There Are Two Hurdles To Be Moved In China.

In the Midwest, the labor market is not sound enough, and the cost of logistics is high. Recently, some coastal manufacturing enterprises are still wondering whether to move the factory to the mainland or move to some neighboring countries to avoid increasing production costs and constantly compressing profit margins in the domestic market.

According to a statistical data provided by the footwear association of Asia, about 25% of the shoe-making enterprises moving away from the PRD in 2007 moved to emerging markets in other Asian countries or regions such as Vietnam and India, and 50% of them moved to the central and western parts of China, but mainly concentrated in the central provinces like Hunan, Guangxi and Jiangxi, which are close to Guangdong.

This means that it is possible for China to make war in the Midwest.

With the pressure of cost pressure on 2008, the bad news came from China. In the eastern coastal manufacturing center of Guangzhou and Shenzhen, there was a scene of closure of shoe enterprises. The scene did not stop in the footwear industry, but the chain reaction spread to labor-intensive industries such as clothing, toy processing and electronic processing.

At the same time, the "shortage of migrant workers" in the coastal manufacturing centers is becoming more and more intense. There are even high salary jobs.

China's coastal manufacturing is facing an important turning point.

Lu Zheng, an expert in the Chinese Academy of Social Sciences, pointed out that China's economic development has entered the stage of rising cost of production factors, and the low cost advantages of the original elements are gradually weakening.

This is mainly reflected in the following aspects: not only are Chinese local enterprises unable to withstand enormous cost pressures, but even foreign enterprises in China have been retreating, or even "absconding".

Under the cost pressure, Hongkong enterprises also bid farewell to the Pearl River Delta, go north and move inland to open up a new processing line.

Under such circumstances, many people are concerned that in the process of upgrading the coastal areas as a whole, can China make the inland economy take off according to the successful acceptance of the central and western regions of China?

Compared with the eastern coastal cities, China's central and western regions have the advantages of land, factory buildings, labor and so on. But in view of the current situation, there are still two major problems that need to be solved in the Midwest to undertake coastal industrial pfer.

The heavy test of labor cost, the modern machinery manufacturing mode is a way of production that the coastal areas have already been familiar with, and has also trained a large number of labor force that can adapt to this mode.

This kind of manufacturing method relying on modern mechanical technology is developed in the face of severe market competition. It requires the quality of labourers to continuously improve to meet the constantly updated technical requirements and market changes.

In fact, the development of education in the western region of China is slow, the overall quality of workers is low, and talent is scarce.

According to statistics, the proportion of people who are illiterate or literate in the western region accounts for 39.5% of the total population, which is 8 percentage points higher than the national average.

The low quality of labor force and whether it can adapt to the modern machinery manufacturing mode and modern management mode will become a key factor for the Midwest to undertake coastal industrial pfer.

China's manufacturing is facing many difficulties, including rising prices of raw materials, appreciation of the renminbi, and tax adjustment.

The most urgent is still the rising labor costs.

Lu Zheng pointed out that the change of labor supply and demand and the perfection of labor employment system and social security system led to the rise of labor costs.

In recent years, there has been "shortage of migrant workers" in the manufacturing centers of coastal areas. Wages in these areas have been rising continuously, but they still can not solve the problem of insufficient employment.

The central and western regions not only undertake industrial pfer, but also undertake labor cost pressures in coastal areas.

The new labor contract law clearly stipulates the stipulation of wages, working hours, welfare, social security and so on, which is undoubtedly increasing the cost pressure.

Transportation costs need to be reduced in addition to labor cost pressures, and pportation conditions also restrict China's manufacturing migration.

In January 2008, the logistics office of Chengdu, Sichuan published a report on accelerating the construction of regional logistics centers and improving the internationalization of logistics services.

The report points out that in the next 5 years, Chengdu will accelerate the development and construction of 3 international hub logistics parks and 4 regional integrated logistics centers, and build a modern logistics development framework system of "two platforms of one network, four centers of three parks and 50 service stations". It will form the cluster advantages of logistics enterprises as soon as possible and build an important modern logistics center in the Midwest of China.

Public investment in infrastructure in central and Western China is seriously inadequate.

It can be seen from the road map of China that the highway traffic lines in the eastern part of China and some central parts of the country are relatively dense. Most of the central and western parts of China are relatively scattered and have fewer routes. Especially in the western region, pportation conditions are obviously insufficient, and logistics costs have disadvantages.

In addition, China's manufacturing export profits occupy a large plate. Once the manufacturing industry moves to the Midwest, the existing pportation costs and logistics conditions are undoubtedly enormous pressure.

In 2005, Forbes calculated the operating cost index of major cities in China. The operating cost of eastern China's cities was 30% higher than that of the western regions.

As long as the logistics cost of the Midwest is less than 30%, it can improve the motivation of enterprise relocation.