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Headquarters Economy Boosts Abrasives Industry Upgrading

Headquarters Economy is a new economic mode that has been recognized with business park and Central Business District. An HQ economy is defined as being sufficiently resource-rich to attract a cluster of corporate HQs.

From: iAbrasive.comDate: 2014-07-21 02:36:30Views: 467

Headquarters Economy is a new economic mode that has been recognized with business park and Central Business District. An HQ economy is defined as being sufficiently resource-rich to attract a cluster of corporate HQs. Not only does it improve the operational efficiency of by gathering the most knowledge-intensive segments of corporate value chains in "center cities," it also brings desirable economic benefits to its surrounding areas by optimizing resource distributions among different regions and industrial chains. Once it is formed, HQ economy can bring spillover effect to local economy, such as supply effect, industrial agglomeration effect, industrial relevant effect, consumption drive effect, employment multiplier effect, capital magnification effect, etc.

Based on China abrasives industry developing trend, more and more companies do space layout in HQ economy mode. They usually put headquarters in a developed central city and their manufacturing base in underdeveloped area, hoping to gain profits at low cost. Centralized configuration can not only lower down comprehensive cost of enterprise resource allocation, but also make the best of the intensive resource in underdeveloped manufacturing base.

Not only central cities like Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou, etc. are attracting HQ enterprises, second and third-tier cities like Zhengzhou, Sanya, Taiyuan have also seen HQ economy as an important strategy to speed up company upgrading and transformation. In addition, as a new economic mode, HQ economy can not only boost fast and healthy regional economic development but also make contributions to regional tax revenue.

Central metropolis has been popular among large enterprises due to its advantage in human resources, information and convenience. Similar to college students who choose working locations, the most fascinating to China’s top 500 big cities are the well-known cities with better environment.

According to statistics, China top 500 average HQ location choices are Beijing, Guangdong, Jiangsu, Shandong, Zhejiang, Shanghai, Tianjin, Liaoning, Hebei and Henan. As the capital city of China, Beijing takes the first place; Tianjin is a municipality directly under the central government and the rapid development of Binhai new district has make it the seventh place that attracts big enterprises. Seen from the rank, eastern area, together with middle part and west area has provinces suitable for big enterprises to survive. The development of west regions have attracted more and more China top 500. Besides, Shanghai has 347 multi-national companies HQ, ranking the first in mainland.

In summary, headquarters economy is an economic mode that lives up to mutual improvement in enterprise, HQ and manufacturing base.

 

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