Shoemaking Industry Plans To Overturn "Three Mountains" And Speed Up Industrial Upgrading

On January 21st, as the financial crisis began to fade away, all countries in the world came out of the crisis.

One, three big mountains in China

First, restart.

Second, the price of raw materials is rising.

Since the second half of 2010, prices have entered a fast rising channel, and the prices of food and industrial products have been rising.

This price increase is a phenomenon in the process of economic recovery after the international financial crisis, mainly due to excess liquidity, and imported inflation is more obvious.

In 2010, the global economy slowly recovered, and the emerging market attracted a lot of international speculative capital with relatively fast growth and relatively earlier interest rate increase.

The expectation of RMB appreciation has become a powerful driving force for the influx of "hot money".

After the implementation of China's moderately loose monetary policy and proactive fiscal policy in response to the crisis, the problem of excess liquidity in China gradually emerged in 2010.

At the same time, the latest round of quantitative easing monetary policy in the US has led to a further trend of global liquidity overflowing, and China faces enormous pressure of capital inflow.

In 2010, behind the soaring prices of commodities, it was easy to find the shadow of idle capital.

It is reported that the flood of liquidity will further push up the price of raw materials.

Third, labor shortage.

With the revival of the economy, labor shortage began to appear in the coastal areas two years ago in 2010. In 2010, "no workers" became the common problems of many shoe enterprises along the coast.

In order to stabilize and excavate workers, shoe companies began to show their powers, and increased wages became the most common choice.

One shoe boss told the author that in 2010, the factory only went up 4 times, but if the price of the product could not be increased, the factory would only have to close the door. After all, the bargaining power of individual factories was not high.

In addition, in the Quanzhou area, many enterprises go up north to find the flour processing plants, and then pport them back to the bottom of Quanzhou. However, there are many disadvantages in the long distance production and processing.

And some powerful enterprises began to find local construction industrial parks in the mainland. Taking Quanzhou enterprises as an example, at present, PEAK's 500 mu Industrial Park in Jiangxi has been put into operation, and it can produce 10 million pairs of sports shoes annually. Recently, Anta in Jiangxi Guangfeng, XTEP in Hunan Ningxiang and Anhui mussel Fu also dropped pieces to build industrial parks, which can be put into production in a few days.

Recently, I learned from the Putian shoemaking association that many shoe companies in the city are ready to collectively take part in the construction of industrial parks in Henan.

In order to alleviate labor shortage, many shoe companies went northward and moved west to camp in order to fully absorb local labor force and achieve sustainable operation.

A strong enterprise can certainly do it, but not every company can do it.

How to solve the labor shortage in 2011 is still a difficult problem for most enterprises.

According to the situation in 2010, the recruitment of workers along the coast in 2011 will not be easy. This is a sharp sword hanging on the heads of many labor-intensive enterprises.

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Two, the decline of the international market economy.

The United Nations Department of economic and social affairs released the main contents of the 2011 world economic situation and Outlook report in December 1st.

The report said that from the middle of 2010, global economic growth decelerated significantly. The growth rate in 2011 is likely to be even slower. The growth rate of the world economy is expected to decline from 3.6% in 2010 to 3.1% in 2011.

The report says high unemployment, tight fiscal policy and the risk of currency wars pose a major threat to the recovery of the world economy.

The outlook for the world economy is still uncertain, and serious downside risks continue to plague the world economy.

At present, the weakening of cooperation among major economies in the world has affected the effectiveness of coping with the crisis. The incompatibility of monetary policy has become the root cause of turbulence and uncertainty in financial markets.

The report warned that if economic downside risks become reality, the economic recovery will be further combating, and the road to recovery of the world economy is still long and tortuous.

The report argues that the economies of the main developed countries continue to drag the global economic recovery.

The report predicts that the US economic growth rate in 2011 will slow to 2.2% from 2.6% in 2010, and the growth prospects in Europe and Japan will be even more bleak. In 2011, the euro area's economic growth rate is expected to be only 1.3%, while Japan's economic growth rate will be around 1%.

The report points out that, compared with the sluggish recovery in developed countries, developing countries will continue to promote the global economic recovery in the next two years, but the growth momentum will weaken. The growth rate of developing countries in 2011 will be reduced from 7% in 2010 to 6%.

The reason for this slowdown is not only the gradual tightening of domestic macro policies, but also the slow recovery of economic recovery in major developed countries.

If the economic situation in 2011 is indeed as described in the report, then the international demand will undoubtedly shrink further, which will be obvious to China's foreign trade export.

If the world's major economies can not recover as expected, then the economic situation in 2011 will be more complicated.

Looking forward to 2011, at present, the central government is vigorously promoting domestic demand and industrial restructuring to upgrade industries, and shoe enterprises should firmly grasp these two points to cope with the complex situation.

First of all, expanding domestic demand is the basic and long-term strategic policy of China's economic development. It is also an important task to pform the mode of economic growth and structural adjustment.

China has a large population, vast territory and great potential for domestic demand. This is the biggest advantage to promote China's long-term steady and rapid development.

But insufficient domestic demand, especially the lack of final consumption, has been a "soft rib" that has plagued China's economic development for many years.

At present, the state has made efforts to change this situation through various forms and ways, such as home appliances going to the countryside, building materials going to the countryside, cars going to the countryside and so on.

In addition, in order to constantly improve people's livelihood, the state has increased investment in education, medical and health, social security and employment, affordable housing and other related aspects directly related to residents' lives, reducing the burden on residents.

It is foreseeable that China's domestic consumption potential will be huge in the future. The population of 1 billion 300 million is larger than that of the two European population, which is 4 times more than that of the Americans.

Therefore, enterprises should continue to increase investment in domestic demand and continue to grow bigger and stronger. In addition, enterprises should speed up industrial upgrading and produce products with high added value.

At present, with the soaring wages, management fees and material prices, enterprises will not be able to cope with the challenges of the new situation if they do not carry out industrial upgrading. Especially in coastal areas, under the urgent demand of industrial upgrading, the survival of labor shortage will be even more difficult.