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    Industrial Upgrading Peninsula Leather Manufacturing Industry Suffers From Labor Pains

    2008/4/14 0:00:00 40

       

    Traditional processing enterprises such as food, craft, hardware, bags, textiles, clothing, leather and so on are the important parts of our peninsula manufacturing base.

    Under the trend of upgrading the traditional manufacturing industry to the advanced manufacturing industry and serving the economy, some of these small and medium enterprises are under the pressure of increasing costs, environmental protection, exchange rate and so on. They have problems such as underemployment and declining exports, which have been suffering from industrial upgrading.

    Cost pressures arrive unexpectedly.

    "Rising prices of raw materials, rising labor costs and soaring resource prices...

    It seems that all of a sudden came to the enterprise.

    In the first 3 months of this year, the market price of the main raw material cold rolled sheet rose from 5100 yuan per ton to 5900 yuan now, according to an interview with a private owner of a metal product factory in Rizhao City.

    The head of a textile enterprise in Yantai told reporters that the cost of cotton has increased from 64% of total cost to more than 70% because of the rise in cotton prices.

    Some enterprises procurement personnel also told reporters that the price of raw materials in leather industry increased by nearly 30% on average last year, rising by nearly 7% in the first quarter of this year, and the cost of hardware and food processing industry also rose by 8% and 5% respectively.

    This year, the rise in labor costs is also like the shadow.

    According to a reporter's survey, the monthly wages of local workers in Qingdao rose from about 1600 yuan at the beginning of the year to the current 1800 yuan - 2000 yuan. The monthly wages of workers in Yantai and Weihai also rose from about 1400 yuan to 1600 yuan to 1800 yuan.

    The impact of rising raw material and labour prices on corporate profits is immediate.

    According to a survey, the overall profit margin of our textile industry has dropped from 10% to less than 5%, and the profit margin of the metal processing industry is only around 3%.

    For export processing enterprises, the export tax rebate rate reduction, processing trade policy adjustment, RMB appreciation, offshore market fluctuations and other external environment changes, also bring a great impact to enterprises.

    According to a statistics from the Provincial Textile Industry Association, the export growth of the top 10 enterprises in the province last year has generally declined, and some enterprises have even seen negative growth of nearly 5%. The overall profit level of the industry has dropped by a wave and is approaching the bottom line of profits.

    In addition, statistics show that over the past 3 months, most of the cyclical industries and export led industries have been decreasing in profitability.

    Industrial adjustment squeezing the living space

    In recent years, the peninsula manufacturing industry is facing upgrading and pformation from traditional manufacturing to advanced and high-end manufacturing industry.

    Reporters learned that the upgrading of manufacturing industry has been fully developed in the peninsula manufacturing base.

    Reporter survey found that some development zones, high-tech industrial parks, etc., on the scale of manufacturing enterprises, quality, efficiency, environmental protection, labor standards screening requirements increasingly stringent.

    Wang Kejun, Secretary of the Party Working Committee of Rizhao City Development Zone, told reporters that enterprises that do not conform to industrial policies are prohibited from entering the development zone.

    At present, Rizhao Development Area has gathered a number of advanced manufacturing, high-tech industries, port logistics industry and other advantages.

    Weifang Binhai New Area is a newly built development zone. 185 projects have been implemented, with a total investment of about 42000000000 yuan.

    A staff responsible for investment promotion in the area has introduced that the qualification, environmental protection and technology of manufacturing enterprises are all "hard targets" for pre development review.

    In addition, the economic development of Peninsular Urban Agglomeration is mainly driven by the service industry, and the service economy will gradually become the main body of the urban economy.

    In particular, with the accelerated pace of "retreating into three areas", the development of traditional industries in urban areas is increasingly constrained by land constraints, resource and environmental pressures, increased labor costs and higher business costs.

    Reporters interviewed found that some small and medium-sized processing enterprises in the peninsular area were faced with the situation of factories moving away from urban areas and workers choosing jobs.

    Professor Wang Yu of the provincial finance school believes that one of the manifestations of the upgrading of the peninsula manufacturing base is that the advanced manufacturing industry will take advantage of the trend, and the traditional manufacturing industry, especially the small and medium-sized enterprises, will suffer from the "labor pains".

    This kind of pain is manifested in the following aspects: on the one hand, the traditional SMEs are generally backward in technology and heavy in pollution, and have become "adjusted" targets. On the other hand, the competitiveness of enterprises is not strong enough to contribute little to local employment and finance and taxation, so it is difficult for local governments and banks to give full support to them.


    Early escalation and early initiative

    An expert from the provincial development and Reform Commission told reporters that the pformation and upgrading of the general industry will cause a backlash to the backward production capacity. The peninsula manufacturing base should be upgraded early and take the initiative, and the vibration and losses will be reduced to the lowest level. Otherwise, until the market environment is fully pformed, the cost of upgrading will not be greater.

    He said that the manufacturing industry is still the most important industry in our province. The key is to enhance the competitiveness of small and medium-sized enterprises, and guide the traditional processing enterprises into the advanced manufacturing industry chain and participate in the market competition.

    In fact, at the same time, in our province, small and medium-sized manufacturing enterprises have begun to "pain".

    The responsible person of Zhucheng foreign trade company, which has been engaged in agricultural products export for a long time, told reporters that Japan's positive list system raised the pesticide residue index of exported ginger to more than 300, and the egg increased to more than 580. Despite the harsh conditions, the export of agricultural products in our Province has maintained an increase of more than 20% in the first quarter, ranking the first in 7 consecutive years.

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