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    Guangdong Shoe Industry "Four Tigers" Look Forward To A New Boom

    2011/12/16 9:33:00 25

    Dongguan, one of the four tigers of Guangdong, China processing

    Manufacture

    Industry representatives.

    After many years of rapid development, the city has gained too much glory.

    Today, however, it faces severe challenges.

    Recently, a reporter went deep into the Dongguan area to conduct a field investigation. After interviews with a number of shoe manufacturers, it was found that behind the unsatisfactory situation of local enterprises' production and operation, the chain of export market downturn, recruitment difficulties, rising raw material costs, difficult enterprises to survive or move out, and some enterprises' active upgrading were looming.


    Comprehensive information, reporters learned that the United States subprime mortgage

    crisis

    The impact of the global financial tsunami on China's manufacturing industry has not yet disappeared.

    Sustained consumption in Europe and the United States and the decline in orders have caused heavy losses to our exports and the overall economy.

    situation

    Not optimistic.

    In addition, the operating costs of raw materials, wages and other enterprises rose rapidly, and the overall profits of enterprises continued to decline. Many enterprises were in a slight profit, losing money or even closing down.

    The manufacturing industry that once supported China's "world factory" status is looking forward to a new lease of life.


    Large area investment but cold and cheerless


    In winter, the sunshine in Dongguan is warm, and the large industrial parks with factories and buildings are desolate and lonely.

    In the economically developed Dongguan, there are many industrial parks such as Songshan Lake, Tsuruta, Zhen An and Dalang.

    At eight a.m. on December 10th, the reporter came to the Tun Tong Industrial Park in Changping town near Dongguan east railway station. The park was deserted. Only one factory called the space electronics (600879, stock bar) factory came into existence, and many shops on the street closed.


    In the spacious and beautiful Changan Zhen Zhen Technology Park, a responsible person named KSTAR (002518, stock bar) printing (Dongguan) Co., Ltd., told reporters that the company's business is mainly for the domestic and Hongkong markets. Now it is very depressed, with very few orders, and a lot of employees have recently gone.


    Whether in Changping town or Changan Town, Shijie Town, in many industrial parks, journalists have found ubiquitous factories to rent advertisements.

    Those hanging on dozens of high-rise buildings, waxing banner, highway outdoor advertising "large industrial park workshop rental", "single courtyard factory sub lease", Changan enterprise head office dormitory.

    Area 6000 - 18000 square meters...

    I can see clearly several miles away.

    Many industrial parks are hung with banners, all of which are information about low cost and large number of factories.


    In the local newspaper, the information about factory rental is spread everywhere: 3600 square meters in Dongguan, 90% new electronic workshop rental in the Yellow River, 13320 square meters in Songgang in Humen, and a new one courtyard factory building in Tangxia, and a million million luxurious decoration workshop in Tangxia town.

    The total area of Gao Zhen is 9000 square meters, 80% new, two four floors, 7000 square meters, five five square meters, 800 square meters, and decorated.


    When journalists log in to work in Dongguan, the industrial parks in Dongguan are covered by various industrial parks, including high town, Fenggang Town, Tangxia Town, Shijie Town, Liaobu town and so on.

    Reporters in the name of rent to open a number of factories to rent the phone.

    When asked about the reasons for the workshop's rental, some indicated that the original leased enterprises moved to Southeast Asia or moved to Hubei and Jiangxi, and others simply replied, "business is not good now."


    Labor pains of manufacturing enterprises


    Shoes enterprises, which are labor-intensive enterprises, are also experiencing the "labor pains" of export.

    Li, general manager of a shoe enterprise in Dongguan, told the China enterprise news that the company's products are mainly exported to the European market.

    "As far as I know, the shoe-making enterprises in the coastal areas are having a bad time.

    If compared with last year, sales will be reduced by at least half this year. "


    In July this year, the Korean enterprise Dongguan Chemical toys factory closed down.

    A month ago, another garment factory in Dongguan also encountered the same fate.

    Due to the sudden closure of Su Yi toy factory and Ding Jia textile mill, the society began to worry about Dongguan slipping into the economic cold winter again for four times.

    "Dongguan is heading for the two crisis?" "Dongguan is facing second business failures." for this reason, a number of relevant departments of the Dongguan government have clarified on different occasions, and Dongguan enterprises have not suffered from collapse.


    After three months, in early November, Taiwan Dongguan Baocheng group, which owns the "manufacturing Foxconn", became a storm in the Yujiang shoemaking factory.

    Eighteen middle-level cadres who have worked for the company for more than ten years have been laid off.

    The reason for the layoffs is "shrinking orders and serious difficulties in production and operation".

    Official trade figures show that China's exports increased by 13.8% over the same period in November, the lowest level since February this year.

    The weakness of external demand directly led China's export growth in November to a 9 month low.


    The China logistics and purchasing Federation released data in December 1st. In November, China's Manufacturing Purchasing Managers Index (PMI) 49%, down by 1.4 percentage points, was the first decline in PMI index to 50% in 33 months.

