerce, electronics and microelectronics, as well as the communications industry) has usually taken the lead, thanks in part to the high demand for talent resulting from the rapid development of this industry ； On the other hand, given the close connection between the IT industry and the internet, it is only natural for companies to recruit talent through the internet. In recent years, online recruitment has expanded to various industries, with many sectors that were not originally closely connected to the internet also beginning to use it to find talent. Despite the overall unfavorable economic conditions, the IT industry still maintains higher levels in terms of recruitment needs and salary ranges compared to other industries. 23% of employees earn a monthly salary between 3,000 and 4,499 yuan, while those with a monthly salary of over 10,000 yuan account for 16%. In terms of job requirements, software engineers remain the top priority for recruitment; the Chinese software market has become an important \"haven\" for IT companies, with demand for these positions far exceeding that for other positions on the list. Starting from August 2007, when demand for software engineers declined, the situation began to improve in 2008, with a peak occurring in December. Out of the 20 job fairs held in Haidian District, where Zhongguancun is located, 8 were dedicated to recruiting talent for high-tech companies in the IT and electronics sectors. Looking at the salary trends in various positions in 2008, the order of salary levels for professionals in the software industry, from highest to lowest, was as follows: Business Development Director, R&D Director, R&D Manager, Project Management Manager, Software Development Manager, Business Development Manager, Architect, Senior Software Development Engineer, Business Development Project Manager, Senior Management Consultant, Software Development Engineer, Systems Engineer, Management Consultant, Game Tester, IT Technical Support Engineer, and Junior Software Development Engineer. These positions remained the most lucrative ones in 2009 as well. 　　Furthermore, wireless advertising and online games are set to perform exceptionally well, leaving those industries affected by the economic downturn far behind. 　　3. Large salary fluctuations in the petrochemical industry The petrochemical industry is a technology-intensive sector, and advanced and efficient process technologies serve as the fundamental basis for the survival and development of enterprises. Rising oil prices have spurred the energy economy, leading to a huge demand for talent in the energy sector. Apart from the IT industry, the energy sector, including the new energy sector, accounts for 8.30% of the total demand for professionals. Popular job positions include translators, contract management engineers, drilling engineers, solar engineers, and project engineers. Those with experience in selling PDC drill bits, knowledge of PDC drill bit technology and operation, or experience in oil industry management often have a significant competitive advantage. 　　In recent years, during the restructuring of their workforce distribution, several major oil companies have clearly favored front-line employees such as engineering and technical staff, with significant adjustments made in this regard. This indicates that the human resources strategy in the petrochemical industry places more emphasis on motivating technical talent. The salary of engineering and technical personnel is the highest among frontline employees, with an annual pre-tax cash income that can range from 40,000 to 56,000 yuan. Floating salaries and benefits range from 7,000 to 8,000 yuan. This is mainly because engineering and technical personnel in the petrochemical industry often travel on business trips; especially, those working in this field are engaged in field exploration and development activities, and they enjoy higher subsidies, benefits, and insurance coverage. Skilled workers remain a scarce resource in the market, and the supply-demand gap remains large. 　　The current internationalization strategy of the petrochemical industry requires a large number of employees with an international perspective; therefore, efforts are being made to improve the training of such employees. The launch of numerous international projects provides a good platform for their personal development. Currently, knowledge and technology in the petrochemical industry are evolving rapidly; the basic skills required for certain positions, especially those at middle and lower levels, improve significantly within 5 years of working there. Those with more than 5 years of experience need to advance through promotion or change roles in order to receive a salary increase. At this time, if one fails to improve their educational qualifications, skill levels, and professional capabilities, their salary will remain at a low level. 　　4. Development opportunities in the hotel and catering industry The hotel and catering industries are constantly on the lookout for new employees; there is a persistent shortage of staff. Within these industries, both senior management positions, particularly those requiring managerial expertise, and frontline employees face a shortage of candidates. Many catering companies complain about the difficulty in finding qualified managers, especially for mid-to-senior management roles, as there are very few suitable professionals available. Although there are many positions at the grassroots level, few people are willing to take them. Due to the unique nature of this industry, starting from the grassroots level is an essential step for newcomers entering the field. It is a form of training as well as a way to gain experience; I believe that hard work will always yield rewards. For senior management positions, hotel owners – especially those of large and medium-sized food and beverage businesses – are always in search of talented individuals. However, this leads to high expectations regarding the qualifications of such candidates. In reality, there is a limited number of senior managers with genuine managerial skills available. Moreover, these candidates are also influenced by the salary offers and overall benefits provided by the companies seeking to hire them; ultimately, people tend to strive for higher positions. As a traditional industry, the catering sector has always been viewed as having relatively low-status jobs, which dissuades many job seekers. 　　The gradual shift of the Internet and IT industries toward the food service sector indicates both a growing rationality in venture capital investment and the laying of foundations for the expansion of the domestic food service industry. Industry professionals can make full use of online job hunting to find the positions they desire. 　　