Spinning And Weaving Industry: "Labor Shortage" Ends With Cheap Manufacturing

Faced with unfair treatment, migrant workers who are disadvantaged groups can only vote with their feet.

Since March, a new round of "labor alarm" has been frequently heard in some coastal developed areas.

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Unlike previous years, labor shortage this year is not only in the Pearl River Delta and Yangtze River Delta, but also in Shandong, Anhui and Hebei.

On the whole, the shortage of workers is mainly concentrated in labor intensive industries, such as building decoration, electronic appliances, toys, small shoemaking, hardware, paper and so on, with low technical content and low added value.

According to the analysis of the China Leather Industry Association, the "labor shortage" reveals the multiple debts in the era of cheap labor. Whether it is visible salary, social security, welfare, or the invisible right to rest, the right to speak, it constitutes a negative effect of the "cheap labor era" seemingly fading away.

Therefore, the "labor shortage" actually reflects the "second best choice" of migrant workers under the helpless and stagnant rights and interests, which requires public decision-makers to prescribe the best remedy with greater determination and courage.

In my view, the current labor shortage phenomenon is apparently due to the gradual recession of the international financial crisis and the rapid economic recovery.

But from the analysis of the total economic development and labor supply in China, it is far from the shortage of labor force.

The current "labor shortage" is not comprehensive, but only temporary, partial, especially some enterprises mainly rely on the order to produce and export, because of poor wages, low work technology and large fluctuation in production season, often at the beginning of the year, the loss of workers at the end of the year, the new recruits at the beginning of next year, the most likely to suffer the plaguing of labor shortage.

From a deeper level of analysis, the shortage of employment is due to the gradual rise of the Midwest economy, the employment of migrant workers has a greater choice of space, thus the gradual diversion of labor force and even the return of the labor force, the attraction of the Pearl River Delta and the Yangtze River Delta has reduced the attractiveness of cheap labor.

On the other hand, "labor shortage" is also shown as a structural shortage of labor. When ordinary workers can not meet the needs, workers with professional training and high quality are more scarce.

More importantly, the economic growth model that has long relied on the so-called "cheap labor" advantage, and the disadvantages such as low wages, poor welfare, social security vacancies and low labor skills, have been resisted by migrant workers whose rights consciousness is gradually increasing. This shows that the development mode of relying on cheap labor input as an important driving force for economic growth has been difficult to sustain.

The "post-80" management research expert and the special assistant of Qingdao Cheng Lin Technology Chairman Han Jun think that there is another reason why we should not ignore that the existing human resource management mode is no longer suitable for the characteristics of the new generation of labor force.

The 80 and post-90's new generation labor force, whose only child is the main body, is no longer like their parents. They pursue publicity personality, advocate consumption, pursue equality and hate monotonous. They focus on reality, live comfortably, pay attention to dignity and dislike power. Behind them, six elderly people have strong economic backing, and there is no communication, help and competition between their brothers and sisters.

Han Jun analyzed that faced with such a new group of the world's total number of people, human resources management concepts and methods are not pformed, and it is hard to carry out "made in China" to the end.

The era of "low cost of human resources" has passed.

Looking for opportunities in crisis

"Labor shortage" has set a wake-up call for cheap manufacturing in China, and what path China has made and what road it has chosen has become a profound proposition for entrepreneurs.

Of course, in the face of "labor shortage", our entrepreneurs need not be too "nervous".

"Labor shortage" reflects the "crisis" of employment, but "crisis" generally contains two aspects: "danger" and "opportunity". We should not only see "danger", but also "opportunity".

Wang Jiwan, vice chairman of the China Leather Industry Association and chairman of Qingdao Hengda Group, said that "labor shortage" is actually a labor pains ahead of the "made in China" structure, and is also the dawn of China's economic and scientific development.

It will push the restructuring of enterprises, technological progress of enterprises, the development of corporate culture, the policy of "fixing the people" in coastal cities, and even the revival of Chinese civilization.

Crises often breed opportunities, the key is how to grasp the problem, and then how to fully prepare ahead of schedule in thinking and strategy.

Transformation is not a day's work.

The pformation and upgrading of foreign manufacturing industry deserves our reflection.

In the six and 70s of last century, Japan was the world's manufacturing center for 1955-1975 years. On average, 725 thousand migrant workers entered the city every year and joined the manufacturing force.

During this period, "migrant workers" accounted for 64% of the total number of people employed in the country.

So later, there was a large shortage of rural labor force in Japan and even to "Recruitment" in cities.

In the mid and late 80s of last century, Japan retained the high-end market such as electronics and automobile industry, and gradually shifted other manufacturing industries to Taiwan and Mainland China, thus completing the pformation and upgrading of local manufacturing industry.

