Difficult To Recruit Raw Materials In Foreign Trade Industry

"This year is a mess. Foreign customers' orders are very urgent, and the processing plant is still sitting there." As the boss of a foreign trade company, Mr. Liu has recently been like an ant on a hot pot. He received a $300 thousand foreign garment order last month, but after a month's run, the processing plant still failed to implement it. Liu boss told the author that last year everyone was struggling to get orders, but this year he was worried about finding a processing plant. Not only that, because there are too many orders, many processing plants even ignore the previous cooperative relationship, and who will make the highest price.

In the author's visit, I found that this year's foreign trade industry is indeed chaotic, whether it is factories or foreign trade companies, they feel that many orders are not good things.

Export bursting: salesmen do not run alone to find factories.

This year's exports in Yangzhou can be described as "overflowing". According to the data released by Yangzhou customs and Municipal Commerce Bureau, the total value of Yangzhou's import and export trade was 3 billion 585 million yuan in the 1-6 months of this year, an increase of 60.5% over the same period in 2009, of which 2 billion 715 million yuan was exported, an increase of 61.5%, an increase of second in the whole province.

"Compared with last year, this year seems to have changed." In the first half of the year, Qian Junmin, chairman of Yangzhou JOYOU import and Export Co., Ltd. was surrounded by clothing orders, so that the salesmen no longer ran the order and went all the way to the processing factory. Yangzhou Jiaxu Lai trade import and export company to the author said that in the first half of this year, their company's plush toy orders increased by more than 30%, while the Yangzhou Kimcheon tourism products company's exports in the first half increased by 161%.

"All export sectors have seen substantial growth." The Commerce Bureau official said that since November 2009, all the other commodities exported from Yangzhou have increased by more than 50%, among which the number of textile and clothing, shoes and hats, toothbrushes and other industries increased by more than 20%.

New problem: finding a factory is more difficult than finding a wife.

The foreign trade situation has been reversed in six months, but new problems are emerging.

"There are many orders, but we can't find processing plants." Faced with a lot of orders on hand, Mr. Liu was still worried. He told the author that he received a $about 300000 bill in early June, but a month later, there was no processing plant. Mr. Liu said helplessly that he had given a list to the factory in May, and now it is less than 10 days from the date of delivery.

During the visit, the foreign trade company complained that a factory even stopped half of their company's list, only to ask that they had received a higher price list. His boss told the author that this is a common occurrence this year. Some factories soon asked for a rise in price after receiving orders, and the most unusual one was three times higher than before.

"It's harder to find a factory now than to find a wife." A salesman in Hanjiang, a trade company, said with a bitter smile that he could even go online to find other factories in order to deliver the goods as soon as possible, but everywhere he saw the same scene. "Even if we find it, there are also some small factories. The delivery date is not up to date, or it is a wild demand."

"Now the factory will see who will make the highest price, but in order to rush the delivery, we have to make money." Qian Junmin frankly said that at present, he was afraid to take orders again, and the list on hand would not be finished until the end of the year.

Factory dilemma: raw materials are rising and workers are hard to recruit.

In the past, foreign trade ecology was broken because of the sharp increase in orders. I visited some garment processing factories respectively, and they also had difficulties.

"The construction period of this year is already full. If you want to squeeze in, you will definitely have to increase the price." A salesman of a clothing factory in Gaoyou told me that they had been working overtime this year, and they had completed the whole construction period in April. However, there are still many trading companies to quote the price. "Last year, the order was not enough to earn money.

"The profit margins of processing plants should be very clear to foreign trade companies. This year, raw materials are so strong that workers can't recruit them. Are we allowed to drink the west wind?" and some factories also say that the temporary increase is not purely due to profiteering. Moreover, the processing plants are always the lowest part of the foreign trade chain, for example, the gross profit of garment factories can reach 5%, which is already very good.

Chen Baoze, general manager of Yijia clothing company, Hanjiang, said that although the list is many, the risk of the processing plant is even greater. "Now the price of cotton yarn is so high. What should we do if we fall behind? This profit is simply not enough to reduce the loss of raw materials."

Two sides game: many processing plants begin to transform

"The foreign trade industry has always been" squeezing "foreign trade companies, and trading companies are" squeezing "factories. This year's factory price increase is also necessary. City Commercial Bureau related personages also expressed the understanding to the processing factory price rise.

"No list is factory request, you need more factories, you can't say who is right or who is wrong." Liu Jiangming, President of the municipal import and Export Chamber of Commerce, also believes that the prices of processing plants and trading companies are marketization, determined by the relationship between supply and demand. The Commerce Bureau also said that the price of the industry and trade was difficult to intervene.

"We should all talk about honesty and credit. We can't start at a single price. If we don't have credibility, who will find you when the list is small?"

Liu Jiangming told the author that in fact, in order to get rid of the control of trading companies, many processing plants in Yangzhou have begun to transform.

"Most of the former processing profits have been made by trading companies, and now they are directly trading, and the pressure is much smaller." The general manager of Hanjiang Yijia clothing company told me that at the beginning of the year, they transformed the industry and trade into one.

"The experience of doing foundry before is too bitter. Now we must transform." You Feng, chairman of Yangzhou Jie Feng hat industry, told the author that they had shifted from pure foundry to industrial and trade integration 3 years ago, and now they are going to branding. Now they basically will not bargain with foreign businessmen or trading companies for the profits of one or two points.