Toys and other Chinese manufacturers face difficulties Four – toy manufacturers,
"Before we produce a profit of a screw to determine the money, now only earn 0.05 PCT, a difference of exactly 20 times," a private person in charge of Guangdong is helpless.
The face of increasing orders, sales, the processing and manufacturing some of the happy owners, but Lebuqilai. Because more and more meager profits, order the more likely it a loss.
In 2007, domestic manufacturing environment is undergoing tremendous changes, rising costs, RMB appreciation, export tax refund policy and the adjustment of processing trade policy, foreign trade barriers, more and more, many manufacturing enterprises are facing life and death choices, how to deal with the four re- crisis, the enterprise must face.
Four difficulties encountered Manufacturing Yuebuqilai As raw materials, electricity, labor costs continue to rise, manufacturing costs are also rising rapidly. According to the National Bureau of Statistics, 2007, 1 to 7 month CPI up 2.2 to 5.6 percent gain in between, especially in August CPI rose 6.5%, the highest monthly increase this year. In the upstream raw materials, energy, power, price, the first 8 months were a continuous rise in the trend. Copper, steel, plastic, aluminum, packaging and other raw materials, waves of price increases since the spring of this year, downstream processing and manufacturing to the enormous cost pressure. An electronic manufacturer in Guangzhou said: material costs, last year, up 14% over the previous year, up 15% this year than last year, and this trend continued, the customer also requires an annual 5% price cut, he does not know how to maintain the.
More disturbing is that labor costs are also growing rapidly. Veterans in a toy factory in Shenzhen, said: "In 2005, 900 yuan a general minimum wage employees working on the practical, and now from 1300 to 1400 yuan are not necessarily hire the right people.
RMB appreciation, exports declining corporate profits, declining competitiveness, many companies in deep trouble. In fact, entered a "golden pig year", the battery factory in Xiamen, one day became difficult. Losses caused by exchange rate appreciation to more pain management. Exchange losses on receivables for the period listed in the letter of credit to, period of 3 months, the loss ratio is basically one million U.S. dollars per product loss from 200,000 to 300,000 yuan. 2006, probably because of losses caused by exchange rate at 200 million. Since this year is to expand exports, exchange losses rise.
Lowered export tax rebate and processing trade policies, many companies face threats to survival. Most of the enterprises enjoy tax reimbursement for export are in clothing, shoes, hats, bags, toys, small appliances, paper products, plastics and rubber industries and their products, the survival of these enterprises is basically relying on low labor costs, its products have been very modest profit. In fact, these companies will survive, the majority of the export tax rebate is received by that part of the profit. Such as the textile industry, profit margins remain at 4-6% level, the export tax rebate rate of 13% transferred from the original 11%, down 2 percentage points. From August to implement the processing trade to the New Deal is no doubt bring much more pressure. Hong Kong enterprises in the Pearl River Delta in the survey, 55.3% of companies said that if the time to pay the full import of raw materials, tariff and VAT for margin and implement Ledger "real change", will be a heavy burden of liquidity.
The recent "Made in China" quality of experience in the international door and security door events, and some countries continue to use green standards and technical barriers to trade barriers raise the threshold for market access, have further reduced the development and manufacturing in China profit margins. "The EU continue to raise the access threshold, so that our production costs are steadily rising. From low-end products to high-end products, the cost of different degrees of float." Humen, Dongguan, general manager of an electronics company, said the EU directive may will trigger the re-shuffling the electronics industry in Dongguan, because these barriers, only large enterprises with high technical content to deal with, but very difficult to deal with SMEs, there may be large areas of collapse.
Manufacturing growth path must be adjusted
The face of cost, exchange rate, policy adjustment, trade barriers, quadruple the plight of manufacturers store for the future, this problem has a very realistic placed in front of the business. A former guidance, "Alcatel, Haier, Roman," and a number of manufacturing enterprises in the Champion, senior expert consultant Li Hua, Xinyu Jun view of the current decline in profit margins prevailing in the manufacturing sector and transition issues, put forward their own view: Manufacturing industry is not no future, but the growth path to be adjusted.
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