Lack Of Labor And Lack Of Money &Nbsp; Wenzhou Small And Medium-Sized Textile Enterprises "Labor Pains" In Pursuit Of Pformation

Jiangnan Leather Co., Ltd., located in Longwan, Wenzhou, Zhejiang, is locked in the door. The liquidation notice is posted at the door, and the production equipment of the enterprise is basically emptied.

Since April this year, three enterprises in Jiangnan leather, Portman and three flag groups in Wenzhou have gone bankrupt due to their boss's escape or poor management, all of which are directed at capital chain breakage.

One stone stirred up thousands of waves, and the closure of three enterprises caused concern among all parties. The remarks on the survival of SMEs in Wenzhou caused by the breakup of capital chain and the recurrence of large-scale collapse during the financial crisis were once again circulated in Wenzhou.

In an interview with Wenzhou, it was found that no matter what the government, enterprises or banks believed, with the gradual tightening of the macroeconomic environment, the cost of production, operation, liquidity and raw materials and other production and operation costs continued to rise.

In Wenzhou, 1/4 of enterprises appeared to be unable to meet the demand because of lack of work.

While labor costs are rising, the pressure on raw material costs is also growing.

In the Wenzhou Industrial Park, most enterprises are always recruiting information at the door, and the word "urgent appointment" is written very well.

Liu Zheng, the personnel manager of Xia Meng Yi Fashion Co., Ltd., said that although workers' wages increased by 20% over the same period last year, there was still a 10% gap in employment.

"The turnover rate of employees is as high as 70%, which is generally around 30%."

Liu Zheng said that this situation has been highlighting since last year.

In the recruitment column at the door of the enterprise, we see, "enterprises pay social insurance for their employees, enjoy the national statutory holidays, and the employees' dormitories have televisions, air conditioners and sanitary bathrooms".

Liu Zheng believes that in addition to the industrial pfer and the employment of workers in the western region, the new generation of migrant workers have higher requirements for the factory environment, employment treatment, rest protection, welfare protection and so on. They are no longer willing to work like the older generation of workers.

"When we communicate with business owners, they say" fear "in all aspects of the cost increase.

Zou Jianqiang, deputy director of the Wenzhou Industrial Park Management Committee Office said.

Zou Jianqiang introduced that for this year's enterprises in Wenzhou Industrial Park, the remuneration of all industries and all kinds of jobs increased by an average of 15%-20%.

Even so, the labour intensive clothing industry is still discontented with workers.

With the rapid economic development in the central and western regions, labor-intensive industries such as Jiangxi, Hubei, Anhui and other major labor exporting areas have grown rapidly, and the wage gap has been narrowing along with the coastal areas. The cost of living in Wenzhou and other places has increased, resulting in the reduction of labor force and the increasingly serious employment situation.

The Ministry of human resources of a garment enterprise revealed that the monthly salary for general practitioners in the past year was less than 1500 yuan, but this year the monthly salary increased to 1800 yuan and was wrapped up.

If it is lower than this price, the workers will not consider it at all.

According to the monitoring and investigation conducted by the Wenzhou economic and Trade Commission, 74.5% of the 855 enterprises in Wenzhou indicated that they were short of employment, an increase of 14 percentage points over the same period last year.

Among them, nearly 10% of the total number of workers is short of labor, about 20% of the total number of workers is short of 20%, and less than 10% of those who are short of work 30%.

From the perspective of industry classification, labor intensive industries such as footwear, clothing, glasses, lighters, pens, locks and other labor-intensive industries are relatively short of labor. More than 80% of these enterprises lack more than 10% jobs.

In Wenzhou, 1/4 of enterprises appeared to be unable to meet the demand because of lack of work.

China Securities Daily learned from the Wenzhou vocational center that the number of migrant workers who came to the center to register for employment before 2001 reached more than 510 thousand, but by 2009, it had dropped to 180 thousand people. In 2010, there were only 120 thousand people, and this year it will drop further. It is estimated that there will be more than 200 thousand workers in the whole year.

Huang Shoujun said that although some enterprises have ample orders, the enterprises are hard to find on the front-line employees, resulting in inadequate start-up and unable to deliver on time, resulting in a decline in production.

While labor costs are rising, the pressure on raw material costs is also growing.

Wenzhou Industrial Park has a total of more than 110 enterprises, including leather, clothing, machinery, stainless steel and other industries, of which leather industry has a total of more than 20 enterprises, accounting for 50% of the total output value of the park.

Since last year, the supply of raw materials for leather industry has been tight. The price of common calf has increased by 20%. At the same time, the price of international oil has fluctuated, and the price of chemical raw materials has also increased fiercely.

The pressure of all kinds of raw materials to raise prices is pmitted to downstream products enterprises.

Take the shoe making enterprises in Wenzhou for example, the polyurethane materials used in the soles are rising from 21 thousand yuan per ton to 25 thousand yuan per ton, or nearly 20%, and the price of glue has nearly doubled.