5. The demand for talent in the exhibition industry continues to rise. The huge potential of the exhibition industry has made it a key sector of the Chinese economy, and as a result, the demand for talent in this field is also on the increase, despite various challenges. According to the ranking of exhibition hosting frequency by the International Congress and Convention Association (ICCA), China ranked 11th in the world last year. A survey conducted this year by Business Strategy Group on behalf of the Global Exhibition Industry Association shows that out of 156 exhibition venues in Asia, 84 are located in China. RB and India are in second place, with 12 each. In terms of available area, China has 350 square meters, which is 10 times that of the RB market. According to ICCA’s rankings, Beijing’s exhibition industry ranks first among Chinese cities and eighth among cities worldwide. It is expected that by 2014, China will host 201 exhibitions, 84 of which will take place in Beijing. Therefore, it is not difficult to predict that Beijing will become China’s exhibition center in the future. 　　The shortage of professionals in the exhibition industry mainly stems from four aspects at present. First, **the regulatory authorities lack senior management professionals with expertise in exhibitions** ； Second, there is a lack of dual-qualified professional teachers in exhibition education ； Third, exhibition organizers lack professional talent in management, planning, market operations, and project implementation ； Fourth, exhibition professional companies lack specialized personnel in areas such as market development, project management, secretarial work, creativity and planning, design and production, construction and supervision, as well as talent optimization management. 　　Yet at the same time, the sudden financial crisis acted like a dissonant note that disrupted the steady pace of China’s economy. The exhibition industry relies on the business and service sector, and the decline of this latter sector will inevitably hinder the progress of the exhibition industry. This year’s Canton Fair has already sent out an awkward signal: a sudden decline in foreign buyers. In terms of domestic exhibitions, organizers are also under pressure; both the exhibition space and the number of companies participating are decreasing, making it particularly difficult to attract exhibitors. It is expected that the overall scale of various exhibitions across the country will decrease next year, with total revenue falling by at least 10 percentage points compared to the same period in previous years. 　　At the same time, the exhibition industry is closely linked to the advertising industry; there are great opportunities for the development of China’s advertising sector, and therefore the promising prospects for the exhibition industry are also inherent in this context. In the future, the main shortages of skilled professionals in the exhibition industry will be: exhibition project assistants, exhibition project managers, exhibition service specialists, and exhibition department managers. 　　6. Infrastructure investment in the machinery industry was the biggest highlight of 2009. **Infrastructure investment was the key highlight of 2009; since 2008, there has been an upward trend in such investment. Against the backdrop of efforts to stimulate domestic demand, the State Council established 10 measures to expand domestic demand, with plans to invest 4 trillion yuan, which created substantial demand for the machinery industry. The sectors that benefited the most were those related to construction machinery and power transmission and distribution equipment. 　　7. Construction machinery: Large-scale infrastructure construction was the main driving force behind industry growth in 2009. The main sectors that utilize construction machinery include (1) infrastructure development, (2) the mining industry, and (3) the real estate sector. There were significant differences in the development trends of these three sectors in 2009: the rapid expansion of infrastructure construction was made possible by strong investment support ； The continued decline in commodity prices will lead to a slowdown in the growth rate of investment in the mining sector ； Judging from the land development area and real estate price index, the performance of the real estate industry looks unfavorable. It is expected that investment in infrastructure, mining, and real estate sectors will increase by 45%, 20%, and 5% respectively in 2009 compared to 2008. The prosperity of the construction machinery industry will remain high in 2009, with a growth rate of over 20%. The construction machinery products that are expected to perform well include rotary drill rigs, excavators, cranes, bulldozers, concrete mixers, and loaders. 　　8. Shipbuilding: Early indicators show a significant decline in new ship orders, suggesting a downturn in the global shipbuilding industry’s prosperity. Facing the global financial crisis and a sharp slowdown in world economic growth, there have been notable changes in the supply and demand dynamics in the shipping market. New orders received by shipbuilding companies have reached record lows; in November 2008, the total amount of new orders worldwide was only 800,000 deadweight tons, the lowest level in 8 years, representing a 96% decrease compared to the previous year. From January to November, the total number of new orders was 146.4 million deadweight tons, a 37% decrease on a year-on-year basis. It is only a matter of time before the decline in shipping prices affects new orders, ship prices, and ultimately weakens the profitability of shipbuilding companies. The global shipbuilding industry has now reached the peak of its prosperity, and the subsequent downward trend is likely to be prolonged. 　　9. Electricity: The main driving force behind the industry’s rapid growth. Lower interest rates set by the central bank are directly beneficial to the electricity sector. In recent years, due to the sharp increase in coal costs, the power industry has faced substantial increases in financial expenses, with its debt ratio exceeding 60%. A reduction of one percentage point in interest rates could significantly alleviate the financial burdens of this industry. Furthermore, coal costs are still on a downward trend, and with these two positive factors combined, there is considerable momentum driving up the performance of the power sector. Among these, for power transmission and transformation equipment, the accelerated investment by the two major power grid companies is the main driving force behind the industry’s rapid growth. “After the separation of power generation from the power transmission network, in order to address the issue in the power industry of overemphasis on generation at the expense of transmission, and to meet the increasing demands for power transmission resulting from the rapid growth in power generation capacity, investment in domestic power grids has accelerated. Over the next 2-3 years, the planned investment in power grids and the Southern Power Grid is expected to reach around 1.34 trillion yuan, of which approximately 560 billion yuan will be invested in new projects, with the aim of accelerating the establishment of interconnections between provinces within a region as well as across different regions. The actual investment in power grids in 2008 is expected to be around 264 billion yuan (of which 12 billion yuan will be invested in the fourth quarter). It is anticipated that domestic investment in power grids will drive growth in the transmission and transformation industry by over 40% in 2009; manufacturers of transformers, circuit breakers, isolators, and relay protection products will benefit significantly from this.