Guangdong Manufacturing Industry Fight Against Epidemic Situation: Government And Enterprises Cooperate To Cope With Cost, Order And Capital Problems

"Wuhan Fire God Mountain hospital urgently needs pipe materials and supplies."

On the first day of January 25th, a telephone call from Wuhan disrupted the Spring Festival arrangement of Xu Tenghui, President of the group.

At this point, the Group employees have been on holiday for many days. The first reaction of Xu TSE hang after hanging up the phone is to pull up a WeChat group of more than 50 people. The group has quickly organized a material support team consisting of more than 50 employees, including supply chain, production base and multi departments of Wuhan branch, in line with division of labor.

In addition to the Japanese group, many manufacturing enterprises such as Foshan, Dongguan, Zhuhai and Guangdong have been in Wuhan for the next few days. In February 2nd, the Wuhan Fire God Mountain hospital was delivered, and the "Wuhan speed", which started from the construction to the ten day, was completed on the same day. The relay of thousands of miles of Guangdong enterprises came to an end.

But they could not breathe a sigh of relief, and they would soon have to solve a series of difficult problems caused by the delay in resuming work. The sudden outbreak completely disrupted the original rhythm of the resumption of work. Guangdong's escalation of prevention and control measures and the extension of the Spring Festival holiday required most enterprises to resume work as early as 24 February 9th.

The epidemic is still unsolved. Is it hard to rework? How can we deal with orders? Even if we go back to work, how can we protect hundreds of factories? Unknown answers linger on the minds of every manufacturing owner in Guangdong.

Fight against the impact of the epidemic

If there is no such epidemic, Dongguan Chengyi Paper Co., Ltd., which is engaged in the production of packaging paper products, will return to work in February 2nd, and will supply more than ten customers in batches in February 5th and February 9th.

But at the moment, all of this has become an unknown number. Wang Xiaoya, the head of the company, has been trapped in his hometown in Chongqing so far. It is not yet known how to return to Dongguan.

"I am really anxious these days." Wang Xiaoya told the twenty-first Century business news reporter on the phone that she could only stare at the news of the epidemic day by worrying about her cell phone every day. The only thing she could do was to ease the company's employees through WeChat to carry out the remote assistance epidemic.

At that time, Wang Xiaoya's mood was completely different from that of Chongqing when he returned to his hometown. Years ago, Chengyi paper added equipment and successfully opened up several stable big customers. She thought about the big move in 2020. Now, she is beginning to worry that enterprises will not be able to return to work in time to form stable supply capability, and customers will change suppliers at any time. "It will be hard to say if we can win back then."

"If the enterprise fails to return to work in time, the new listing of downstream beverage enterprises will be greatly restricted." Zhang Weiming, chairman of Guangdong Star Technology Co., Ltd. also has this concern. Star technology is mainly engaged in beverage packaging products mold production, during the Spring Festival is the traditional peak season of the industry. He told the twenty-first Century business news reporter that "some businesses will be robbed by competitors if they fail."

The epidemic is like a sudden traffic accident on the high speed road. 10 minutes of traffic jams often cause huge traffic jams. Under the epidemic, the delayed reemployment of individual enterprises may affect the competitive advantage of the entire industrial chain, just like Domino.

In Guangdong, the manufacturing industry has strong extroversion, and many enterprises play a key role in the complex international division network. Chengyi paper 90% business is related to export enterprises, and half of Star Alliance's technology comes from overseas.

This is only one aspect of the epidemic shock wave. In an interview with the economic news reporters in twenty-first Century, it was also found that under the backdrop of reemployment delay, small and medium-sized manufacturing enterprises generally faced "no output cost pressure".

Zhang Weiming told the twenty-first Century business news reporter that in order to cope with the pressure of orders, star technology originally planned to resume production on the fourth line of the lunar new year, and 200 employees who volunteered to work overtime have been returning to work, but the outbreak has disrupted the plan.

He calculated an account. If it does not start, the bank interest, water and electricity, plant and equipment depreciation should be paid. The enterprise will spend about 5 million yuan a month on rigid expenses, which is not the labor cost of $3 million during the Spring Festival overtime. "Wages should be paid, canteens are also open, and only enterprises can undertake, and the enterprise will also undertake."

Xu Tenghui also told the twenty-first Century business news reporter that the Japanese group had 4500 employees. Even if it does not start production at present, the monthly salary and welfare cost will be close to 20 million yuan in order to stabilize the team. In addition, tax and bank interest should be paid normally, so enterprises will concentrate on higher intensity financial pressure and financial risk in the first quarter.

Wang Xiaoya said that in the middle of February to the end of February, the repayment period of the enterprise was to return the bank loans at the beginning of March. But under such circumstances, there will be pressure on all sectors of the industry. She is worried about the difficulty of collecting money after the holidays, and even delays the return of bank loans.

As for the labor problems needed by the manufacturing enterprises to resume their work, Zhang Weiming, who is also the president of the General Chamber of Commerce in Guicheng, Foshan, understands that some of the Hubei's relatively concentrated labor force has a greater impact.

"On the one hand, many cities in Hubei still control population outgoing. On the other hand, Guangdong stipulates that people from Hubei to Guangdong have to stay at home for 14 days. This is an important measure to prevent and control epidemic diseases, but it will further delay the appointment of these workers." He said.

