"Teng Cage For Birds" To Make The PRD Hollow? Westward! Northward! Survey Of Coastal OEM Enterprises

From the next plane to the signing of the Chongqing Bishan Industrial Park, Sun Mingzheng, deputy general manager of the whale whale Technology Co., Ltd., from Suzhou, Jiangsu, spent only 30 hours. The main reason for his determination is that Foxconn has settled in the West Wing Micro Electronics Industrial Park and separated from Bishan by only one Jinyun Mountain.

In October this year, the University Town tunnel crossing Jinyun Mountain will open to traffic. If Sun Mingzheng wants to visit Foxconn, he will only be driving for more than 10 minutes.

As a subsidiary of Jiangsu whale technology, whale technology is mainly produced.

Meanwhile, thousands of miles away in Shenzhen, Chen Xiaoming, chairman of Jiahe shoes group, is planning to set up a factory in Ganzhou, Jiangxi. It is expected that after seven or eight months, some of the production capacity will be moved to Ganzhou.

Although there were plans to set up factories in the mainland, he thought Foxconn's high-profile salary increase was the last straw to crush the foundry enterprises in the PRD.

Under the influence of RMB appreciation and wage rise, a large number of foundry work in coastal areas.

However, the survey found that the labor cost difference between the mainland and coastal areas is not very large. The relocation of enterprises is more related to the soaring land prices caused by excess liquidity since last year and the increasing importance of the domestic market after the financial crisis.

Many enterprises have migrated to the "hen with chicken" mode.

For example, whale whale technology quickly decided to settle in Chongqing, because Foxconn, Foxconn chose Chongqing is because customers HP first settled.

In the chain of "hens with chicks", the leading foundry enterprises are both hens and chicks. Local people hope to quickly realize industrial clusters through the circulation of "letting chickens and chickens grow", so as to lay a good foundation for undertaking coastal industries.

In the changing situation of the coastal industry, the "push" of the coastal government and the "pull" of the mainland government have a great influence on the speed of enterprise migration.

In the Pearl River Delta, a large number of foundry enterprises have fallen below 5%, and even their lives are hanging by a thread.

Some choose to move inland, others simply give up, instead of speculation or speculation.

At the end of last year, Han Tai shoe factory, which gave the OEM to WAL-MART, was still applying for policy support to Baoan District.

In January this year, the board decided to close the factory and dissolve more than 4000 workers. "

Liu Weidong, Deputy Secretary General of Shenzhen Leather Industry Association, said.

At present, many enterprises in traditional industries in Shenzhen are facing the choice of life and death.

30 years ago, the Pearl River Delta finally made great prosperity by undertaking the pfer of manufacturing industry in Hongkong.

However, the changing trend of development has become a new direction. The traditional coastal manufacturing industry is giving way to the high and new technology industry.

In 2005, Shenzhen indicated that it would invest 40 billion yuan in two years to build nine traditional industrial gathering bases including gold jewelry, clothing, bicycles, moulds, watches and clocks, automotive electronics, machinery, furniture and household appliances.

However, these bases are progresses very slowly.

The audit report released by Shenzhen audit department at the beginning of this year shows that the proportion of infrastructure facilities such as molds, clocks, bicycles, automobile electronics and other industrial gathering bases has been less than 35% so far. The proportion of clocks and cars completed by electronics is less than 10%, and the output value of industrial gathering bases is only 600 million yuan.

Many enterprises believe that the slow construction of traditional industrial gathering base is closely related to the weak driving force of the government. In the process of industrial upgrading, they are faced with the fate of being abandoned.

In the long wait, some enterprises left Shenzhen with disappointment.

In May this year, the three traditional industrial bases of underwear, mould and clock in Shenzhen Guangming New District adjusted the land use and changed part of the land to high tech projects.

Although there are many excellent enterprises in these traditional industries, they are striving to upgrade and pform, but their added value is lower than that of hi-tech enterprises.

"Land price will eventually become the engine of industrial structure and regional adjustment."

Wang Jun believes that the influx of large amounts of resources to the developed coastal areas has led to the increasing economic carrying capacity of the unit land area and the increasing land price.

The development of high-end service industry, with the smallest land input to generate the greatest value is the inevitable trend of coastal areas.

Under this rule, more and more manufacturing enterprises can only leave behind.

Mainland cities are racking their brains about how to undertake these industries.

So far, Yang Gang still remember the hot struggle for the relocation of enterprises in the coastal areas before and after 2006.

