A Survey Of The Cost Of Taiwan Enterprises Moving To The West

It accounts for half of China's footwear exports, including many Taiwan funded shoe enterprises such as Yongen group, which produces "Daphne" brand. In the process of "moving east shoes to the west", many Taiwan funded shoe enterprises have also joined the ranks of great migration. However, different from domestic shoe enterprises, Jiangxi, Anhui, Hunan and other central provinces are located close to the headquarters of Taiwan funded shoe factories in Guangdong and Fujian, becoming the focus of investigation and investment. According to the reporter's investigation, the enterprises that have moved to the central provinces have to recover their investment costs for a long time due to the new start-up of new factories, while the remaining enterprises are facing the dilemma of rising costs. Dachuan shoe industry sample: it is still losing money every month in another month or two, the second phase project of Jiangxi Dachuan shoes company invested by Taiwan Yongen group in Lichuan County of Jiangxi Province will be completed and put into operation. Cai Lizhu, deputy manager of the company, told reporters: "in addition to the first phase of the project which has been put into operation, the total investment of the two phases is 50 million yuan. If the production is smooth, the company will consider building all processes of Daphne shoes in Lichuan, Jiangxi Province. " Yongen group is a Taiwan funded enterprise established in 1987. Its most famous women's shoes brand is Daphne. According to Cai Lizhu, since the plant was set up in Putian, Fujian Province in 1988, Yongen group has 12 factories in mainland China, 9 of which are located in coastal cities such as Shanghai and Fujian, and the remaining three factories are located in Jiangxi, Anhui and Henan provinces in the central part of China. Yongen is the nearest factory in Fujian. Cai Lizhu told reporters that due to the difficulties in recruitment, high cost and land saturation in southeast coastal areas, the company has been planning to build factories in Central China in recent years. In September last year, after three or four months' inspection, Yongen finally put the plant in Lichuan County, Jiangxi Province, which is close to the Fuzhou Yinchuan expressway. At the beginning of this year, Jiangxi Dachuan shoes industry phase I project was completed and put into operation. For the effect of "moving shoes from the east to the west", Cai Lizhu was deeply impressed: in terms of labor costs, compared with the coastal areas, it is easier to recruit people in the central region, and the wage cost is relatively low. This is one of the main reasons why they built the factory in the central part of the country - the labor cost accounts for about 20% of the total cost. Due to the local government's commitment to help solve the personnel problem, Dachuan footwear industry has abundant labor, and the average wage is 800-900 yuan a month, while the average wage of Fujian and other coastal areas is 1000-1050 yuan. Jiangxi's electricity charge is also cheaper than that in coastal areas, about 0.65 yuan / kWh, while that in Fujian and other coastal areas is about 0.8 yuan / kWh. among the increased expenses, including logistics costs, the monthly expenditure has increased by 50000-60000 yuan compared with the past. Cai Lizhu said that since the production line has just been put into operation, the workers' proficiency is not high, and the production volume has not kept up with it. So far, after deducting various costs, the factory is still in a state of loss, about 100000-200000 a month. However, she estimates that with the increase of production, it will generate a surplus after half a year. However, to fully recover the investment cost, it is still a "slow step" ”The process. although there are losses at present, Cai Lizhu still thinks that the central region is attractive to Taiwan funded enterprises along the coast. "The prices of labor, electricity, land, tax and other elements are lower than those in the coastal areas. These advantages are quite attractive. Among them, the main reason is that there is a possibility of further development only when there are sufficient personnel and it is easy to start work. However, it is inevitable that the wages of workers will rise in the future 。” The problems encountered by another Taiwan funded enterprise are also quite representative. Shanggao Yusheng Industrial Co., Ltd., located in Shanggao County, Jiangxi Province, is a company of Taiwan Baocheng group, which mainly produces various world famous sports shoes such as Nike and Adidas. Shanggao Yusheng company invested 70 million US dollars in the first phase. Since it was put into operation in March last year, a total of 12 production lines have been officially put into production. According to a manager in charge of the company's business, the monthly production of shoes has reached about 600000 pairs. According to a staff member of the company's human resources department, the company has about 10000 employees, which are recruited by local labor and employment agencies. However, the turnover rate of new employees within 1-2 months is relatively high, sometimes reaching 30% - 40%. This may be because Shanggao county is not big, but many companies have set up factories here. Like the same park, there are Taiwan funded enterprises such as Wangwang. After a certain amount of training, the workers may feel that the treatment of other companies is better, so they will change jobs. The original company has to recruit and retrain again. The staff said that they can recruit about 1000 new people a month on average, and the training cost for each new person is about 150 yuan. According to this calculation, the monthly cost of Gao Yusheng on training is 150000 yuan. The manager in charge of the business said that since the company started production in March last year, the company has adjusted its salary twice, increasing by more than 100 yuan, and the current salary is 700-800 yuan. Although it is still lower than the salary of 1100-1200 yuan of coastal company, if the scale of 10000 people in the factory is calculated, the monthly labor cost of the company will reach 7-8 million yuan. although the manager did not disclose the company's current profit and loss situation, he also said that development in the central region also needs process. Li Peng, Secretary General of the Asia Footwear Association, used the term "forced and helpless" to describe the establishment of Taiwan funded enterprises in Central China. He said that at present, it is very difficult for Guangdong shoe enterprises to recruit workers. Often, only 300 or 500 employees are recruited for factories with 1000 employees, which limits the production of shoe enterprises, and some factories that can't persist can only close down. Factories that recruit workers are also burdened by the rising cost of workers. A few years ago, the wages of workers were only 8900 yuan, but now many of them are more than 1000 yuan. For example, in order to improve the quality of the workers, the cost of