Plunge Into The "Wage Surge" Is Still Facing The "Labor Shortage" &Nbsp; &Nbsp; Shoe Industry Upgrading To Become Inevitable.

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In the past two years, the traditional manufacturing industry is generally short of work, but at present, the shortage of workers in Dongguan's shoe factories has made enterprise managers feel unprecedented anxiety.

"Not enough orders were made last year, but many orders this year, but not enough workers."

At the 108th session of the Canton Fair, the exhibitors poured out their grievances to reporters: "it's even harder to find employees than to find customers."

Since May 1st this year, Guangdong has adjusted the minimum wage standard for enterprise employees, and the new standard has increased by an average of 21.1%.

At this point, the Pearl River Delta shoe enterprises began to face the most severe "wage surge" in the past 30 years.

It is understood that by this "wage surge", 70% enterprises passive pay rise, 30% companies choose to take the initiative to raise wages.

In the face of the widespread wage surge in the Pearl River Delta region, it was claimed that a sharp increase in wages would bring about the collapse of the PRD businesses.

Is it really so?

In fact, raising wages for workers will indeed bring pains to increase business costs for enterprises. However, for domestic footwear and other manufacturing industries, it is an opportunity to promote industrial upgrading. Both industries and enterprises should consider how to actively cater for such pformation so as to get more room for development.

Some experts pointed out: "we often say that the wages of workers in traditional Chinese manufacturing industry are low, because these industries have low added value and can not run high wages, and low wages can not attract talent, leading to the industry's technical and value-added problems.

This is a process of self reinforcing and vicious circle.

At present, increasing the wages of workers is not a one-off. For enterprises, more importantly, they see that the trend of labor costs will continue to rise, and the cycle will be broken, so that the traditional industries will go higher.

(China economic guide)

Shoe companies: still need to work hard

At present, the continued appreciation of the renminbi and the rising price of raw materials, coupled with the labor shortage and recruitment difficulties for many months, have led to a squeeze on the profit margins of shoemaking enterprises.

The boss of Yue Xin shoemaking factory said, "although the business is good, the order is ample, but the money is making less."

However, for shoe companies, raising salaries has become an inevitable trend and an expedient measure.

Based on long-term development, shoe enterprises will have a long way to go.

The economy is growing, but the business is lowering the distribution of workers.

In particular, China's foundry shoe enterprises, which have undertaken the production of shoe brands, invested huge manpower and material resources on the basis of cheap labor, but only enjoyed 10% of profits. This road has come to an end.

Shoe enterprises should improve their internal strength, enhance their creativity, enhance their resistance, work hard in development and marketing, and strengthen R & D and innovation capabilities so as to expand brand sales and speed up the pace of brand development in an all-round way.

On the other hand, shoe companies can set up online marketing platforms to expand their overseas tentacles so as to gain a favorable position for their competition in the global footwear market.