Zhejiang Smart Manufacturing Expert Committee investigates digital transformation of Nanxun Wood Industry Cluster

Source: Zhejiang Smart Manufacturing Expert Committee

From May 21 to 22, 2025, Director Xu Jiping and Deputy Director Jiang Zhengui of the Zhejiang Smart Manufacturing Expert Committee led a research group to Nanxun District, Huzhou City, to conduct a special investigation into the digital transformation of the wood industry cluster. The research group visited enterprises such as Fulang Wood, Yibo Furniture, and Jumeijia Technology, gaining an in-depth understanding of digital transformation practices in the wood industry, including whole-house customization and decorative materials. Yang Guozhi, Deputy Secretary of the Nanxun District Party Committee and District Mayor, participated in the investigation along with the head of the economic and information department.

Photo | Investigation site

Wood enterprises in Nanxun District address three major pain points through digital transformation: uncontrollable costs, low efficiency, and chaotic processes. This is achieved by integrating MES, ERP, and other systems to enable automatic data flow, establishing standardized models to lower design thresholds (operable by college students), and real-time monitoring of costs with early warnings for order changes. After digitalization, the human effort for order splitting is reduced, quotation speed is increased, and order splitting accuracy reaches 100% (far exceeding the industry average of 60%-85%). The head of digitalization at Senkai Enterprise believes its success relies on the owner's determination and the service provider's industry experience, and plans to increase equipment automation to 80% in the future. Another whole-house custom wood enterprise, focusing on the high-end market, acquires customers through Douyin IP and community marketing. Its general manager proposed that any newly built factory must be laid out according to digital logic. In their new factory, the enterprise integrated its existing systems, avoiding the misconception of 'new factory, old processes'.

Photo | Investigation site

At the government-enterprise symposium, representatives from 15 wood enterprises shared their initial intentions, construction achievements, and future plans for digital transformation. Huzhou Jinque and Shenhua Dashi, two service providers, shared their insights and experiences in serving the digital transformation of small and medium-sized wood enterprises.

Photo | Symposium site

Director Xu Jiping pointed out that Nanxun wood enterprises have formed an inherent drive for digital transformation, and market players' perception has fundamentally shifted from 'policy-driven' to 'value-driven'. Regarding the wood industry, a traditional advantageous industry in the region, the Nanxun District Party Committee and District Government have taken proactive measures and introduced a series of initiatives to promote the digital transformation of small and medium-sized enterprises. Currently, Nanxun's tailored digital development for wood enterprises has shown initial results; transformation plans are adapted to enterprises, model enterprises have developed solidly, and they have genuinely reaped the benefits.

Digitalization is an essential and urgent task for manufacturing enterprises' survival and development. Nanxun should seize the opportunity to focus on breaking through three key propositions: First, the question of 'what to do'. With a clear transformation direction focused on enterprise pain points and value realization, based on actual enterprise operating scenarios, guided by 'breaking through pain points and realizing value', gradually build a progressive transformation path from basic data collection to system integration. Second, the question of 'how to do it'. Digitalization should be treated as a 'top priority' project, with full staff participation and a regular training system. Third, the question of 'who to do it'. Addressing the 'selection dilemma' for enterprise service providers, government departments should strengthen supply-demand matching, promote service providers to delve deeper into vertical fields, and form a specialized and precise service supply system.

The next stage needs to focus on strengthening enterprise awareness and execution: First, seize sample cases, deepen demonstration leadership, and distill replicable experience templates; Second, do well in promoting and publicizing samples, allowing entrepreneurs to share their experiences through on-site meetings and other methods; Third, grasp both supply and demand capabilities and supply-demand matching. Service providers should specialize and refine their offerings, fighting a 'positional battle' for industry digital transformation. The government should act as a 'matchmaking agency' for both supply and demand, ensuring 'marriage introduction, free love, and two-way choice'. Finally, attention should be paid to the standardization and continuity of policy implementation, strengthening the performance management of transformation subsidy funds, establishing a credit mechanism of 'promises must be kept, subsidies are transparent', and continuously stimulating the transformation momentum of market entities.

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