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The Cost Of Raw Materials Rose To More Than 70% Of Enterprises Headache.

2011/10/12 15:22:00 31

Raw Material Costs Rise Corporate Profits

Yesterday (9), Peking University's National Development Research Institute and Alibaba (China) Limited released in Shenzhen "Pearl River Delta small business operation and financing status report" shows that 72.48% of small businesses surveyed show that the rising cost of raw materials is the biggest difficulty facing the current business.


At present, the cost of raw materials in most industries has increased by about 20%-50% over the same period last year. The decline in profits has become the most difficult part for small businesses this year.


The report is a joint visit by the joint Alibaba group of the National Development Research Institute of Peking University in September this year. It visited the 11 professional markets and 15 local banks of 95 small businesses in 6 counties and cities in the Pearl River Delta, and conducted online research on the 2889 small businesses in the Pearl River Delta through the form of network questionnaires.


The report shows that the profit of small businesses has declined sharply this year. Compared with 2010, the average profit has decreased by about 30%-40%, and business difficulties have increased. In the face of rising production costs, small businesses lack the ability to increase profits through brand building and core technology.


Dress industry in the Pearl River Delta Raw material Price, for example, in clothing Fabric The price has risen by 30%-80%. In previous years, the cost price of the cotton sweater fabric was about 25 yuan, up to 45 yuan this year. In the past year, the cost of the cotton T-shirt fabric cost was 5-8 yuan, now it rises to 10-15 yuan. Most small businesses are at the end of the industrial chain, and can not transfer the pressure of cost increase to the pricing of products, only to lose profits.


In addition, the increase in labor costs has also squeezed the profits of small businesses. The wages of small business workers in the Pearl River Delta region rose by 20%-30% compared with 2010, and the wages of some senior technicians increased by more than 100%. Nowadays, the average monthly salary of an ordinary worker in the Pearl River Delta is around 2000-3000, skilled workers can reach 4000-5000, and skilled workers can get higher. Even so, enterprises still face the problem of large mobility and difficulty in recruiting workers. The rise in labor costs is one of the three biggest predicaments faced by enterprises at present. The proportion of enterprises is also 52.44%, second only to the rising cost of raw materials.


In addition, orders are reduced. exchange rate Changes and other factors also weaken the profits of small businesses. While the profit margins of small businesses are constantly being compressed, they lack the ability to enhance profits through brand building and core technology. Take the underwear manufacturers of Pearl River Delta as an example, the profit of pure processing enterprises is only 5%, and the profit of OEM is up to 20%, and the profits of private brand enterprises can be higher. According to the survey data, only 32% of the small brands with certain influence brands are on the brand, and only 18% of the small businesses have their own patents.


Obviously, the lack of brand value added guarantees that the small profits of small businesses are easily squeezed under the situation of rising production costs.


According to the report, the rising cost of raw materials has led to a sharp decline in profits of small businesses in the Pearl River Delta, increasing labor costs, shrinking domestic and foreign orders, and exchange rate and other factors. Small businesses can only spend 09 or 10 years on the accumulation of hard economic conditions. Affected by the tight credit funds of large and medium-sized enterprises and the decline of purchasing power of foreign customers, the pressure of raw material procurement payment increased, the accounts receivable of finished products were extended, the funds pressure was obvious, and the demand for financing increased. The report suggests that under the current economic environment, various small business support policies should be implemented, and the burden of small enterprises can be lighten by means of Taxation, so as to improve the financing channels for small businesses and promote the capital turnover of small businesses.


At yesterday's report conference, Professor Zhou Qiren, Dean of the National Development Research Institute of Peking University, said: "macro monetary policy changes have brought great challenges to the overall economy in terms of micro and industry."


In his view, adhering to prudent monetary policy will cause difficulties for small business financing, so we need to accelerate interest rate reform so that small businesses that can bear higher interest rates will get loans.


As far as the enterprise itself is concerned, Zhou Qiren believes that at present, small businesses must first control costs and attach importance to expanding the domestic demand market. To develop the domestic market, we must have competitive products.


Hu Xiaoming, vice president of Alibaba group, told reporters that "the investigation of small and medium-sized enterprises in the Pearl River Delta region is a follow-up to previous research on small businesses in Zhejiang.


Small enterprises are the core competitiveness of China's participation in global market competition. Zhejiang and Guangdong are one of the most intensive regions in China's small businesses. The results of the two survey let us recognize that China's small businesses have extremely strong vitality, but lack of effective guidance and financing support, and the negative factors are eating away the lifeline of small businesses. It is urgent to give effective guidance and give small businesses support at the level of financing.

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