Analysis Of The "Collapse Tide" Of Small And Medium Sized Enterprises In The Pearl River Delta By The Central Media

In August 5th, the people's daily, Guangming Daily, economic daily, CCTV and other central media have clarified bankruptcy rumors in important pages and time periods.

The report concludes that it includes

Phenomenon

The 266 companies are all OEM.

Dongguan is a famous manufacturing city in the world and a weathervane made in China.

Since August, in view of the changes in the economic field and the conjecture of the "collapse tide" of SMEs in Dongguan, the central media has gone deep into the reports of Dongguan enterprises, presenting the true picture of Dongguan's economic operation.

On the evening of August 4th, CCTV news broadcast took the theme of "Dongguan: breaking the dilemma, breaking through the new path - finding vitality in the small and medium enterprises' crisis". The headlines broadcast the different situations of Dongguan SMEs in the face of survival crisis, and Dongguan enterprises should speed up pformation and upgrading to enhance their market competitiveness.

Reported that Dongguan toy enterprises this year's general cost of the general increase of 2 points, probably in August to 3 corner, business pressure.

It is reported that Su Yi toy factory is one of the 266 foreign-funded enterprises that shut down and move out in the first half of Dongguan. Their common feature is foundry production.

At present, small and medium enterprises such as toy enterprises are shutting down, switching production, closing down and leaving, mainly because they do not have their own brands.

The people's Daily published an important position in the 02 edition of August 5th.

According to the quoted data, labor intensive industries such as textiles, clothing, shoes and toys in Dongguan have increased operating costs and profits decreasing because of the high cost of labor.

This year, the cost of labor in these industries increased by 12.6%, 24.4% and 14.7% respectively, and the total cost increased by 10.8%, 12.6% and 12.4% respectively. The profit rate decreased by 2.5, 0.4 and 1.4 percentage points respectively.

According to Guangming Daily, small and medium-sized enterprises face many difficulties that can not be overlooked while maintaining stable and rapid growth: first, financing difficulties; secondly, profits squeezed; and finally, difficulties encountered in the process of pformation and upgrading.

Economic Daily reporters learned that enterprises generally reflected the following problems: "three shortages" (lack of electricity, lack of funds, lack of funds), "four liters" (rising raw material costs, rising labor costs, rising financing costs, rising RMB exchange rate), which caused greater pressure on production and operation.

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Cope with

30% enterprises said reduce export sales and expand domestic sales.

The difficult operation of the central media is difficult to avoid in the course of economic development.

At present, many enterprises in Dongguan have felt the market forced mechanism, and have taken the initiative to fight against it and make rapid self adjustment.

Economic daily visited Dongguan Ju Sheng Plastic Electronics Products Co., Ltd.

According to its report, in the first half of this year, the giant company maintained its normal operation to overcome the difficulties of cost increase and labor shortage.

Like most of the processing trade enterprises in Dongguan, the giant company has been a labor-intensive enterprise, but they plan ahead and prepare for it.

Yin Zhonggui, director of production and director of production, said that in the information age, the production of multiple varieties, fewer batches, lots of batches and short cycles has become a new requirement for modern industrial enterprises. If we want to successfully cope with this trend, we must use information technology to enhance the management level and core competitiveness of enterprises.

"At present, the difficulties encountered in the production and operation of Dongguan enterprises have also formed a certain mechanism of coercion, which can accelerate the pformation and upgrading of Dongguan production enterprises and enhance their market competitiveness."

Zhu Suiwen, deputy director of Guangdong Statistical Bureau, said in an interview with people's daily.

The people's daily summed up the way of facing the market to force Dongguan enterprises to respond positively: first, to improve the level of automatic production.

In 2010, Ying Sheng Garment Company updated 80% of its equipment and increased production efficiency by 5% to 6%.

Two, speed up R & D and production of new products.

SANYO Motor Technology (Dongguan) Co., Ltd. has grasped the current market focus of smart phones, and actively developed and produced smart phone vibration motors, so that the added value of products increased to 35%.

Three, we should actively explore the domestic market.

The survey shows that 29.3% of enterprises will reduce the proportion of foreign sales and raise the proportion of domestic sales.

Exergy analysis

Strong willingness to pform industry structure optimization

With the expansion of the forced effect and the expansion of enterprises' capital and investment, the investment path will inevitably conform to the trend. These effects superimpose, which indicates that the industrial structure of Dongguan is upgrading step by step.

For example, the Hon generation toy company invested independently in the development of an acousto-optic electric toy.

Xiao Senlin, the company's chairman, compared this dynamic toy with a static one.

He said that in terms of long-term profits, the return rate of static toys is 10%, but the profits of dynamic toys are between 30% and 40%.

Therefore, this self-developed product is not only profitable, but also capable of resisting external risks. With the increase of raw materials and labor costs, enterprises can raise prices and pfer some pressure.

Apart from optimizing the industrial structure autonomously, the guiding role of the government is also crucial.

"Economic Daily" said that in Dongguan a series of domestic demand policies and enterprises to open up the domestic market driven, Dongguan industrial domestic sales achieved rapid growth, to some extent, changed the situation of excessive dependence on foreign industry.

Most of the key enterprises in Dongguan will stabilize and expand the domestic market as a development strategy with remarkable results.

"Survey data show that more than 90% of enterprises clearly expressed their hope to take root in Dongguan."

Cai Kang, deputy director of the Dongguan Municipal Bureau of foreign trade and economic cooperation, said in an interview with the economic daily, "at the same time, the willingness of enterprises to pform is also very strong."

Accurate data is more convincing, and import and export data has always been an important annotation of Dongguan's economy.

According to the economic daily data, Dongguan's total import and export volume reached 62 billion 470 million US dollars in the first half of this year, an increase of 14.1% compared with the same period last year, which has increased by 27.5% compared with the first half of 2008.

At the same time, another group of figures shows the "qualitative" change of Dongguan's foreign trade: the proportion of import and export of processing trade in the whole import and export is decreasing year by year, the proportion in 2008 is 87.9%, and in the first half of this year it has dropped to 77.6%, which has dropped 10.3 percentage points in three years. Correspondingly, the proportion of general trade accounts for a substantial increase.

"The total volume of imports and exports is still increasing significantly, while the proportion of imports and exports of processing trade is decreasing, which shows the upgrading of Dongguan's economic quality."

Wang Qinghua, Commissioner of customs and excise of Dongguan, analyzed.