How Can Shoes And Other Manufacturing Survive In The Financial Crisis?

This Thursday, economist Fang Gang will also host the "enterprise re start" forum sponsored by this newspaper, giving Foshan a "start off" tone.

But the merger is not just once and for all.

After 8 years of trabeculae, the daily work has changed "flavor": according to the boss's instructions, he wants to move the machines in the factory from morning till night to another factory next door.

Since October 24th, the industrial zone of Sha Wei bridge, Ping Chau, South China Sea.

Officially shut down, the next day began to move the machine outward.

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Because it belongs to Guangdong Zhao Xin Enterprise Group Co., Ltd., Nankang and Nanping two factories are merged.

In the past, trabeculae just had to rush to purchase and deliver goods. Now, when many workers are unemployed, he is still busy.

The busy past of the factory is in sharp contrast to today's emptiness.

"We are moving to live with our employees in Nanping," he said.

Trabeculae is slightly regrettable.

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The dormitory of all 16 people only left a bed board and a notice, exhorting the staff to complete the relocation before November 8th.

Output fell before shutting down.

"Fewer orders, workers do not work, often a week rest time than working hours."

Worker Xiao Wu recalls that he worked almost every day until 10 o'clock in the evening before September, when the shoe factory at that time required 30-39 million pairs of orders.

Since September, he has said goodbye to overtime work and left work at 8 o'clock every night.

And after October, sometimes they didn't even live without work.

The group leader, who did not want to be named, revealed that the average monthly salary of ordinary workers was 1450 yuan, which dropped to more than 900 yuan in September.

"No living, no money, no one will do it."

Xiaoliang said that at the peak of the business, there were about 2500 people in the factory, 1500 sewing machines were full of factories, and only one person was sitting between two production lines.

Workers began to resign this year, especially in September, when they had gone to five or six hundred people, and there were about 500 employees left in October 24th.

And trabeculae is more than 450 yuan a month.

"Even the driver has gone two, and now I work for two people."

The market is off season, but this year's overseas orders are even worse.

"Even in the off-season, the total output of two factories in the past year can exceed 400 thousand pairs, but this year there are only 250 thousand pairs."

Mr. Zhuang, head of Zhao Xin Business Group, believes that exchange rate changes and market demand are also reducing the export market tightening.

The production and operation of large numbers of idle machines are almost all in the warehouses of Nanping shoe factories.

"Before March this year, there were 6 production lines in south port because 4 workers were closed.

After the merger of the two factories, more than 3000 employees were pferred to Nanping.

The factory basically meets the operation of the 8 production lines, but has not yet reached the ideal scale of production.

Because of not turning on the lights, the warehouse became a place for workers to take their lunch break, and the women workers even laid a mat on the operation table to lay a row.

"If we do not have enough manpower, we will reduce production procedures."

Mr. Zhuang said the next step.

The factory will entrust the processing of shoe upper to other factories.

The shelves shuttle among them.

There is no shelter on the machine tool, and the factory gate is completely open.

A factory owner speculated that idle machines might be resale.

"Five or six bosses have come to see the car coming and going every day."

However, even in the case of Mr Zhuang, no buyer can be found.

"At present, we encourage competent middle-level cadres to build outsourcing factories in their hometown."

Zhuang said that at present, enterprises can still survive, and the establishment of outsourcing factories in other provinces is only expedient in the past 1-3 years. The plan will be pferred out of Guangdong 3 years later.

But the general manager of the three Hawk is still optimistic about the future.

Luo Xiaoyan, a salesman of Nanhai three Eagle Bicycle Co., shook his head repeatedly.

Previously, some of her old customers often asked questions but did not buy them, while new customers often received quotations and no more.

"A Madagascar customer who has worked for three years has booked 8000-9000 cars in the past year.

In January last year, Luo Xiaoyan took orders for $about 400000, and the total number of orders in the first half of this year was also far from the order.

"Fewer orders, more busy work."

She said frankly that in addition to keeping orders and maintaining regular customers, she insisted on developing new customers.

The US market has narrowed to the most and there has been no order since August.

Zhou Kunhua, general manager, said that another US customer owed more than $10 thousand and has not heard from him until now.

At present, some American customers will still consult, but they will never make the order.

In the same period, Christmas products were booked in the same period, but no orders were placed this year.

"This can effectively avoid a financial crisis in a certain area and lead to a total loss."

Zhou Kunhua believes that another advantage of enterprises in maintaining sales is owning their own import and export companies.

In this regard, the head of the Nanhai District Economic and Trade Bureau also believes that self export does have advantages: first, customers generally like to directly contact with factories, because they can avoid the increase in the intermediate links of buyers, and can also directly see factories and increase quality assurance.

Secondly, the agency that the agent represents is not a company, and the enterprise may not be able to allocate enough customers.

Zhou Kunhua believes that small and medium-sized enterprises in the face of the financial crisis, there are advantages, namely small scale, easy to turn around, less than dozens of people can reduce a large number of labor costs, "but big enterprises can not, they cut at least a hundred people".

Up to now, the three Eagle company has been reduced from about 160 people to 130 people, from the grass-roots staff to the middle management, the layoff rate is 20%.

Since the layoffs in August, the factory has saved about 4-5 yuan of labor cost per month.

"Wages are now higher than normal."

Employee Xiao Li said that because every worker in the factory was reduced by one employee, he paid half of his salary to the team members.

Zhou Kunhua believes that this is "to ensure production enthusiasm, employees will not be excessive loss."

As for tire procurement, the Guangdong tire in October began to stop the introduction of 10 yuan / tires, turning to 9 yuan / Tianjin goods, and at least 2 yuan per vehicle.

At the same time, gasoline, office supplies and communication fees should also be compressed as much as possible, which can save more than ten million yuan per month.

For the future whether to continue layoffs or reduce the size of the factory, Zhou Kun Hua can not be sure: "according to the order quantity."

Zhou Kunhua disclosed that, on the one hand, customers could not know whether the product was raised or not, and on the other hand, competitors would not make new products.

A workshop monitor told reporters that at present, the factory is producing a folding mini electric vehicle, which is a patent for the factory.

There are 3 such patents, three eagle, and its profit is 10 times that of the traditional products.

At the same time, in order to reduce the losses caused by exchange rate fluctuations, the three hawk currently sign a note when they sign the bill: "if the RMB exchange rate fluctuates more than 5 points against the US dollar, the factory price will be raised or lowered accordingly".

In this way, even if the exchange rate changes, the maximum loss of 1 yuan will be only 5 cents, and the loss of each vehicle can be controlled within the range of ten yuan.

Nevertheless, Jane is still careful in managing costs.

In 1986, Jane Guang founded Jane's household electrical appliance factory and registered her brand "Yi Li".

From 1988 to 1998, after ten years of development, purple sand series electronic cooking utensils became a well deserved "purple sand pot king".

During this period, Jane's household electrical appliance factory was known as the "tumbler" in the purple sand pot industry due to its steady and rapid development.

At present, the domestic sales of its products achieve 20%-30% growth, while maintaining 50% share of the domestic market.

Of course, in the face of the global financial turmoil, Jane's household appliances can not be completely placed.