Foreign Trade Suffered "Severe Winter" In Post Crisis Era

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"Now we all say that the economy is getting warmer, China has taken the lead in recovery, but we are very confused."

Lin Xiaoning, deputy general manager of Jiasun knitting factory, reluctantly told reporters, "we feel that the best days for 2008 and 2009 are over.

At that time, the purchase of raw materials was very cheap, our orders were not affected, the workers were relatively stable, but this year's situation is more difficult and serious than when we faced the financial crisis.

The real story seems to be somewhat out of line with people's imagination.

Sitting in an office building seems to be easy to draw from the information from all sides: with the economic recovery, the situation of foreign trade enterprises will also be improved accordingly.

But reporters in the Pearl River Delta area survey more intuitive feeling is that a large number of idle factories are still vacant, and the expansion of production scale is relatively rare.

There are orders not to answer.

"Taking into account this year's economic situation, labor costs have gone up badly, there are fluctuations in the external market factors, so that we dare not go to unrestricted orders."

Chen Ming, chief operating officer of Jiaxun knitting factory

The order determines the operation state of the enterprise in the future.

However, many foreign trade enterprises are faced with an awkward situation. In the face of many uncertain factors, enterprises often have orders.

Conservative orders have become an unanimous move.

Jiaxun knitting factory is a product 100% export.

Export enterprises usually have periods ranging from receiving orders to final deliveries.

In these months, the fluctuation of cost will bring unexpected risks to enterprises.

There is a total of 6 or 7 months' cycle from the beginning to the export, and there will be many uncertainties.

Often a contract that appears to be profitable has no profit margin at the time of final delivery.

Lin Xiaoning said that when the business started this year, businesses were very optimistic, but suddenly it was hard to recruit workers and wages were rising.

However, many orders have been identified very early, and the loss in the middle can only be borne by the enterprise.

In order to have a more comprehensive understanding of the situation, reporters in the Pearl River Delta region in accordance with the export machinery, textile, light industrial handicrafts and other export categories, selected some typical export oriented enterprises research.

From the survey results, there are more than one enterprise with stronger sense of crisis in the post crisis era.

Dongguan Ji Ying Wan Wan Furniture Co., Ltd., which has been engaged in furniture export for many years, is no better than this year.

Lv Dexin, the head of the company, told reporters that the furniture industry encountered great difficulties from the beginning of the financial tsunami.

"We had orders last year, although the prices of orders are relatively low, but the prices of raw materials are relatively low, so the situation is fine."

As a manufacturing enterprise sandwiched in the middle reaches of the industrial chain, on the one hand, there is no bargaining power on raw materials and on the other hand, it is difficult for the downstream customers to raise the price requirement.

"We still use last year's raw material prices and wage levels as cost quotations this year, but basically every material has gone up, and the minimum wage has increased by 20%.

We communicate with our customers in hopes of price increases, and the best case is only 1-2 percentage points higher. Most of them do not negotiate with us, so now we have orders to consider.

Lu De Xin said.

Cost of raw materials and manpower doubled

"The price of raw materials has gone up very badly. Now we have only two choices. If we want to do that, we must accept higher raw material prices."

Lv Dexin, head of Dongguan Ying Ji Wan Wan Furniture Co., Ltd.

As the head of knitting factory, Lin Xiaoning is very sensitive to cotton price changes.

Since last year, cotton prices have been rising all along since the reduction of cotton production and the suspension of exports by major exporting countries.

This year, cotton prices are constantly refreshing the historical high price in the past ten years. Data show that the spot price of domestic cotton in the beginning of the year was around 14000 yuan / ton, and by July, it had climbed to 18000 yuan / ton.

Lin Xiaoning said that the price of raw materials has been rising this year, and the price of cotton has increased, which has led to a rise in prices of main raw materials such as cotton yarn and cotton cloth.

When the source of corporate income has not changed much, the expenditure has increased a lot, and the profits of enterprises have been squeezed fiercely.

The pressure on furniture companies that account for 45% of the cost of timber in this round of rising timber prices can also be imagined.

Lv Dexin introduced that the raw material accounts for 60-70% in the production cost of its enterprises.

And this year, the price of raw materials has increased by more than 15%.

Run Feng metal plastics Co., Ltd., which is the main raw material of iron and steel products, has not escaped the pressure brought by the price of iron ore pushing high plateau materials this year.

Run Feng manager Ye Zhenbo said that at the end of 2009, the raw materials purchased from Anshan Iron and Steel Co. were about 203 dollars / ton, and the highest time had been 700 dollars / ton, and now it still needs 560-580 dollars / ton.

In addition to the substantial increase in the cost of raw materials, the cost of manpower has increased significantly.

The head of the Guangzhou Municipal Bureau of human resources and social security told our reporter that the special survey conducted by 270 enterprises in early 2010 showed that the average monthly salary of the sample enterprises to give new recruited unskilled employees was 1215 yuan, an increase of 165 yuan, or 15.6%, compared with the 1050 yuan which was affected by the financial crisis in 2009.

Behind the rise of labor costs is the "recruitment difficulty" caused by the structural shortage of labour in the Pearl River Delta region.

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One day in mid July, the reporter came to Dongguan's largest talent market, Zhitong talent market, and found that more than three hundred enterprises were recruiting recruiters in the talent market, distributing in the two or three and four floors of the B hall.

At each booth, fewer than one or two job seekers were consulted, and only five or six of them were waiting.

According to the staff of Zhitong talent market, the total number of job seekers in summer is generally not reduced, but the number of job seekers has dropped sharply.

