Is Manufacturing A Hot Potato?

The minimum wage is 20% higher than that of last year.

Under pressure, business owners have reduced their scale, shifted from coastal areas to inland areas, and even said that the "collapse tide" has frequently reached the major media. But has the manufacturing industry, which has created more than 30 years of economic reform and development in China, has really become a hot potato?

Under pressure, tradition

According to the reporter, since the beginning of this year, because of the tightening of macro policies and tightening of monetary policy, the traditional manufacturing industries in coastal areas such as Guangdong, Zhejiang, Jiangsu, Fujian and other labor-intensive and low value-added foundry enterprises have been severely challenged.

Zhu Weiping, President of the Institute of industrial economics of Jinan University, said that the cost of labor, environmental protection and raw material costs have increased, making the comparative advantage of investment in manufacturing industry greatly reduced.

And exchange rate changes, appreciation of the renminbi, weak exports and the external environment are also making investors lose confidence in the future.

"The manufacturing industry makes less money, and investors take away capital from the manufacturing industry and turn to other industries, which is a rational behavior of investors."

Zhu Weiping said.

The number of people who dare to accept is less and less, and the escapee is increasing.

In capital

Driven by strategic emerging industries, manufacturing investment is still growing at a high level.

According to the statistics of National Bureau of statistics, from 2011 to July, the national industrial investment was 65148 billion yuan (42.7% of fixed assets investment), an increase of 26.4% over the same period last year.

Among them, the manufacturing industry invested 52883 billion yuan, an increase of 31.8% over the same period last year.

Data show that manufacturing investment is still at a high growth.

Why is this? Professor Jiang Lin, deputy director of the research center of Hong Kong, Macao and Pearl River Delta, Zhongshan University, told reporters that although the manufacturing industry is facing a rapid rise in the cost of inflation caused by global inflation, the benefits of China's manufacturing industry are still self-evident. "The state can not only solve a large part of employment through the manufacturing industry, but also have great room for developing strategic emerging industries. Some traditional manufacturing investors are trying to get a share of the original distribution."

Official statistics are in line with Jiang Lin's view.

Statistics from the Guangdong Bureau of statistics show that in the first half of this year, Guangdong added 1 trillion and 75 billion 920 million yuan to above scale industries, an increase of 13.1% over the previous year, which is 1.1 percentage points higher than the target of the whole year.

Meanwhile, in the first half of this year, Guangdong's private enterprises completed an industrial added value of 297 billion 220 million yuan, an increase of 24.4% over the same period last year, an increase of 2.6 percentage points over the same period last year, an increase of 17% in the eight major strategic emerging industries such as high-end new electronic information and new energy, and 3.9 percentage points higher than those in the above scale industries.

Jiang Lin said that in the first half of this year, Guangdong completed 231 billion 670 million yuan of industrial investment, including 50 billion yuan in investment in strategic emerging industries, 100 billion yuan in technological pformation investment, and 25% in industrial investment.

These data can reflect that there is no large-scale exit in manufacturing industry. On the contrary, many investors are in the traditional manufacturing industry under the background of the weakening of real estate and capital market.

Investigation of industrial capital leaving the different forms of manufacturing industry

In an interview with reporters, it is found that in fact, a part of industrial funds leave the manufacturing industry and have different forms.

Some of them are unable to adapt to market competition, bankruptcy and bankruptcy, until they are forced to withdraw from the market. Some of them are forced to withdraw from the market. Some of them are narrowing their investment in the capital market. In the short run, these enterprises are only shrinking in size. But in the long run, they are undoubtedly giving up the market. But some of them are also motivated by the pformation and upgrading of the investment. They have accumulated wealth into the high end of the industrial chain.

Therefore, it is very important to look at the relationship between capital and industry rationally.

However, experts still believe that industry is the position that Chinese enterprises must stick to in the medium term strategy.

Reduced gauge model

Dongguan, Guangdong, known as the "world manufacturing base", can be seen everywhere in clothing, shoemaking, toys and other labor-intensive factories.

But in the spring of 2011, with the increase of production costs since last year and the continued weakening of traditional export markets such as Europe, America and Japan, many production lines of small and medium-sized manufacturing enterprises stopped or halt.

Guo Weiwen, secretary-general of the Guangdong footwear industry's anti dumping alliance, who has been the principal person in charge of shoe industry in Dongguan for many years, told reporters that due to the sharp rise in cost pressure, Dongguan's many foreign trade enterprises, which were originally prosperous, had greatly reduced their production scale.

Guo Weiwen said that because the impact of the appreciation of the renminbi is relatively large, the production costs of small and medium-sized enterprises have increased and the profit margins have decreased.

According to its observation, the export orders received by many export enterprises in the Pearl River Delta region are decreasing.

But Guo Weiwen also stressed that the smaller scale manufacturing enterprises are mostly small and medium-sized enterprises, but the owners are not losing confidence in the manufacturing industry. On the contrary, they think the manufacturing industry still has great room for development, and they know that if they quit the market, they will be washed out of the manufacturing industry forever in the fierce competition shuffle. They are waiting for the macro environment to improve and then enter the manufacturing industry.

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Transfer position type

In a small textile workshop with only 6 workers in the suburb of Nankang, Jiangxi, there are several simple tailoring machines downstairs, and the workers are working hard to work overtime.

