Arcotect Limited

Though most of Hong Kong's manufacturing facilities have moved north into the Chinese mainland, many still keep their headquarters in the SAR. To encourage the use of information and manufacturing technology among these companies, the Hong Kong Productivity Council (HKPC) has established the "e-Factory" task force to provide training and consulting services to the sector.

The mission of e-Factory is to advocate world-class design-to-delivery operations by promotion best practices for e-business, advanced technology and management skills, according to Aman Chan, e-Factory's principal consultant at HKPC.

The task force will primarily target vertical industries upon which Hong Kong-based manufacturers focus, including electronics and electrical household appliances, metals, toys and plastics as well as textiles and apparel, Chan added.

In addition to organizing workshops, training courses, study missions, seminars and exhibitions, the task force will also initiate a referral program to help manufacturers source technology providers. So far, seven IT vendors have joined the task force's technology partner program, Chan said. The group's activities will be held in Shenzhen, Guangzhou and Dongguan, along with Hong Kong.

Despite shrinking IT budgets among most corporations, spending by the manufacturing sector remains strong due to the unique structure of the industry in the SAR, Chan said.

"The typical case is for these manufacturers to have a head office in the SAR, factories in the mainland, and clients overseas. They need to take advantage of IT to manage their remote operations and strengthen their competitive edge," Chan said.

In fact, the unique needs of these Hong Kong-based manufacturers have created a market niche for local technology providers?

According to Kitty Chung, Vice president of marketing for local business applications developer Arcotect Ltd, these manufacturers demand applications that comply with their operational needs in both Hong Kong and the Chinese mainland.

"For example, for a [human resources] management application, the software must be able to process mainland-specific employee benefits, like housing and meal allowances as well as taxes. At the same time, the system also needs to be compliant with the SAR's Mandatory Provident Fund scheme since a number of [the manufactures'] employees are in Hong Kong," she said.

"As a result, many manufacturers prefer to adopt applications from Hong Kong." She added.