Wenzhou Small And Medium Enterprises To Help Themselves

Recently, a rubber factory in Baishi Town, Yueqing, has reduced some of its workers because of the slump.

The company has been putting off wages for two months, that is to say, the employees will be paid two months before they get paid. Under the same breath, the employees are reflected in the labor and social security department.

In Ruian, Wenzhou, according to the relevant departments, from 2008 to February, the number of cases of labor and capital conflicts rose sharply compared with the same period last year. There were as many as 292 labor disputes disputes in labor supervision between 1 and March, up four times compared with the same period last year.

Behind the labor dispute, many small and medium-sized enterprises are facing difficulties.

Huang Deqi, executive vice president and Secretary General of Ruian Entrepreneurs Association, lamented in his analysis report on the industrial economic situation: "2008 is the grim year for Ruian's industrial enterprises to face the limit test. It is also the most difficult year for Ruian's industrial economy since its reform and opening up."

Many enterprises and trade associations are engaged in similar investigations.

Zhou Dewen, President of the Wenzhou SME Development Association, has been trying to sum up the problems and find out some experience that is worth learning from the continuous investigation of small and medium-sized enterprises in all walks of life in Wenzhou, and appealed to the government to pay attention to it.

Previous worries and difficulties - Zhou Dewen's report on housing leakage and even rain at night, summed up the recent situation of Wenzhou enterprises as four major factors: macroeconomic regulation and control, price rise of raw materials, appreciation of the renminbi, and rising labor costs.

"For example, the price of ytterbium, platinum, steel and other raw materials of the lighter industry in Wenzhou has gone up. Copper has risen from 20 thousand yuan per ton to 70 thousand yuan, and zinc has risen from 8000 yuan per ton to nearly 40 thousand yuan.

The general increase in prices of raw materials has led to a substantial increase in production costs, thus weakening the market competitiveness of enterprises.

The contract orders already set up by some enterprises in the first few months of last year can not be produced at all, because the cost has exceeded the selling price.

And the selling price of the enterprise is very sensitive, no one dared to raise the price, who will be eliminated first in the competition.

Zhou Dewen told reporters that in addition to his four factors, the past accumulation of "historical problems", such as anti-dumping, shortage of migrant workers, shortage of land, and low management level of SMEs, still exist, so the current situation is "housing leakage and even rain."

How did Huang Jiale's workshop deal with Huang Jiale, a shoe factory in Kangtai, Wenzhou?

"All the prices of raw materials for shoes have gone up, shoe glue, outer packaging, shoe buckle, leather material...

Even the price of nails is rising.

But the most troubling problem for Huang Jiale is the plant.

Originally, he hired a 700 square meter spare workshop in a straw factory. Now he has to refurbished it. He reminded him to take it back as early as last October.

The problem is that in the past few months, Huang has been running around everywhere, but he can not find the right place.

"The shortage of land and workshops in Wenzhou, and small businesses like me with only more than 100 workers are not strong enough to go to the development zone. Seeing that the rental contract expires in November this year, I am worried!"

Huang Jiale said that the workers did not work well and he was willing to keep them.

No matter what circumstances can be dispensed, that is, no factory building, so many production lines go to the open air to produce?

He even began to consider whether it would be urgent to build a temporary building on the wasteland.

Lin Yinyong's goods were "stuck", Lin Yinyong, chairman of Huaxiang Optical Co., Ltd., and he was also troubled by various problems.

"Recently, orders in South America have been reduced by about 80%, not only because of the appreciation of the renminbi, but also because of anti-dumping."

"Chinese goods have been boycotted by countries such as Brazil and Russia," Lin Yinyong said. At these customs, his goods were repeatedly "deliberately stuck". The longest time they spent three or four months in customs, they lost a lot.

But he had to turn his eyes to the Middle East market.

In addition to the above situation, Huang Deqi, executive vice president and Secretary General of the Ruian Entrepreneurs Association, also provided a set of data to reporters. "According to the sample survey, we investigated and analyzed the labor expenditure of 9 key industries and 31 Enterprises in the whole city (Ruian) after the implementation of the labor contract law.

The average annual labor cost per employee increased by an annual expenditure of 4000~7000 yuan, and the highest growth enterprise reached 9642 yuan.

Of course, it is a good thing to raise staff salaries, but for labor-intensive enterprises, the pressure of this expenditure is also considerable.

Li Meifang, general manager of Ruian Rong Guang group, told reporters that the company had more than 10 thousand employees, each increasing by 5000 yuan a year, the total cost increased by about 50000000 yuan.

"We strongly support the labor contract law, but the cost is rising too fast."

Many Wenzhou bosses say so.

Now, we are busy in saving ourselves. Before we ask for help, we have media reports that "20% temperature enterprises are closing down". The relevant departments of Wenzhou immediately launched the first quarter of 2008's research on the development of the city's industry.

According to the relevant sources, the preliminary statistical results of this survey show that although 20% enterprises are in a predicament, "but with the key towns and townships in our city as the unit, the proportion of bankrupt enterprises in the total number of enterprises is 12%, the lowest 5%".

"Enterprises are now difficult, but Wenzhou enterprises have always been flexible, so the temporary suspension of business is not a failure."

Zhou Dewen, President of Wenzhou SME Development Association, told reporters that in fact, temporary stoppage is also one of the survival strategies of enterprises.

Reporters interviewed a number of enterprises, found that small businesses have their own way, large enterprises have their own experience.