The head of Wenzhou's Delhi footwear industry said that the increase in export prices was far less than the increase in costs.

Lou Jianmin, deputy director of the small and medium enterprises department of Hangzhou Economic Commission, said that the price of industrial land in Wenzhou was as high as 2 million -300 yuan per mu, far exceeding the price of 2.3 million yuan per mu in the suburbs of Hangzhou. The cost of land also pushed up the cost of the enterprise and engulfed the profits of enterprises, so some enterprises in Wenzhou moved to the central and western regions for industrial gradient pfer.

Money shortage: private lending is rising.

Enterprises that can not borrow money can only turn their attention to private lending, which leads to the rising interest rate of private lending.

If money continues to tighten, there will be problems for many small and medium enterprises' capital chains.

The continuous rise of various costs has made many small and medium-sized enterprises thirst for credit funds.

However, the gradual tightening of the money supply makes these enterprises' capital chains tight.

According to the latest data of Wenzhou branch of the people's Bank of China, the total amount of new loans in Wenzhou in 1-3 is 23 billion 828 million yuan, which is only 66.5% of that in the same period last year.

Enterprises that can not borrow money can only turn their attention to private lending, which leads to the rising interest rate of private lending.

The interest rate monitoring of private lending of Wenzhou branch of the people's Bank of China showed that at the end of 3, the comprehensive interest rate of Wenzhou's private lending market was 24.81%, and the monthly interest rate exceeded 2 points.

The interest rates in 1-3 months of this year were 23.01%, 24.14% and 24.81% respectively, showing a gradual increase.

The monthly profit of pawn shops rose from 2.2 points last year to the current 3 points, and even some short-term monthly interest rates have reached 4 points and 6 points.

By the end of 3, the financial cost of enterprises monitored increased by about 20%, and expenditure increased by about 6% of the total profit of the same period.

Port Shang Ji restaurant near Wenzhou's small South Gate has been affixed with seal by Wenzhou intermediate people's court.

Owing to getting more and more difficult to obtain loans from banks, the owner of Yan Qin passed millions of yuan loans, and the monthly interest rate reached 6 points or even 8 points, but the profits of enterprises continued to decline.

According to people familiar with the matter, the three flag group was still hiring 1 months before its closure.

Most of the fixed assets of the company in Yueqing have been frozen or pferred owing to the lack of funds up to 123 million yuan.

Li Zhongjian, general manager of Dongfang Light Industrial Co., Ltd., told China Securities Daily reporters that he occasionally made loans to private loans, with a monthly interest rate of 3 points and 4 points.

Li Zhongjian had made a lighter for more than 10 years and had previously mortgaged the contract to bank financing, but now this road is not working.

Due to the pressure of wages and rising raw materials and the fluctuation of US dollar, some orders are not up to date.

"Now the bank loans are tight and interest rates have been raised again and again, so some orders are afraid to pick up."

Li Zhongjian said that more than just his business, many enterprises in Wenzhou rely on social responsibility and face.

He expects that in the second half of this year, the situation of SMEs in Wenzhou will be even more serious.

Li Zhongjian said that there were more than 1000 enterprises in Wenzhou lighters, and a number of businesses were shut down because of the decline in profits and difficulties in operation. At present, there are still one hundred or two hundred left over, but there are less than 100 enterprises that can actually produce normally.

"The dollar moves, wages rise and rise, and money is tight. Our hearts are in panic."

Li Zhongjian said that the pressure on export oriented enterprises is even greater.

In anticipation of the appreciation of the RMB against the US dollar, small and medium enterprises with weak bargaining power have not been able to take orders for long periods.

Li Zhongjian said: "some enterprises are afraid to raise the price of products. Raising the price is equivalent to throwing away the market share and sacrificing profits to protect customers."

"Some enterprises have short term turnover through private lending, and the monthly interest rate has reached 6 points."

For the current survival situation of SMEs, Zhou Dewen, chairman of Wenzhou SME Promotion Association, is worried.

"If the money continues to tighten, there will be a lot of small and medium-sized enterprises' capital chain problems."

Zhou Dewen even worried that the continued tightening of the capital chain will lead to the collapse of Wenzhou's SMEs in the wake of the international financial crisis.

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Electricity shortage: earlier than before

Since the beginning of this year, the situation of power supply and consumption in Zhejiang has obviously tightened, due to the lack of power supply capability of the Wenzhou power grid and the equipment of Wenzhou power grid.

Since March, some enterprises in Wenzhou have been troubled by power shortage, and power shortage has also become an important constraint on the production of enterprises.

The power shortage will be limited before the summer vacation.

Some enterprises have begun to limit electricity and implement the "five stop two" power supply measures every week.

Li Zhongjian said, two days a week.

Enterprises only generate electricity by themselves, and the cost of electricity is rising again.

The Wenzhou economic and Trade Commission said in its briefing on the main difficulties in the operation of our industrial economy in the first quarter, "the industrial electricity shortage is more prominent."

