Research On The Technical Efficiency Of China Reefer Container Manufacturing Industry

Collected by authorized society that the total quantity of container built and sold is approximate 3425 thousands TEU in the world, which achieved the historic highest level in container manufacturing industry. There are around 3351thousands container, more than 97.8% of the total products in China. China has been in the first class of container building since 1993. Reefer container manufacture is one branch of container industry. China became the nearly single reefer container supplier after the Denmark reefer builder, which is belong to Maersk Group closed in year 2006. Total 114448 units reefer container were made and exported in year 2008, dominating the 98% or so of the world reefer market.China reefer container manufacturing industry grew too much after almost tow decals operation and development. The quantity of both industry employee and net fixed assets is increased dramatically. Meanwhile the total yearly capacity of China reefer industry expanded rather fast too, from 35thousands TEU in year 1999 to 238thousands TEU in year 2008, improved about 6 times. It seems the trend of such rapid expansion is still going on due to the strong market demand. As we know efficiency does not reflect the company performance but also decide the competence of company. More and more companies realize the importance of efficiency in more competitive market environment. Efficiency is combined by two parts. One is so called technical efficiency and the other is allocation efficiency. The technical efficiency is focused in this thesis only. The purpose of my research is to try to find out that:What the technical efficiency of such industry is? what the key factors effected their own company's efficiency are? And take what action to improve the technical efficiency of the reefer container manufacturing industry.Efficiency and the so called technical efficiency are brief introduced in this thesis. The research of technical efficiency recently was focused on two aspects. One is upon how to achieve the technical efficiency and the other is upon how to calculate it. The history of China reefer container manufacturing industry is introduced, including the five main active reefer manufactures. Four target companies are selected based on the key efficiency impacted factors in reefer container manufacturing industry. The specific inputs are labor and net fixed capital, while the output is the total yearly yield of each factory.The technical efficiency of each factory during measuring period is calculated by soft ware so called "DEAP 2.1 version"Based on the calculated result of technical efficiency, three factors are chosen to carry out the correlation analysis. The final analysis shows that all the three factors effect the companies in China reefer industry similarly but with various magnitude.Solutions upon technical efficiency improving are proposed in the final based on the research.