The Labour Age Has Become A Thing Of The Past.

Is money really a fundamental reason for the survival crisis of small and medium-sized enterprises?

"Economic information broadcast" reported recently that our column has been paying attention to the current situation of Wenzhou's capital. Wenzhou's SME failures have occurred frequently. It appears that money shortage has forced Wenzhou's small and medium-sized enterprises into a corner. However, is it true that money is really the root cause of the survival crisis of SMEs? Recently, our reporter went deep into Wenzhou to conduct an in-depth investigation and found that the survival crisis of SMEs in Wenzhou is far from being so simple as "money shortage".

This is a large footwear export enterprise in Lucheng District of Wenzhou, which mainly deals with the European and American foreign trade market. Into the production workshop, the heat waves assailed people. However, in such a hot summer, corporate executives feel the chill from the market.

Wang Xianhao, deputy general manager of Wenzhou Tamar Shoes Co., Ltd., told reporters, 48 foreign trade The industry is now on the edge of small profits, and profits have been relatively low, that is, between 2%-5%.

Wang Xianhao said that since the beginning of this year, labor costs have risen by at least 20%. The two main raw materials of shoemaking, leather and rubber, have risen by about 20%, coupled with the continuous appreciation of the renminbi. What makes the enterprise more bitter is that the cost of production has gone up, but the product can not raise the price.

Wang Xianhao, deputy general manager of Wenzhou Tamar shoes industry Co., Ltd., told reporters that we should have some troops in front of our foreign trade enterprises. There will be some pressure on the anti-dumping trade barriers ahead. Besides, the development of the Indonesian footwear industry in Southeast Asian countries and the increase in exports will also have a certain impact on our industry. Their labor force is cheaper and the cost of land is lower.

At the end of the interview, Wang Xianhao told reporters that the air conditioning in their business administration building had not been opened until the temperature of three hundred sixty seven degrees in recent days. There is only one aim for frugal food, so that we can do everything we can to reduce the operating costs of our enterprises and maintain our meager profits. Reporters learned that the company has 3500 employees, can start at least 300 days a year, the output value of 400 million yuan last year, net profit less than 20 million yuan. According to the net profit of 20 million yuan, the hard work of an employee can only bring in a profit of 19 yuan for the enterprise. Small profits have made more and more industrial enterprises lose confidence.

Xu Yongfeng, chairman of Wenzhou Zhi Ben Investment Consulting Co., Ltd., told reporters that I contacted more bosses and complained that it is really hard for enterprises to do business now. Many enterprises do not want to run factories and rent factories to others for a fixed rent.

In the interview, the reporter learned that, whether foreign trade or domestic sales, Wenzhou's labor-intensive enterprises are facing a difficult situation of small profits and unsustainable. Wenzhou economic and Trade Commission monitoring showed that in the first 3 months of this year, the sales value of 35 export oriented enterprises such as glasses, lighters, pens, locks and so on decreased by 7% compared with the same period last year, and the profit dropped by 30% over the same period last year. These enterprises accounted for more than 1/4 of the loss, and only 30% of the enterprises' profits continued to grow. The average profit rate of the industry is 3.1%, and the profit margins exceed 5% of the enterprises are less than 10. With the decrease of demographic dividend, the days of relying on low wages, low production factor prices, and large earning of processing money are becoming history.

Wenzhou boss chasing employees running around the company looking for directions

It is reported in the "economic information broadcast" that a worker can make a profit of 19 yuan a day by working one day. There is no doubt that with the substitution of cheap labor in Southeast Asian countries, the price advantage of our enterprises in the past has gone for ever. "Recruitment expensive" and "recruitment difficulties" are forcing enterprises to shift manufacturing links to the central and western regions.

At present, Anhui, Henan, Sichuan, Chongqing and other central and western provinces and municipalities are becoming the focus of attention of many Wenzhou enterprises, and these concerns are centered around people. First, the Midwest labor force is abundant, which can meet the employment needs of enterprises. Secondly, the labor cost is relatively low.

　　 AOKANG Wang Zhentao, chairman of the Group Co., Ltd., told reporters that we also have the same poor 20-30% in Wenzhou and Chongqing in Chongqing. Chongqing is relatively cheap, because the cost of living is low and the cost is high in Wenzhou.

Wang Zhentao said that labor costs accounted for most of the two or three of the costs in different regions. Take general practitioners as an example, Wenzhou's general wage is at least 1500 yuan a month, Guangzhou is about 1200 yuan, and the Midwest only needs 1000 yuan.

Wang Zhentao, chairman of AOKANG Group Co., Ltd., told reporters that the general shoes (cost) Guangdong and Wenzhou are almost the same. Fujian and Chongqing have lower cost than Wenzhou, and a pair of shoes should be 3-5 yuan lower. It looks very small, because we have a large quantity. If a pair of shoes is a dollar, AOKANG has 20 million pairs of shoes a year, this amount is very large. {page_break}

The biggest characteristic of Wenzhou is Industrial Cluster However, the institutional advantages that Wenzhou has made full use of has disappeared.

Ma Jinlong, President of Wenzhou Economic Association, told reporters that with the change of the structure of factor supply and the change of market structure, some industries may be on the decline.

Wang Zhentao, chairman of AOKANG Group Co., Ltd., told reporters that at the beginning of the market, there were some labor-intensive industries, such as shoes, clothes, electrical appliances and so on. When they did, they did not take into account long-term planning. They could only earn a little bit of money, and suddenly found that they could not jump over the times.

