Investigation On The Dilemma Of Small And Medium Sized Textile Enterprises: The Difficulty Of Rising Costs

At present, the increase in the production costs of small and medium-sized enterprises is mainly reflected in three aspects. First, due to the pressure of inflation, the price inflation has further accelerated, and the prices of various raw materials have increased sharply. Two, because of the acceleration of industrial transformation, the remuneration of ordinary labor and technical personnel has increased. Three, with the increase of land prices, the cost of leasing land and factories has increased significantly.

Although at present Cotton price There was a certain callback, but it still rose 50% compared with the same period last year, plus labor cost. Rise The cost of some textile enterprises has increased by more than 80%. Newspaper reporter Lin Ruiquan / photo

Zhou Chun, who has been struggling for nearly 20 years in the field of textile and foreign trade, claims to be very stressed recently. "Cotton prices of raw materials have risen by nearly 50%, and labor costs have risen by 30%, combined with a total increase of 80%." Zhou Chun introduced in May 12th that he wanted to quit, but many people in the company team worked with him for more than 10 years.

Zhou Chun is the head of Qingdao Zhongtian knitting textiles Co., Ltd. Faced with rising cost pressures, he said he felt inadequate.

Not only is the cost soaring, Zhou Chun said. RMB The revaluation is further compressing the profit margins of enterprises, and the advantages of Chinese traditional enterprises are gradually disappearing.

What follows is the loss of orders. Zhou Chun said that although the company has also been adjusting prices on product orders, foreign customers still pressed the price back and forth. Last month, a about 2000000 yuan order was quoted lower by Indonesian companies.

Not only did the profits drop, but also the small and medium-sized foreign trade enterprises began to fail. In the time of bank loan, Zhou Chun met another small business owner. When the bank said it would no longer continue to lend, the owner said, "the company is going to go bankrupt."

　 Prices of raw materials are climbing steadily.

Data released by China Association for small and medium enterprises showed that in the first quarter, the decline in China's SME development index was due to the push up of raw materials, energy purchase prices and rising labor costs, which increased the cost pressure of enterprises. According to the survey, 88% of enterprises' feedback on raw material and energy purchasing prices increased compared with the same period last year, while 81% of enterprises responded to increased labor costs of enterprises.

Zhou Chun started from scratch in 1993 and transformed a workshop of 3 people into more than 200 small businesses.

Zhou Chun said, "I like to do this trade in textile and foreign trade, otherwise it will not persist for so many years, but now the environment has not allowed me to let go of my hands and feet."

　 Since the beginning of 2010, soaring cotton prices have made textile small and medium-sized enterprises complain repeatedly.

Zhou Chun said that although the price of cotton has fallen, the price of raw materials has increased by 50% compared with last year. "Enterprises start from scratch, sometimes in the current high cost environment, they really want to stop." Zhou Chun said, "I think many people in the factory are from more than 20 years old, and now more than 10 years have passed. They are still supporting me in the factory, and I have been trying to stick to it." "At present, there are about 300 employees in Zhongtian Jimo factory. Now it is difficult to recruit workers, and the profits of enterprises are gradually decreasing. Only factories can be set up in relatively low labor prices to reduce costs. Zhou Chun said.

In order to avoid wind, Zhou Chun opened the factory to Hebei. Zhou Chun said that the opening of factories in the field mainly takes into account the advantages of local labor costs. From the present point of view, the effect is good.

In addition to setting up factories in the field, foreign trade to domestic sales has also become one of Zhou Chun's choice.

Zhou Chun said that the market share of domestic sales will be increased in the future. As a result, the company's foreign trade accounted for most of the shares.

While domestic sales have become a "life-saving straw" for enterprises, Zhou Chun is also facing many difficulties. Lack of funds is one of them.

Because of small and medium enterprises, bank loans are very selective. Zhou Chun said that if the company plans to sell domestically, the current capital shortfall may reach more than ten million yuan.

Zhou Chun's business is only one of the epitome of many small and medium-sized enterprises in China. Small and medium-sized private enterprises in Jiangsu and Zhejiang areas, hardware, plastic products and other industries are more and more SMEs suffer from rising raw materials.

Luo Baihui, Executive Secretary General of the international mould and hardware Plastics Industry Association, introduced that inflation pressure was still relatively large in 2011. As the industry was more sensitive to the price changes of raw materials, the demand for basic raw materials increased with the demand of hardware plastic mold, and the long-term trend of raw material price rising was irreversible. "The pressure on raw material prices will not be reduced. It is estimated that the prices of major raw materials will rise again in 2011, thus pushing up the cost of the mold industry." Luo Baihui said that from now on, the demand for raw materials for chemical plants is large, and the demand for propylene oxide in the upper reaches of the industry is tight, resulting in the rising price of propylene oxide and the increasing cost of polyether production costs.