equipment management in some enterprises, such as air-conditioning, has to rise. In addition, Li Peng said that in Dongguan, there is no spare land to build factories for these enterprises to expand production. The existing land price is also very expensive, and can even reach the high price of 500000-600000 yuan per mu. However, the central cities are different. For example, the average labor cost in Jiangxi Province can be 200 yuan cheaper than that in Guangdong Province, and the labor force is relatively easy to find in coastal areas. In order to attract investment, the local government has promised to provide manpower guarantee for the companies that come to build factories in succession. In terms of land, the central cities also have great concessions. The land is very cheap, with a maximum of tens of thousands of yuan per mu. The price difference between the land price in coastal areas and that in coastal areas is 10 to 20 times, and some of them are even given to manufacturers. According to the survey, the electricity fee in Jiangxi Province is about 1-0.5 yuan / kWh, which is about 1-0.5 yuan / kWh. However, shoe-making enterprises with 10-20 thousand people use millions of electricity every month, and factories with thousands of people also need hundreds of thousands of people a month. The reduction of electricity charges can save them a lot of costs. In contrast, it is a natural trend for shoe enterprises to build factories in central and western regions where the costs are lower than coastal areas, so as to alleviate the impact of labor shortage and land saturation. Li Peng told reporters that taking Guangdong Province as an example, most of the large-scale Taiwan funded shoe enterprises with more than 3000 people are now relocated, accounting for two fifths of the local nearly 500 large-scale shoe enterprises. For example, Huajian group, Baocheng group and Haifeng shoe industry have set up factories in Jiangxi Province. The rest are either in the process of investigation or because of industrial chain problems, but at least 70% of shoe enterprises have visited Jiangxi, Hunan, Anhui and other central provinces. In fact, the relocation places are not only the mainland, but also Vietnam, India, Bangladesh, Cambodia and Tanzania. He said that Taiwan funded shoe enterprises that can survive now are basically producing brands with certain world reputation because of their high added value, stable orders and income sources. Most of these shoes are exported to Europe and America. In order to avoid the anti-dumping duty, some shoe enterprises exported to the European Union favored Indonesia, India and other places when they moved abroad. Li Peng predicted that the original headquarters of Taiwan funded shoe enterprises, such as Dongguan in Guangdong Province, would become the supply base for Taiwan funded enterprises in R & D, personnel training and raw materials, while the production bases would move to central cities. different voices: it may take 10 years the path and way of "moving shoes from east to west" are different from some large-scale shoe enterprises in China. Taiwan funded enterprises do not go deep into western regions such as Chongqing and Chengdu to build factories, but most of them buy land and build new factories in Central China as production bases. According to Cai Lizhu of Dachuan shoes, this is related to the supply of raw materials and the supporting of the industrial chain. "Yongen group has many factories in Fujian with complete industrial chain, while Jiangxi's factory is only a production base, unable to purchase raw materials and can only be transported by means of transportation. In this way, in order to reduce the logistics cost, convenient transportation is very important. Therefore, transportation is one of the most important factors to consider when selecting a site. If only a few factories go deep into Chongqing and other western regions, supply is very inconvenient. " As for the future development of the industry chain, she said that it would depend on whether the industry chain would be further developed. A manager of Shanggao Yusheng also said that, for example, Baocheng group's factories in mainland China, more than 90% of the products are exported, and only 10% are sold domestically. Therefore, the coastal areas are more favorable for transportation, and the more inland they are, the more expensive they are. Li Peng told reporters that more than 95% of Taiwan funded shoe enterprises do export business. Among the famous international sports shoes brands, at least 60% - 70% of the products are from Taiwan funded enterprises. For them, manpower, electricity and transportation are the three most important factors to consider. In the case of various adverse conditions, their first thought is to build the plant in the central area close to the coastal area, so as to avoid the impact of labor shortage and plant shortage and ensure production. In fact, there are also different voices about the westward relocation of Taiwan funded shoe enterprises. Zhang Shuhua, President of China Leather Association, said in an interview that there is a tendency for shoe enterprises to develop in Jiangxi, Hunan and other places, but most of them are new shoe factories for processing, and there is no obvious transfer trend. Zhang Shuhua said that in the southeast coastal areas, shoe enterprises have formed a sound industrial chain, and it is convenient to purchase raw materials. However, it will take at least 7-8 years for the central cities to form a complete industrial chain. Xu Rong, vice president of Fujian shoes industry association, said that they had also taken some Fujian shoe enterprises to Jiangxi and other central cities for investigation, but few enterprises really showed their intention to build factories in the local area. Shoe manufacturers were very worried about how to solve the problem of logistics. Cai Lizhu also said that if the logistics construction is perfect, it will be possible to reduce their logistics costs. At present, Lichuan County, where she is located, has realized this problem and is establishing a logistics company. In addition, Taiwan businessmen have other concerns. Wu Zhenchang, chairman of the board, told him that he was not going to set up a shoe factory. "Because there are too many uncertain factors for enterprises. For example, although the central and western regions have preferential policies on processing trade, they may start to implement the" real transfer "of bank deposit accounts one day, or labor costs and other costs may rise one day, and enterprises may suffer losses." In addition, Wang Jianxin, chairman of Guangdong leather industry association, said that shoe enterprises in Guangdong Province tend to transfer within the province. There are still some underdeveloped areas in the eastern part of Guangdong Province. Instead of building the factory in other provinces, it is better to find a place in Guangdong Province. Zhang Shuhua believes that the relocation of shoe factories is not an easy thing. It may take about 10 years to complete the transfer, which is a gradual process.