The couple lived in a small workshop upstairs. They had worked in Dongguan, Guangdong, and after accumulating technology, capital, experience and customers, they went back to their hometown to become their own boss.

Lin Fang, a landlady, said with a smile that the cost of production in Guangdong is getting higher and higher, and recruitment is difficult. Many large and medium-sized enterprises have exported their orders for "two contracts", and have been subcontracted to them.

Nankang is the "textile and garment industry base in Jiangxi province", which is everywhere from textile mills to upper scale textile factories.

According to local media reports, a large proportion of orders in Jiangxi are undertaking textile enterprises from the Pearl River Delta region.

Reporter survey found that similar "two contract" in the Pearl River Delta is indeed very common.

Cai Gaosheng, chairman of Guangdong silk textile group, told reporters that the production cost of the PRD has risen sharply. The pressure on the traditional industries such as textile enterprises has been increasing. The enterprises should not only improve their product grades and create brand, but also step up the layout and pfer the low-end pferable production parts to the low cost areas.

Some of these pfers are independent choices of enterprises, while others are under external pressure.

If the exchange rate, raw materials and labor cost rise are the common difficulties faced by domestic manufacturing enterprises, but for PRD manufacturers, they also have higher requirements for land, business management, environmental protection and so on.

In an interview with reporters, Cai Gaosheng said that although the production part was pferred to the inland with low cost, the important task of receiving orders, building brands, and producing high-end products was closely related to the long-term development of the enterprises. Still the business headquarters of the coastal areas were "the production cost of the Pearl River Delta has been raised, but we believe that the middle and low end products may be pferred to inland production, but the high-end products should remain in the Pearl River Delta where the technology is outstanding."

He took Italy's leather production as an example: "many brands in Italy are also OEM in different parts of the world, but high-end products and high value-added products still stay in Italy, and they develop very well.

I think the PRD is also like this. We win the high-end market with high technology and high quality. This is another way of development for manufacturing industry.

Bankruptcy and bankruptcy type

The shortage of labor force and the sharp rise of cost in traditional production enterprises are very common nowadays, resulting in a large number of enterprises closing down and closing down.

Guangdong Hei Toys Industrial Co., Ltd. is located in Shantou, which is known as the "hometown of Chinese toys". Chen Chao Chao, the head of the city, said that over the past two years, many toy enterprises around the world have closed down. He feels that with the rapid rise of cost pressures, the manufacturing industry has a slim prospect.

Chen Qichao said that for those enterprises with fixed customer groups, the business will not be affected too much in the general atmosphere of rising prices, and a large number of small and medium-sized enterprises will be dismal and difficult.

Chen Qichao said that most of these enterprises are very young, do not form their own fixed customer base, the competition pressure is relatively large, once they encounter difficulties, they will spell the price.

However, the profit of manufacturing enterprises on the foundry is very poor. These enterprises are still afraid to raise their prices when the price of raw materials and manpower prices generally rise.

"This leads to these enterprises that have the price advantage before they lose their advantages in all respects.

With the tightening of money, loans are becoming more and more impossible.

Although there are still some reluctant supporters, the road is doomed to be narrower and narrower. Finally, it is closed down and gradually disappeared.

Chen Qichao said.

But Chen Qichao also said that at present, it may be a good opportunity for some enterprises with larger scale, core technology and bargaining power. "These enterprises have seized the opportunity to shuffle the cards, expand their scale at low cost, and get the order gathering effect."

Expert opinion

Jiang Lin, deputy director of Hong Kong, Macao and Pearl River Delta Research Center, Zhongshan University: Chinese enterprises still can not abandon the manufacturing industry.

Manufacturing is difficult at present.

Faced with the rapid rise in inflation caused by global inflation, the development of Southeast Asian manufacturing industry is facing more intense competition. But for China, at this stage, China can not have no manufacturing industry.

Step by step, at present, China's capital market is still immature, and the real estate market is also in control. Investors' investment channels are relatively simple, and manufacturing is still a more mature channel for investment.

The state can not only solve a large part of the employment in the manufacturing industry, but also has a lot of space for the enterprises to develop in the strategic emerging industries.

Chen Yong, President of the National People's Congress and President of Guangdong Academy of Sciences, the government should guide SMEs to develop high-end products.

Manufacturing is related to all aspects of national life. Not only can China not lack manufacturing, but the world can not afford the supply of manufacturing products.

At present, small and medium-sized enterprises in China are leaving the manufacturing industry. On the one hand, the increase in costs makes them unable to make ends meet. On the other hand, it is also the need for the manufacturing industry to adjust its structure itself.

The domestic manufacturing industry still stays in the process of foundry, and the added value is low, so it must develop to high and new technology.

Enterprises with technical support and competitiveness can get higher returns.

Because small ships are good at turning around, SMEs are often more innovative. In the current severe situation, the government should give more help to SMEs and guide them to develop high-end products.

Zhu Weiping, Dean of the Institute of industrial economics, Jinan University: as far as possible, reduce hidden costs for enterprises.

In addition to external market pressures, the lack of innovative mechanisms within the business leads to greater risk of unsustainable operation.

The urgent task for small and medium-sized enterprises is to accelerate the pformation of production mode and realize the pformation from manufacturing to creation.

Without innovation, life is bound to go on.

We should create a sound and stable social system environment for manufacturing innovation, minimize hidden costs for enterprises, and create various ways to support manufacturing financing, so as to save the manufacturing industry in dire straits.