Since the beginning of this year, the situation of power supply and consumption in Wenzhou has been tightened up due to the lack of power supply in Zhejiang power grid and equipment in Wenzhou power grid.

In 1-3 months, the maximum electricity load in Wenzhou reached 5 million 40 thousand kilowatts, and the power supply capacity was only about 4 million 400 thousand kilowatts, and the gap was about 600 thousand kilowatts.

Since the beginning of this year, phased power rationing has been phased out in all districts and counties of Wenzhou.

Wenzhou has issued the 2011 Wenzhou power grid "power supply capacity of the super grid to limit the electricity sequence table".

The power restriction measures have brought many enterprises' influence on production and operation.

Wenzhou Industrial Park Economic Operation Report 1-4 this year showed that the park did not add new production enterprises this year, 4 enterprises were converted, and more than 10 enterprises were discontinued.

90% of the synthetic leather and stainless steel enterprises in the park have moved out of Wenzhou due to rising land costs and high power consumption.

Business people complain that even if the electricity is limited, enterprises can not stop production, not only for workers, but also for the continuation of operations and order fulfillment.

Diesel power generation is an inevitable way to save itself, but the pollution caused by diesel power generation is contrary to the original intention of energy conservation and emission reduction.

Transformation and upgrading of Pathfinder

The traditional labor-intensive enterprises are no longer the representative force of Wenzhou's private economy. We must enhance the technological content of traditional manufacturing industries, cultivate new industries and raise the added value of brands.

"Although it can not be said that the financial turmoil in 2008 is also difficult, but this year's business pressure factor is indeed a lot more."

The owner of a metal material company in Wenzhou said.

With the continuous extrusion of various costs to SMEs, the growth of some traditional industries has been in the doldrums.

Huang Shoujun said frankly that some high-energy and labor-intensive export-oriented industries were significantly affected, and profit growth was relatively low.

In the 1-3 month of this year, the total profits of high energy consuming industries such as tanneries (102), paper-making enterprises (22), and metal smelting enterprises (80) were all negative growth compared with the same period last year. The profits of export oriented industries such as glasses, lighters, pens, locks, razors and so on (35) fell by about 30% compared to the same period in Wenzhou.

Taking shipbuilding industry as an example, the output value of 19 shipbuilding enterprises in Wenzhou decreased by 4.2% in the same period of 1-3 months, and the losses of the whole industry deficit enterprises amounted to about 28000000 yuan, up 8 million yuan from the same period last year.

At present, the capacity of the shipbuilding industry has only reached 30%, and half of the enterprises have no orders.

"However, Wenzhou's new energy, new materials, biomedicine, energy saving and environmental protection, the four strategic emerging industries, produced 2 billion 512 million yuan in the first quarter of this year, an increase of 31.9% over the same period last year."

Huang Shoujun said that this shows that Wenzhou's industrial structure is being optimized and upgraded, and the Wenzhou municipal government has set up Wenzhou's office for promoting industrial pformation and upgrading.

Huang Shoujun interpreted the current difficulties of Wenzhou enterprises as "labor pains" during the pformation period.

The failure of enterprises can not represent the overall situation of Wenzhou enterprises.

"In the first quarter of this year, the delivery value of Wenzhou's exports was 13 billion 804 million yuan, an increase of 14.3% over the previous year. This index is far better than the data in the financial crisis, and the main indicators of the industrial economy remain in an appropriate growth range."

Huang Shoujun said that enterprises in Wenzhou should not fail because they simply thought that the whole Wenzhou enterprise would not work.

According to a person familiar with the matter, the latest report issued by the Zhejiang banking regulatory bureau and the Wenzhou banking regulatory sub Bureau believes that, according to the investigation of Wenzhou's business system, the current prudent monetary policy has produced some pressure on the financing of enterprises, but it has not fundamentally affected the overall development of Wenzhou enterprises as a whole, nor has there been any phenomenon of centralized failure of enterprises.

According to the survey report, "some high polluting enterprises such as leather and steelmaking which do not comply with environmental requirements must be closed according to regulations. Some industries must be eliminated because of overcapacity. This should not be simply a precursor to Wenzhou's economic crisis."

Statistics from the Wenzhou Administration for Industry and Commerce showed that, at the end of the first quarter, the number of private enterprises in Wenzhou was canceled by 534, down 14.56% from the same period last year. However, 73 thousand and 200 registered private enterprises in Wenzhou have reached a record high, with registered capital of 206 billion 310 million yuan, up 15.11% and 28.37% over the same period.

The industry believes that the current "pain" of SMEs in Wenzhou indicates that the traditional labor intensive manufacturing mode has ended.

In the economic cyclical rhythm, some traditional enterprises are eliminated, which is a normal phenomenon. Industrial upgrading and structural pformation must be carried out.

The traditional labor-intensive enterprises are no longer the representative force of Wenzhou's private economy. We must enhance the technological content of traditional manufacturing industries, cultivate new industries and raise the added value of brands.

Only in this way can Wenzhou's private enterprises get out of the predicament.