At that time, Shenzhen took the lead in putting forward the adjustment of the industrial structure, and merchants everywhere came in a rush. It even exaggerated that there were three or four investment associations in a week.

Although OEM companies are often associated with the image of sweatshops, there are many suitors.

"The huge resources occupied by Foxconn compare with the output, the cost performance is not really high, but as the industrial gradient pfer, the Midwest is needed."

A Chongqing city two rivers New District Management Committee official who does not want to be named said that as the third national sub provincial new district after Pudong New Area and Binhai New Area, the OEM enterprises could not enter the Liangjiang New Area, but they could be located in the surrounding districts and counties.

A government worker in Bishan also believes that the effect of Foxconn's processing trade enterprises is greater than the actual contribution.

In the battle of Foxconn, many government departments really focused on the "hen effect".

They do not think that how much "golden eggs" can be produced by Foxconn itself, but rather hope that with their help, they will quickly gather industries and produce "hen effect" to speed up the migration of coastal enterprises to the mainland.

"From the model of" hen driving chicks ", although the processing trade enterprises are at the low end of the value chain, it is an inevitable step to attract them to the West.

Wu An, deputy director of the Institute of industrial economics and enterprise development of the Chongqing Academy of Social Sciences, which has long studied industrial pfer, thinks that the third industry in the western region accounts for a relatively high proportion, even higher than some coastal areas.

This is not because the western third industry is developed, but because the second industry is too backward. We must first develop and enhance the second industry, and then pfer to the third industry.

In this process, attracting leading processing trade enterprises to settle down, not only solve local employment problems, but also quickly gather relevant supporting enterprises.

Once the industrial chain is formed, it can provide more supporting industries for more related industries, naturally attract more hens, and then drive more chicks, and finally speed up the speed of industrial pfer.

The "hen effect" of OEM enterprises such as Foxconn has already appeared.

According to the data released by Chongqing economic and Information Committee, with the development of HP, Foxconn and other projects, the development of information industry is strong. In the first half of the year, the main business income of the city's electronic information industry reached 34 billion 700 million yuan, an increase of 48% compared to the same period last year, and HP and Foxconn accounted for 1/3 of total output value.

In the training of talents, the "hen effect" has also appeared.

The West Wing park is adjacent to the university town. Some Career Academy and other institutions have begun to establish the "order type" personnel training according to the needs of park enterprises.

The proportion of local talent in HP R & D department has risen from less than 10% to 50%.

And the training of large number of talents in related industries will in turn support more enterprises to enter.

"The real industrial pfer has not started yet. This is just the eve of the outbreak."

Wu An believes that with the improvement of industrial clusters and the enhancement of industrial foundation, the migration of enterprises in coastal areas will accelerate.

Data show that Chongqing attracts domestic capital growth by seventy or eighty per year, but real estate accounts for a large proportion and manufacturing industry accounts for a relatively small proportion. This is not a real industrial pfer.

He predicted that in the next five years, the proportion of manufacturing industry in investment will be the largest. Some of the processing trade enterprises that only expand production capacity in Chongqing will have an overall migration trend, and this trend will accelerate.

In Wang Jun's view, whether the pace of development of the eastern coastal areas will slow down is uncertain, but the speed of development in the central and western regions will definitely accelerate.

With the rapid improvement of infrastructure in the upper and middle reaches of the Yangtze River, the cost of logistics pportation has been greatly reduced.

Coupled with the rapid rise of the mainland market, it is feasible to invest in the mainland in the past.

In his view, the balanced development of various economic sectors depends on the adjustment of industrial structure, while leverage is land value.

Hongkong took more than 10 years, and more than 80% of the industry was pferred to the Pearl River Delta.

Today, the relocation of industries in the coastal areas to the mainland will continue for a long time.

The industrial upgrading and structural adjustment of coastal areas and the active seeking of industrial undertaking by the cities in the mainland will push the migration of traditional industries along the coast.

Snatching Foxconn's "hen with chicken" mode is favored.

In August 2nd, the first production line of Foxconn's Taihua precision electronics (Zhengzhou) Co., Ltd. started production, and it seemed that there was a phased answer in the two months of Foxconn's relocation.

When the speculation about where Foxconn moved to the top, it started production in Chongqing.

On the afternoon of July 9th, in a huge workshop near the West Suzhou expressway, there was a continuous rain storm running around the factory building and hundreds of meters away.

More than 10 cranes are standing on the site, busy construction.

Although the factory has no logo and brand name, the local people know that this is Foxconn.

"This is Fuji Yasu who came down and started production in May this year. The construction site is Foxconn's own plant, and it is expected to be completed early next year."

