Enterprises In Yangtze River Delta Suddenly Collapsed

Half stop production, shut down and close down have become the dilemma faced by many enterprises in the Yangtze River Delta this year.

Jue brook, Ningbo, has gathered a whole knitting industry chain. The town of Xiangshan, less than 32 square kilometers, provides processing services to 30 top brands in the world. This tiny place has gathered more than 500 factories.

As of the end of June, there were more than 100 enterprises to stop production, and this figure is still expanding.

"This year is a year for small and medium enterprises (stock market stocks) to protect their lives."

A local cadre in Zhejiang admitted in an interview with reporters that, influenced by factors such as the US economic recession and macroeconomic regulation and control, a large number of small and medium-sized enterprises in the Yangtze River Delta region have been struggling to survive. Some new enterprises have "no rice under the pot", and some small and medium-sized enterprises are experiencing an "abnormal collapse" phenomenon.

Dangerous situation

The phenomenon of "abnormal bankruptcy" is frequent.

"Many bosses ran away."

Around February this year, there was such a rumour in Jiaojiang District of Taizhou, Zhejiang.

According to the local government's monitoring of Enterprises above Designated Size, there are 7 enterprises' "abnormal failure" and the boss's "run away" phenomenon.

"The annual sales revenue of these enterprises is more than 100 million yuan, and the small ones are tens of millions of yuan.

After the owners fled, the salaries and payments owed were not counted, and the liabilities of the light bank were about 40000000 yuan, and the social impact was very bad.

An economic researcher in Taizhou said.

A knitted enterprise of Jue Xi Ying Hai Road in Ningbo can imagine the once busy traffic. Now there is only one gatekeeper. "The boss has already run away this year, and the workers are all disbanded."

A reporter's visit found that enterprises were suddenly closed down due to their business difficulties, and there were many instances in Shanghai, Jiangsu and Zhejiang.

"Among these batches of enterprises, one is a high degree of dependence on banks, and the two is labor intensive enterprises. It is expected that the situation in the second half of this year will be even more severe."

This is what professionals in the relevant economic sectors of Taizhou say.

Xie Jubao, chairman of the Wuxi yDo group, believes that it is not yet the most difficult time yet. Due to the lagging effect of the policy, this round of regulation will not reach the bottom until next year or even the next year.

dilemma

A layman's "sudden rise" is competing for a meal.

"Investing in the head" is also an important reason for the frequent failures.

The tight macroeconomic environment is an important reason for the "abnormal collapse" of enterprises in the Yangtze River Delta, but the blind investment of some enterprises in the early stage of the industry is also "hard to blame".

The refrigerator manufacturing industry, which is called "completely relying on low price to make the market", is one of the typical representatives.

In Cixi, Ningbo, known as the three largest household appliance manufacturing base in 2005, many enterprises began to put into operation the refrigerator industry. "Only to devote themselves to making money, there is no way to think of the development prospect of the enterprise." in 2007, when the boss talked about it at the dinner table, he cled to the refrigerator industry.

A person familiar with the matter told reporters that the boss was raising rabbits. "Even the rabbits have gone to the refrigerator production line".

Last year, many of the enterprises involved in the refrigerator industry were "outsiders". Those companies that had never set foot in the household electrical appliance industry were involved in the most profitable refrigerator manufacturing industry at that time.

In Ningbo Cixi Economic Development Bureau has published data, Cixi refrigerator output in 2007 exceeded 500 million units, by the end of 2007, Cixi engaged in refrigerator production of about 50 enterprises, equipment investment more than 100 million yuan, in addition to more than 10 enterprises have involved in the field of intention.

"Sudden emergence" has been used to describe the courage and impulse of many enterprises to invest in the refrigerator industry at that time, but this impulse has stopped in the 2008 year. Now, there are no more than 10 enterprises that can receive single refrigerators.

Present situation

Poor bargaining power, but losing money to protect the market.

FENDA craft co., Ltd. is a large wooden handicraft export enterprise in Xianju, Zhejiang.

