When Will The Dongguan Shoe Industry "Shut Down" Storm?

The business environment of the Pearl River Delta is just like an increasingly tight network. A large number of SMEs are facing pressure from cost increase, labor shortage, exchange rate impact on export trade and industrial pformation. "You don't have to bother to find interviews anymore.

I, and some of my friends, are all.

When a reporter contacted a friend of the Pearl River Delta business community and asked him to help understand the situation of small and medium-sized enterprises in the region, the telephone was directly heard.

At the beginning of the year, a news about thousands of shoe factories in Dongguan competing for closure, sparked public concern about the manufacturing industry in Guangdong's Pearl River Delta region.

For a time, "shuffle theory" and "cold current theory" were four.

After a reporter's on-the-spot investigation, the "closed door" storm, which originated from the footwear industry in Dongguan, is far from limited to shoe factories. Other similar labor-intensive enterprises, such as garment processing, toy processing, electronic processing, are also more or less affected.

Shenzhen, Guangzhou, Zhongshan, Foshan and other developed areas of the Pearl River Delta have also shown the same situation.

In addition to processing enterprises, some businessmen who are in shopping malls feel the chill of the winter first.

In the wholesale markets that rely on developed processing enterprises to engage in trade, such as the tea market in the South China Sea in Foshan, the cowboy industrial base in Guangzhou Xintang, and the shoe manufacturing center in Houjie, Dongguan, the same business downturn has also been encountered. "Some businesses are almost 25% lower than usual."

Industrial depression has become the common worry of the whole Pearl River Delta.

Bankruptcy is no longer a novelty. "Closing down and shutting down such a thing is not fresh in the Pearl River Delta. It happens almost every day."

At 11 o'clock in the evening of January 3rd, Mr. Li, manager of Zhongshan's little bully electronics company who had just finished his client, interviewed by "new century weekly": "the little bully is going through a lot of ups and downs, enough to write several books.

This is the case for a well-known enterprise, not to mention the small and medium-sized enterprises.

Relying on the weak mode of order survival, the large number of foundry enterprises in the Pearl River Delta have lost the ability to resist risks, and the stability of orders is related to the survival and death of the entire enterprise.

For example, a well-known electronics foundry enterprise in the industry, when the business is at its best, has nearly 1000 production staff. In the past few years, as the foundry of famous brands such as Wen Qu Xing dictionary and Yuxing repeater, only these two enterprises have produced about 2000000 machines.

But now that the business has gone bankrupt, the boss has come to a street lamp manufacturer and has worked as a sales manager.

"This kind of enterprise will fall down."

Manager Li said, "this enterprise is not looking for a way of self development. It has tried to create its own brand, but it has not been successful, so it has to rely solely on the generation to maintain its operation."

Compared with the concerns and worries of the outside world, the business people in Guangdong's Pearl River Delta have not shown much confusion about the large-scale factory closures.

"In the collapse of so many enterprises, only those very small factories can not really operate.

In the Pearl River Delta region, enterprises who are steadfast in doing business will not be bankrupt or bankrupt as long as they have stable product lines and customer resources.

But those small and medium-sized enterprises whose foundation is not stable and their financial strength is not strong is relatively sad.

Li Rui, manager of Zhongshan Zhen Li Electronics Co., Ltd.

Compared with the central and western provinces, the economically developed Pearl River Delta region of Guangdong has more talents, capital and production resources to cope with the economic structural adjustment.

Previously, the long-standing economic malpractice in the PRD can also be changed to a certain extent through this adjustment.

"Shenzhen KW (interviewed by the request, alias here) you know, this enterprise has all gone bankrupt and gone bankrupt several times, but once it closes, the boss will change another place to open a factory. After several times, the debts owed will not be repaid. Once the boss fails, the boss will make a fortune.

He had a dark background and no one dared to ask him for debt.

An insider, who declined to be named, said: "Guangdong is still more resilience to the crisis. Many companies like Wan Xin and Shuo Ke are factories bankrupt, and the boss makes money.

Once you have the right opportunity, you must come back again. "

It becomes more and more difficult to run enterprises.

Now the government has too much tax revenue and the cost of employment has been greatly raised.

If the two enterprises get angry, the only way to give up production is to go.

