Pearl River Delta Footwear And Other Enterprises Operating Costs Exploration

The trend of public opinion in the relocation of enterprises has actually reviewed the status quo of the manufacturing industry in the Pearl River Delta from another level.

On the one hand, the relocation of enterprises is conducive to Guangdong changing the cage and changing the birds to make enough land, labor, public services and other resources to serve the enterprises with core competitiveness to expand reproduction and attract new high value-added industries.

On the other hand, industrial pfer and upgrading have been shouting for many years, but the traditional low value added labor intensive enterprises still occupy a major share in the PRD, and perhaps a lot of sparrows are flying away.

But how to emancipate the mind and increase the "phoenix" settlement is undoubtedly a severe challenge for all parts of the country.

An important reason for the relocation of enterprises is the increase in costs. But how much more cost to the enterprises is the increasing price of raw materials, the shortage of land and labor, the appreciation of the renminbi, and the increasingly stringent policy environment?

Do enterprises still have to earn money in the Pearl River Delta?

The comprehensive cost of enterprises has increased by at least 17% in the past year. Dongguan long Shun wood industry Co., Ltd. is a medium-sized enterprise in Daling mountain town, with an annual export volume of about 100 million RMB. Since entering 2007, Mr. Xie, the manager of the company, has been worried about the figures in the financial statements. At present, the company's profits are very low.

Mr. Xie calculated the accounts to reporters. In addition to the influence of some micro market factors, the labor cost increased by 3% from the macro level. According to the current RMB appreciation trend, the cost of recording the cost of 6%, and the impact of export tax rebates on the processing enterprises, increased by 8% at least, and their enterprises had to face the fact that the cost increased by at least 17% from last year to this year.

"Why do companies move to Vietnam?" the reason is 17% differences.

Mr. Xie told reporters.

The monthly salary for an ordinary worker is more than 2000 yuan. Since September 1, 2007, the minimum wage of workers in Dongguan, the most concentrated labor force enterprise, has increased from 574 yuan / month to 690 yuan / month. From April 1st this year, the minimum wage standard will be raised to 770 yuan / month.

Lu Rutao, the boss of the Sacred Heart food factory, says that 30 yuan per worker's salary is 100 yuan.

Bai Zaijun, chairman of Songjiang shoe material factory, pointed out that the labor contract law has increased the cost of labor, and the factory has to pay more than 2000 yuan for an ordinary worker every month.

The gradual increase of labor costs directly leads to difficulties in recruiting workers and the drain of talent.

For example, in Guangzhou, the monthly salary of enterprises in 2007 was concentrated in the monthly salary range of 1100-2000 yuan, while the enterprises below 900 yuan accounted for 7%. The average salary of enterprises such as textiles and shoemaking was only 960 yuan. In 2008, the average salary of enterprises was 1160 yuan / month.

The salary on the job is 200 yuan lower than the average salary of the new recruits.

In addition to the situation of labor-intensive enterprises facing the loss of labor costs, the highly centralized enterprises in Shenzhen are also distressed by the brain drain.

According to the news from Shenzhen Kexin Bureau, the prices of Shenzhen, especially house prices, are rising rapidly, and the R & D expenses and personal cost of living have risen rapidly, and the attractiveness of talents has dropped significantly.

According to the investigation of some enterprises and scientific research institutions, not only the high quality leading talents who existed in the past are very scarce, but even the intermediate technical talents are seriously inadequate.

Stock can not keep up, incremental access, lack of skilled personnel has become an important obstacle to high-tech R & D enterprises.

Wang Chao, CEO, a well-known company in the field of wireless search in Shenzhen, said: "in Shenzhen, it is difficult to find expertise in search in our annual salary of 300 thousand yuan. This is because the traditional Internet industry center in Beijing, most of the talent gathered in Beijing."

For this reason, although the headquarters of Shenzhen search is located in Shenzhen, the R & D center is located in Beijing.

HUAWEI, ZTE, BYD (market, information, commentary) and other well-known high-tech enterprises in Shenzhen have been deploying research and development bases throughout the country for a long time.

The price of raw materials has gone up, and enterprises can not sustain the rise in prices, especially the rise of raw materials.

Huang Chunming, Secretary General of leather and Footwear Association, estimated that the price of raw materials in shoe making enterprises increased by 30% in 2007.

According to Zhang Huarong, President of Huajian group, China's largest female shoe export manufacturer and chairman of the footwear association of Asia, in 2007, the group raised its order price by 3%, but its profit fell by 5%.

Labor intensive industries with similar experiences also have furniture industry.

Wang Lie, executive secretary of Dongguan famous furniture club, said that the price of plates began to rise in May 2006. In August of that year, the price rose by 40% to 50%, and the price of plates continued to rise in 2007.

The shortage of land resources is the bottleneck for the development of enterprises in the Pearl River Delta. The growth and expansion of some large and medium-sized enterprises have also been seriously affected by the lack of land resources and the tight supply of electricity. Some projects have been forced to move to other areas.

It is understood that the land available for use in Dongguan is less than 400 thousand mu. According to the current consumption of 30 thousand acres per year, it will run out in more than ten years.

Some projects that have signed investment agreements have been withdrawn because of the lack of land use. Some of the negotiations have shifted to other places due to the fact that land is unable to meet their scale needs. Some investors with investment intentions have also postponed investment agreements due to land constraints.

Due to the shortage of land resources, the state promulgated the policy in September 2006, which requires that industrial land must also be sold.

Beginning in 2007, the Pearl River Delta cities led by Guangzhou responded to the national policies, and made a bid to hang out the industrial land, resulting in a direct rise in the prices of industrial buildings, and the pressure of real estate was even greater.

