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    Industry Profits Are Thin &Nbsp; "Wenzhou Shoes" Can Not Run.

    2011/9/13 10:00:00 37

    Industry Wenzhou Shoe Enterprises


    Leather is the raw material for leather making.

    All along, the skin is also.

    Wenzhou

    Ports with the largest import volume.


    However, the data of Wenzhou entry exit inspection and Quarantine Bureau showed that in June 2011 and July, 316 batches, 15 thousand and 100 tons, and 26 million 513 thousand dollars of Wenzhou imported leather sheets were down by 24%, 48.5% and 43.6%, respectively.

    This is the first time that Wenzhou's leather imports have dropped sharply.

    According to the inspection and Quarantine Bureau, the profit margins of Wenzhou leather enterprises have been continuously compressed due to factors such as RMB appreciation, raw material price and salary increase and higher financing cost.

    And leather prices continue to rise, leather enterprises first digested the original stock, but also become their reason for reducing imports.


    Xie Rongfang, executive director of Wenzhou shoe leather industry association, believes that shoe leather

    industry

    Now is facing great difficulties.

    In her view, Wenzhou

    shoes

    The leather industry is currently facing four major problems.

    First of all, the price of raw materials increased nearly 50% or even 100% this year.

    For example, raw materials such as shoes, pig skin, cowhide, synthetic leather and so on this year * have risen more than or nearly 50% over last year's prices.

    The main reason is that the products such as polyethylene and other products are made of petroleum. As the price of oil rises, the price of shoe sole rises.

    However, after the price of raw materials increased, the final factory price of footwear products did not rise.

    "This causes our industry to be very difficult and the profit is very thin."

    Xie said.


    In addition, Wenzhou shoe enterprises also have difficulties in using electricity.

    At present, there are 2542 shoemaking enterprises in Wenzhou, known as China shoes capital.

    About 75% of the enterprises are restricted in electricity consumption.

    It is not impossible to pmit electricity from the north to Wenzhou, but mainly because the government has restricted the supply of electricity for the purpose of energy saving and emission reduction and energy consumption reduction.

    Against this background, the power supply of large enterprises is given priority, while small and medium-sized enterprises are troubled.

    Usually 135 or 246 power failure.

    Some enterprises bought diesel generators to generate electricity by themselves, but they were investigated and stopped by the local credit commission and other departments.

    Individual shoe companies do not dare to generate electricity in the daytime, and hire workers to work at night to avoid inspection.


    Labor difficulties also beset Wenzhou shoe making enterprises.

    At the beginning of 2010, the basic monthly salary of the shoe factory general worker was only 1600 yuan. Now it has risen to around 2100-2200 yuan, plus a piece rate Commission. Many workers earn 3000 yuan a month.

    Monthly salary rose by 25% to 30% over last year.

    Even so, it's harder than hiring last year.

    Wenzhou shoe factory workers mostly come from Anhui, Jiangxi and Hunan. Due to industrial pfer, many workers can earn their living at their own door, and do not want to go far to Wenzhou to do their work.

    Speaking of this problem, a shoe factory owner who opened this year in Wenzhou said that they could only find employees by raising salaries for their employees.

    He said that now in Wenzhou, to help recruit a worker, enterprises can pay 150 yuan for the introduction fee.

    Last year, only 50 yuan was awarded to the recruitment workers.

    Shoe factory hopes to let the townsman drive the townsman or other people to the factory to work.


    Moreover, financing difficulties are a direct test of the management capabilities of Wenzhou shoe leather enterprises.

    "Banks are now very strict in controlling loans."

    A large shoe manufacturer in Wenzhou told reporters.

    The factory, which is assessed at 30 million yuan, can lend at least 20 million yuan before, and now it can only borrow 10 million yuan.

    The interest rate of private lending is too high, so the profit of shoemaking enterprises is hard to bear the large amount of long time usury.


    "The government is also considering how to support us, but the government is also having difficulties."

    Xie Rongfang said.

    Unlike Wenzhou, the state has given Ningbo a lot of big projects and financial support, but little support for Ningbo.

    Moreover, "local finance can only retain 35% or 65% of the government revenue to the central government, so the Wenzhou government is willing to support us when it is enough."


    Tan Tianlun, Executive Secretary General of Wenzhou Machinery Industry Federation, said that the situation of Wenzhou electrical appliance industry is slightly better this year than that of last year. However, due to the appreciation of RMB, the growth of foreign exports may actually be only 1% to 2%.

    Because small businesses lack foreign trade talents, most of the local mechanical and electrical machinery enterprises do not have export business.

    It is mainly the export scale of CHINT, Delhi, human bearing, people electric and so on.


    Similarly, the export industry is weak.

    The production of fastener enterprises in Wenzhou accounted for 1/3 of the whole country.

    In 2010, Wenzhou enterprises took part in the lawsuit and won the EU anti-dumping lawsuit.

    However, Wu Jiesheng, Secretary General of Wenzhou Fastener Association, told reporters that the growth rate of domestic fasteners in Wenzhou fasteners industry was close to 10% in the first half of this year, while foreign trade was declining.

    Overall sales were unchanged from last year, with only a slight increase.


    A person in charge of Zhejiang ocean ocean glasses Co., Ltd., one of the largest glasses enterprises in Wenzhou, told reporters that she did not feel any crisis and the current order was very full.

    But the growth comes mainly from the domestic market, and the growth rate in the international market is not obvious.

    After 2008, the foreign market has not been very good.

    "Our days are still fine, because we set up our own branches abroad.

    However, small businesses will not be able to do so, because export growth is almost zero, which has lost a lot in recent years.


    The corrugated paperboard (corrugated core sandwich) industry in Wenzhou encountered the most difficult period in 2011.

    The development of corrugated cardboard relies on the development of electrical appliances, shoes and clothing industries.

    Like Taizhou's shipbuilding industry, corrugated cardboard has also experienced an era of profiteering, and now it has excess capacity, cold market, rising prices of materials and disorderly competition.

    Wenzhou Packaging Federation data show that since the first quarter of 2011, more than 20 corrugated board enterprises in Wenzhou, 29% of the enterprises zero profit, 42% of the enterprises are losing money, and 29% of the enterprises maintain small profits.

    Zhang Chengrong, assistant president of Wenzhou Packaging Federation, said that because the corrugated board production line was several million yuan, if it closed down, the loss would be even greater, so most enterprises would continue to produce.


    Founded in 22 years, the Wenzhou Xian Qiao group has reduced its business volume of paper products by 30% compared to the same period last year. It has shut down a production line and laid off more than 100 workers. At present, there is only one production line in production.

    Zhejiang Longhua packaging company was founded in 2010. A person from the company said that last year's corrugated board was 2.8 yuan per square meter.

    The cost has increased this year, but the price has dropped to 2.3 yuan per square meter, and the price war is very fierce.


    At present, there are 43 corrugated board production lines in Wenzhou, and the current operating rate is only 62%.

    By capacity, the excess capacity is 50%.

    Because corrugated cardboard has a radius of fifty or sixty kilometers, it has already been saturated with capacity in Wenzhou. A possible way of development in the future is to set up a group company and reduce disorder competition.

    In addition, enterprises can pfer capacity to central and western regions such as Chongqing.


    A local entrepreneur believes that although many enterprises are facing difficulties, the difficulties are temporary.

    He believes that government departments should not interfere too much in the economy. The credit expansion or contraction of banks should not be too large, and enterprises should not be too high in leverage. Otherwise, when the crisis comes, they will eventually hurt themselves.

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