Shanghai Garment Industry Reduced Nearly 80 Thousand Workers In 2010.

According to reports, in the past year, the number of employees in Shanghai garment industry has decreased by nearly 80 thousand.

Shanghai Customs recently released the import and export situation of Shanghai customs area from 1 to April this year.

Statistics show that the clothing export volume of Shanghai customs area in April was 36.6% lower than the previous year, 56.6% lower than the fourth quarter of last year.

The current situation of SMEs in Shanghai's clothing industry is worrying.

Reporter survey found that the small and medium-sized garment enterprises encounter is not an individual phenomenon, in the electronics OEM, building materials and other industries, a considerable number of small and medium enterprises are also struggling.

Phenomenon: well-known cashmere enterprises barely survive

"Shanghai Fengxian small factory, suitable for small orders, lathe quality is good, quality inspection is high, hope to have long-term partners."

Recently, because there is no order to do, the boss of a small garment factory in Fengxian posted an online order.

"Backlog 3 yuan, one wholesale."

A factory that makes Korean orders began selling stocks this month.

Reporters interviewed many small and medium-sized garment factories in the outskirts of Shanghai.

Cao boss, Jiading District integrity garment factory told reporters that this year, not only did not order, even workers can not be recruited.

It is understood that a few years ago, Anqing villagers from the clothing factory pulled out some lists to do, Cao boss followed a small factory opened.

In the first few years business was ok, until last year there were more than 30 machines running, and now only a dozen machines are doing it.

"The list is the next big factory, turn two, we have no profit on the hand."

More worried about Cao's boss, even if it was such a list, the last couple of months could not be picked up, and the internal sales list was less pitiful.

Affected by the rising wage surge, Cao boss's workers are working on job hopping. He wants to find two more people, but now a worker bag eats, and the average wage is one hundred yuan a day.

"No way to go. When the boss is tired of working, I have lost hundreds of thousands of dollars."

Cao said that he had planned to withdraw from the business.

In Jiading, Songjiang and other suburbs, reporters contacted a group of small garment factories. They are facing the same confusion: no order, no workers, higher wages, and no inventory.

However, it is not just that small businesses are struggling to survive. Reporters in the interview found that some well-known and medium-sized clothing companies are also struggling to make ends meet.

There is a cashmere clothing enterprise in Pudong. Its products have special counters in many shopping malls in the city, and its brand is well known.

But Zhang, who is the head of the enterprise, said, "these months, I dare not answer. The more I receive, the more I lose."

He gave reporters such an account: since last year, the price of cashmere raw materials has been rising, and the wages of workers are also rising, but the price of products is difficult to mention because of market competition.

Last year, the number of front-line workers in the company was more than 170, which was reduced by about 30 this year.

"It's a dilemma if we can't get the list to worry and we can't make money from the list."

Zhang said that the current domestic market space is very small, and the profit of foreign trade has been too low.

Data: before April, the volume of garment industry started to drop by 20%

Authoritative statistics show that many garment manufacturers in Shanghai are in the "semi shutdown" state recently.

According to the latest statistics of Shanghai clothing association, there are only 101 thousand workers in the garment factories in Shanghai in the first quarter, compared with 180 thousand in the same period last year, a decrease of nearly 80 thousand.

According to the Association survey, the number of physical deliveries in the industry decreased by 20% in the 1-4 months of this year.

This figure means that the volume of work has dropped by about 20%.

Shanghai customs latest statistics show that in the first quarter, Shanghai clothing exports 1 billion 970 million US dollars, down 36.6% compared with the same period last year, 56.6% lower than the fourth quarter of last year.

Guo Liyang, deputy director and statistician of Shanghai garment industry association, explained that the export rate of clothing in the first quarter of this year was 21.2%, down 29% from the fourth quarter of last year.

The average export rate at that time was around 40%, reaching 60% at the highest time.

Guo Liyang confirmed that many small and medium-sized textile and garment enterprises in Shanghai received a sharp reduction in orders and were in a "semi shutdown" state.

The stores in Europe and the United States used to make up 100 thousand pieces, and now they only supplement thousands of pieces at a time.

The reason is that the Middle East and Europe and the United States have been shrinking foreign orders due to the chaos in the Middle East, the Libya war, the Egyptian turmoil and the European debt crisis.

In the past, many small and medium-sized foundries mainly processed garments for Middle Eastern countries such as Libya and Egypt.

It is not just the clothing industry that shrank.

According to customs statistics, in the first 4 months, the import and export of new and high technology intermediate products in Shanghai customs area slowed down.

Among them, the integrated circuit imports 13..9 billion, an increase of 7.9%, the growth rate dropped 48.5 percentage points, liquid crystal display board imports $1 billion 240 million, down 38.2%.

According to the Ministry of commerce data, the average profit margin of China's export enterprises in 2010 was 1.47%, and 1-2 in this year dropped to 1.44%.