Since the macroeconomic situation tightened last year, the survival of the company is not optimistic.

"Cancel the export tax rebate 5 points, raw material prices rise 10 points, workers wages rise more than 10 points, RMB appreciation even 9 to 10 points...

Over the past year, the cost has increased by more than 30%.

Our products have been quoted several times, but the scope of acceptance is limited, and many of them are still at a loss.

Losing money is the first thing to do.

Fang Weiyi, general manager of FENDA company, said, "FENDA is still a bargaining power company in the industry, and a large number of small and medium enterprises with obvious advantages are even more problematic."

Reporters learned in the investigation process that the survival predicament faced by SMEs is the result of a series of negative factors: the international economic downturn caused by the US subprime mortgage crisis has led to shrinking external demand; in the domestic area, tight monetary policy, raw material prices, currency appreciation, export tax rebate rate reduction, labor costs rising, and environmental protection costs such as energy saving and emission reduction have all reduced the profit margins of enterprises.

"Even the industries that are supported by the state, as long as they are small and medium-sized enterprises or new enterprises, will face major problems.

In this round of economic contraction, a large number of small and medium-sized enterprises will go bankrupt and withdraw from the market, and large enterprises will take the opportunity to expand and gain greater market share.

Shen Yufang, an economics professor at East China Normal University, said.

Chen Jianjun, director of the regional and urban research center of Zhejiang University, said that the Yangtze River Delta economy has long been known as the "plate economy". It is famous for its small scale and fast development. It is also the most prone to problems when raw materials are rising and the economy is in bad shape.

Small businesses do not mean turning around easily. Small businesses are labelled less competitive in the market.

If small enterprises want to change the existing situation, they can consider joining together, and many enterprises of their peers should integrate together, thus giving priority to increasing competitiveness and integrating resources.

Many leaders of the Yangtze River Delta economic department believe that in the process of economic restructuring, the elimination of backward enterprises is a normal phenomenon. But if the SMEs continue to stagnate in a large area, the potential and stamina of China's economic development will be challenged.

way out

Looking forward to macroeconomic regulation and control "shock absorption"

These world famous brand manufacturing enterprises that once produced "Puma", "Valentino" and "Nike" are now facing unprecedented crises.

There is no doubt that the current small and medium-sized enterprises need money to tide over the difficulties.

However, in the current situation, banks are more inclined to support large enterprises with higher safety margins, and the phenomenon of SME loans is more prominent.

In Linhai City, Zhejiang, for example, the balance of loans for small and medium enterprises in 2006 was 143 million yuan, a large decrease in 2007, and the monthly balance of loans was only 34 million yuan.

"It can be simply summed up as three Predicament -- capital dilemma, benefit dilemma, and development space dilemma."

A responsible comrade of the Taizhou economic and Trade Commission said that the most pressing problem facing the small and medium-sized enterprises is the financial difficulties.

As a country with relatively large credit scale in Zhejiang, the annual credit line will exceed the standard in accordance with past practice. However, the credit funds in the past two years are under great pressure.

A banking source said that the next two years of the loan financing environment is not optimistic, corporate loans more difficult.

Fang Weiyi, general manager of FENDA company, said: "last year, the bank was rushing to come and asked me to lend money. Now I have no one to trust me in the bank.

No, I can only go to private lending. "

"If the regulation continues to tighten up, there may be a large number of small and medium-sized enterprises die in the second half of this year."

Shi Jinchuan, an economics professor at Zhejiang University, said.

"At present, the situation of China's economy is not adjusted, but there will be a lot of problems.

When it comes to policies, the parties concerned should take into account the social affordability, while increasing support for high-quality SMEs in industrial policies and financial policies.

Zhou Weilin, an economist at Fudan University, said.

Zhou Weilin and other experts believe that labor-intensive enterprises and export enterprises are still an important driving force for China's economic growth.

Under the current slowdown in the US economy, the relevant macroeconomic regulation and control of the country should be maintained at an appropriate pace, supplemented by a certain "shock absorption" measures.