Coastal Small And Medium-Sized Garment Processing Plants Collapse

Not long ago, media reports reported that the coastal area was small and medium.

According to the report, the coastal small and medium-sized garment processing plants were established.

Dongguan Tai Fu Garments Co., Ltd. has 1800 employees. From the environment and scale of the office area and production workshop, it is a strong enterprise.

However, Zheng Wenbiao, chairman of Dongguan Tai Fu Garments Co., Ltd., told reporters in China news that this year's business situation is more severe than the financial crisis.

Tai Fu is a garment processing enterprise. Its products are mainly exported to Japan and Europe. In 2008, the financial crisis hit the disaster area in the United States, so Tai Fu's business has not been greatly affected.

By 2010, Tai Fu's business had also greatly improved due to the large replenishment of international buyers.

By this year, the pressure of external market and the continuous rising of domestic production cost have brought a lot of trouble to the operation of Tai Fu.

The first is the decline of the international market.

In March this year, a major earthquake struck Japan.

Relative to the changes in the international market, the soaring domestic production cost is more difficult.

The first cost of production is the soaring price of raw materials.

Take cotton as an example, the price of cotton was 14873 yuan / ton at the end of 12 in 2009, and by March 2011, the price of cotton exceeded 34 thousand yuan / ton mark.

Although cotton prices have declined in recent months, there has been a big increase compared with 2009.

The rise of raw materials is a double pressure for export oriented garment processing enterprises. On the one hand, it takes a lot of money to buy raw materials, and it is difficult to buy enough raw materials. On the other hand, due to the increase of domestic raw material costs, the corresponding processing prices will also rise, which will lead foreign orders to many Southeast Asian countries, such as Vietnam, Bangladesh and other countries with relatively low raw material prices.

As a result, domestic enterprises will lose many orders.

Another factor that affects production costs is the promotion of labor costs.

It is understood that, according to the requirements of the Dongguan municipal government, the minimum wage of Tai Fu increases at an annual rate of 20%.

This year, the wages of general workers have generally reached 2200 yuan to 2300 yuan, even though such salaries are still very difficult to recruit. The number of general workers is 10% less than that of last year.

"In the first half of this year, Tai Fu almost didn't make any profit.

Although we have greatly increased the price of terminal products, we can not keep up with them.

Through the conversation with Zheng Wenbiao and Liang Guohong, the general operation situation of small and medium-sized garment enterprises is understood.

Although the situation of each enterprise is different, Tai Fu may not be typical, but the cost of raw materials and labor is different.