A staff member of the West Wing Micro Park Management Committee told the China Securities Journal reporter that Foxconn plans to invest more than $1 billion in the West Wing comprehensive bonded area. It will carry out research and development of notebook computers and accessories, communications, environmental protection, energy saving, automotive electronics, consumer electronics and so on. After completion, the annual output value of the company will exceed 10 billion dollars and the staff scale will be 100 thousand.

In recent times, Foxconn is like a "big flower and big heart". In the invitation of site selection for many cities in the mainland, it is ambiguous and wobble.

In the west wing, Huang Qifan, mayor of Chongqing, spread the story of Foxconn.

A staff member said that in February last year, Huang Qifan met with Terry Gou in Taiwan.

The first thing Huang Qifan said to Terry Gou was: "I am not here to invite investment. I am here to send you an order."

All of a sudden aroused Terry Gou's interest.

Huang Qifan's order refers to the laptop base built by HP in Chongqing.

In October 2008, HP put 4 million items of computer domestic sales and 40 million laptop export manufacturing projects in Chongqing.

HP is coming, and the well-known foundry enterprises, Foxconn, Ying Da, quanta and so on, are coming from the Yangtze River Delta and the Pearl River Delta. They will complete the plant construction in the next two years and begin mass production.

These leading foundry enterprises can not survive independently. They must serve enterprises with supporting products.

As a result, more supporting enterprises began to look for their own foothold in the surrounding area.

"This is like a hen coming. The chick must come."

Yang Gang, Vice Minister of Investment Department of Chongqing Bishan Industrial Park Management Committee, has made an image analogy.

Up to now, there are about 100 laptop enterprises in the coastal areas that Yang Gang receives, and 18 companies have signed investment intentions and framework agreements, and 3 have settled down.

In the West Wing Micro Park, forty or fifty supporting enterprises, more than 10 logistics and other three party service enterprises have identified investment intentions.

In the process of "hen driving chicks", the local government has also given quite a lot of preferential policies and services, meticulously to the problem of employee commuting.

According to the plan, Foxconn's factory building is located in the West Wing Comprehensive Bonded Zone, and the employee's dormitory is outside the fence in the bonded area.

If you want to bypass the purse seine to the factory gate and start from the furthest Hostel, the staff has to walk a few miles.

After studying, the government decided to build 8 pedestrian overpasses to connect the factories and dormitories, although it increased the cost of customs, but it was convenient for employees.

However, the speculation of Foxconn and other enterprises in the name of investment, the real development of real estate, the investment department denied.

"Foxconn is granted to industrial land, and we will not allow enterprises to do business development in the name of projects."

Cui Shuquan, deputy director of the West Wing Micro Park Management Committee, said that there are two major categories of industrial land and urban land in the park. Enterprises must obtain the commercial development of urban land by means of auction and hang up.

Even for industrial land, the park has strict regulations on the volume ratio of R & D building, and strictly controls the construction of R & D building by social units, so as to prevent enterprises from acquiring land at a low price and reselling it at a high price.

"The allocation of commercial land to enterprises will disrupt the land market."

Yang Gang said that the land resources of the industrial park are limited, so the cost of attracting foreign investment must be carefully calculated.

As a supporting preferential policy, industrial land is supplied at a "loss price".

He calculated an account. The cost of industrial land in Bishan was calculated as land acquisition and demolition, road greening, pipe laying, etc. the cost price was 380 thousand yuan / mu, and the price was only 120 thousand yuan / mu sold to the enterprise, but the investment threshold must be 100 thousand yuan per mu per year.

In contrast, Bishan Industrial Park commercial housing project land auction auction price reached about 2000000 yuan / mu.

"Land prices have risen rapidly in recent years, if the supporting commercial and residential land enterprises are welcome, but the government can not allow the industrial land to be changed into real estate development, otherwise it will not be fair to participate in the auction and acquisition of commercial and residential land."

"This is like a hen coming. The chick must come."

When HP came, the famous foundry enterprises such as Foxconn came to serve it, and then the supporting enterprises serving these leading foundry enterprises began to look for the foothold.

Reappearance of mobility tide raises not "last straw" {page_break}

Chen Xiaoming, chairman of Jiahe shoes group, is busy planning to invest and build factories in Ganzhou, Jiangxi.

As a foundry enterprise, his factory has been losing money almost every month since 2008.

Compared with the coastal areas, labor costs in the mainland can not be too cheap.

"There is basically no profit this year."

Hong Qihui, the honorary president of Hongkong SME Association, has a garment processing enterprise in Dongguan, Guangdong.

