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Industrial Upgrading Industry Shuffling Will Inevitably

2008/7/28 16:07:00 6

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Industrial Upgrading Industrial Reshuffle Will Be Inevitable

Facing challenges of survival and actively seeking pformation and Upgrading -- a survey of the survival of private enterprises in Jinjiang

Production costs are rising, exchange rate risk is increasing, trade is tight, financing is difficult and employment is hard.

Fujian Jinjiang enterprises, which are leading the development of private economy, are facing difficulties before going to air.

However, under the severe situation of multiple pressures, Jinjiang enterprises have the opportunity to upgrade industrial structure, optimize their structure and enhance their competitiveness.

Small and medium sized footwear enterprises drop in output value 50%, Jinjiang enterprises face multiple pressures

Jinjiang WorldCom Shoes Co., Ltd. is a medium-sized enterprise with more than 800 employees. Ding Youyi, chairman of the board, told reporters that since this year, the total cost of enterprises has increased by 20%.

Among them, the cost of raw materials increased by 15%, the cost of manufacturing and labor increased by 25%, and the cost of Finance rose by 13%.

"2 years ago, the average export price of a pair of shoes was about $6, but now that the price must be more than 7.2 dollars, the enterprise can maintain capital."

Reporters learned from the Jinjiang economic and Trade Commission that the average profit margin of Jinjiang enterprises in the past reached 10%, and only 5% last year. Many small and medium-sized enterprises have faced zero profit margins or even negative profit margins.

Since the beginning of this year, the output value of small and medium shoe enterprises in the city is only 13 billion 300 million yuan, which is 50% lower than that of the same period last year.

Liu Jun, manager of Mingwei shoes and Garments Co., Ltd., Jinjiang, said that many small and medium-sized enterprises were afraid to take long-term orders due to the exchange rate appreciation of the renminbi and the depreciation of the US dollar.

Not only small and medium-sized enterprises feel the pressure, but the plum blossom umbrella Limited by Share Ltd in Jinjiang's east stone town is an export oriented umbrella manufacturer. "Plum blossom" umbrellas have a high reputation in the European and South American markets.

Wang Anbang, chairman of the board, told reporters: "this year, the cost of production has gone up badly, and we have signed a contract in accordance with the terms of the previous sales contract."

Wang Zhiyong, the head of Jinjiang footwear industry association, said that most of Jinjiang's private enterprises were export oriented, focusing on traditional production areas such as shoes, hats, clothing and ceramics.

Since the beginning of this year, the cost of raw materials and labor costs have risen, and the US dollar has continued to depreciate.

And the difficulty of financing has become the most troublesome problem for many enterprises.

"Now banks are inclined to accept loans only for small and medium enterprises. Last year we had 3 million yuan in working capital loans. After the loan was repaid at the beginning of this year, banks would not lend to them, and the capital chain would be tighter and tighter."

Wang Zhiyong said.

Small and medium enterprises turn passive into initiative

Small and medium-sized enterprises are the support and foundation of Jinjiang industrial clusters.

At present, Jinjiang has registered more than 5500 small and medium-sized enterprises, creating 54.6% of the city's GDP, providing more than 95% of the jobs.

Unlike other coastal developed areas in the past few years, there have been some small and medium enterprises "closing down tides". Jinjiang small and medium-sized enterprises, though generally facing small profits, capital preservation or even losing money, only 5 small businesses have collapsed so far, and most enterprises are still struggling to support them.

Li Jianhui, mayor of Jinjiang, said: "many small and medium-sized owners are putting together years of savings to fight. Even if they lose money, they can not break the capital chain, employees can not go, and the market can not be lost."

Ding Youyi said that since this year, by changing the production process, promoting fast streamlined operations, improving management level, and paying attention to cost control and other ways to reduce operating costs, enterprises maintain a small profit management situation.

He said that innovation and upgrading are related to the long-term survival of enterprises. However, because of various problems in concept, capital, technology and talent, they have seriously affected product innovation and industrial upgrading.

Some small and medium-sized enterprises play the respective advantages of production capacity and sales network and pform into local brand enterprises for OEM processing and matching production.

Li Lang (China) Co., Ltd. brand publicity manager Wu Shunhong told reporters that since last year, a number of local small and medium-sized enterprises have come to the door and asked for supporting processing for "Li Lang".

Anta (China) Co., Ltd., Jinjiang Sanford Textile Industrial Company and other local leading industries have extended a number of small and medium-sized enterprises with good foundation into industrial clusters by extending the industrial chain to achieve win-win development.

Ebb and flow to promote industrial upgrading

It has become the consensus of many small and medium-sized enterprises to carry out industrial pformation, increase value-added products and take the road of independent innovation to achieve long-term development.

In view of the increase in production costs and other issues, the plum blossom umbrella industry quickly found a solution. The R & D department launched the new product quickly and formulated export prices according to the cost of new products, aiming at the uncertain factors of RMB exchange rate appreciation and depreciation of the US dollar this year, and the company agreed with foreign dealers on the exchange rate standard.

Wang Anbang said: "because of the brand advantage of products, the pressure of rising costs can be digested through the market."

"After the appreciation of the renminbi, the import equipment is cost-effective."

Xie Jiancheng, manager of Jinjiang Sanford Textile Industrial Co. Ltd., smiled and told reporters.

Since last year, the company has invested nearly 300 million yuan in RMB appreciation and imported more than 1000 of the world's most advanced water jet looms from Europe and Japan. At the same time, it has made great efforts to cooperate with DuPont and other industry giants.

Due to the diversity and technology exclusiveness of the products, the gross profit margin of the company can reach more than 40%, which has been able to adapt to the changing external situation.

Under the consensus of product innovation and industrial upgrading.

In the first half of this year, 12 leading enterprises in Jinjiang introduced advanced equipment valued at 964 million yuan. 7 food enterprises and foreign suppliers reached a total of 300 million yuan for equipment procurement intention. At the same time, 26 enterprises were planning to invest 2 billion 214 million yuan to carry out technological improvement to improve product competitiveness.

For the problems faced by SMEs, Liu Jun and others said that small and medium-sized enterprises did encounter many difficulties at the moment, but in the long run it was a good thing. The elimination of backward enterprises in the market economy is inevitable, and the initiative to achieve pformation and upgrading is the long-term solution to survival and development.

Li Jianhui believes that Jinjiang enterprises are in the process of shuffling, integrating and upgrading industries.

He said: "at present, Jinjiang's economic growth is still mainly driven by traditional pillar industries such as shoes, ceramics, textile and clothing, food and so on. These industries are facing the dilemma of weak growth and insufficient stamina, and industry shuffling and integration are inevitable. This will help to upgrade the industrial level, make the division more refined and improve the industrial cluster matching."