When analyzing the land market in 2007, the land society of Guangdong pointed out that the selling price of industrial land increased by 40% - 60%.

The policy environment is changeable and the policy of investor confidence is unstable and unexpected. The blow to the psychology of foreign investors is even more fatal.

Since last year, frequent adjustment of export tax rebate policy and processing trade policy has inevitably led to a strong sense of insecurity among foreign investors. In addition, China's neighboring countries, such as Vietnam, have constantly revised preferential policies to attract foreign investment, which has attracted some investors. After many Hong Kong and Taiwan funded enterprises have visited Vietnam, the impact of policy changes can not be underestimated.

Many foreign-funded enterprises are worried that the country will also increase the intensity of processing trade policy adjustment, reduce the tax rebate rate and add more than 2000 other commodity tariff codes to the processing trade restriction category, and cancel the import trade policy of processing trade and cancel the tax policy of "processing the trade without processing".

"If the above policies are implemented synchronously, the direct and indirect export of Guangdong's processing trade will amount to about 150000000000 US dollars, and the employment of about 11000000 people will be affected. The total processing trade enterprises in the whole province need to pay more than 65 billion yuan in deposit."

An authoritative source revealed.

Relocation mode to explore 80% of the relocation of high-end enterprises left behind reporters in the interview to understand that most of the relocation of enterprises is not "uprooting", but only the manufacturing link moved out of Guangdong, its sales, logistics, R & D and other high-end links remain in the Pearl River Delta.

"Taking the relocation of Hong Kong enterprises as an example, most of them are expanding outward under the premise of retaining the foundation of the PRD, and redistributing the production links according to the advantages of different regions."

Liang Bai, director of Hongkong economic and Trade Office in Guangdong, said.

Another person in charge of Guangdong Economic and Trade Organization from Hongkong told reporters that it is the main mode of the relocation of the Pearl River Delta enterprises to redeploy resources beyond the PRD geographical scope and rearrange the production links according to the different factor endowments of different regions, and the proportion is above 80%.

Uprooting the threat of enterprise survival safety "from the enterprise itself, the risk of uprooting is enormous, unless in the Pearl River Delta has fallen into bankruptcy."

A Hong Kong businessman who did not disclose his name told reporters that his company pferred part of the production line to Heyuan last year: "for new investment sites, we still have to adapt to a period of time. Even if we want to pfer all the workshops, we must take steps step by step to control the new investment risks."

Sun Qilie, chairman of Hongkong Jian Le Shi Enterprises Limited, said that not all the Pearl River Delta processing trade port enterprises are suitable for relocation.

He said that enterprises or industries with high technology content, high added value and small environmental pollution can remain in the Pearl River Delta.

From the perspective of the future industrial layout of the PRD, they are also the enterprises that the local government hopes to stay behind.

In addition, the PRD can provide a more efficient market environment, and the industry matching is more mature than other parts of the mainland. It is the most mature market place for the mainland market. It is a rare place for the development of high value-added enterprises. It is also an important reason why such enterprises should not rush to move.

Guo Zhenhua, who has a deep foundation in the Pearl River Delta and can not give up the Hongkong Federation of industries in the short term, said that two years ago, he set up a factory in Chenzhou, Hunan, for a long time in the trial production stage.

It is because every time he takes the person from Shenzhen (proficient), even if the salary is increased by 60%, it will not be able to find the right person in the next two months.

Guo Zhenhua said with emotion, now people pay more attention to the quality of the living environment. It is not like the age that only 20 years ago gave money.

"30 years of development have made Guangdong a very solid foundation."

Hongkong's director of a Cantonese agency said frankly.

Facing Hongkong and being familiar with the markets of developed countries such as Europe and America, it is easier to get information from international market demand in Guangdong, which is still very important for export-oriented enterprises.

In addition, Guangdong's industrial support is relatively perfect, and logistics is very developed. Many of the raw materials and semi-finished products needed by the relocation enterprises still need to be obtained from Guangdong.

For many Hong Kong and Taiwan enterprises that started and developed from scratch in the Pearl River Delta many years ago, it is a necessary stage to redistribute resources in a larger scope to become influential and even multinational companies in the domestic market.

In fact, a lot of powerful enterprises have chosen this mode. For example, Japanese Canon Co, Japanese brothers and Japan Panasonic Corp invested in Zhuhai have set up factories in Vietnam, but at the same time put high-end technology products in Zhuhai and continue to invest more.

It is conducive to the pformation and upgrading of the Pearl River delta industry. Although the adjustment of the foreign economic and trade policies, the appreciation of the renminbi, the implementation of the new labor contract law, and the raising of the minimum wage standard have certain effects on the foreign-funded enterprises, they have not yet reached the level of the enterprises to be driven away. On the contrary, they will also push the enterprises to take the road of pformation and upgrading.

In 1987, Hongkong's famous underwear brand, an Li Fang, although invested two production bases in Jiangsu and Shandong, its headquarters in the mainland was still firmly tied to Shenzhen. With the mode of "Shenzhen design and field production", the problem of rapid increase in production costs and recruitment difficulties in the Pearl River Delta in recent years was solved.

Although the Dongguan shoemaking giant Hua Jian Group has set up a new production line in Vietnam and Jiangxi, they frankly say that since Vietnam's shoe matching is far less than the Pearl River Delta, many raw materials need to be supplied from the Guangdong side, and the cost of production to Vietnam has not been reduced. It has been persisted mainly to avoid trade frictions.

Ganzhou also has some raw materials or accessories to be supplied from Guangdong, and Guangdong's logistics is developed. The shoes produced in Jiangxi are mainly exported to Guangdong for export overseas.

Huajian is now striving to expand from manufacturing to high profit R & D, brand design and sales in the industry chain, and invest 40 million.