Xu Tenghui is more concerned about how enterprises should resume work and how to prevent epidemic diseases. At present, the epidemic prevention materials are mainly used to support civil affairs, and enterprises have little material in epidemic prevention, so enterprises are afraid to rush back to work.

Xu Tenghui introduced that the Japanese group has bought a batch of respirators from abroad, but it has only been used for half a month after resuming work. Although the Japanese group has made relevant plans for resuming work, including the abolition of meetings, telecommuting, meals in batches, etc., the isolation facilities and measures of enterprises are not enough, and the relevant parties are in urgent need of professional guidance and assistance.

Responding to corporate demands, how can government and enterprises cooperate?

A lithium battery manufacturer in Huizhou told the twenty-first Century economic news reporter that more than 80% of its current orders were export business. After the outbreak, many foreign customers were consulting whether they could deliver the goods on schedule. Under pressure, the company has repeatedly applied to the relevant departments to resume work, to restore part of the capacity.

There was a shortage of labor in the enterprise years ago. After the outbreak, the company has been hiring on a large scale online. However, it is still uncertain whether delivery can be delivered as scheduled after resuming work.

Xu Tenghui was also worried about the same problems. "The epidemic will not only have a greater impact on the short-term deliveries of enterprises, but will also bring different demands to the next two quarters," he said.

In the view of the owners interviewed, Guangdong's manufacturing industry linked the whole country and even the global market.

At present, Guangdong manufacturing enterprises are waiting for the epidemic to calm down and do well in preparation for re employment. Enterprises are also beginning to take the initiative to adjust their thinking. Wang Xiaoya said that after the resumption of work, efforts will be intensified, and during the Spring Festival, there will be no idle time.

Zhang Weiming also said that in the face of the upcoming resumption of work, enterprises need to accelerate the delay of half a month to get back. "If overseas orders are not as good as shipping modes, enterprises will have to change to air transportation. In short, it is necessary to protect customers' needs and avoid losing market share."

Xu Tenghui is also busy studying and changing the production scheduling plan of the enterprise these days. By opening up the sales and production links, he promptly judged the impact of the epidemic on the market and sales, and promptly adjusted the pace of production and production. "After the resumption of work, priority will be given to some urgent orders, and then the supply chain will be reorganized once again, and the upstream and downstream will support each other to tide over the difficulties."

In his view, fighting the epidemic is only a matter of time, but the market changes brought about by the epidemic must be carried out through joint efforts of government and enterprises. The epidemic has a great impact on the export of the group. Therefore, it is hoped that the government will have some policy support in terms of export.

Zhang Weiming also believes that the rental of plant and equipment is relatively large in the cost of small and medium micro manufacturing in Foshan, and it is hoped that the relevant parties can introduce some rent reduction measures in a special period to work together to tide over difficulties.

Wang Xiaoya's demands are mainly concentrated on the pressure of repayment of principal and interest of banks, hoping that the government departments can introduce relevant policies to guide the financial sector to avoid loans and implement repayment of the rollover.

Jiang Lin, an economics professor at the south of the Five Ridges College of Zhongshan University, analyzed the most stringent epidemic prevention measures in the history of the twenty-first Century, and at the same time, it was hard for the enterprises to sacrifice their economic interests at the same time of controlling the epidemic situation. But when the next industry returns, the financial sector can consider providing temporary interest payments for loans to troubled enterprises and providing tax concessions to SMEs to help them tide over difficulties.

In February 1st, Guangdong issued ten measures to strengthen the implementation of tax support policies and measures, and resolutely win the fight against epidemic prevention and control. In the catering and hotel industries affected by the epidemic, and other enterprises that failed to return to work in full and in time, the tax department would timely guide and implement the preferential tax reduction policies of small and micro enterprises in light of the actual situation.

But Pan Helin, executive dean of the digital Economic Research Institute of Zhongnan University of Economics and Law, warned that a policy should be set for enterprises to reduce taxes and reduce fees. After all, the government is totally unrealistic. Although manufacturing is the foundation of the economy, we should prevent individual opportunistic enterprises from taking the opportunity to avoid the elimination of the market.

He suggested that discrimination should be carried out without prejudice to the dignity of the rule of law and make good use of the current policy of reducing taxes and lowering taxes for the manufacturing industry. The government can also take measures such as allowing enterprises to delay payment of social security and so on, so as to protect enterprises from the pressure of financial pressure.

The people's Bank of China will also launch a 1 trillion and 200 billion yuan public market operation in February 3rd to ensure liquidity. A local commercial bank in Guangdong told the twenty-first Century business news reporter that the bank has made full investigations into the difficulties during the epidemic period, and will soon introduce specific policies such as the extension of enterprise loans and preferential interest rates.

Jiang Lin reminds us that in the process of operation, the executive level must be judged by the bank and avoid administrative orders. The principle is to return to the market oriented solution. "Only in this way can we not destroy the rules of the market economy, and do good without bad things."

"The epidemic will not destroy enterprises and will not defeat China's economy." Xu Tenghui believed in this.

Experts interviewed also said that when the SARS epidemic was reviewed in 2003, although GDP fell somewhat, the GDP rose again to 10% in the three quarter. This shows that the epidemic has a short-term impact on the economy, but has little impact on the medium and long term economy.