"Transfer Tide" Swept The Pearl River Delta Dongguan 300 Shoe Factory Closed Down

Experts say: under the situation of labor shortage and the implementation of the new law, small and medium-sized enterprises must speed up technological innovation and industrial upgrading.

At present, the "labor shortage" in the Pearl River Delta region is getting worse. Yesterday, reporters connected with Dongguan enterprises and local governments learned that because of the shortage of workers and the implementation of the labor contract law and the weakening of their competitiveness, many local small and medium-sized clothing and shoemaking enterprises have been pferring and closing.

In the Pearl River Delta region, there is a serious "labor shortage" situation. The new law is implemented. Small and medium-sized enterprises have closed down the small garment factories in Huadu District of Guangzhou, the pfer of Guangzhou Haizhuqu District Jiwang garment factory, and the pfer of Dongguan Houjie shoe factory.

Before and after the Spring Festival this year, lots of advertisements are posted on streets and alleys in Guangzhou and Dongguan.

In 2002, Mr. Fan opened a small shoe factory covering more than 500 square meters in Houjie Town, Dongguan, with 40-60 workers and complete equipment.

A few years ago, shoe factories had many orders and business was good.

However, on the 19 day, Mr. Fan posted a pfer advertisement.

"After the implementation of the labor contract law, my labor costs will increase by almost 10%, and people will not be able to keep up."

Mr. Fan said on the phone that since the opening of the factory in 2002, the logistics cost and labor cost have basically increased by more than 10% each year.

After the implementation of the labor contract law, labor costs will probably increase by 10%.

Mr. Fan said that the RMB exchange rate is not stable now, the dollar is sold, the renminbi is sold, and the exchange rate is constantly changing, which has a great impact on business.

"In Dongguan, about 200-300 of the 1000 shoemaking enterprises went bankrupt."

Li Peng, Secretary General of the footwear association of Asia, said that Dongguan is only a corner of the Pearl River Delta. Guangdong footwear enterprises are mainly concentrated in Dongguan, Huizhou, Guangzhou, Heshan and Zhongshan, with a total of 5000-6000.

Over the past year, more than 1000 large and medium-sized shoe companies have been closed.

There are more than 3000 shoe factories in Huidong, where shoes companies are more concentrated. In the past two or three months, four hundred or five hundred small and medium-sized shoemaking and shoe factories have been closed.

Mr. Fan said that the small and medium-sized enterprises that have not been closed or evacuated for the time being are dead.

Shut up or move?

Is "internal injury" fundamental or not?

The labor contract law only urges us to make the decision to close the door as soon as possible.

Jiang Sheng, the head of a small and medium-sized garment factory in Nanyang Zhuang village, Xinhua Town, Huadu District, Guangzhou, has also posted the pfer information online.

"No one wants to go, but there is no way to sustain it."

Jiang Sheng said on the phone that this sentence is the voice of many people who are now responsible for the pfer of business.

Mr Fan and Jiang Sheng believed that the fatal cause was the internal injury of enterprises for a long time, and the labor contract law was only a fuse.

Many small and medium-sized enterprises in the Pearl River Delta have always adopted the "low cost and low profit" mode of production, and the profits themselves are not high. With the rapid rise in costs of raw materials, wages, hydropower, factories and so on, it will be very painful to sustain them.

According to Jiang Sheng, from the end of last year, now he knows that there are many enterprises that close and move away.

"Small and medium-sized enterprises are closing down a lot, which will definitely affect the entire production chain, and will also bring SMEs to some supporting industries."

Jiang Sheng said on the phone that after the closure of the small and medium-sized enterprises, no one in the nearby restaurants went to dinner and had to close.

Experts say that evasion is not a way to innovate technology is very important. "Labor shortage" and "shut down the tide" are all the accumulation of problems in the history of PRD enterprises.

Chen Jingan, director of the Institute of human resources of the Sichuan Academy of Social Sciences, said that labour intensive enterprises such as Guangzhou and Dongguan have been operating in a low cost way, relying on a large number of cheap migrant workers to obtain surplus value.

The wave of "labor shortage" and the closure of small and medium-sized enterprises are mainly due to the fact that the shortage of migrant workers has become a kind of resource. The lack of security and low wages have been unable to attract migrant workers. In addition, a series of changes have taken place in the rise of raw materials and the increase of labor costs in the labor contract law. Labor-intensive SMEs will surely be faced with the problem of survival.

"In the new situation, SMEs must survive in technological innovation, speed up technological innovation and upgrade industries."

Chen Jingan believes that there is no large-scale "Pearl River Delta" enterprises' "labor shortage" and other problems. The main reason is that the Yangtze River Delta was not entirely dependent on migrant workers at the beginning, but many enterprises in the Yangtze River Delta began to develop high and new technology, and labor-intensive enterprises were less than the Pearl River Delta.

The closure of enterprises and the tide of labor shortage are the inevitable pains for the development of labor intensive enterprises in the Pearl River Delta. This requires the relevant departments to do well in industrial guidance, speed up the adjustment of industrial structure and upgrade the industrial structure when attracting foreign investment. After this period, new development peaks can be reached.