Is Traditional Industry Really "Chicken Ribs"?

Those disappeared SMEs may be trying to enter the new industries encouraged by the government.

But "blind".

Shen Kuizheng, chairman of the Zheng Deli footwear industry, leapt down from the 22 storey building, not only the tragedy of his individual and family, but also the whole moment.

Wenzhou, now known as the "weathervane", is facing the most difficult time in history.

Since late September of this year, rumors about Wenzhou's small and medium-sized enterprises have broken down, and many owners have been running away.

In the past, the shoe industry has become the first batch of industries that can not stand the test.

This time, the shoe industry in Wenzhou is once again on the cusp.

In September 20th, the new anti treasure shoe industry went bankrupt, and the legal representative Huang Zhongguang fled with the money. The whereabouts of the whereabouts were unknown. After that, the executives of Tang Feng shoemaking and star shoes were running off the road. Until September 27th, Shen Kuizheng, chairman of the Delhi footwear industry, jumped from the 22 storey building.

Freezing is not a cold day.

There is no doubt that a huge amount of usury is a direct fuse leading to the "run" and even jump off the building of these private enterprises.

But it is undeniable that the labor intensive manufacturing industry, represented by the shoe leather industry, is facing low profits and lack of added value for a long time.

On the afternoon of October 10th, the reporter came to Wenzhou's Double Lane Village, known as "China Shoes Capital", along the main road in the park. Both sides of the road were shoe factories, extending to the end of the road.

According to the park managers, the floating population in Shuang Yu village is about 200 thousand, about 4500 in size and shoe factories, while the peak period has nearly 6000, and the number of migrant workers is more than 300 thousand.

Among these shoe factories, there are many famous brands such as "Xin" and "Nike".

Although it happens to be off duty hours, the "shoes capital" is flowing like a woven fabric, but the reporter has noticed that there are few advertisements on the factory gate publicity column.

However, Li Po, a security official at the Audley shoe factory, said that he had been working for "shoes city" for more than two years. Since the financial crisis in 2008, almost every month, shoe factories have been closed.

According to the statistics of Wenzhou shoe leather industry association, Wenzhou's shoe and leather enterprises have been unable to shrink and decline in recent years.

In 2003, the association grasped the data that there were about 5000 shoe manufacturers in Wenzhou.

By the end of 2010, there were only 3035 left. In less than 10 years, more than 2000 enterprises went bankrupt.

Although there are multiple factors such as enterprise relocation and capital pfer, the "three wastes" approach and squeeze profits are undoubtedly the main reasons for the declining trend of shoe enterprises.

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Among the more than 2500 shoemaking enterprises in Wenzhou, Zhejiang Suzhou Ye bird Shoes Co., Ltd., with an annual output of 3 million pairs, belongs to the middle level.

Liu Xiaobiao, chairman of the board of directors, talked about the current situation of enterprises. He said: "nowadays, the environment of enterprises is not good, and they are tired of doing business."

According to Liu Xiaobiao, labor cost has increased by more than 20% over the past year.

When electricity is the most stressful on electricity, there are 2 days in a week to generate electricity on its own, on average, the electricity cost per pair of shoes is 1.5 yuan, while the average electricity cost per pair of shoes is 1 yuan.

In terms of credit, the annual interest rate has reached 12%, and it also has to meet the additional requirements of banks such as purchasing financial products, and credit interest payments have doubled over the past year.

It is also a common problem for Wenzhou footwear industry that the price increase of production factors and squeezing profit margins are faced with the problem.

At present, three companies in Wenzhou, including Chuan Yang, Dongling and Xiaolin, have complained that "there is no profit at all" in the first three enterprises.

Gu Junjie, chairman of Sichuan shoe material, said that the factory covers an area of 98 mu, and even if the whole enterprise closes the rental plant, there will be a rent of about 10000000 yuan a year. Now the factory can only maintain the wages of its employees. "These workers have been with me for decades, and I really can not bear to shut the factory doors and let them out."

The breakup of some enterprises' capital chain has also troubled their upstream and downstream businesses.

What should we do when the shoe factory owner runs? We also need to pay wages and get goods from our raw material suppliers. Now the reputation of Wenzhou enterprises has been hit hard, and cash can only be used for cash, not only can money be taken away, but business is becoming more and more difficult.

Zhang Changkang, deputy general manager of Wenzhou Xin Ying shoes material Co., Ltd.

Xie Rongfang, executive chairman of Wenzhou shoe leather industry association, told reporters: "if part of the enterprises in the first half of the year are in trouble, they can be seen as eliminating backward enterprises in the process of pformation and upgrading."

According to the special survey released by the Wenzhou Municipal Bureau of statistics in June this year, the purchase price of raw materials in Wenzhou continued to rise in the first half of this year, representing a cumulative increase of 8.4% over the same period last year.

Small and medium enterprises, especially small enterprises and high energy consumption enterprises, are the key objects of power cuts.

Meanwhile, the price of diesel in June increased by about 15% compared with the same period last year, and the cost of generating electricity increased.

As prices rise, the relative reduction of migrant workers and the continuous growth of employment demand of enterprises three aspects, Wenzhou enterprises "recruitment difficulties" continues, has a greater impact on the normal production of enterprises.

Jin Heng Bo, the shoe supplier of the footwear industry and the owner of the Yuan Yuan Trading Company, said: "now the usury is favorable, the annual interest rate is as high as 60%, but the profit margin of the enterprise is 3% to 5%. Let alone push the manufacturing industry to a blind alley, even the high profit real estate industry can not afford to live."