Looking at the development path of the world's manufacturing industry, although China still occupies the position of manufacturing center in the world for a long time to come, but with the inverted trapezoid structure of China's population structure beginning to appear, the situation of surplus labor supply in China has changed.

For China's manufacturing industry, especially labor-intensive industries, to analyze the way out in the future, I find that, first, we must accelerate the pformation and upgrading of enterprises, make preparations for early readiness, early adaptation and early implementation, change the extensive operation of resource intensive and cost intensive industries, and pform into intensive, highly efficient and low consumption technology intensive manufacturing. This is also the top topic for discussion and reflection by representatives of the two sessions and governments around the world. Two, we should pfer to China's inland areas with relatively low resources and Vietnam, India, Burma and other countries, but it is definitely not a way to repeat the initial stage of reform and opening up. First, we should pollute and manage, develop and reconsider, and three, we should introduce the "exit mechanism" to eliminate surplus and backward production capacity.

The average life expectancy of SMEs in Japan is 30 years. The average life expectancy of SMEs in China is only 2.9 years, and the elimination mechanism is already accelerating.

It is essential to grasp the pformation and upgrading of enterprises and the adjustment of industrial structure.

As stated in the white paper on the CEO survey of 100 enterprises in China, "pformation and upgrading of Chinese enterprises require enterprises to enhance significantly in three aspects of innovation, management and human performance, and rebuild the core competence of enterprises.

To reshape Chinese enterprises, enterprises must return to fundamentals, namely, sustained growth through continuous product technology and business model innovation, meticulous management and efficient human resources.

Wang Jiwan believes that under the crisis, the shoe industry in China needs to focus on many aspects. Improving employee benefits is only one aspect, and establishing a new harmonious employment relationship, updating the concept of employing people, truly concerned about the life and entertainment of employees, and influencing employees and retaining employees with humanistic care and good corporate culture are the key points for the next step of enterprise management. Wang Jiwan said that the implementation of school enterprise integration and cooperation with vocational schools, especially the long term shortage of enterprises, should establish long-term cooperative relations with universities and introduce labor force.

These are necessary additions to the fundamental measures.

He called on Chinese manufacturing to sum up the management method that suits the enterprise in practice, and can not copy the foreign set.

Facing the "labor shortage" and the development trend of China's manufacturing industry, Wang Jiwan's answer is: "labor shortage" is not a trivial matter. We need to see the deep-seated problems reflected behind the simple phenomenon, which is a major event related to the national economy and people's livelihood and social development.

It is far from enough for enterprises to take some superficial emergency measures only. They must be studied as a strategic subject, and enterprises must carry out deep structural adjustment.

In the view of Hengda Group management, changing the traditional way of relying on demographic dividend resources and natural resources, relying on technological innovation and marketing mode adjustment, promoting the pformation and upgrading of industrial structure to technology intensive fashion industry, and building a new growth mode of value enterprise are already imminent.

For this reason, Hengda began an in-depth pformation as early as 2006.

In contrast to the cold shortage of "labor shortage", after the Spring Festival Spring Festival, the Hengda Group presents a hot job interview scene, which is completely contrary to the "labor shortage" prevailing in the Yangtze River Delta and Pearl River Delta enterprises.

On the return of the new year, Hengda employees not only returned to the factory on time, but also brought more than 500 new employees from their hometown, and the company has successfully employed more than 1000 workers.

Dan Cunli, general manager of Hengda Group, said: "2010 is the most critical year for Hengda development. Listing will promote the rapid development of enterprises and require a large number of talents to support the development of enterprises.

Hengda has expanded more than 1000 new employees to meet the employment needs of the newly launched international digital industrial park, and has also provided a guarantee for the company's rapid development this year.

Under the circumstances of "labor shortage", Hengda Group can successfully recruit workers and achieve sustained growth. Its unique genes and innovative practices are worth learning from.

Technology and innovation dual drive

Or the case of Hengda.

In recent years, Hengda has continuously increased the intensity of technological innovation, and has invested 5.6% of its revenues in R & D every year.

Wang Jiwan introduced, relying on the R & D platform of the national recognized enterprise technology center, has developed more than 72000 new products every year, and has pformed and listed more than 36000 kinds. The annual appraisal meeting of new products, new technologies and scientific and technological achievements has been certified by industry experts and has reached the leading level at home and abroad.

Over the years, 610 national patents have been declared and approved by Hengda, 4 of which have been inventions, and more than 150 products (Technology) have won provincial or national awards.

At the same time, the company has also won the two state-level technological pformation projects of "leather seamless bonding technology" and "bacteriostatic odor purification shoe production line", becoming the only two national technical pformation projects supported by the national development and Reform Commission.