Despite the increasingly sluggish market, the price of products continued to rise in the first four months.

According to the 1-4 month statistics of Shanghai garment industry association, the number of retail clothing in ten shopping malls in Shanghai has shrunk by 1300 over the same period last year, but the price has risen 16.98% on average.

Related experts pointed out that since October 2010, the central bank has increased interest rates for four consecutive times. On the one hand, inflation pressure has raised the upstream cost, on the one hand, it has reduced the downstream demand. With the increase of labor costs and raw materials, many garment enterprises have been "rising" this year.

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Analysis: three factors causing SME plight

The current situation of SMEs in Shanghai's clothing industry is worrying. The analysis of the industry is mainly for the following three reasons.

First, financing is difficult to advance.

Mr. Hong, a clothing owner in Nanhui, reluctantly said, "it's hard to get a loan from a bank.

I first applied for a loan at the Bank of Xujiahui branch of Ningbo bank, and I got ready for the loan. Later I was asked to go to Minhang branch, and later I always said bad procedures, or I did not approve of the leadership. Finally, I said that the policy changed, so that I would apply again next year, in fact, I would not lend.

A bank customer manager told reporters that as the deposit reserve ratio rose to 21%, banks were also "bad money", which significantly reduced lending scale this year.

Most small and medium-sized enterprises are not in a good position at present, and banks are unlikely to take the risk.

When an enterprise fails, bad debts will be formed.

Therefore, the small and medium-sized enterprises that are in trouble are simply unable to get loans.

Factor two purchasing costs continue to rise

In recent years, with the rise of international oil prices and the high price of cotton, the cost of clothing materials has increased a lot.

Reporter survey found that upstream procurement costs continue to break through the bottom line that enterprises can bear, while export clothing prices are extremely difficult, and some enterprises' profits are directly cut.

The boss of a clothing trade company calculated a piece of money to reporters: a winter jacket for men and women, which costs about 80 yuan, and the cost of fabric, such as cotton and acrylic, now needs 30 yuan, the quality is 10 yuan, accessories, zippers, buttons and so on are about 10 yuan, processing fee is 15 yuan, and other expenses are being planed. A garment can earn 6 yuan and 7 yuan now, which is very good, and last year such a garment's profit could be about 12 yuan.

Factor three low human cost era no longer

Guo Liyang, deputy director and Statistics Division of Shanghai garment industry association, pointed out that the rise of labor costs has made many small and medium-sized enterprises worse.

At present, the average daily wage of the workers in Shanghai garment factories is nearly 15 dollars, while workers in Vietnam, Kampuchea, Bangladesh and other countries earn 4 to 5 dollars per month. Now, Zara, H&M, GAP and other international garment enterprises have taken some low-end clothing to Southeast Asia to produce.

From the beginning of the "labor shortage" to the current "wage surge."

The industry generally reflected that this year's clothing industry labor costs rose the most obvious.

Guo Liyang said that the domestic labor dividend has entered a very narrow space, and the era of relying on low cost manpower to obtain profit margins is gone.

Since the Spring Festival this year, due to the increased cost of orders caused by rising costs, coupled with the increase in export quotas, the profit margins of domestic textile and garment export enterprises have been declining.

Guo Liyang said the pfer of orders to lower labor costs is unstoppable.

Related investigations: floor wholesalers ready to return home

Located in Baoshan District, the Fuzhou market is the largest floor slab Market in East China.

But reporters found that some recently engaged in flooring wholesale business began to choose "retreat".

When interviewed by reporters, it happened that a woman who had been engaged in the wholesale flooring for many years was tidying up the warehouse.

She said, "next month, I will go back to my hometown in Yunnan.

At present, the floor market in Shanghai is hard to make. Since 2008, it has been shrinking and floor plate sales have been falling.

When the financial crisis has just arrived, we believe that it should soon be over.

But from the end of last year, the real estate market has been further regulated, and floor consumption is becoming less and less.

Liu told reporters that she used to have a special counter in Shanghai nine hundred, but now he is afraid to enter the big building materials store, because even the entry fee can not be earned.

Computer factory defaults on cleanliness

A staff member of a computer OEM company in Jinhai Road, Pudong told reporters that this year's factory life is much less than before. Many colleagues have resigned, and many of the workshops are empty.

Reporters found in the warehouse of the factory, the ground was in a mess, no garbage was cleaned, and many of the fluorescent lamps in the workshop were broken.

The reporter just met the boss of Wang surnamed who came to ask for cleaning fees. He told reporters that the cost of this generation factory's arrears was almost 2 months.

Wang boss is very worried about whether there will be a financial problem.

Zhu Jun, a large mobile phone parts manufacturing enterprise in Caohejing economic Park, also told reporters that most of the low-end mobile phones used in foundries were sold to Africa and the Middle East. With the change of external causes and the increase in labor costs this year, orders have shrunk dramatically.

Without their own brand, there is no way to open up sales.

"The order is gone, everything has stopped."