Zhang Ping, general manager of Ningbo Boer Industry Development Co., Ltd., "has a lot of complaints" about the rise of raw materials and the extraction of related substances from petroleum as raw materials and production of various pipes.

Zhang Ping said: "with the increase of oil and other commodities, the cost of raw materials has increased by 20% - 30%."

In April 27th, the data released by China Association for small and medium enterprises showed that in the first quarter, the development index of small and medium enterprises in China declined because of the rising price of raw materials and energy and the rising cost of labor, which increased the cost pressure of enterprises. According to the survey, 88% of enterprises' feedback on raw material and energy purchasing prices increased compared with the same period last year, while 81% of enterprises responded to increased labor costs of enterprises.

　 Worries about labor cost

"Compared with the surrounding enterprises, this year's recruitment situation is pretty good, basically has recruited the staff." Wu Jianan said, but the cost of new recruits has gone up a lot. In the past, employees' wages accounted for 6% to 7% of total expenditure, which has risen to around 10% last year.

Not only the cost of raw materials, but also the many small and medium-sized enterprises that have not been worried about the labor force, they have been beset by labor shortage in recent years.

Zhang Ping felt deeply about the "labor shortage" and the increase in labor costs since the Spring Festival this year.

According to China's first textile net, "we have just made a wage increase in April, which has increased by about 50 thousand yuan to 60 thousand yuan compared with a year ago." Yesterday, Zhang Ping told reporters on the phone, "labor shortage" brought about by the rise in the cost of business, its understanding and helplessness.

Zhang Ping introduced that last year, taking into account the rapid rise in prices, before and after the introduction of the new minimum wage standard in Ningbo, the company raised staff salaries two times, totaling more than 28%, and spending hundreds of thousands of yuan a year.

"This year, we recruited more than 300 people to 400 people. It only cost tens of thousands of dollars to introduce fees." In an interview with our newspaper reporter in early March, Wu Jianan said that in the spring of this year, there were old employees or acquaintances who introduced employees to the company to interview. According to the age and technology of the recommended employees, the company would provide introductory fees ranging from 200 yuan to 500 yuan.

Wu Jianan is the chairman of Hubei benevolent Textile Technology Co. Ltd., a medium-sized private enterprise that produces pure polyester thread, currently employs about 3000 people.

In the Yangtze River Delta and the Pearl River Delta region, there are many other industries like Ningbo Boer Industry Development Co., Ltd.

In May 5th, the 109 Canton Fair as the "wind vane" and "barometer" of China's import and export trade ended on schedule.

Through interviews with enterprises participating in the Canton Fair, we know that in the context of "increasing labor costs and increasing exchange rates", enterprises have to "be cautious" when exporting orders, and they are "pushing around" with foreign customers in terms of price.

"If the cost rises by about 5%, we will generally not raise the price on the basis of ensuring the stability of our customers." Yang Haichao, director of overseas sales at the 109th phase of Canton Fair in Jining, said that if the cost goes up by 5%, the price of the company will increase by 3% to 5%.

According to Liu Jianjun, a spokesman for Guangzhou Trade Fair, 90% of the short and medium bills were in the order of the Canton Fair, while the long list accounted for 10%. Purchasers still have doubts about the market outlook. They are cautious. They worry about policy adjustment and cost increase.

Liu Jianjun said that the current uncertainties and rising costs have restricted the volume of business.

Compared with the electromechanical enterprises such as the first stage of the exhibition, the second stage of daily consumption, gift and home decoration enterprises, as well as the third stage labor-intensive enterprises such as textiles, clothing and footwear, have a "skin pain" for the rising cost of labor and raw materials.

The rising cost of production and operation has not only affected the turnover of enterprises in the Canton Fair, but also affected the normal production and operation of enterprises, and the survival of SMEs has become more and more difficult.

In April 22nd, a member of the National Federation of industry and Commerce Party committee and the first vice chairman, Quan Zhu Su, said at a forum in Beijing that although the party and the parents' period attached great importance to the development of small and medium-sized enterprises, especially in recent years, a series of measures were continuously introduced to improve the development environment of small and medium-sized enterprises. But at present, small and medium enterprises, especially small and micro enterprises, still face many difficulties. The most important problem facing them is the increase of production and operation costs.

