Dongguan Labor Costs, Labor Costs Pressure, A New Round Of "Collapse Tide" Attack

"A new wave of factory closures is a fact.

It's almost the same with the media.

"In Guangdong, more than 100 factories are big factories, most of them are our small and medium-sized factories, and seven or eight of them are closed this year."

"This is just the throes of the pformation of industrial structure. When the old and new ones are replaced, there are businesses that fail.

Practice. "

In the face of the "new round of collapse" in the PRD factories, every party concerned has been able to pour out their own views.

Some people are desperate, some people wait and see, some are left behind, others are not worried.

From Shenzhen to Dongguan to Guangzhou, every city has its own specific problems to deal with; from electronics, printing to furniture, clothing, and every one.

They also have their own rules.

The truth can not be exhausted, and it will take time to prove it. But the tip of the iceberg can be seen everywhere.

This winter's Pearl River Delta is humid and warm. It's a cold topic. Life is not the theme on the tea table.

"This year is very difficult."

On the southern coast, many people are restless and confused.

Factories shut down and workers leave.

"4000 factories in Dongguan went bankrupt", "more than 100 million workers in the Pearl River Delta are coming home this year or early in the new year".

A number of appalling news headlines affect the mood of the locals.

The fate of the first tier cities is always similar. In Shenzhen, the purchase of vehicles has been closed for nearly a year, and the northern New District is in full swing.

The old industrial districts that have made great contributions to the economic development of the special economic zone have long been dissolved in the tall buildings of urbanization.

"Our indirect perception is Shenzhen's industrial structure.

It was mainly concentrated in 2013 and 2014, but this year it has moderated. "

Su Yuan told reporters on the rule of law weekend.

As the leader of a local worker service center, she felt that the factory shut down or moved in the previous two years was obviously more than this year according to the direct feedback from the workers.

On this side of Shenzhen, many factories have moved to Dongguan, Huizhou and other places, leaving only a large number of R & D departments of large enterprises.

This is Su Yuan's message.

It is understood that HUAWEI's R & D department remains in Shenzhen and its factory intends to move to Dongguan.

The market is quite like Domino. Dongguan is looking forward to big enterprises, and small businesses are also starting to withdraw.

Dongguan's economy was initially driven by Taiwanese capital and Hong Kong capital. Now, many Taiwanese and Hong Kong capital have gradually moved their businesses to Southeast Asia or inland provinces like Hunan and Jiangxi. The destination of local factories relocation is the Yangtze River Delta, inland provinces and even Africa.

Dongguan's industrial zone is much easier to find than Shenzhen.

The city is simple and clear: soap industrial area, soap two industrial zone, westward industrial area, Qiaotou second industrial area, Qiaotou third industrial area.

The names of these bus stops show the foundation of the city.

In the industrial area, there are now various forms of messages and advertisements such as "factory leasing", "factory subleasing", "factory urgent recruitment" and so on.

Due to factory concentration, Dongguan has almost become the epitome of the media's definition of "factory closures" and the worst hit area.

"Last year we were faced with the problem of" making one million a year and earning two hundred thousand only this year ". This year, we can not see the despair of the future.

A factory owner sits in a restaurant and says to the opposite person, struggling to keep his voice down.

Zhang Qing, who has been observing the Dongguan economy for more than 10 years, believes that the biggest problem in the Pearl River Delta is recruitment.

"There is a shortage of people everywhere. This is a big problem.

Many factories move to Hunan, Hubei and Anhui. Wages are almost the same as those here, and the workers are reluctant to come out.

Zhang Qing, who is the main exhibition and familiar with many industries, said: "unless it is like big enterprises, it still has enough wage advantages over the mainland."

Zhang Qing repeatedly asked for a pseudonym because he felt that the situation in Dongguan and even the Pearl River Delta region was very complicated. He was only observing himself, and could not represent objective facts.

"China's labor costs have doubled in the past five or six years, and the cost of land has also risen a lot.

The Pearl River Delta is mostly middle and low end manufacturing industries, so the failure of the middle and low enterprises is inevitable.

But labor costs do not affect China's high-end manufacturing industry.

Liu Yunhua, director of urban and Regional Development Research Center, School of public administration, Renmin University of China, told reporters.

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As a result, the high and new industries are highly valued by local governments. A very important reason is that they do not need too much labor cost.

For the owners who have been operating in accordance with traditional thinking, this wave has hit them.

"During the financial turmoil of 2008, I also opened a car gift factory, earning money and buying my own factory building.

And now, it can't go on. "

Not long ago, Li Jiaying just turned off his leather goods factory in Guangzhou.

Also this year, several of her friends have been shutting down their businesses in different cities in Guangdong.

Li Jiaying can not help "Tucao": "after so many years of business, I think this year is very difficult.

Even having local connections is hard. "

"Investment must be cautious."

This is the consensus of many entrepreneurs in the Pearl River Delta region.

Labor pains in pition

Liaobu Town, Dongguan.

