Report Shows Labor Shortage In PRD

Standard Chartered Bank today released the "short pain" in the Pearl River Delta, China.

A special report on "Long Win".

The report shows that, as a major city in China's manufacturing industry, the Pearl River Delta (PRD) faces many challenges in its pformation. Labor shortage is still continuing. This year's wage increase is up to 8.4%. This is the latest sixth annual Pearl River Delta manufacturing survey.

Standard Chartered believes that the pain in the PRD is now part of China's shift towards a long-term sustainable growth model.

Wage increases reflect continuous improvement in productivity.

Upgrading and improving the complexity of products.

The increase in FDI absorbed by the service sector also reflects this change.

Increase automation input and optimize

And technology is a common practice for manufacturers in the Pearl River Delta to cope with the shortage of labor and wage increases.

Companies that choose to migrate to the outside world prefer Vietnam and Kampuchea.

Standard Chartered predicts that ASEAN will benefit from the upgrading of manufacturing and service industries in the Pearl River Delta because of lower wage levels, abundant labor supply and rising household wealth.

With the development of manufacturing industry, ASEAN is expected to become the next Pearl River Delta in Asia.

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The reporter learned from the recently held eighteen session of the Standing Committee meeting of the twelve CPPCC municipal committee that Dongguan has been promoting the "machine replacement" plan since last year, and has allocated 200 million yuan of financial special funds for three consecutive years to support the technological pformation of enterprises.

Dongguan also plans to build three major business groups in the next ten years, including motion control and high-end equipment, industrial and service robots and high-end consumer products, so that the robot industry will gradually form its size and influence.

The eighteen standing committee meeting of the twelve CPPCC session was held on the 22 th of this month. Vice mayor He Yu briefed Dongguan on the upgrading and development of manufacturing industry.

According to He Yu, at present, there are more than 200 enterprises in the city, which have achieved 17% of the total labor productivity of Industrial Enterprises above Designated Size and 6.8% of their employment.

He Yu said that last year, the city's GDP increased by 588 billion 100 million yuan, an increase of 7.8% over the same period last year, and the added value of industrial added value above Designated Size reached 259 billion 350 million yuan, an increase of 8.8%, faster than the national and provincial average level, and 3 new enterprises and 7 listed enterprises.

In terms of industrial structure, the five pillar industries increased by 10.6% over the same period last year, accounting for 69.6% of the industrial added value above the scale of the whole city.

The added value of advanced manufacturing and high-tech manufacturing increased by 13.9% and 16.3%, respectively, faster than the city's 5.1 percentage points and 7.5 percentage points.

It is worth mentioning that last year, the value added of private industrial enterprises increased by 23.7% over the same period last year, and the rate of increase was 14.9% higher than the average level of the whole city. The contribution rate to industrial growth above Designated Size in the city was as high as 73.2%.

The proportion of private economy added to GDP has increased to 47.7%, and the proportion of private enterprises' tax accounts for the first time to 60% of the total tax revenue of the city.

As a big manufacturing city, the demand for technological pformation is more and more intense in Dongguan.

According to He Yu, since last year, Dongguan has allocated 200 million yuan of financial special funds for three consecutive years to support enterprise technological pformation and promote the enterprise's "machine substitution" action.

At present, there are more than 200 related robots in the city, and the provincial intelligent robot coordination Innovation Research Institute has been introduced.

"More than 50 projects, pulling investment of about 4000000000 yuan, reducing the number of workers about 35 thousand."

He Yu said that many enterprises invest in automatic equipment, basically two years can return to this.

Statistics show that Dongguan's industrial technology pformation investment increased from last year's negative growth in the first 8 months to 28.6% a year, because of "machine substitution". Last year, the total labour productivity of Industrial Enterprises above designated size increased by 17%, the employment of enterprises decreased by 6.8%, and the average cost of products decreased by 12.5%.

In addition, Dongguan has introduced a series of policies to support new industries such as smart phones, and plans to build three major enterprise groups such as motion control and high-end equipment, industrial and service robots and high-end consumer products in ten years, so that the robot industry will gradually form a scale and impact.