Foreign Enterprises No Longer Regard China As An Important Production And Processing Base.

Mitutoyo shoe industry is a Taiwanese invested Nike OEM company, which has invested in the mainland for more than 20 years.

Due to the increase of labor costs and the adjustment of tax policies, the capacity of the company has shifted over the past ten years in the eastern coastal area and has gradually been tilted towards Southeast Asian countries.

Taking into account the market layout, industry maturity, corporate image and other factors, Mitutoyo shoe industry is afraid to leave completely.

But in spite of this, the heart is full of entanglements.

Mitutoyo

Ltd, assistant director of the company, told the economic reference daily that the company invested in mainland China in 1988 and has been focusing on manufacturing, mainly for Nike foundry.

"At present, the biggest problem facing enterprises is the high cost of labor, labor costs began to grow in 2002, to a large adjustment in 2009, from then on the annual rate of increase of about 12%."

Lou Ping said.

Labor stress has become the biggest constraint on the development of Mitutoyo footwear industry.

Even if wages rise, they will be dissatisfied and unable to keep workers.

In the past, new workers were recruited and trained for one or two months.

At present, the turnover rate of new workers reaches 60% within half a year, and less than 30% can be retained for more than a year.

Along the eastern coast

The company's capacity is gradually shifting along the coast.

From Kunshan to Fuzhou and then to Putian, Mitutoyo shoe industry has built three factories in China.

Lou Ping said, because the Yangtze River Delta's salary is too high, now Kunshan factory only make a high value-added air cushion parts, basically rely on mechanical automation, artificial dependence on small.

The scale of the Fuzhou plant has been shrinking for the past two years. Only the Putian plant is developing well, and the 13 thousand workforce is relatively stable, too, because the cost of labor there has not yet risen.

Affected by labor and raw material costs, the new investment of Mitutoyo footwear industry began to tilt towards Vietnam and other Southeast Asian countries in 2000. In recent years, the expansion rate in mainland China has not been as fast as that in Vietnam, and the profit of enterprises is not as good as that of Vietnam.