Pearl River Delta Small And Medium Sized Textile And Garment Enterprises On The Brink Of Survival Crisis

Since the beginning of this year, the RMB exchange rate has maintained a strong upward trend. foreign trade Enterprises are gradually losing the advantage of quotations and falling profits. In addition, the small and medium-sized enterprises are also faced with many unfavorable factors such as tight money, rising prices of raw materials and rising labor costs. Reporter survey found that although the Pearl River Delta region has not yet seen the collapse of small and medium enterprises, but the crisis has emerged, some small factories have broken down due to the broken chain of funds, more enterprises are still struggling to survive, and enterprises have chosen to move inland cities with lower labor costs or move to Vietnam, Bangladesh and other countries.

Some factories have been shut down.

Dongguan is known as " World factory It is known that a large number of small and medium-sized enterprises that make foreign orders are highly sensitive to exchange rate movements. Yintai Plastic Co., Ltd. is located in Houjie Town, Dongguan. The deputy general manager of the company, duqian, told reporters that the factory was basically shut down for the last two months, and the workers had already gone by more than half. "We are also forced to stop working. The first is the off-season, the order is relatively small, two yuan has been appreciating, raw material prices have risen sharply, our profits are very thin, counting the cost of factory rents, workers' wages, water and electricity and so on, some of them will lose money if we pick them up, so we prefer to stop working for a few months and wait for the peak season to start again." As many enterprises chose to stop work and a large number of workers were laid off, the reporter found in the interview that the problem of recruitment difficulty has been alleviated.

It is understood that because of the low profit of low-end manufacturing industry in our country, the small enterprises that make small orders can only win by quantity. Du Qian said helplessly: "the cost of raw materials and labor has gone up so much this year, but the price of each export product has dropped by US $0.2. We have no room for bargaining. We still have to pay the bill. In this case, we can only ask customers to increase the quantity of each order and maintain a certain profit through quantity. "

Cheng Liangbo, general manager of Dongguan giant shoe material factory, also said that the price of raw materials has risen rapidly in recent two years, and the profits of factories have dropped. In order to save the rent of factory buildings, the factory has moved several times and moved farther and farther away. Cheng Liangbo said: "our factory is in a very difficult position. There are many factories like Dongguan. I guess if this situation continues, there will be a number of factories going bankrupt at the end of the year.

If the renminbi continues to appreciate, what are the fortunes of these enterprises that are still barely maintaining? DUK says their factories can still last for a while. In order to maintain their survival, the products they are now producing are diversified, and according to the characteristics of the products, they are placed on a seasonal basis. In addition, enterprises are increasing the proportion of internal single products.

SMEs are subject to multiple extrusion.

Struggle is the Shenzhen small and Medium Enterprises Development Promotion Executive Vice President and Secretary General Sun Li repeatedly used to describe the current situation of small and medium-sized enterprises. Taking the textile industry as an example, the sales profit margin of the textile and garment industry will drop by 2% to 6% when the value of RMB rises by 1%.

Sun Li said: "in the first quarter of this year, the profits of the member enterprises that I have mastered have fallen sharply. According to the present situation, the profits of these enterprises may fall to zero in the second quarter, and enterprises may lose money in the third quarter." In addition, due to the Japanese earthquake, many Chinese enterprises need to purchase spare parts which can not be purchased from Japan, but only from other markets, further aggravating the situation of rising prices of raw materials.

Sun Li said that the pace of RMB appreciation has accelerated. Many foreign trade enterprises in China have lost the advantage of quotations and the loss of orders. Many small and medium enterprises in Shenzhen are making contracts in the past few years. "Business has Order In order to survive, but receiving orders, we need capital to operate, and the financing of small and medium-sized enterprises has been limited. Sun Li believes that in order to save a large number of small and medium-sized enterprises in distress, the government should relax the financing channels for small and medium-sized enterprises as soon as possible, otherwise it is estimated that 60% of SMEs will be on the brink of death in the second half of this year. {page_break}

In the same manufacturing area, the heads of relevant industry associations in Wenzhou estimate that by the end of this year, more than 40% private enterprises will be closed down in Wenzhou.

Deputy Secretary General of the Pearl River Delta industrial alliance Cao Shan also believes that SMEs in China are generally facing the problem of financing, but banks have always been "fond of poverty and love for wealth". Most of the small and medium-sized enterprises rely on private capital to maintain their business, so we must find ways to improve the financing environment of SMEs.

Although there has been no collapse, many enterprises in the Pearl River Delta region are in the stage of not making money. It is understood that part of the transformation and upgrading of enterprises can not follow up the transfer to Hubei, Anhui, Jiangxi, Henan, Fujian and other provinces.