    Judging from the 11 sub indices, the new order index and the new export orders index have fallen considerably, exceeding 2 percentage points, all down to 50%.

    Cai Jin, vice president of China logistics and purchasing Federation, thinks that the new export orders index is the largest in all indices, which indicates that the weakening international economic situation may have a great impact on China's export demand in the future.


    The reporter has learned that PMI is one of the leading indicators of Macroeconomic in the world. According to the international prevailing standards, it usually takes 50% as the dividing point of economic strength and whether PMI is below 50% indicates whether China's manufacturing economy is in the turning point of recession. For this reason, Cai Jin said that the economic situation does not mean that the Chinese economy has turned to an inflection point, because China's economy has maintained steady growth in a steady fall.

    Judging by various factors, it is expected that the economic growth rate will still be stable in the future, and the risk of bigger fluctuations is not great.


    Zhang Liqun, a researcher with the Department of macroeconomic research of the development research center of the State Council, believes that domestic investment growth is still at a relatively high level, and consumption growth has been steadily improved.

    Li Gang, a research fellow at the Ministry of Commerce and a major issue of the Ministry of Commerce, "the development strategy of China's foreign trade in the post crisis era", said that the growth rate of China's exports could drop to a single digit in 2012. The export growth rate is expected to be 1 to 2 percentage points higher than that of GDP.


    There are opportunities in the crisis.


    China's manufacturing industry stands at the crossroads of pformation.

    It is urgent for enterprises to shift to or upgrade to the mainland or Southeast Asia.

    In the industry view, China's manufacturing industry is facing a "painful period" of pformation, and it is also the best time to move from "made in China" to "China's creation".

    According to Luo Jun, chief executive officer of the Asian Manufacturing Association, according to historical experience, behind the economic crisis, there is always a major revolution of science and technology, which brings adjustment of industrial structure and promotes the development of manufacturing industry.

    In the 12th Five-Year plan, we put forward the seven new strategic industries of the country, including energy saving, environmental protection, new generation of information technology, biology, high-end equipment manufacturing, new materials, new energy vehicles and so on. Its content is essentially the direction of new manufacturing development proposed by the state, providing a policy basis and favorable opportunity for the orderly pformation of China's manufacturing industry.


    During the interview process in Dongguan, reporters also learned that in the face of the severe international market situation and the adverse factors such as domestic raw materials, shortage of labor and rising labor costs, some labor-intensive manufacturing enterprises began to take the initiative to actively upgrade and upgrade, and to tide over difficulties by increasing productivity, strengthening internal management and actively developing new markets.

    Liu Xin, a hardware manufacturer of Xinxin, Dongguan, told reporters that before 2008, the factory would need at least 150 people to maintain its present size.

    By upgrading the equipment of 80%, the production efficiency is increased by 5% to 6%, and only about 100 people are replaced by modern equipment instead of ordinary workers.

    SANYO Motor Technology Co., Ltd. has grasped the current market focus of smart phones, and actively developed and produced smart phone vibratory motors, while enhancing bargaining power, it also increased the added value of products to 35%.


    Zheng Zizhen, director of the Institute of sociology and demography of the Guangdong Academy of Social Sciences, said that low value-added labor intensive industries should shift to industries with higher added value.

    Enterprises should change the way of development as soon as possible to achieve industrial upgrading.

    Xue Shengwen, a senior researcher at CIC, told reporters that from the government level, efforts should be made in three aspects: first, to give small and medium-sized enterprises financing convenience, to ensure that the capital chain of enterprises is steady; secondly, the upgrading policy of industrial structure can not be upgraded for upgrading, to take care of the survival interests of a large number of small and medium-sized enterprises; thirdly, there should be some changes in macroeconomic policies, so as to boost the confidence of manufacturing industry for a long time.


    Xue Shengwen believed that the enterprise level should lay stress on two concerns: on the one hand, it should pay close attention to the main business operation, maintain a sound fund chain situation, and make timely adjustment and control in the special difficult period (pformation or temporary capital output as the main source of profits); on the other hand, enterprises should not blindly maintain production capacity in the period of market shrinkage, and should adjust sales capacity as the main objective, so as to ensure the normal return of funds.

    The local customs in Dongguan are introducing relevant countermeasures to support the local pformation and expansion of domestic sales of processing enterprises.

    Dongguan has also made pilot projects for processing trade enterprises to sell domestically, changing the way that the domestic orders need to be examined and approved at various levels in the past. First, let enterprises finish their business and rearrange procedures so that enterprises can seize the opportunities of domestic sales in time.


    Dongguan customs also set up Songshan Lake Comprehensive Bonded Zone, that is, "two warehouses and one in one", so that the import bonded warehouse and the export supervision warehouse can be effectively integrated, so as to solve the problem of "one day tour of Hongkong" for processing trade enterprises, and save a lot of pportation and pressing costs for Dongguan enterprises.

    Data show that there are more than 3000 successful processing enterprises in Dongguan.

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