Labor Costs Rise To Test The Survival Ability Of Shoe Companies

In recent years, labor costs in Tongxiang have been rising, and the labor contract law, which came into force in January, has further promoted the growth of labor costs.

For those labor-intensive enterprises, the original profits will be even more modest.

How to deal with them has become the choice of life and death between these enterprises.

Replace the machine with the machine, strengthen the scientific management, create the brand, and pfer the strategy.

At present, many enterprises in our city have begun to act, hoping to make up for the loss of profits caused by rising costs as soon as possible.

"It's hard. Maybe there will be no profit recently. Let's see if the newly acquired famous brand in Jiaxing can play a role quickly."

Talking about the rise of labor costs, a shoe factory in Shimen town industrial district is responsible for eyebrows.

He told reporters that it takes about 300 yuan a month to give workers a labor insurance program, and now there are more than 100 workers in the factory, who need to invest nearly 400 thousand yuan a year.

In the factory, a pair of shoes with a price tag of 80 yuan only had a profit of five or six yuan. Last year, the net profit of the factory was hundreds of thousands of yuan, almost equal to the new labor cost.

It is understood that last year there were more than 100 new shoe factories in our city.

Faced with the sharp rise in labor costs, these small and medium-sized shoe factories are in danger.

Therefore, it is the consistent goal of this year's shoe industry in Tongxiang to open up larger sales channels by creating brands.

"Now, we are looking for agents everywhere with the winning trademark."

The official said that soon after the factory is ready to declare the famous brand of Zhejiang, once it is successful, it will also challenge the higher level.

With the increase of labor costs, the "man machine war" is becoming increasingly fierce in Pu Yuan, a Chinese sweater capital.

Wang Yueming, a sweater boss, recently bought 15 domestic computerized flat knitting machines. Although the investment was up to 2 million 400 thousand yuan at a time, the investment was still worthwhile for him.

With the promulgation of the new labor contract law, the labor cost of sweater enterprises will generally increase by 10% to 20%.

Wang Yueming said that the efficiency of a computerized flat knitting machine is more cost-effective than that of manual labor. Therefore, replacing the labor force with machines to resist rising costs has become the common choice of many sweater owners in Pu Yuan town.

However, the use of a large number of advanced equipment also means that enterprises need more abundant capital and technical strength to support them.

According to the insiders, some small businesses are likely to be eliminated because they do not have such strength.

Besides manufacturing industry such as shoemaking industry, sweater industry and home textile industry, the service industry of catering industry and hotel industry has also been strongly impacted by the increase of labor cost recently.

Streamlining personnel and trying to recruit people from cheaper labor provinces...

Under the cost accounting, no one dares to take lightly.

Regarding this, the relevant person in charge of the Municipal Economic and Trade Bureau also said that although the rising labor cost will not immediately dissolve the comparative advantage of labor-intensive products, it can be predicted that the factors that will push China's economic growth in the long term will change.

The long-term competitiveness of enterprises can not rely on low labor costs, but only on the basis of product independent innovation, internal scientific management and market development.