A male worker crossed the bicycle and leaned against the pole to keep the gesture for nearly an hour.

He said he had worked in the factory for 5 years and moved to Jiangxi. He did not want to follow it, because there was no one there, but he did not want to go home early.

"Here, before the afternoon, working hours were very busy, and many workers were now very cold."

He told reporters, while lowering his head to brush his cell phone.

"Now the new plant is hard to find."

He murmured.

The local proprietor of the Street convenience store said to him, "you can go to other towns to have a look. There may be more workers there. This year is not good, and my business is also affected."

There are 4 streets and 28 towns in Dongguan. The five star hotels are crowded with luxury cars everywhere. It is indeed a magical place that attracts people's attention.

"I don't know why. We always get famous in Dongguan."

The locals will throw this problem very seriously.

In this small southern city which was once dubbed "sex capital", local people seldom do business directly.

In the era when China's labor-intensive industries began to develop rapidly, the villagers' committees gathered land, rented them to Hong Kong businessmen, Taiwan businessmen, followed by local bosses and provincial bosses, and the villagers collected "money" every year, and rushed to a well-off society early.

"These two years are really not very prosperous.

In the past few years, every year people can divide into five figures' money '. In the last two years, anyway, my family can only get thousands of pieces.

This is what a Post-80 girl student works in a public institution in Dongguan.

Once and for all, the small and medium sized enterprises, which have been flourishing and flourishing, are paved in every town in Dongguan, bringing Jinshan Yinshan, which has become the epitome of the prosperity of the Pearl River Delta.

This winter, Dongguan is experiencing the desolate, it seems to convey the throes of the pformation of the Pearl River Delta industrial structure.

This kind of desolation is especially evident in many towns in the industrial area.

From Liaobu, Daling mountain to Houjie and Humen.

"The workers went away and the owners went away."

Liu Hong, who worked in Dongguan for 5 years, told reporters that "I want to be a business owner myself. The owner of Dongguan is closing the factory."

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Now, in the old home of the north, Liu Hong joined the local government and set up a small processing plant. Although he worked hard, he was hardworking and dependable.

"The pformation of Dongguan's industrial structure actually began in the past few years.

The Dongguan government wants to attract some big companies, such as HUAWEI.

Zhang Qing said.

But he admits, "relatively speaking", the impact of this round of factory shutdown on Dongguan is "pretty big", and many factories are closed or relocated.

Like Liu Hong's former business owner, it is not unusual to move his factory back to his hometown.

"Many factories in Dongguan have moved to the mainland, where there is a corresponding docking policy.

In Dongguan, in the process of pformation of industrial structure, there are bound to be a number of factories that do not meet the requirements of government pformation.

These factories, especially small electronics industries, processing plants, and so on, or go to the mainland, or move to Southeast Asia, Africa, or go bankrupt. "

Zhang Qing said.

No network upload is so serious.

This is his view.

A few days ago, he also listened to an old leader of the trade and Industry Bureau, saying that this situation is not only this year, but every year, "only this year, the environment is more complex and affected by many factors, and many factories have indeed left Dongguan".

Labor cost pressure

From time to time, Li Jiaying also remembered the hardship and prosperity brought about when the factory was founded in 1998.

"There are more than 200 workers at most.

You know, in Guangdong, more than 100 people are small and medium-sized enterprises.

She told reporters that there were only more than 70 workers when the factory was shut down.

She was not willing to turn away the factory that had worked hard for more than ten years, but "we really can't afford it."

This year, she felt that the atmosphere was obviously heavy when she was sitting in the factory drinking tea with her peers.

It is difficult to describe in one word.

There's no better language. "

Asked about the main difficulties facing her factory, she said, "the economy is stagnant and the money is hard to come by, and the labor of workers is too expensive."

"The factories around me are doing well, there are only one or ten families, and at least seven or eight are losing money or closing down.

We just can't afford it. "

She said.

Before switching off their own leather goods factory, the labor cost of the factory is about four hundred thousand yuan per month.

"Think about how many things you can produce," she said. "And after 90, there is no pressure to feed their families. They often play two days a day, which is very different from the previous workers' style."

To do leather goods business, the workload of workers is not counted, but according to the number of days, "one day to do one and do one hundred, to give workers the same money".

At the same time, with the improvement of the protection policy for migrant workers and migrant workers, Li Jiaying can not afford workers to work overtime as well as low wages as they did seven or eight years ago.

"The two years have gone too fast.

Now the workers need 4000 yuan monthly salary. We all have to give workers social security and medical insurance.

At the same time, workers are also required to take holidays and take a day off every week.

This is impossible to do, for our traditional small and medium enterprises, no overtime is equal to no money.

She said.

Although the factory was stopped, orders were coming from time to time.

Even so, Li Jiaying did not want to reopen the factory. "The cost is really too high."

So, for old customers, she will go elsewhere to look for factories.

For processing knapsack, she once ran to Quanzhou, Fujian.

Not long ago, I arrived in Dongguan.

Eventually, a small factory was found locally, with only a dozen workers.

