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    The Biggest Difficulty Facing Shoes And Clothing Enterprises Is Rising Labor Costs.

    2011/8/19 11:36:00 67

    Raw Material Orders Shoes Enterprises

    Is there any "closures" in Zhongshan's shoe manufacturing industry? Is shoes and clothing enterprises really bad money? What is the order situation? In order to grasp the true answers to these questions, the Xiaolan Town Economic and trade department has recently joined the joint venture of science and technology, quality supervision and management. Commerce Chamber And the productivity promotion center and other departments launched a survey of the current economic situation and development trend of enterprises. The results showed that industrial enterprises in Xiaolan Town had a sound overall operation in the first half of this year. LED and other emerging industries showed strong growth potential, but the traditional manufacturing industries such as clothing and footwear were significantly reduced, which is expected to affect the industrial growth of the whole town in the second half of the year.


      The overall corporate earnings are sound and operating normally.


    The investigation team visited LED in a targeted way. clothing System shoes 54 enterprises in other industries. The survey shows that in the first half of this year, Xiaolan Town's industrial economy is in a relatively stable development trend, and the positive effects of energy saving, efficiency enhancement and structural adjustment are reflected. In 1-6 months, the industrial output value of the whole town increased by 19%, while the industrial electricity consumption in the whole town increased by only 6.3%. The industrial sales and employment in the whole society were expected to decrease by more than 5% in the first half of this year. The growth of quality has effectively relieved the pressure of rising production costs.


    The financial stability of enterprises is relatively stable, and the overall debt ratio is relatively low. There is no failure or closure of business due to the breakup of capital chain. The capital chain has a strong ability to resist risks.


    The statistics of business registration enterprises also showed that the number of industrial enterprises in Xiaolan Town was positive growth in the first 5 months of this year, and by the end of June, the total number of enterprises was 9270, a net increase of 578 over the same period last year.


       LED industry Showing high growth characteristics


    LED industries show high growth characteristics as emerging industries. According to the survey report, only 2 enterprises in the visiting enterprises indicated insufficient orders, and 9 enterprises had sufficient orders.


    The survey found that, because of the increasingly fierce competition in the LED industry, many enterprises are rushing into the LED field. The price of the packaging enterprise LED is affected by the upstream price reduction and the intensification of internal competition, and the price reduction in the first half of this year has exceeded 30%. However, enterprises believe that although the profit space has narrowed down, enterprises are still in the competitive position due to their advantages in scale, technology and management, and the potential for follow-up development is still very large.


    Orders for the electronics industry are also good. Of the 9 enterprises visited, 8 responded to orders increasing in the second half of the year, with a growth rate of 20%. Annual output value is expected to increase by 10%-30% and profit growth by 10%.


       Clothing, shoes and other orders were significantly reduced.


    Clothing, shoes, chemical adhesives industry orders situation is not optimistic. Among the enterprises visited, it was generally reflected that the number of orders decreased significantly in the first half of the year, accounting for 70% of the number of visits. It is expected that orders will continue to decrease in the second half of the year, with a reduction of 20%-60%, with 8 enterprises expected to decline in annual profits, with 2 growth and 1 flat.


    Orders for hardware and lockset businesses are also general. Enterprises with a certain scale reflected the increase or flat of orders, while the order situation of small and medium-sized enterprises declined. The construction hardware enterprises are greatly influenced by the national real estate regulation policies, plus traditional industries. The transformation and upgrading are still at the initial stage, and the market pressure is also greater, so the impact is relatively large.


    The food and printing industry is affected by the size restriction, and the threshold of the food industry is relatively high. Therefore, enterprises with a certain scale can still maintain a relatively fast growth momentum, but many small and medium-sized printing enterprises are in a rather difficult position.


      Labor costs rise is the biggest difficulty


    Shoes and clothing enterprises generally reflect that the rising labor cost is the biggest difficulty to face now. The survey found that since this year, the shoe and clothing enterprises have raised wages to 15%-20% for workers to retain workers, which directly increases the operating costs of enterprises. Some enterprises even reflected that even though wages were raised, there were still some skilled workers who were not easy to recruit.


    Staggering peak with the film production plan. Affected by the provincial power supply and the overhaul of the power grid, Xiaolan Town's power consumption continued to be tense in the second quarter, and the most influential ones were electronics, plastics and LED industries. Because of the higher degree of automation of the production equipment and the greater dependence on power, the enterprises such as Dick Li, Li Li Shi and so on had been suddenly pulled off, resulting in a loss of tens of thousands or even millions of dollars. And clothing and footwear, hardware enterprises relatively small impact.


    Other unfavorable factors present a "superposition effect". Such as price fluctuation of raw materials, appreciation of RMB, raising of financing cost, increase of taxes and fees and disorderly competition among industries, increased the unstable expectation of shoes and clothing enterprises in the course of operation, and ran through the profit space of shoes and clothing enterprises, which greatly reduced the initiative and momentum of increasing the production and expansion of shoes and clothing enterprises.

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