Mr. Shang, director of human resources at a furniture manufacturing company, told reporters at the recruitment site that since the beginning of this year, general practitioners were not very good at recruiting because they had higher salary requirements. "Now the general practitioners are basically 1600-1700 yuan, up three or four hundred yuan from the beginning of this year."

Mr. Yu, director of human resources at Dongguan Xu Tian Packaging Machinery Co., Ltd. said, "nowadays, it is hard for ordinary workers to find jobs. Very few people have come to ask this information." maybe because workers are demanding, looking for jobs is not only about treatment but also future career development.

In this round of wage rising tide, the company also raised the treatment of general practitioners, from 1400 yuan to 1500-1600 yuan per month.

"At present, although the total amount of labor force in Guangzhou is adequate, the contradiction between structural labor gap is still prominent, forming a situation of insufficient employment and effective labor supply."

The head of the Guangzhou Municipal Bureau of human resources and social security said that in the special investigation of 270 enterprises, more than 70% enterprises had difficulty in recruiting workers after the Spring Festival.

The survey shows that the phenomenon of "recruitment difficulty" in accommodation and catering industry, residents' service and other service industries and manufacturing industries is more prominent.

The most difficult jobs for enterprises are ordinary labor and skilled workers.

Policy pressure overlay

"If we cancel the full export tax rebate of 17%, it will have a great impact on the company. Even if the tax rebate is reduced to 14%, it will increase the company's annual cost by more than 20 million."

Li Shaoxi, director of Pioneer Technology (Dongguan) Co., Ltd.

During the financial crisis, the goal of stable export and employment protection has given the export enterprises a more relaxed policy environment.

Today, however, more foreign trade enterprises are facing not only the rising cost, but also the adjustment of exchange rate and tax rebate policy, but also the uncertainty of the European market and even the impact of the real estate regulation policy.

The exchange rate is a commonplace for foreign trade enterprises, but it is also the lifeblood of enterprises.

In June 19th, the central bank decided to further promote the reform of the RMB exchange rate formation mechanism, enhance the flexibility of RMB exchange rate, and show signs of "loosening" in the RMB exchange rate.

Because its clothing is mainly exported to Europe and the United States, Chen Ming said that Jiaxun knitting factory is priced in dollars and euros, so exchange rate changes have great impact on enterprises.

In addition, in addition to concerns about the impact of RMB appreciation on profit margins, the most difficult thing in practice is how to accurately predict exchange rate changes in the short term.

After three days of "remittance", the export tax rebates for 406 tax number products were also cancelled.

Although the adjustment of the export tax rebate is mainly aimed at "two high and one capital" products, the trend of phasing out or reducing the export rebate rate has also worried many enterprises.

"If we cancel the full export tax rebate of 17%, it will have a great impact on the company, even if it is reduced to 14%, it will make the company increase more than 20 million of the annual cost."

Li Shaoxi, director of the vanguard high tech (Dongguan) Limited company, counted out the reporters.

Li Shaoxi believes that as the economy improves, the state may lower the export tax rebate rate.

If the employment improves, the export tax rebate rate may be reduced.

We do not want policies to change frequently, and if they are good policies, they should not change too much.

He said.

In addition to the influence of exchange rate and external market, under the influence of real estate regulation, Dongguan has more pressure on furniture.

Although the products are mainly exported to the US market, there are still some products for domestic sale.

Lu De Xin said that when the central government launched the real estate regulation policy, sales of furniture were affected, and furniture sales were also affected.

Small profits of enterprises

"The profit is between 2%-4%, if the management is not good, the management cost is higher."

Ye Zhenbo, manager of Run Feng metal plastic Co., Ltd.

Reporter survey found that many foreign trade enterprises whether the order is stable, its profit margin is difficult to exceed 5%.

Especially under the pressure of rising cost pressure, the profit rate has dropped to 1%, 2%, or even zero profit.

Chen Ming introduced that the profit rate of the home textile and garment industry represented by Jiaxun is about 5-6%.

"Because of the 35% increase in wages this year, gross margins will be less than 4%.

If we take into account the appreciation of the renminbi, the profit margin will be reduced to less than 2%.

Chen Ming said, "in 2009, our export volume was about 5 hundred million, which is almost the same as expected this year, but sales profit margin is low. This is the situation that the industry is facing this year, so the industry sentiment is very pessimistic."

When the profit margin was asked, Lv Dexin immediately raised his tone and told the reporter excitedly, "now we are not choosing a lot of things to make a loss. We are not thinking about what is making money. We will get a lot of money if we lose.

Basically, there is no profit.

Few factories in the industry are profitable, most of them have very little profit. "

As a "old man" who has devoted energy and feelings to the enterprise for many years, even if he can not make money in a period of time, Lu De Xin will also let the furniture factory continue to run.

"We have been in the furniture industry for so long, we have feelings for this industry. We will not go back if we encounter a little difficulty."

He said.

Although it has a stable source of customers, employees and orders, 2-4%'s thin profit can only maintain its normal operation.

Ye Zhenbo and Lv Dexin have the same mood, that is to keep the enterprise going, for the survival of enterprises, employees, customers, even if there is no profit, as long as we do not lose money, we will continue to do so.

"This year, we have been able to work hard. Our company has been running for more than ten years, and many old employees have contributed their youth to the enterprise, so we try our best to maintain it.

Sometimes even if there is no profit, we will do it as long as we do not lose money.

Many customers have worked with us for many years. They also pay in time. We can deliver and pay wages on time. We can run the business without losing money. It is all our goals at the moment.

Ye Zhenbo said.