At present, the decline of some industrial clusters in Wenzhou can be summarized as follows: some industrial clusters lose their price competitive advantages due to the high cost of essential elements in Wenzhou, such as the plastic weaving industry; some industrial clusters are faced with remediation because of the high cost of environment, such as leather making; some industrial clusters encounter technical barriers in the international market due to the lack of independent innovation capability, such as lighters; some industrial clusters lack brand competitiveness because they fail to control the industrial commanding heights, such as razor industry.

Ma Jinlong, President of Wenzhou Economic Association, told reporters that many enterprises have long been looking for a way out. It is just that the speculation of Wenzhou's shipbuilding stocks in the past few years is actually also looking for some new opportunities in the industrial structure adjustment. At that time, I thought which one was better to enter that industry.

Wenzhou enterprises expand blindly and engage in profiteering industries.

"Economic information broadcast" reported that Wenzhou Jiangnan leather, three flag group, Portman, Hong Kong and so on have closed down this year. Recently, another Tianshi electronics company went bankrupt. The collapse of these enterprises has attracted people's attention in Wenzhou. It is easy to see that although the scale and industry of these bankrupted enterprises are different, they all share a common feature, that is, they finally fall on the capital chain. So where did they spend their money? Did the crazy expansion and disorderly transformation bring a spark of vitality to the Wenzhou enterprises or did they break their heads?

As more and more details of bankrupt enterprises have been made public, the outside world has seen more clearly where these brilliant enterprises are, that is, unrealistic expansion has become a fatal injury to enterprises. Three flag group: formerly the main cable business, during the period of loose monetary policy, the company frequently invested in real estate, wine and many other industries. Since 2006, more than 100 million yuan has been invested in fixed assets, but the output of various investment projects is not large. The capital chain is broken. Tianshi Electronics: an important procedure in the production sector has not been approved, causing banks to compress some of their credit funds. The company used some other informal financing methods, causing the company's capital chain to break. Bully group: the main business is shoemaking. Since 2009, the south of Guangxi has been mining, and tens of millions of dollars have been smashed into the mine.

Wang Zhentao, chairman of AOKANG Group Co., Ltd., told reporters that I knew all these bosses, who had done other things for a few years, and felt that there was still a mountain high in the mountains.

The stock market! Property market! Minerals! Investment goods! These projects are regarded by Ma Jinlong, President of Wenzhou Economic Association. They are all profiteering industries, hidden behind huge policy and market risks. Many enterprises fail to see such risks and fall.

Ma Jinlong, President of the Wenzhou Economic Association, told reporters that the opportunity to go in for certain areas to get a big chance is that there are immature markets. As the economy becomes more and more mature, there are opportunities and fewer opportunities for violence.

Big business two venture small business "fine tune"

We have a deeper understanding of the plight of Wenzhou enterprises. On the one hand, we are short of money. On the other hand, what is more important is that Wenzhou enterprises have realized that the era of cheap cost has passed, and the low cost operation that we used to rely on is no longer suitable for economic development. What will our enterprises rely on when there is no advantage in cost?

The transformation of enterprises is not the first day we talk about it, but when we really run it, we will know how much effort it takes and how much pain we need to regenerate. In Wenzhou, some enterprises have explored the path of transformation in the throes of pain. Their experiences may also warn many enterprises that are facing the same situation.

According to the survey, some powerful enterprises begin to develop new high-tech industries and profit from the high added value of products. Zhu Jianping's current status is chairman of Wenzhou spotlight technology, which produces high technology LED (LED) lighting. Before 2006, Zhu Jianping made shoes.

Zhu Jianping, chairman of Zhejiang spotlight Technology Co., Ltd., told reporters that our industry (shoemaking) is labor-intensive, including foreign market competition, currency fluctuations, a series of reasons, so our shoe factory in normal operation, 06 years had the idea of transformation.

Learning the professional background of mechanical and electrical, Zhu Jianping finally chose the field of LED. He handed the shoe factory to his wife, and he immersed himself in the research and production of LED products. In the past five years, he invested one hundred million yuan, almost all of which came from the profits of the shoe industry. In addition, CHINT, a low-voltage electrical appliance manufacturer, has entered the solar energy market. Huayi Electric has turned its head into wind power. A group of powerful enterprises in Wenzhou is launching the two wave of entrepreneurship. Powerful enterprises can enter the new field in a big way. What should those small businesses do? Zhou Guoxin, who has made razor cutting for 25 years, has found a way out, turning into a more profitable pedicure equipment, which is still a processing industry.

Zhou Guoxin, chairman of Zhejiang Electric Appliance Co., Ltd., told reporters that in the process of processing, it should be said that physical strength, selling labor force 51 "35 you do for others, always make a son to be a grandson, making your own brand is hard, but it is worth it."

Zhou Guoxin set up his foot treatment equipment factory in Lishui, which is 120 kilometers away from Wenzhou and the land price is relatively cheap. In the company's Department reporter noted that the five shaver production line is only less than three to maintain operation. It turned out that the profits of a pedicure device were worth several dozen razors. Now the shaver list, Zhou Guoxin only selects the profit margin to do. He told reporters that we did not make the list in Europe and the United States.

Some experts believe that for small businesses, in addition to playing the advantage of small boats and turning around, they can flexibly control the production of products. Under the mature market economy environment, small businesses should take the road of specialization, provide supporting services for large enterprises, participate in the value chain of large and medium-sized enterprises and get a share, instead of competing with large enterprises at the same level.