Eastern Textile Processing Industry Scrambled To "Escape" Midwest Staged Investment War

With the increase of raw materials and the increasing cost of labor, in the face of these two "big mountains", the processing factories of many manufacturing industries in China are looking for new development "soil".

Recently, it was learned that the domestic textile processing factories were moving to the central and western parts of China, and the jewelry industry in Shenzhen also had the trend of leaving Shenzhen to compete for them.

Recently, Xu Kunyuan, vice president of the China Textile Industry Association, visited the textile manufacturing centers all over the country. He found that Sichuan, Hubei and Xinjiang provinces were all concentrated areas of manufacturing pfer.

Many manufacturing industries "escape" from developed areas

As we all know, Shenzhen's jewelry processing industry has become the landmark industry. 70% of the world's jewelry and diamond processing is concentrated in Shenzhen, such as Tiffany and Zhou Dafu's orders are all concentrated in Shenzhen.

Here, the industrial pfer of manufacturing industry is quietly proceeding.

"In the eastern part of Shenzhen, Huizhou is offering favorable conditions for investment promotion. Many jewelry processing enterprises have gone."

Cao Lin, a CEO of diamond brand BLOVES, said, "this is actually pferring manufacturing to the" back garden "of the city.

At first, the jewelry processing industry in Shenzhen was pferred from Hongkong, which is a traditional labor-intensive manufacturing industry.

In a building, there are hundreds of workers at different stages of production.

In Shenzhen, the price of land is already small, and often factories are crowded in the same area.

Downstairs is a restaurant, and upstairs is a jewelry factory.

There is only iron fence between upstairs and downstairs.

This kind of security situation is very unfavorable to the industry with large investment in assets.

Cao Lin listed the more preferential investment conditions in Huizhou. "Huizhou's rent is only 60% of Shenzhen's, and water and electricity bills also drop a lot."

More importantly, "Huizhou is only more than 50 minutes away from Shenzhen, and it will not cause too much inconvenience to jewelry brands."

For the textile industry, the pace of pfer is faster and farther.

"Now, many enterprises have moved to the central and western regions of Anhui, Hubei, Xinjiang and Sichuan."

Sun Huaibin, a spokesman for the textile industry association, told reporters that "this is for cost, labor and other reasons."

For example, Yang Kuntian, general manager of the famous international clothing brand Mark Ed Faye, said: "in order to reduce rent and labor costs, we will shift the factory from partial coastal areas to inland cities, such as Zhengzhou, Hubei and Anhui, so as to reduce rents and labor costs."

It is understood that Mark Ed Faye set up factories in Zhejiang, but the cost of manpower in Zhejiang is higher than 20% in the central and western regions.

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Investment competition everywhere

There has always been a big challenge in the Midwest business, that is, the manufacturing center wants to keep manufacturing in the locality.

"In order to attract the attention of industrial pfer enterprises, local governments are attracting investment, hoping that more investment will come there to promote the local economy. It can be said that the enthusiasm of local governments to undertake industrial pfer is very high."

Sun Huaibin introduced.

"Actually, it's Huizhou and Shenzhen.

The Luohu government of Shenzhen has invested heavily in the pformation of Shui Bei gold jewelry industrial base, and promoted the construction of the industrial public service platform of Shenzhen jewelry, gold and jewelry gathering base. The public service in the fields of R & D, logistics and training has been continuously improved. It has also launched the first business incubation base of Shenzhen jewelry industry and the basic project of Luohu District to start employment by entrepreneurship.

In fact, "what kind of help do we need directly from the government? We need security to directly contact the Pioneer Park and apply for security."

A jewelry business person told reporters.

In order to "nugget" from Shenzhen, Huiyang district has also initially formed industrial clusters, and jewelry industry cluster with Jinyu Oriental Jewelry City as the leader, mainly producing high-grade jewelry such as gold, platinum, diamonds and so on.

The project covers an area of 16 thousand square meters, accumulatively completed investment of 450 million yuan, the first phase built 24 plants, the construction area of 260 thousand square meters, and has introduced more than 40 jewelry production and processing enterprises.

21 staff dormitory buildings have been capped.

Many enterprises are carrying out plant renovation.

Investment in large enterprises is also very active everywhere, an expert said. "The policy of attracting investment everywhere is endless. From financial subsidies to fiscal and tax relief, from cheap land to local accounts, the competition for domestic investment will become more intense."

YOUNGOR is a popular company, but YOUNGOR chairman Li Rucheng has made a choice after inspecting many areas.

"We have opened a large factory in Xinjiang."

Li Rucheng said, "we hope that more areas will be able to grow YOUNGOR hemp raw materials."

The reason why YOUNGOR set up its factory in Xinjiang is that it is closer to raw materials and cotton producing areas. "We have been looking for opportunities to invest" in the Midwest region where we can produce hemp, another raw material.

Li Rucheng said.

Industry matching is the key.

Although the prices of labor and water and electricity in the central and western regions are relatively low, "the factories in the jewelry processing industry are only suitable for close pfer. If pferred to the central and western regions, they are faced with a situation that the industrial chain and ancillary facilities are not matched."

Cao Lin introduced.

For example, BLOVES will build stores in the Midwest, "but production links still need to be put in Huizhou or Shenzhen."

In 2008, China's labor price began to rise, and the textile industry had a tendency to pfer to foreign countries. "I went to Vietnam, and the local wages were only 70% of China, but the local industry was not matched, and many buttons, zippers and other accessories needed to be shipped from China."

However, the China Textile Industry Association is not too worried about this situation. "At least the industry chain is still in China, and their excipients need to be bought from China."

The association said.

Sure enough, more textile enterprises chose the central and western regions.

Industry matching plays a very important role in manufacturing enterprises.

Reporters in many industrial park investment promotion shows that the local government has realized the importance of supporting the industry.

For example, when Hubei and Sichuan built industrial parks, they also introduced hydropower and raw materials markets.

Usually there are two ways of matching, one is the introduction of front-end manufacturing enterprises, the other is to build a comprehensive large market to achieve local purchase and supply.

"Because no enterprise can dominate the industry chain, so the industry matching determines the cost of investment."

The experts said.