Economic Focus: Where Is The Way Out For Small And Medium Sized Enterprises?

"Not only products must be wearable, but also enterprises must wear them in the market.

And other small and medium

How can we do that in such a difficult situation?

"First we need to tap the potential and reduce costs. We can offset about 50% of the cost rise."

Phoenix shaped company has been continuously innovating and innovating the production technology over the years, and has also received substantial returns: Phoenix shaped company takes scrap as raw material, but solid waste and industrial waste water discharge is zero, and the energy consumption per ton of casting is less than half of the national average.

In the pformation of the production line, 26 national patents were successively obtained.

The original production of 30 thousand tons of steel balls a year needs more than 4000 people, now more than 70 thousand tons a year as long as more than 1000 people, a production line has more than 20 workers.

But it is not enough to rely solely on technological pformation to tap the potential. We must rely on raising prices if we want to get profits.

Since this year, the products of Feng - shaped company have been raised 8 times.

Are you not afraid of losing orders when you repeatedly raise product prices?

Feng company's courage to adjust its price lies in its excellent products.

"The market depends on the brand, depends on the upgrading of the product. With the trump card products, we are not afraid that the market will not welcome it."

Chen Zongming said.

The "trump card product" in his mouth is the new product named "Phoenix shape 1" (super hard and high chromium alloy casting ball) and "Phoenix shape two" (high carbon multi element alloy steel ball), which is named by them as the new product. It is a new way to select micro alloy by using the principle of Chinese medicine, so that the wear-resisting property of the ordinary high chromium ball is increased by about 30%, and the crushing rate is reduced by 50%. The main technical indexes all occupy the leading level in the world.

Although the price of the "trump card" is high, it brings more benefits to customers.

Not long ago, Sinosteel group Chifeng Jin Xin Mining Co. Ltd. could save about 5000000 yuan for processing 3 million 600 thousand tons of raw ore throughout the year.

"Developing enterprises, I do not blindly pursue the biggest, but always pursue the best product quality in the world.

Over the years, our enterprise technology has been upgraded step by step, and its products have been upgrading and upgrading. This has laid the foundation for the enterprise's "wear-resisting".

In the face of market turbulence, Chen Zongming's confidence impressed reporters.

Cost accounts of corporate executives

RMB appreciation, raw material price increase and labor cost increase.

What is the impact of these factors on export enterprises?

Recently, reporters came to Zhangjiagang, Jiangsu City, Hong Kong Town, and a local large textile enterprise executives talk, listen to him to calculate the cost account.

The company has about 1800 employees, mainly producing high-grade yarn dyed fabrics, with annual sales of over 400 million yuan.

The company's products are exported by 70% and the export volume is around us $30 million.

"The biggest impact is the appreciation of the renminbi."

The boss said frankly.

According to their estimates, just because of the appreciation of the renminbi, the company has to "digest" 900 thousand dollars into Renminbi, which is about 6 million yuan.

The increase in labour costs is also considerable.

The average wage of workers increased by 20%, plus social security standards, and 1800 workers increased at least 6 million yuan a year.

The third increase is electricity and steam.

The three additions add up to about 18 million yuan a year.

"What is our net profit?

It generally accounts for 3% to 5% of sales, that is, 12 million yuan to 20 million yuan.

You see, if we don't think of a way, can the business go on? "

To make them slightly relieved, in August 1st this year, the state raised the export tax rebate rate of some textiles and clothing, from 11% to 13%, an increase of two percentage points, with an export income of 30 million US dollars, and the company increased its income by 600 thousand US dollars a year.

What should we do when we face difficulties?

The chief executive said, first of all, technological innovation.

"Do not think that textiles are traditional industries, there is no innovation, there is no scientific and technological content, the knowledge is great!"

He said that the company has established a first-class technology center in China, and the development of new products has been in the leading position in China.

"We have more colors and better quality, so we can win customers, strive for prices, and take the initiative in negotiations."

At the same time, tap the potential through management to save enterprise expenses.

Now, gas consumption is saved by about 20% per month and electricity consumption is about 5%.

In addition, a series of incentive measures are adopted to improve staff productivity.

"We must not lose confidence."

The CEO said.

He said that the huge market of textile industry is still there. If we do not, other countries will occupy the market.

"Textile industry is very important to China. We have no condition to give up the industry now."

He also hopes that the state will further increase its support in related policies.