According to Li Rui's handpicked figures, in 2004, the company initially estimated the operating profit, each shareholder could get a profit dividend of about 1 million 800 thousand yuan, but after calculating the accounts, it was found that at least 1 million 200 thousand of the 1 million 800 thousand had been handed over to the Inland Revenue Department, leaving only a few hundred thousand yuan to shareholders.

In the Pearl River Delta, many small and medium-sized enterprises often lack low-cost and low profit order processing mode because of their lack of independent brand and technology content. If such labor-intensive manufacturing enterprises lose their competitive advantages of low cost, they will face not only the production of dangerous machines, but also the crisis of survival.

Before that, how much tax support policy can be obtained for such enterprises, and at the same time, they can survive healthily in the case of low labor costs.

Now, with the perfection of tax system and the implementation of some targeted management systems in the country, the production costs of small and medium-sized enterprises in the Pearl River Delta are much higher than those of mainland enterprises.

From the middle of 2007, the owners of small and medium-sized enterprises in the Pearl River Delta gradually felt that the pressure of production and operation was increasing.

The previous labor shortage can also be mitigate by increasing the wages of workers. However, such factors as heavy tax burden, rising operating costs, rising prices of raw materials, barriers to trade in export business and other factors will exert great pressure on the survival and development of enterprises.

"Labor costs will not be mentioned first. Production costs, raw material costs and land costs will not rise.

Even if these costs can be digested by the enterprise, a regulation will increase your operating cost by 10%.

The Dongguan Chan Li shoemaking company is responsible for the "Regulations" in the population. It refers to a new batch of processing trade restricted products catalogues jointly issued by the Ministry of Commerce and the General Administration of Customs in July 23, 2007.

According to the regulations, nearly 2000 commodities such as plastic, textile, furniture and other labor-intensive industries in Guangdong, Fujian, Jiangsu, Zhejiang and other eastern provinces should implement the "10% yuan" bank margin account "real pfer" management.

During the verification period from the import of raw materials to the finished products export, the enterprise must pay 10% of the deposit in the bank, which will bring certain impact on the capital flow and short-term cost of the enterprise.

"The whole Pearl River Delta SME's business environment is just like an increasingly tight network."

Zhang Shuhong, a small business owner who refused to be named, said, "the bosses around me have gone abroad after some factories closed down. Some have gone to the mainland, and some of them have disappeared mysteriously. People like Foshan (Foshan Lee Der Toy Co vice chairman, who have been killed by the company's business difficulties) have been completely defeated and those who are surrounded by creditors are not."

Economic pformation is facing challenges. The reasons for this "closing" crisis are not only cost increase, labor shortage, and the macroeconomic factors such as exchange rate impact on export trade, but also some enterprises take the initiative to carry out strategic pformation and business pformation.

For example, in the shoe manufacturing center in Houjie Town, Dongguan, a large number of foreign shoe enterprises have moved the factories to Southeast Asian countries with lower labor costs, while another part of the private enterprises have begun to pfer to the central and western parts of the country.

Most people think that this is an inevitable phenomenon of industrial migration: a part of enterprises that no longer adapt to the economic level and industrial policy of the Pearl River Delta, and some enterprises that fail to digest high cost, are just the need of economic growth mode pformation and the inevitable result of economic development.

"At present, the low value-added manufacturing process is being pferred, and the core technology R & D and procurement trade is still here."

Chen Zhongqiu, mayor of Houjie Town, Dongguan, said.

But the failure or pfer of many small and medium-sized enterprises has also brought some negative risks to the overall economy of Guangdong.

First of all, it is a large number of labor disputes arising from this problem. Enterprises often evade the risk of employees' interests in order to avoid operational risks.

In addition, because Guangdong has already formed more industrial clusters, a large number of business failures and outflows will affect the overall operation of industrial clusters, and may make Guangdong lose the core cluster status of some important industries.

In Shenzhen, where the enterprises outflow more, the added value of Industrial Enterprises above designated size increased by 15.2% in the 1~9 months of 2007, representing a 2 percentage point increase over the same period in 2006.

"This is both an opportunity and a challenge.

If handled well, it will be able to promote industrial restructuring and upgrading.

If it is not handled well, it will be as hollow as Hongkong and weaken the competitiveness of the city.

Zhang Siping, vice mayor of Shenzhen, said.