Footwear Industry And Other Enterprises Should Be Alert To The Overall Impact Of Rising Costs.

Under the action of price pmission mechanism, the rising cost of industrial products may turn from the previous structural impact to the overall impact, resulting in some small and medium-sized enterprises in a business dilemma. Guangdong's nearly 30% industrial enterprises have suffered losses.

The survey shows that many small and medium-sized enterprises have greater pressure.

Experts suggest that adjustment strategies should be appropriately adjusted.

The cost of production has risen sharply. Under the influence of many factors, such as rising raw material prices, increasing labor costs, tightening the processing trade policy, decreasing the export tax rebate rate, and maintaining a continuous appreciation of RMB, Guangdong's economy has been severely tested after many years of rapid growth.

The statistics released by Guangdong Provincial Bureau of statistics in June 30th showed that the total profits of Industrial Enterprises above Designated Size reached 93 billion 802 million yuan in the first half of May this year, a slight increase of 4.3% over the same period last year, accounting for 9% of the total profits, but the increase was far below the 20.9% increase in the whole country in Guangdong.

What is worth noting is that in the past May, the number of Industrial Enterprises above Designated Size in Guangdong increased by 11006, an increase of 12.7%, accounting for 26% of the total industrial enterprises in the province. Meanwhile, the deficit increased by 49.3%, an increase of 25 percentage points over the same period last year.

According to the statistical report, the above situation is due to the increase in the main business income of enterprises below the cost of main business.

Professor Wang Jun, vice president of the Guangdong Institute of economics and vice president of the south of the Five Ridges Institute of Zhongshan University, said in an interview with the first financial daily that the most direct reason is related to the sharp rise in prices of industrial raw materials.

In 1~5 months, the main business income of Industrial Enterprises above Designated Size in Guangdong increased by 18.6% compared to the same period last year, while the main business cost increased by 19.1% over the same period last year, which is 0.5 percentage points higher than that of main business revenue.

Behind it, the factory prices of manufactured goods in Guangdong rose by 3.4% in the first quarter of this year, the biggest single quarterly increase since 2001, and the purchasing price of raw materials, fuels and power increased by 8.1% over the same period last year, the biggest single quarterly increase in 2005.

The difference between the purchase price index of raw materials, fuel and power and the ex factory price index of industrial products increased from 3.2 percentage points in the previous quarter to 4.6 percentage points.

Wang Jun said that due to the current rising pressure mainly from the price of energy raw materials, the impact of heavy chemical industry is relatively serious and obvious.

From 2000 to 2007, the proportion of light industry in Guangdong changed from 47.6: 52.4 to 39.2: 60.8, and the proportion of heavy industry increased 8.4 percentage points in 7 years.

As Guangdong's coal resources depend entirely on external pfers, the price of Vietnam's coal, which accounts for nearly 90% of the imported coal in Guangdong, has risen to nearly 50%. The cost of coal is too high, resulting in almost all losses in Guangdong's coal generating enterprises except for the new ones, while Guangdong's industrial electricity price is 0.08 to 0.1 yuan higher than that of the Yangtze River Delta.

The above statistics report also shows that the main business cost increase is higher than the income growth industry mainly in petroleum processing, non-ferrous metal mining, rubber (27725, -80.00, -0.29%, bar) products and chemical raw material products, electric power, heat and other industries.

All these industries use crude oil, metals and other major commodities as raw materials.

Li Youhuan, deputy director of the Institute of industrial economics of Guangdong Academy of Social Sciences, said to the newspaper that the government should attach importance to the current loss situation of enterprises and appropriately adjust the control strategy.

In fact, in addition to enterprises above Designated Size, many small and medium-sized enterprises are currently under greater pressure to operate.

Li Youhuan said, according to the investigation of his research group, the actual operating pressure of enterprises, especially the small and medium-sized enterprises, is greater than that of official statistics. The most serious problem for enterprises is the serious shortage of funds.

"The government's financial control policies to reduce excess liquidity have led banks to tighten up investment funds in the industrial field together with funds in the regulated areas such as real estate," he said.

At the same time, the characteristics of Guangdong's outward oriented economy determine that its economic development is not only affected by the national macro-control policies, but also more vulnerable to the impact of changes in the external economic situation.

According to the latest statistics of Guangzhou customs, in the 1~5 months of this year, there were 2428 footwear export enterprises in the Pearl River Delta region, a sharp decrease of 2331 over the same period last year, of which nearly half of the PRD footwear export enterprises have no export performance this year.

Li Peng, Secretary General of the footwear association of Asia, even told this newspaper interview that in the future, some shoe companies may still be closed in Guangdong.

Huang Lianghua, chairman of Guangdong Foshan Guan Hua group, which has invested in Taiwan for many years, also admitted to this newspaper that the increase of multiple factors led to an average increase of 15% to 20% of the business cost.

An urgent research task on the impact of the US subprime mortgage crisis on Guangdong's economy is being launched quickly by the Guangdong Academy of Social Sciences and other institutions. According to the request of the Guangdong provincial government, the relevant research and evaluation preliminary report must be submitted in the latter half of this month.

As the head of the survey, Li Youhuan believes that if the macro policy is not properly adjusted, the trend of corporate losses will be further strengthened.

Wang Jun also said that the current situation is actually a natural reaction of macroeconomic fluctuations through enterprises.

Under the action of price pmission mechanism, the rising cost of industrial products may turn from the previous structural impact to the overall impact, resulting in some small and medium-sized enterprises in the management dilemma.

"What worries me most is the employment problem. Because of the rising cost, the price inflation will bring about, and at the same time, the whole economy will shrink and grow down. If enterprises can not continue to support it, they will inevitably bring about certain unemployment problems."

Wang Jun said.