In April of this year, he also chose to invest and build factories in Hunan and Chenzhou to pfer some capacity.

"Although Guangdong has been talking about" cage changing birds ", most companies chose to wait and see in the past few years.

Hong Qihui said, unexpectedly, there was a serious labor shortage in Dongguan earlier this year.

More and more new generation of migrant workers can not tolerate repeated monotonous work and life, and the old employees have returned to the mainland to get married and have children, so they do not want to leave their home again.

Therefore, the factory can only be moved to their "doorstep".

Another reason for moving inland is that business in Europe and the United States is becoming more and more difficult. Wages in the mainland are generally rising. He believes that the main battleground in the future will be the domestic market.

However, the cost of moving to Hunan can not be reduced too much.

Because of the low profits, many friends around have simply closed the factory and invested in real estate speculation.

"The idea now is to survive first."

Hong Qihui said he hopes that after the shuffle, the number of foundry factories will be substantially reduced in one or two years, and there will be more pricing power.

How much can the cost of coastal subcontracting enterprises move to the mainland? Liu Weidong, Deputy Secretary General of Shenzhen Leather Industry Association, said at least 10% to 15%, which attracted considerable interest in OEM enterprises.

He pointed out that the "raise tide" has nothing to do with the relocation of leather industry enterprises.

As a traditional labor-intensive industry, the hard cost of leather industry is very high, and it began to move inland very early and continues to this day.

According to Cui Shuquan estimates, the average labor cost of the coastal enterprises entering the Xi Yong micro park can be reduced by about 30%.

However, this is only the average cost of all enterprises. For Foxconn, quanta and other OEM enterprises, the wage level is not significantly different from that of the Pearl River Delta and the Yangtze River Delta.

"Our wages are not lower than those in Shenzhen and Longhua."

Outside the Foxconn workshop in the West Wing Park, Xiao Zhang, a Foxconn employee, told the China Securities Journal reporter that the basic salary of the general staff package is about 950 yuan / month. If the package is not occupied, it will be 1450 yuan / month. The total overtime pay will be less than 2000 yuan / month, which is not much different from that of Shenzhen general practitioners.

For enterprises, compared with the labor force, the mainland has more advantages in land, water and electricity prices.

Take the Bishan Industrial Park as an example, the average cost of large industrial electricity price is 0.6 yuan / degree; the operating water is 4.6 yuan / ton; the price of industrial land is 120 thousand yuan / mu, which is about half of the average price in the Pearl River Delta region.

However, if we calculate the logistics cost, the overall cost of the enterprise will be reduced less than expected.

"According to the type of products, our comprehensive cost falls by about 5% to 10%, most of which are at 5% level."

Sun Mingzheng said that although the cost of land has dropped, raw materials have been imported from Japan, Korea and Germany, and freight ports are centered in Shanghai.

After setting up a factory in Bishan, the cost of pportation from Shanghai to Chongqing will increase.

If we only consider the cost, Sun Mingzheng can set up the enterprise to the more remote west, but the cost is not the only factor.

"Our products are changing very fast and we must cooperate with customers."

Sun Mingzheng said that a laptop could not be sold to the terminal in one or two months, and the price might fall.

Taking into account the pport costs of enterprises and the convenience of service customers, we must focus on the layout of customers.

But for Foxconn and other OEM enterprises to do supporting services is only part of the reasons for whale science and technology in Bishan.

Sichuan Mianyang's Changhong electric appliances, the rising Chongqing LED industry, the automobile industry and so on will all become the business growth point of whale whale technology.

"We are expanding our capacity rather than moving."

Sun Mingzheng stressed that the parent company whale whale technology set up a factory in Suzhou 7 years ago, and set up a factory in Ningbo 4 years ago. This year, a factory was set up in Bishan, and the original plant is still operating normally in the Yangtze River Delta.

According to Yang Gang's statistics, there are many enterprises in the coastal areas that come to Bishan Industrial Park, some expand production, some pfer part of production capacity, some are overall migration.

On the whole, expanding enterprises account for more.

This phenomenon also exists in Xi Yong micro park.

Cui Shuquan said that in addition to the "hens with chickens" mode, the park also had its own "chicks", which accounted for about 30% of the enterprises.

Some of them want to come to Chongqing to expand their markets. Some have obtained new orders in Chongqing and need to set up factories locally.

"The most important thing for a company is to look at the market, plus it has a cost accounting system. Once it feels worthwhile, it will come over."

