Pearl River Delta Textile And Apparel "Small Businesses Big Thin Body"

Because the price can not agree, a three year old customer and Hong Ling Lin broke up.

"It's never been that hard."

In June 8th, Hong Ruilin, the owner of a clothing company in Nanhai, Foshan, said that according to the current cost, enterprises should raise their prices at least 15% before they have normal profits, while customers are willing to raise their prices by 5%.

Small business owners, like Hong Ruilin, are not in the minority.

Reporters visited several factories in Guangzhou, Foshan and other industries, such as clothing, ceramics, toys, and so on.

The number of workers is down sharply, and the number of workers is decreasing.

"As far as I know, in recent years, many small business owners no longer increase factory investment and begin to shift to other industries."

Wu Haoliang, Secretary General of the Foshan Textile Industry Association, which has more than 700 member enterprises, said.

Old customers are unhappy.

The cost of production has been rising sharply for several years. The cumulative effect has reduced the profits of enterprises to the limit. If enterprises want to survive, there is only one way to raise prices.

"The most difficult thing to do is the old customers. They used to use the fixed price, and now they have to raise the price so much that they will not accept it."

Xue Qing, general manager of a plastic inflatable toy business in Baiyun District, Guangzhou, said.

Cumulative cost factors will eventually have a limit.

"If the cost of labor is added, the cost of production of garment enterprises has doubled at least in the past year."

According to Wu Haoliang's survey data, the gross profit margin of clothing enterprises in Foshan is only 8%, with an average net profit of only 3%.

In this case, the price increase can not be conceded.

However, Wu Haoliang is worried about the fact that the company has no stable orders and is hard to maintain its old customers. "Many old customers' orders for big customers have been pferred to Southeast Asia, where labor costs and raw materials are low."

Inventory backlog

In addition to passive price increases,

In Guangzhou, some clothing enterprises have to start selling clothes at a low price because of the backlog of inventory. The price of clothing is not even equal to the cost of cloth.

Foshan ceramics were once famous at home and abroad. Nowadays, ceramic enterprises are also having a bad time.

In June 8th, Liu Hui, a forklift truck worker of a ceramic company in the South China Sea red sand Industrial Zone, Foshan, confirmed to reporters that "warehouses are all piled up now, and the empty space outside is also full.

It's just stacked there. "

"Last year, there was no rest, too busy. Every day, many goods were sent out, and some tiles were not even polished, so they were taken away."

Liu Hui said that there were more than 1000 people in the company last year, and only more than 300 workers this year.

"A rising cost is a factor," said a Foshan ceramic insider. "There is also a combination of factors such as the real estate market downturn and the sluggish external demand."

Financing without solution

Under the superposition of multiple adverse factors, the operating funds of enterprises have also begun to be unprecedented.

The annual output value of a children's clothing manufacturer in Shek Ken industrial area, Nanhai, Foshan is about 40 million yuan, and the current capital gap has reached 5 million yuan.

This enterprise not only makes foreign orders, but also has its own brand in China.

Production costs are rising, inventories are increasing, and the capital chain is about to break.

"Because the collateral is not enough, banks can not borrow money, only through Guarantee Corporation loans.

The cost of financing is very high, more than 15%. "

The person in charge of the enterprise said.

According to Wu Haoliang, the scale of clothing enterprises in Foshan is not large, and capital turnover is generally around 2 million yuan. These enterprises are generally very nervous in capital chain.

"Under the premise of tight money, do not say that new loans are not available, that is, renew loans, and the amount is also reduced a lot.

The original loan is 1 million yuan, and only 600 thousand yuan will be available after the maturity.

According to the reporter's understanding, financing costs are also generally high. Even if the loans secured by Credit Guarantee Corporation are not guaranteed, the lending rates of commercial banks have exceeded 10%.

"A lot of small and medium-sized enterprises are particularly difficult to make capital turnover this year. The private lending in the Pearl River Delta is very good, and the monthly interest rate is as high as 10%," said the head of an investment company in Tianhe, Guangzhou.

"The business situation is actually more difficult now than it was after the financial crisis in 2008.

If momentum continues, mergers and acquisitions are inevitable. "

Wu Haoliang did not want to mention two words of "bankruptcy".

Relocation or pfer

Liu Hui, a forklift truck worker in ceramic enterprises, missed the day of last year.

"Wages have gone up a lot last year."

He said.

Liu Hui worked in Foshan for 10 years, and he knows the wage situation very well.

According to him, wages have been rising since 2008.

In those days, he earned 1500 yuan a month and rose to 1700 yuan a year later.

What really pleased him was last year.

"Because factories can't recruit people, piecework wages are starting to take place in factories.

My salary rose to nearly 5000 yuan.

Liu Hui said.

Because the rise in labor costs has become the biggest part of the rise in production costs, Liu Hui's ceramic factory has begun to lose staff in the past two months.

Xue Qing, general manager of the above Guangzhou toy factory, said: "our raw materials have risen by about 15%, and the rise in labor costs is the largest, and it has increased by more than 20% in one year."

In Xue Qing's view, the current workers are "very cattle", "a little dissatisfied."

Our reporter saw many industrial parks in the South China Sea of Foshan. Most factories were hiring. There were similar banners like "factory workers sewing workers".

The employment situation of "raising wages and lacking people" has made the enterprises in the Pearl River Delta increase the pace of relocation.

The children's wear factory and ceramic factory set up factories in Guangxi and Guangdong Qingyuan respectively to reduce labor costs.

"Some small bosses are very hard to do, so they simply sell the factory."

Wu Haoliang said.

According to Wu, these bosses turn to do everything. Some of them buy several apartments for rent.