In addition to the professional financial means such as "settlement of strong currencies such as the euro" and "long-term settlement and hedging risks", many enterprises have their own simple and simple ways to extend the chain of operations and to operate acquiring company abroad or purchase raw materials.

Rising prices should be slowly coming to Wenzhou's Kangtai shoe factory, Huang Jia Le, who is optimistic. He said Nan Cunhui used to repair leather shoes and made bigger ones.

Although there are only more than 100 workers in their own enterprises, they can also develop slowly.

Similarly, he is not eager to raise the price of his shoes.

It is not that we do not want to, but we are afraid of a rise in prices.

"Business customer relationship is the most important thing. We need to talk about honesty. The order we have signed is, of course, at the original price.

New orders, if downstream manufacturers can not afford to eat, we can not casually raise prices.

Huang Jiale said that the price increases from raw materials to finished products have a pition and the process of acceptance by the market. You have to follow this rule.

"The pressure of the past is on my own.

But the company will introduce many new styles in autumn, and it may increase a bit.

This money will slowly increase.

There are many enterprises that produce similar products, and those who have gone up badly will mean losing customers.

Huang Jiale said that now is a difficult time, there is no way to earn less money, but as long as the top is over, there will be opportunities for making money next.

In 1993, when Chen Zewu of the senna group decided to import two production lines worth about 20000000 yuan from Germany, he himself was in a sweat.

That about 20000000 yuan almost led to corporate financial crisis.

Now, however, he felt that the money had been spent, and he continued to introduce more than 10 production lines.

Chen Zewu started his work as a labor safety shoe, and later he went to the production of tourist shoes and sports shoes. Now he concentrates on making safety shoes.

He said that in order to produce high quality shoes, there must be advanced production lines.

Many bosses are reluctant to invest and compete with many people in the low end.

Actually biting teeth into a new field is worth it.

"The production line requires more qualified workers to adopt the latest technology and materials, and to produce stable products with high efficiency.

If you choose these things, your company's quality and strength will also be improved.

When faced with all kinds of difficulties, strong companies are relatively easy to survive. "

To increase the added value, "we did not make sunglasses the year before. Now we are doing myopic glasses, presbyopic glasses and so on."

Lin Yinyong, chairman of Huaxiang Optical Co. Ltd., told reporters depressing, because of the change in the foreign trade situation, their foreign trade orders have been cut by half.

"Raw materials prices rise, profits are thin, many traders can not accept, do not enter the goods to sell inventory."

Because of the problem of anti-dumping at the same time, Lin's business slowly moved to the more open Middle East.

In the Middle East, he was glad to find that changing his product was the right choice.

"The Middle East is a desert area, and the sun is very strong. People usually think that sunglasses will be very popular.

Actually, there are too many people selling sunglasses over there. The competition is fierce and the profits are very thin.

In the year before last, we turned around in a timely manner, and we did the right thing to produce nearsightedness and presbyopic glasses with higher technological content and higher added value.

The scale effect reporter called Mr. Yu Wen pin, chairman of xingle group. He just recruited employees outside the company and joked: "who said that Wenzhou enterprises could cut people off?"

When it comes to production, he comes back again: "who says we can cut production?"

When it comes to technological innovation, he argues, "new products are good, but before they are promoted, they can't replace conventional products and become the source of most profits."

It is not that Yu Wen pin is driven mad by the situation. He is quite at ease, saying that the price of raw materials is not terrible and the cost increase is not terrible. "Because everyone is in the same predicament, and now it is better to figure out a better way than anyone to prepare for it."

Yu Wen pin's method is simple, that is, scale effect.

"Our wire and cable products, domestic and foreign trade all have, now the foreign trade situation is not very good, out of the goods almost no profit, but we still shipped out, why?

Because we did not regard this as a profit growth point, only to preserve the original market.

By maintaining or even expanding the scale of production, the cost of each product is actually reduced.

Therefore, although the profit of the single product is reduced, the total cost is still large, the cost is low, and the overall profit is still good.

The future is infinitely good -- the ultimate challenge, the brave to win, the extreme challenge, the brave to win.

At the beginning of Huang Deqi's investigation report, he used this sentence.

It may be that the mental state of the enterprises in the investigation infected him. He felt that all kinds of worries at present may also be a chance for Wenzhou SMEs to be reborn.

"Ruian's 3 leading industries and 6 traditional industries, most of them belong to labor intensive industries.

In the 75 billion yuan output value of 2007, the output value of high-tech products is only 10%, the technology content is low, and the added value is not high.

Moreover, most bosses are not strong enough in law consciousness, and the management level is not high enough.

Huang Deqi told a story to reporters.

One company forgot to sign employees' year-end surplus wages.

It was thought that it would not be possible to lay off in public. As a result, an employee who took advantage of the loopholes in the procedure from the factory told the owner not to pay the wages and let the boss go to court for a lawsuit.

"The situation in 2008 may be very severe, but there are also many opportunities.

For example, the implementation of the labor contract law can enable more business owners to standardize their production and become more modern enterprises.

For example, the downturn in the industry will enable dynamic and strong enterprises to have the opportunity to integrate, adjust, and upgrade to become more competitive big enterprises.

Zhou Dewen also told reporters: "some people may be on the verge of bankruptcy, some may barely survive, and some may leave other lands, but those who can survive through tests must be better companies.

So I am very optimistic about the future of Wenzhou enterprises.