Deal with the U.S. debt crisis See recruit: Update quotes, transfer capacity, open up the domestic sales of Android Dongguan's business owners refused to sit ducks. A rainy day in August, an industrial park in Dongguan, a few factory recruiters stall here, should be few, so they surround together to talk about the U.S. debt crisis. The staff of a Labor dispatch company pointed to a large power plant not far away told the first financial daily Reporter: "I do not know whether to stick to the end of the year, their internal supervisor said the factory's U.S. shareholders to withdraw the money, they pulled the U.S. goods, the other party has been unable to pay." A copy of the customs data quoted by the media shows that, under the influence of the debt crisis in the US and Europe and the depreciation of the dollar, Dongguan's exports to the US in July were the first negative for the year. Die without transformation. This is the slogan of some local enterprises. In the face of grim market realities, they have developed a variety of "survival" skills, including updating quotes to defuse exchange rate fluctuations, transfer capacity and export. The worrying negative growth "the US debt crisis this make, the renminbi appreciation speed may be quicker, for many factories, now is not have the order question, but the order can not answer the question." "In Dongguan Tangxia town, Tian Xin Industrial Zone, Yaje International Electronics group Operations director Yin Zhijiang saw this reporter, threw out this series of problems." This is an export of GPs products enterprises, near noon, the assembly line workers are still working. Although the current industry believes that the US-Europe debt crisis on China's real impact is limited, but the local impact may already appear. Data from the General administration of Customs 10th showed that in July, China exported 175.13 billion U.S. dollars, refreshing the June 161.97 billion US dollar history record. According to the above-mentioned customs data quoted by the media, Dongguan July exports to the United States 1.63 billion U.S. dollars, down 16.3%. In fact, the monthly export growth rate has hovered around 10% since May, and the growth rate slowed to 6.5% in July, despite a 11.85 billion dollar increase in Dongguan's exports this month. Officials do not agree with the idea of a "wave of closures". Dongguan Foreign Trade and Economic Bureau survey showed that the first half of the city shut down 261 enterprises, the year-on-year reduction of 5. The 2008, 2009 financial crisis, the city shut down, the relocation of enterprises are 865, 657 respectively. "You go to the customs to see it, the queue of enterprises still so much." "A business owner told the newspaper reporter, Dongguan does not exist" failure tide. But Dongguan's textile and apparel, footwear, toys and other labor-intensive industries, due to high labor costs, operating costs rise and profit decline is more obvious. The labor costs of these industries have risen by 12.6%, 24.4% and 14.7% per cent this year, with overall costs rising by 10.8%, 12.6% and 12.4% respectively, with profit margins falling by 2.5, 0.4 and 1.4% respectively, the People's Daily reported. Exchange rate "evaporation" profit now in Dongguan, those factories 20Young people in their early years can speak Ishilai about the impact of the debt crisis in Europe and the US. "Now The Recruit is summer workers, recently heard the boss said there are two factories in the park is very difficult." "A factory recruit staff to the newspaper reporter said." "They are not very outgoing now, just in case of hoarding goods." "He exclaimed, this is also home more than 10 years old factory, some employees less than 20 years of age into the plant, now are more than 30 years old, if poured out, it is a pity." "The current operating environment is worse than the global financial turmoil. Yin Zhijiang said that when the financial turmoil, the company mainly because there is no order to break the cash flow, now is the rapid appreciation of the renminbi led to a sharp decline in profits. "This year, the pressure on the renminbi to appreciate has significantly exceeded the pressure of rising raw material and labour costs caused by domestic inflation." "he said. 17th, the renminbi against the U.S. dollar exchange rate median price of 6.3996, compared to the previous trading day lower 71 basis points, the rally has not been in recent days. But an indisputable fact is that at the time of the Fed's reaffirmation of low interest rates and deep turbulence in financial markets in Europe and the United States, the renminbi has recently risen sharply against the dollar, with a breakthrough of 6.40 on 11th, creating a new high since the exchange rate. The reality is that if the dollar continues to depreciate and the renminbi is forced to appreciate, the dollar will be made more worthless by the less profitable exporters. "We have 30-60 days between receiving orders and clearance, and the renminbi may have appreciated a bit in the meantime," he said. Yin Zhijiang said, Yaje for the product quotation has an expiration date, after the deadline to be renewed, the new offer will fluctuate according to the actual situation. Heng's situation is less rosy, he is Dongguan Houjie Town, a plastic toy factory sales director, according to the reporter, the factory has been facing the United States in the middle of traders, many or long-term cooperation, the same kind of toys, traders even demand a yearly price reduction, raising prices is simply impossible. "The cost of the renminbi rose by five or six points compared to 2008, the manufacturing enterprise itself is not very high, but also about 10 points, minus the labor costs and raw material costs, you say this still make money?" Now, Heng says, companies are no longer picking up a lot of orders, but are shrinking capacity and concentrating on some of the more lucrative order in the middle. Enterprise's "survival" Skills Heng said that 2009, we all said that the transformation of early death, not transformation and so on die, now it seems that the transformation of the real can only die, and the transformation of enterprises may survive. Yin Zhijiang also believes that this round of survival test after the financial crisis, will be eliminated a number of no technical content, to circumvent the labor law, the upstream procurement of low-cost raw materials production, foreign dozen price war enterprises, the process is like waves scouring sand, the more high-quality enterprises can withstand impact. In this respect, a long-term concern of the Dongguan manufacturing industry experts to the reporter analysis that the domestic market can be in the loss of profit, the state still struggling to survive, as long as there is cash flow. And the foundry is completelyProfits to go, money to do, no money to withdraw. "A part of the factory owners did not feed their profits to the factories, but they took away for other uses, and the factory was more of a speculative tool than an investment venture, and it was not surprising that the factory owners would have fled if there had been a loss." "He believes that the failure of those uncompetitive exporters has made room for new entrants to some extent and that new foreign capital will be more viable." "forced the industrial upgrading of Dongguan. "he said. Exploration has begun. Yaje began to enter the domestic market at the end of 2006, in the establishment of the development of domestic team, since the construction of GPS brand. According to Hong Hongwei, the marketing director of its sales team, the turnover reached 60 million yuan last year. Yin Zhijiang said that in order to balance the decline in U.S. orders, the company is also actively open up other regional markets, "the most important thing is to promote product innovation, we are in accordance with new requirements, constantly develop new products, new products will have a quotation, can be in order to gain some say right." "Wang Wei, the boss of the shoe industry who is engaged in home shoe export, 2008 years into the domestic market, from the network shoes shop began to start, and then found that network sales are difficult to go, so new uni brand to the domestic shopping malls, and set up a brand franchise, regional agents and a number of supermarket chains, Store direct management system combined. Now, under a series of cost pressures, Wang Wei has shifted most of the plant's capacity from Dongguan's Camphor wood to the west. The transition is also reflected in some details. Dongguan East District, an export of treble equipment Sales director told the reporter, in June, they cancelled the previous enterprise name "XX Electronics factory" and changed to "XX Electroacoustic Co., Ltd.", in order to sell to domestic customers can have a not shabby business name, and in the past only to do the export time, Never thought of it.
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