Shoe Companies Move Inland: The Most Attractive Cost Of Land

At 6 p.m., when many women worked in the new factory in Jiujiang, Jiangxi, they went out of the factory gate, and their husbands and sons had brought the delicious dishes waiting for them at the door of the factory in the afternoon at the end of the afternoon in the afternoon of.

"If the home is in the locality, the mood of the staff will be more stable."

Lin Jixian, associate manager of Microlab, told reporters.

He believes that this is a major advantage of the relocation of enterprises.

Beginning in 2007, Guan he, who has worked in Dongguan for ten years, began to set up a new factory in Jiujiang, Jiangxi. By the Spring Festival this year, the number of employees in Jiangxi's new factory has reached more than 6000, while the old factory has only two thousand or three thousand people left.

Of course, the benefits of large scale relocation are far more than the quality of workers' lives.

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However, the local workforce's proficiency, industrial supporting environment and pportation cost still offset the dividends of enterprises in a certain extent.

So what kind of enterprises are suitable for and need to move inland?

Although the local workers are relatively stable, Lin Jixian told reporters: "the workers in the inland areas are less skilled than the workers in Guangdong."

Moreover, local employees working in their hometown do not have much desire to earn more money for overtime work than coastal workers.

Microlab's new factory in Jiujiang is two times larger than the old factory in Dongguan, but the final capacity gap between the two factories is not very large.

Therefore, even if the average wage of each worker falls, the final labor cost will not necessarily decrease significantly.

But it also depends on the degree of adaptation of the workforce.

The increase of pportation cost is also a factor that the relocation enterprises have to consider.

A sporting goods exporter who recently moved from Suzhou to Suqian, Jiangsu Province, told the reporter that the pport cost of the box with a gross weight of 20 tons before Suzhou to Shanghai port was 1000~1500 yuan.

After moving to Suqian, the cost will be increased by 400~500 yuan, and pportation cost will rise by 30% to 40%.

And away from the matching.

The staff of the Dongguan Footwear Association once said: "in shoe factories in Dongguan, it takes less than a week to complete the process from equipment procurement, raw material procurement to recruitment preparation."

But after many shoe factories move to the mainland, the imperfections of the nearby industrial chain will greatly lengthen this cycle.

It is also an example of the 100 Lu Jia bus company moving from Wuxi to Nanchang, Jiangxi. Although there are local auto parts enterprises in Jiangxi, the quality and type of these supporting businesses can not meet the requirements of 100 Lu Jia, so they have to continue to purchase some core automobile parts from other provinces, such as Jiangsu and Shanghai.

Besides, the ability of enterprises to unilaterally migrate will be relatively weakened after moving inland.

A producer of export clothing told the reporter that for foreign trade enterprises, the cost of a slight change can still be withstood, but the decline in orders is related to survival.

This is why there are still many reasons why coastal manufacturers do not want to move inland when the cost of manpower and resources is approaching the limit.

Land cost is the most attractive.

However, all enterprises have an inventory to decide whether to move inland or not.

Taking the above sporting goods exporters as an example, the head of the company told the reporter that the total amount of labor wages in the 300 workers in Suzhou reached 10 million yuan in the whole year, but after moving to Suqian, the scale of the staff remained unchanged and the cost of manpower was cut by half a half in Suqian.

"This can completely eliminate the 40% more pport costs."

The person in charge said.

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And from the trend, in recent years, the opening of major traffic projects such as the southern Wuhan Guangzhou railway and the Yangtze River bridge between South of Jiangsu and Northern Jiangsu in the Yangtze River Delta has improved the logistics infrastructure and further reduced the pportation cost differences.

"Last year, the logistics industry as the ten revitalization industry was to solve the pport problems brought about by the industrial pfer."

The head of a garment foreign trade enterprise told the newspaper reporter that he would predict the future. "And, just like what happened when the Taiwan funded enterprises moved to the mainland, with the relocation of manufacturing enterprises, the supporting businesses of all sizes will gradually follow the past to reduce procurement costs."

Most importantly, in the cost structure of foreign trade enterprises, the proportion of pportation cost is far less than human cost and land cost, so the rising pportation cost will easily be eliminated by the fall of the latter two costs.

And the drop in land cost is more attractive to the moving enterprises.

After moving to Jiangxi, Microlab's new factory area has reached about 600000 square meters, which is more than ten times the area of Dongguan old factory.

Compared with the industrial land price of hundreds of thousands or even millions of yuan per mu in Dongguan, the price of the industrial land used by Microlab in Jiujiang is comparable to that of the lowest price of industrial land in China, which is only 40 thousand yuan per mu.

Government docking with government

It is undeniable that the process of pferring productivity from coastal areas to inland areas is just like the wave of the last global processing to coastal areas, and the government is one of the most important drivers.

The way in which the inland areas rely on the investment environment of creating low-cost land, labor and other resources to attract more manufacturers is even more than the previous coastal areas.

In the first 5 months of this year, nearly 40 inland cities were introduced to Dongguan, and the total amount of investment was estimated to exceed 100 billion yuan.

However, unlike the past ten years ago, the cooperation between the two governments has become a major feature in this round of industrial pfer. The construction of the industrial pfer park has become a common form of promoting industrial pfer.

Shenzhen has built industrial pfer parks in Hengyang, Jiangxi, Ganzhou and other places in Hunan, and Suzhou has also built a joint industrial park with Suqian.

From the initial stage of construction, these parks were jointly moved by the two governments who moved in and moved out. Therefore, industrial undertaking and pfer had scale advantages and resource integration advantages from the beginning.

The gathering area of this industry tends to drive the overall entry of the supporting business faster, thus greatly shortening the construction process of the industrial chain.

Bai Lu Jia also admitted that the rent of new factories in Jiangxi was almost completely eliminated, compared to the cost of procurement and labor costs, the factory rent is the largest, so the calculation is relatively cost-effective.