Wang Jiwan once gave us an account, taking the "seamless leather bonding technology" developed by the enterprise as an example. According to the 1.5 square feet of each pair of shoes and the 9 billion pairs of leather shoes produced throughout the country, the annual savings of leather products can reach 2 billion 290 million square feet, and the annual savings will reach 57 billion 300 million yuan.

Technology is the DNA of an enterprise, and innovation is the booster of this DNA's continuity and development.

26 years ago, a sewing machine, more than a dozen employees, 860 yuan family bottom, Hengda started; 26 years later, Hengda became China's well-known trademark, China's famous brand products, China's ten real leather shoes king, one of China's largest footwear industry group, Hengda relies on focus, focus, R & D, innovation, the traditional footwear industry has given the soul of quality and technology, not only led by the example of the healthy development of the industry, but also affected by the crisis is very small.

In the process of pformation and upgrading of the global footwear industry, Hengda Group has made a series of innovative initiatives in terms of product personalization and fashion. It has strengthened the brand connotation, combined with Chinese traditional culture and aesthetic taste, strengthened creativity and innovation, developed products that are more close to market demand, continuously improved the profit margins, and saved enough energy for the sustainable development of enterprises.

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Adapting to change and implementing fast fashion mode

In 2009, Hengda, on the basis of summarizing the experience of shoe industry, resolutely implemented the "fast forward" mode represented by ZARA.

"Fast" is fast fashion. This marketing mode appears in flagship stores or exclusive stores. It removes distributors, agents and other intermediate links, updates new products every 7 days, and conducts limited edition "out of stock business".

This mode needs R & D, production, distribution and all-round support to realize the characteristics of fast fashion mode, such as new product design, fast update speed and excellent price.

Hengda believes that the fast growth mode, with its strong scientific research capability, advanced information platform and efficient supply chain, makes its products and services more competitive than traditional retailers and manufacturers in logistics channels, and can better adapt to the market trend of fashion cycle and diversified consumption demand.

The successful operation of the fast growth mode will really build Hengda into a technology intensive fashion shoe enterprise.

Now, after 26 years of brand accumulation, Hengda has realized the development stage of product management and brand management, and is actively developing towards the capital operation stage.

Henceforth, on the basis of entity management, Hengda will implement the virtual operation marked by capital operation, and support the rapid upgrading of enterprise entities through the virtual operation such as annexation and reorganization, and speed up the pformation and upgrading of the technology intensive fashion industry.

Based on the heart, harmonious development

What is worth further borrowing is that in addition to fundamentally solving the problem of pformation and upgrading of enterprises, Hengda Group also pays attention to the pformation and innovation of management ideas. In Wang Jiwan's words, "management according to staff needs".

Starting from the needs of employees, focusing on the needs of employees, thinking about the needs of employees and anxious employees, a harmonious atmosphere of "home" for employees is created.

Good working environment, rich amateur cultural life, competitive salary system and promotion mechanism, excellent training and learning mechanism, and democratization management have made Hengda form a team of talented personnel of ladder type development.

Liu Shuxiang, the national excellent peasant worker, and Lan Cuiping, second of the first leather shoe sewing skills competition in the province, are the typical representatives of ordinary workers who have become skilled technicians.

JAL declared bankruptcy. Inamori Kazuo, 78, was chosen by Japanese Prime Minister Hatoyama Yukio as Caesar to rescue JAL.

In the Chinese mind, how does a mature old man shoulder the mission of the Savior? It turns out that the energy pformation philosophy and business system arrangement of "Sheng Xin" is proved highly effective in the history of Kyocera Corp merger and consolidation.

With love and understanding, experience, dedication, pursuit, heart centered and love oriented, this is also the theory of internal harmony advocated by Wang Jiwan.

"Labor shortage" is a phenomenon. Adapting to market changes and finding solutions is the essence and compulsory course for Chinese enterprises to develop in the future.

The pformation and upgrading of China's manufacturing industry is not so simple to develop independent brands. The truly influential global brands are still few.

In order to realize the pformation and upgrading of the industry in the future, and to develop the independent brand and end the era of cheap manufacturing, the Chinese footwear industry must advance planning and readjust and optimize the structure of export commodities, strictly control the export of products of "two high and one capital" (high pollution, high energy consumption and resource type), inhibit the export of products with low added value and low technology content, and achieve a higher level development of processing trade, which will become the main target of pformation for footwear enterprises.

There is no doubt that a low cost era of Chinese manufacturing is coming to an end. The era of relying solely on consumption and resource development is coming to an end. The idea of leading the market and future development in the so-called scale effect and over consumption of resources will eventually fail.

At the same time, the era of lean manufacturing, quality manufacturing, efficiency manufacturing and innovative manufacturing has surged.