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    Shoe Enterprises Move Inland: The Most Attractive Cost Of Land (1)

    2010/7/13 14:50:00 44

    Shoe Enterprises

    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.

    For Si Microlab, after moving into Jiujiang, enterprises will have a certain decrease in the cost of labor, land and capital, and tax will also have greater concessions, and all kinds of resources such as electricity can be guaranteed.

    "When I was in Guangdong, I was often pulled off because of the shortage of power supply, which had a great impact on production."

    Lin Jixian said.


    However, the local

    The labor

    The degree of proficiency, industry matching environment and pportation costs still offset to a certain extent.

    Enterprise relocation

    Dividends.

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


    Internal cost of enterprises


    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.


      

    pportation cost

    The increase 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%.


    As far away from the supporting industrial clusters, the hidden costs of the moving enterprises are rising.


    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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    Read the next article

    Shoe Enterprises Move Inland: The Most Attractive Cost Of Land (2)

    Shoe enterprises move inland: the most attractive cost of land (2)

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