Hurricanes blow away the Pearl River Delta, Dongguan's foreign shoe
Is off duty hours, but to walk out of the factory workers are not a lot of ground is not loose scattered flocks. Period of time to the rain, the door will be recruitment of various plant bristling torn red paper notices a big cut.
Dongguan?? This has a "World Factory," city of China's southern manufacturing hub, seemed to wash away the hustle and bustle of its past has always lead dust.
Peak nearly ten thousand employees have been employed with the various plant, but quiet at the moment, there is no empty sentiment, leaving only a few care staff or security, lazy scattered to sit in the guard, the mouth gilded circle another circle of smoke ring.
"Business a little, and factory space, and rents drop, and less economic output, growth has slowed down." In recent years, foreign-funded enterprises in Dongguan City, did the same move as a typhoon, which Houjie Town last year and a half of work left the 74 foreign-funded enterprises. Dongguan, local officials admitted that at one time contribution to local GDP over the continuous relocation of foreign-funded enterprises, the Government more headaches recently. Low labor costs are no longer
For "Made in China" is concerned, the past seems to be an unlimited supply of low-cost labor resources, it seems is close to the limit. Labor market competition, to Export Oriented manufacturers difficult.
According to the Hong Kong Federation of Industries of the survey, business activities in the PRD has more than 70,000 enterprises, 10% of Hong Kong enterprises will be closed down this year, 37.3% of Hong Kong enterprises are planning to all or part of the production line removed from the Pearl River Delta, more than 63% of enterprises plan to move out of Guangdong.
Shanghai American Chamber of Commerce on China's manufacturing competitiveness, a survey also showed that: 54% of the respondents believe that China's competitive advantage in manufacturing is quickly losing more than half of respondents believe that India, Thailand Vietnam is challenging the existing edge of China, at least, nearly one-fifth of companies have decided to operate its business in China (or part of the business) to Asia and other lower cost countries, and places like Vietnam and India set up factories in low cost countries.
And this report were the person in charge, vice president of consulting firm Booz Allen Hamilton De-high (RonHaddock) also claimed that globalization is indeed everywhere, China also is no longer the same again (low-cost ).
Message in reply to reporters, De-Gao said that the decision to move to Southeast Asian countries in China and American companies, mostly labor-intensive companies, labor constitutes the major cost of their competition.
"Labor costs are a significant factor to be considered as the primary consideration." De-high said, "Clearly, China as a labor force is no longer the era of depression. These companies believe that labor costs in addition to leading to China, Southeast Asian countries, the existing tax incentives, competition, intellectual property protection, there are five aspects to be more tempting than the Chinese. "
The additional cost of these enterprises has reached about 50%, rising labor costs is the direct cause. The survey also showed that the management of their payroll expenses increased by 9.1% a year now, white-collar expenses increased by 10.3%, blue-collar workers in the labor force rose by 7.6%, raw materials also rose 7.1%. In general, the companies surveyed said the price changes of labor cost increase of the company spending 5% of the cost of addition of other materials and took them 3%.
Guangdong Statistics Bureau in a report this year suggested that the system since the implementation of the minimum wage since the minimum wage in Guangdong up again, together with other factors, production and operations costs estimated to increase 20% to 30 %, some labor-intensive enterprises is difficult to absorb the cost through technological upgrading increased pressure is expected to have a greater loss, consider closing the business in the Pearl River Delta, will have been relocated inland or Southeast Asia.
Evacuated to Southeast Asia, India?
When the cost of a change in the Chinese market and thus erode the profits of foreign companies choose the most primitive withdrawal of foreign capital on a commercial impulse. Data show that only in January 2008, there is more than 60 Taiwan-funded enterprises withdraw from Dongguan.
I am an expert from China Computer Parts, usually analyzes all kind of industries situation, such as bugaboo transport bag , baby carriers backpack.
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