Every year, February and March are the peak season for OEMs in the Pearl River Delta, but this year's peak season is "cold" and afraid of people.
On April 9th, at a presentation attended by more than 800 export-oriented enterprises in Baoan District, Shenzhen, the “China Times†reporter learned that the pure OEM companies relying on orders are now dying.
“If the order of small and medium-sized enterprises lacking technology disappears, they will become empty shells. The sales will not be supported by the policy. The enterprises that cannot afford to transform costs will only have one dead end.†Shenzhen Songgang Industrial Zone The shoe factory owner told reporters like this.
The 2009 Spring Canton Fair will be held on April 15th, but it is difficult to become a "timely rain" for foundry companies. At the beginning of the 4 trillion investment plan of the central government, and the economic situation in the first quarter began to improve, China’s foreign trade situation has become more difficult.
Closed tide
"Business is not good!" Ye Zeng, the boss of Dongguan Xingsheng Electronics Factory, told reporters that his factory's products are mainly exported to the Middle East, and the orders received last year have been completed. In the past 2 or 3 months, this was the peak of the order, but did not receive any orders, the factory has already dismissed one or two hundred workers.
Like Dongguan, the Shenzhen factory outside the factory is also in dire straits.
On April 8th, the reporter went to Xicheng Industrial Zone in Xixiang, Baoan. On the factory buildings on both sides of the road, there were big signs of “rental rent†in the conspicuous place. Many factories were empty, and the facades on the first floor were basically closed. The security guard of the Jinli Group Building told reporters that a month ago, people had gone to the building.
Crossing the South Pacific Bridge, the opposite of the Jinli Group is Nantai Electronics (Shenzhen) Co., Ltd. The reporter saw a banner in the factory - "If there is no understanding and cooperation of employees, Nantai Group will be gloriously finished at the end of 2009."
Shenzhen Nantai Electronics is part of the Hong Kong South Pacific Group. The group was listed in the US as early as 1988, and Nantai Electronics was listed in Hong Kong in 2004. Nowadays, the South Pacific Group, which is mainly based on processing, has been in trouble due to no orders, and has been forced to lay off employees and reduce wages. According to a senior executive of the company, the China Times reporter revealed that the layoffs reached 50% and the salary reduction reached 30%.
On April 9, Shenzhen Baoan District Trade and Industry Bureau organized a policy briefing on dealing with the financial crisis. The reporter interviewed dozens of representatives of export-oriented enterprises randomly, and the situation was not very optimistic.
Mr. Li, a representative of a plastic factory in Fuyong Industrial Zone, told the reporter of Huaxia Times that his company had existed in name only, and only 20 or 30 people in the 15,000-square-meter factory were struggling.
“We have more than 20 large export-oriented factories around our factory. Now, except one or two, we can still survive. Other factories basically have to close down.†Mr. Li said that although the orders were reduced before the year, it is still not obvious. After the year, the situation suddenly turned sharply, and all the orders that had been fixed were cancelled.
Difficulties in transformation
Can you wait to die without an order? How can we transform our business, open up new markets, or switch to domestic sales?
The reporter learned from many factories that general foundry companies do not have core technology, it is difficult to transform, and transformation takes time. Turning to domestic sales is equally difficult. Plastic products produced in the factory where Mr. Li is located can sell 10 yuan in Japan. However, it is difficult to sell even two pieces in China, and the cost of domestic sales cannot be recovered.
"Many domestic manufacturing industries are small workshops. They have not been approved, and their costs are very low. The original export enterprises are more formal in operation and relatively costly. If they are transferred to domestic sales, they will definitely be killed by small workshops." Say.
The state has repeatedly issued policies to support export enterprises. From April 1 this year, the export tax rebate rate for textiles, clothing, light industry, electronic information, steel, non-ferrous metals, petrochemicals and other commodities will be raised again.
However, according to the reporter, the role of these policies is not obvious. The owner of a shoe factory in Shenzhen told reporters that when the export tax rebate rate is raised, the buyers will actively suppress the price, and finally the only profit points will be eaten by them.
At the 9th publicity meeting, Mr. Liu from a hardware production factory in Xixiang Street sighed with a sigh of relief on the policy details. “We can hardly enjoy the preferential policies here.†According to the introduction, small Most enterprises are entrusted to export, and some foreign trade companies have to benefit from it. Therefore, the adjustment of export tax rebate rate has limited benefits for these small enterprises.
Relatively speaking, the days of big companies seem to be better. With their own brand influence and the government's attention, survival is not a problem.
The Johnson Electric Plant, which was inspected by Premier Wen last year, has recently started to increase its production line. According to an employee of the quality department of the plant, the plant is expanding the business of the domestic Volkswagen and BYD. The orders received in the near future should be domestic sales orders. The reporter saw at the Dechang Motor Recruitment Office that the company was recruiting a large number of workers. However, the reporter also learned that in order to reduce costs, the plant continues to cut employees outside the production line.
Export situation deteriorated
A middle-level leader of Johnson Electric told reporters that their order cycle is generally four or five months, and more than half a year. The increase in short-term orders does not explain the problem. “There was a 40% reduction last year, and now it’s a 5% increase. It’s still a lot less.â€
According to data released by Shenzhen Customs, Shenzhen's import and export value was 25.9% and 19.5% of negative growth in January and February this year. In two months, Shenzhen's exports were US$11.38 billion, down 16.2%. From the outside, the economic recession in major traditional markets such as Europe and the United States has not yet bottomed out. In January this year, US factory orders also fell 1.9% from the previous month, falling for the sixth consecutive month. The import materials of processing trade in Shenzhen Port also dropped sharply, including 16.8% in the fourth quarter of last year. The decline in the first two months of this year has expanded to 34.9%, indicating that the overall situation of foreign trade import and export is still not optimistic. According to relevant sources of the Shenzhen Trade and Industry Bureau, export data in March will continue to decline.
"Without purchasing power, exports will not improve. To survive, the export-oriented SMEs can only be transferred to domestic sales, otherwise there will be only one dead road." A person from the Shenzhen Export Credit Insurance Corporation told reporters that because of the increasing risk of exports Big, in the past two months, more and more companies have been insured.
The Canton Fair, which is the "wind vane" and "barometer" of China's foreign trade, is about to open, but its precursor is not gratifying. Recently, the Guangzhou Hotel Industry Association announced the “industry guidance price†of more than 2,000 accommodation companies. Compared with the same period of previous years, the overall quotation of the hotel industry during the Canton Fair this spring was reduced by about 20%. The association said that foreign trade companies are in a downturn and are not optimistic about the outlook for orders, resulting in a hotel booking rate that is not as good as in previous years, and prices have to be lowered.
Today, Mr. Li, who has worked in the plastics factory for 15 years, is still full of expectations for the Canton Fair. “Management is worried that this situation is just beginning, and the more serious crisis is still behind.†Mr. Li hopes that his plastics factory will have some success in this Canton Fair.
"We are still dragging to see if we can continue. If there is no order for two months, the boss will close." Mr. Li finally said helplessly.
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