In July, Dongguan'S Exports To The United States Showed A Negative Growth Of &Nbsp; Enterprises Were Forced To Pform And Survive.

Facing the US debt crisis, we should recruit new tactics: renew quotation, pfer production capacity, and expand domestic sales.

On a rainy day in August, there were few recruiters from several factories in an industrial park in Dongguan. So they gathered around to talk about the US debt crisis.

A worker dispatched to a labor dispatch company pointed to a large electromechanical plant not far away, telling reporters: "I don't know if we can stick to the end of the year. Their internal supervisor said that the American shareholders of the factory would have to withdraw their funds, and they would pull the goods to the United States, and the other party could not afford to pay."

A customs data cited by the media showed that

No pformation, just wait for death.

This is the slogan of some local enterprises.

Under severe market conditions, they have developed many skills to survive, including renewing quotations, defusing exchange rate risk, pferring capacity and exporting to domestic sales.

Worried negative growth

"In the wake of the US debt crisis, the appreciation rate of RMB may be faster. For many factories, it is not a question of orders, but a question of whether orders can be answered."

In the Tianxin Industrial Zone of Tangxia Town, Dongguan, Yin Zhiqiang, director of operation of the Asia Electronics International Group, threw up this series of problems when he met with our newspaper reporters.

This is a company exporting GPS products. Workers are still working on the assembly line near noon.

Although the current industry believes that the US and European debt crisis has limited impact on China's real nature, the partial impact may have emerged.

According to the data released by the General Administration of Customs on 10, in July, China exported $175 billion 130 million, refreshing the historical record of 161 billion 970 million US dollars in June.

The customs data cited by the media show that Dongguan exported $1 billion 630 million to the US in July, down 16.3%.

In fact, although the import and export volume of Dongguan increased to $11 billion 850 million in the month, the monthly export growth began to linger around 10% in May, while the growth rate slowed to 6.5% in July.

Officials do not agree with the "collapse tide" of the outside world.

Dongguan foreign trade and Economic Cooperation Bureau survey shows that in the first half of this year, the city closed down 261 enterprises, down 5 year-on-year.

When the financial crisis happened in 2008 and 2009, there were 865 and 657 enterprises in the city.

"If you go to customs, you'll see that there are so many queuing companies."

A business owner told our reporter that there was no "closure tide" in Dongguan.

But textile in Dongguan.

This year, the cost of labor in these industries increased by 12.6%, 24.4% and 14.7% respectively, and the total cost increased by 10.8%, 12.6% and 12.4% respectively. The profit rate decreased by 2.5, 0.4 and 1.4 percentage points respectively.

Exchange rate "evaporation" profit

Now in Dongguan, young people over 20 years old in these factories can tell us about the impact of the debt crisis in Europe and America.

"Now the summer job is being recruited. Recently, I heard from my boss that there are two factories in the park already very difficult."

A factory recruitment staff told our reporter.

"They are not shipping much now. They are stockpiling goods just in case."

He sighs that this is also an old factory that has been home for more than ten years. Some employees have entered the factory at less than 20 years old. They are all more than 30 years old now.

"The current business environment is even worse than the global financial turmoil."

Yin Zhiqiang said that during the financial turmoil, the main reason was that there was no order and the cash flow was cut off. Now, the rapid appreciation of the renminbi has led to a sharp decrease in profits.

"This year, the pressure of RMB appreciation has obviously exceeded the pressure of rising domestic raw materials and labor costs caused by inflation."

He said.

On the 17 day, the exchange rate of RMB against the US dollar was 6.3996, which was 71 basis points lower than the previous trading day.

But an indisputable fact is that in the wake of the Federal Reserve's reaffirming that the low interest rate policy remains unchanged and the financial markets in Europe and the United States are in turmoil, the renminbi has risen sharply against the US dollar recently, breaking through the 6.40 barrier on the 11 day and creating a new high since the reform.

The reality is that if the US dollar continues to depreciate and the renminbi will be forced to appreciate, the dollar that the originally profitable exporters earn will be even less valuable.

"From the receiving order to the delivery clearance, we will have 30~60 days in between, during which the RMB may have appreciated by 1 points."

Yin Zhiqiang said that he had a valid period for the quoted price of the product, and the price would be requoted after the deadline. The new quotation would fluctuate according to the actual situation.

Zhang Heng's situation is not so optimistic. He is the sales director of a plastic toy factory in Houjie Town, Dongguan. According to his newspaper reporter, the factory has always been facing the middle traders in the United States. Many of them are long-term cooperation. The same kind of toys, traders even ask for price reduction every year, and raising prices is simply impossible.

"The cost of RMB has increased by five or six points compared with that in 2008. The profits of manufacturing enterprises themselves are not very high, or about 10 points, and then less labor costs and raw material costs. Do you think it's still profitable?" Zhang Heng said. Nowadays, enterprises are no longer paying a lot of orders, but rather reduce production capacity and focus on some middle profit orders.

Enterprise's survival skills

Zhang Heng said that in 2009, everyone was talking about the death of pformation and early death, not pformation. Now, it seems that the real pformation of enterprises can only wait for death, and the enterprises in pition may survive.

Yin Zhiqiang also believes that this round of survival tests after the financial crisis will inevitably eliminate a number of enterprises without technical content, avoiding labor laws within the territory, purchasing cheap raw materials for upstream production, and fighting price wars abroad. This process is like an ebb tide, and a better quality enterprise can resist the impact.

In response, a long-term concern for Dongguan's manufacturing industry experts told our reporter that the private enterprises doing the domestic market can still struggle to survive in the state of loss and profit, as long as there is cash flow.

On behalf of the factory, the profits go entirely, and the money is earned.

"Some of the factory owners did not feed their profits back to the factories, but they used to go for other uses. Factories are more like speculative tools than investment ones. If there is a loss, the factory owners will naturally get away and go bankrupt."

He believes that the failure of export enterprises which are not competitive will make room for new entrants to some extent, and new foreign capital will be more vigorous.

"It has forced Dongguan to upgrade its industries," he said.

The exploration has begun.

At the end of 2006, he started to enter the domestic market, and built GPS brand after the establishment of the domestic sales team.

According to Hong Hongwei, marketing director of its domestic sales team, they have reached 60 million yuan last year.

Yin Zhiqiang said that in order to balance the decline in the profits of us orders, the company is also actively exploring other regional markets. "The most important thing is to promote product innovation. We are constantly developing new products according to new demands, new products will have new quotations, and some words can be obtained on orders."

Wang Wei, the boss of the shoe industry, who was engaged in the export of home shoes, rushed into the domestic market in 2008, started from the online shoe store, and then discovered that the network sales were hard to carry. So the new UNI brand was distributed to the domestic hypermarket, and the system of brand franchising, regional agent and some chain supermarkets and direct marketing management was established.

Now, under the pressure of a series of costs, Wang Wei has shifted most of its capacity from Zhangmu to Dongguan.

Transformation is also reflected in some details.

In Dongcheng District, Dongguan, a sales director of an export treble equipment company told the reporter that in June, they wrote off the former enterprise name "XX electronics factory" instead of "XX electroacoustic limited company", so that they could have a business name not to be shabby when they sold to domestic customers, but never thought about this problem when they only exported.