Quan Zhu Zhu pointed out that the current increase in the production costs of small and medium-sized enterprises is mainly reflected in three aspects. First, due to the pressure of inflation, the price inflation has further accelerated, and the prices of various raw materials have increased sharply. Two, because of the acceleration of industrial transformation, the remuneration of ordinary labor and technical personnel has increased. Three, with the increase of land prices, the cost of leasing land and factories has increased significantly.

"Textile enterprises, as traditional enterprises in China, are more and more influenced by various factors, and their position in the international arena is not as good as before." Zhou Chun said that at present, the domestic and international situation is uncertain, and some enterprises in the South have begun to fail again. They hope that the state can support them in many ways, so that some enterprises will avoid taking detours.

Zhang Monan, an Associate Research Fellow of the National Information Center forecast department, suggested that the state regulatory authorities should give support to SMEs in training, management, technological research and development, and capital, and support the formation of an overall system for SMEs.

Deterioration of SME operating conditions

Leaders of small and medium-sized enterprises in Jiangsu and Zhejiang provinces generally believe that the deterioration of operating conditions includes six major problems, namely, increasingly tight funds, rapid increase in labor costs, great pressure on energy saving and emission reduction, increasingly heavy tax burden, excessive land prices, high cost of high housing prices, and great pressure on RMB appreciation.

"The company will be blackout tomorrow. It has been announced." In May 13th, a Zhejiang dry fruit production company insider told the reporter.

Just after the summer, the signs of power shortage in many provinces and cities in the South came one after another. Under the pressure of raw materials and labor costs, power shortage has become a barrier for many small and medium-sized private enterprises.

Statistics show that in the 1 quarter of this year, enterprises in Zhejiang province were restricted to electricity consumption, reaching about 500000 households. Many enterprises faced the embarrassment of "three stops one" and "weekly stop two". In May 12th, Hangzhou Customs announced the operation of Zhejiang's foreign trade in the first 4 months of this year. Hangzhou customs statistics analysis experts believe that the impact of the off-season electricity shortage on private enterprises will gradually appear.

It is understood that this year's "electricity shortage" ahead of schedule earlier than 2 months earlier, currently experiencing 7 years of the largest electricity shortage in Zhejiang, the power gap of 2 million kilowatts. In the power management, some small and medium-sized private enterprises often bear the brunt. This will further expand the private enterprises that occupy half of the total value of Zhejiang's imports and exports.

Luo Baihui thinks, "boat is small and good turn around", the current plastic mold enterprise is about 40 to 50 people's scale, and hardware enterprise is 100 to 200 people's scale, many small and medium-sized enterprises have diesel generator, they can generate electricity by themselves.

"For some large and medium sized enterprises and labor-intensive enterprises, the impact of power rationing on them is still very large." Luo Baihui said.

According to China's first textile net, Luo Baihui believes that from a certain point of view, the power cut will cause some industries to passively reduce production and lead to further price increases. But now, the direct impact on the downstream is more obvious. For example, phosphorus chemical industry, caustic soda and other sub sectors, electricity costs accounted for 60% of the cost of production, and silicon industry accounted for about 40% to 50% of the cost of electricity. Therefore, the power shortage has great influence on phosphorus chemical industry and caustic soda industry.

Some studies have found that the operating conditions and operating conditions of small and medium-sized enterprises have deteriorated significantly, and tax burden is a major problem facing small and medium-sized enterprises.

Statistics show that at present, there are more than more than 1000 SMEs, accounting for 99% of the total number of enterprises, providing nearly 80% of urban jobs, and the amount of tax is nearly 50% of the total tax revenue.

Previously, according to the research and development center of the State Council, at present, the leaders of small and medium-sized enterprises in Jiangsu and Zhejiang provinces generally believe that the deterioration of operating conditions includes six major problems, namely, increasingly tight funds, rapid increase in labor costs, great pressure on energy saving and emission reduction, increasingly heavy tax burden, excessive land prices, high cost of high housing prices, and great pressure on RMB appreciation.

During the "two sessions", the CPPCC National Committee member, vice president of the China International Taxation Research Association and Xu Shanda, former deputy director of the State Administration of Taxation, said in an exclusive interview with reporters that the value added tax and business tax threshold for SMEs and self-employed households can also be improved.

Xu Shanda believes that for self-employed individuals, their burden can be reduced, they can live and work in peace and contentment, the society will be stable, the development of self-employed households is fast, and there may also be successful enterprises.