"People are few, manual labor is low. We must save our students and take a look at them one step at a time.

This is Li Jiaying's recognition of the survival skills of the right small businesses at the moment.

Humen Town, Dongguan, is a gathering place for garment enterprises.

As one of the three largest towns in Dongguan and one of the four tigers in Guangdong, Humen's situation is not very bad this year, but it is also not optimistic.

A business owner who had done business there said, "this year is harder to do."

He believes that the reason why enterprises are not operating well now is also an important reason -- the relatively difficult operation of enterprises brought by the increase in labor costs.

"Now workers are not as eager to work as you are in the early days of reform and opening up. They will also ask for overtime work.

Now, let the workers do more than two hours, and the factory will be fined.

At the same time, the price of products can not be sold.

Being a boss is too hard.

He said.

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In Liu Yunhua's view, the improvement of manpower cost is the general trend.

"Our per capita national income has been relatively high, and wages can not be so low.

So we shouldn't have these industries (relying on low labor costs). We should let them go.

Where is the future?

The increase in labor costs has undoubtedly become an important bargaining chip in the "elimination tournament" of the Pearl River Delta.

In Dongguan, there is a bus stop called "NOKIA".

In the first half of this year, the evacuation of NOKIA cleared in the first half of this year caused many workers to sigh.

At the same time, the new high-tech industrial park is welcoming the arrival of large enterprises factories with anticipation.

"We need high profits and output values to persist."

Li Jiaying also heard that a lot of enterprises that are similar to her family, "strong and well done", have chosen to shift to the Yangtze River Delta region because "there are preferential policies there".

Thanks to the advantages of the world, many Hong Kong funded and Taiwan funded enterprises have moved their factories to Southeast Asia.

This makes many local owners envy.

Li Jiaying, a friend of the CD disc factory, has just suspended his own business. Nobody knows what to do in the future.

And finding the direction of capital has quickly found a new location: home, stock market, Internet +, high-tech industries.

Liu Hong felt the policy and environmental convenience of returning home to open factories.

"Relative to the coastal areas, the mainland economy still needs labor intensive enterprises to pull.

And manpower costs are not as high as those in the PRD region, and the workers are all locals.

The increase is more than pportation costs.

Liu Yunhua also saw the trend of the pfer of enterprises in the Pearl River Delta and Yangtze River Delta to the northwest.

Some owners threw money into the stock market in confusion.

"They know that dry industry can not make money now, they put their money on the stock market. After making money, they even do not want to do business."

A media reporter running a hotel and real estate line in Dongguan said.

Still want to do business, hope to keep up with the trend.

Invest heavily in high-tech industries, replace machines with machines, and boldly invest in Internet +.

"But I find that many bosses actually don't understand Internet +, but blindly follow suit."

The reporter said.

Like Zhang Qing, the reporter did not want to reveal his name, but the reasons were different.

As a provincial, and because of the prudence of the media practitioners, he once saw and killed the gang of Dongguan, though it had nothing to do with him. Although he had a lot of things in the past two years, he still had a lingering fear.

However, he did not plan to leave Dongguan, a "misunderstood" small town.

"The city government has built a large green space to build parks and municipal facilities at the core of the city, which is unthinkable in other cities.

So actually it's very livable here.

He said, "what is the direction of the industrial pformation that the government is making now? In fact, many bosses understand it.

Local enterprises are better prepared to do so, and local enterprises are less likely to move because they are more involved.

Sometimes Zhang Qing can't help thinking: if people don't want to be a boss, the workers will not be able to find jobs.

After that, where do workers go to work?

Indeed, the workers are also forced to make another plan.

In Shenzhen, some private workers are organizing workers in the service industry to help the workers leave the factory to the service industry to meet the needs of the city after the pition.

In Dongguan and Guangzhou, the same training is also trying to do it.

30 kilometers from the town of Humen Town, Daling mountain town, the furniture factory gathered, mostly for the investment and construction of the Taiwan boss.

Nowadays, a lot of Taiwanese capital has been evacuated, and factories have become more and more common.

The workers here blame the boss on the road for "no insurance has been given to them, and no industrial injury". On the other hand, they also miss the actual income of "4 hours overtime in the evening".

"Now, business owners are not going to rush you. They do not do anything for you every day, nor do you want to work overtime.

When you can't stand your own way. "

A furniture factory worker said.

The worker from Sichuan has worked in this furniture factory for nearly 15 years.

Where the future lies, workers do not know, nor do factory owners know.

Liu Yunhua, who has studied the pformation of industrial structure for many years, thinks that the pformation of enterprises can consider three ways: to go to the mainland, to make simple upgrading of enterprises, or to design high-end products by oneself, or to buy foreign products or brands.

"The Pearl River Delta must make this pformation, which will be more painful. It may take three to four years."

Liu Yunhua said.

In this labor pains, the convenience store owner of Liaobu town has been unable to wait.

He is going to finish the Spring Festival, turn off the shop front, and take his wife and daughter to "many places" to do other business.