The "Collapse Tide" Of Dongguan Enterprises Has Passed &Nbsp, And "Wait-And-See Tide" Has Really Come.

Recently, the outside world is flooded with

Jiang Lin, director of the Department of Finance and taxation of the south of the Five Ridges Institute of Zhongshan University in Dongguan, who has long studied the economy of Dongguan, thinks that the "collapse tide" of manufacturing industry is exaggerated.

Is it a case or has it become a tide? Our reporter interviewed some enterprises.

Enterprises are facing a lot of pain.

Rumour has it that Dongguan's clothing industry is the first to be affected by the so-called "closure tide".

"The clothing industry in Humen is relatively stable, and the association investigation has not failed."

Dongguan Humen clothing association deputy secretary general Qin Yingfu said.

"This year, our brand has increased by about 20% over the same period last year. If the market is good, it may still be more than that."

Mr. Lu, director of brand children's clothing rabbit, told reporters that in recent years, there are indeed some small brands in bankruptcy, but this is just the result of market obsolete.

There seems to be no "rumors of collapse" in the clothing industry. Recently, the furniture industry in Dongguan is on the cusp. What is the state of its existence?

"Compared with the normal period, the price of raw materials has risen all the way, and the increase has reached 15% ~ 20%, plus other costs, the product cost price and the factory price are the same."

Mr. Terry, who is responsible for furniture, complained to reporters that there was little profit in the furniture industry at present.

Manufacturing enterprises make money shortage

The shortage of funds has always been a "sore spot" for SMEs in Dongguan. Mr. Xian revealed that nearly 90% of the enterprises he knew were suffering from financial difficulties.

"Financial institutions are poor and rich. At present, the funds needed by enterprises are derived from the operation of enterprises, plus loans from relatives and friends."

Xiao Senlin, chairman of Dongguan's HID toys, revealed to reporters the source of their funding.

In addition to funds, the headache for SMEs is "labor cost".

Terry furniture currently has more than 100 employees, but 80% of them belong to "mobile workers".

Mr. Xian said, "at present, the wages of production workers at the front line are about 3000~4000 yuan per month, and the invisible costs increase."

Dialogue expert

Jiang Lin, director, Department of Finance and taxation, south of the Five Ridges college, Zhongshan University

"It is overstated to say that there is a" closing tide "in Dongguan.

Reporter: there are media reports that the "collapse tide" of manufacturing in Dongguan appears. How do you view this statement?

Jiang Lin: I think this statement is too exaggerated.

The upstream cost and labor cost are very high, and the export orders are not going to go, leading to business difficulties. Coupled with recent macroeconomic regulation and control, the credit environment is deteriorating, and the short-term loans of small and medium-sized enterprises are facing greater difficulties.

In the current economic environment, small and medium-sized enterprises that deal with export processing face greater difficulties. This is a fact. Although orders have been received, the gross profit margin of enterprises is decreasing, and the competition pressure faced by enterprises is very great.

In Dongguan, many enterprises that encounter problems are likely not to close down, holding up for a while, in a state of shutdown or semi shutdown.

The enterprise is not a normal state of operation, so it is not bankrupt. Enterprises are in a state of shutdown, production and shutdown.

Reporter: how do you think enterprises should get out of the current predicament?

Jiang Lin: the problem now facing companies is whether to continue upgrading or simply closing it.

The problem of local governments is whether to save these enterprises or let enterprises fail in accordance with market rules.

These enterprises in waiting period usually choose two ways. The first is waiting for opportunities to pform and upgrade. They will think about how to pform their products by stopping production time.

The second is waiting for the government to rescue, so that there is a game between the enterprise and the government.

Shoemaking and textile enterprises bear the brunt. These enterprises are highly sensitive to rent and labor, and do not require high technology. However, these enterprises are not necessarily bankrupt, they may migrate to other places.

Dongguan's total economic volume is large and will not be affected in the short term because of the closure of some enterprises.