Zhang Tingting, Minister of the service department of Chongqing Industrial Service Center, received a number of enterprises that came to Chongqing for inspection. She believed that cost is only one of the factors that enterprises consider to move inland, and more importantly, the logistics radius and the level of upstream and downstream industries gathering for customers.

Wang Jun, Dean of the Academy of Social Sciences, Zhongshan University, believes that the promotion of land prices is the main factor in the pfer of industries.

Although Guangdong has long proposed upgrading industries, the gap between land prices and the mainland is not particularly large, and the motive force for enterprises to migrate actively is not strong.

After the financial crisis, the premium of the first tier cities brought by excess liquidity brought crowding out effect on manufacturing enterprises with large demand for land.

The most important thing for enterprises is to look at the market, plus it has a cost accounting system. Once it feels worthwhile, it will come over.

Worry about hollowing, can cage change birds?

Foxconn is really leaving this time, but in the eyes of some Shenzhen people, it is not the right time to go.

This year's economic situation is still complicated. If the "cage birds do not come", the local economy will be worse.

Many foundry enterprises believe that the advantages of the coastal areas are still obvious, and they will leave their headquarters here.

Shenzhen also vigorously supports new industries such as electric vehicles and bio pharmaceuticals.

However, in Wang Jun's view, it is still unknown whether the old industries can be pferred out and whether the new industries can come in.

In the upcoming large-scale industrial re layout, the central and western regions are taking the opportunity to narrow the gap with the coastal areas.

One of the most important measures is to improve pportation infrastructure and reduce logistics costs.

In May this year, the freight container special train of the first batch of HP electronic products loaded with Foxconn foundry was shipped from Chongqing to Shenzhen, Yantian Port (6.71,0.00,0.00%) and pported to Europe by sea going to the deep end.

This marks the formal opening of the Chongqing iron sea multimodal pport channel.

Its opening greatly shortens the running time of the container freight train on the line, thus shortening the first 116 hours to 53.5 hours. The total freight time from Chongqing to Europe is shortened to about 27 days, which is 1 days shorter than that of the Yangtze River Delta to Europe.

"Transportation costs in the mainland will definitely decrease in the next two or three years."

Hong Qihui said that the construction of high speed rail has become a strong motivation for OEM enterprises to pfer to the mainland, and iron sea multimodal pport can solve the bottleneck problem of logistics.

Western cities are still striving to create market space and hope to attract high value-added industries.

"I think water is spilled out, actually there are children."

A few years ago, some scholars expressed concern about the "cage changing birds" proposed by the Pearl River Delta.

If in the next few years, explosive industrial pfer in coastal areas will really lead to industrial hollowing out?

"No matter what, Shenzhen's advantage is still very obvious."

Gui Shirong, executive vice president and Secretary General of Shenzhen LED Industry Federation, said that the existing scale of LED industry in Shenzhen accounted for 30% to 35% of the whole country, and 1150 enterprises in total. According to the present growth rate, the actual value of LED industry in 2015 is expected to reach 180 billion yuan and output value of 100 billion yuan.

Due to the rapid development of LED enterprises and the shortage of land resources in Shenzhen, their production base must be extended and distributed. However, the LED industry in Shenzhen has a complete industrial chain and strong supporting capability. About 30% to 40% of the LED enterprises are in Shenzhen, and their talent and market advantages are huge.

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Many Pearl River Delta foundry enterprises also expressed the hope that they would eventually form a "Post shop and factory" mode, namely, the establishment of factories in the mainland and the establishment of headquarters in the Pearl River Delta region.

Enterprises in the coastal areas for many years, will not easily abandon the established customers and resources.

"The pfer of industries must be graded and stratified."

Wu An said that the United States has undergone many industrial pfers, but there has been no hollowing out. There are still labor-intensive enterprises in the United States.

As the first developed eastern coastal area, the headquarters economy will eventually form, with the development of the technology intensive industries and high-end service industries with the global radiation capability. The industrial pfer in the western region is mainly labor-intensive, and some high-end service industries will eventually form a reasonable division of labor and organic connection with the East, but will not evolve into a hollowing up industry in the coastal areas.

However, Wang Jun believes that electric vehicles, LED, marine engineering, bio pharmaceuticals and other strategic new industries will become the innovation of big cities.

The state has issued a series of supporting policies, which is also aimed at turning the old industries in big cities out and injecting new industries on the other hand.

However, the success of an industry involves not only the industry itself, but also the following aspects of finance, venture capital and commercialization.

If in the next few years, explosive industrial pfer in coastal areas will really lead to industrial hollowing out?