Short And Urgent Orders Aggravate Labor Shock In China'S Labor-Intensive Enterprises

From the 110th session

For a long time, labor-intensive enterprises are an important channel for China to solve employment and increase exports.

Some market participants believe that in the context of a fundamental change in the international market situation within a year or two, how to resolve the difficulties faced by labor-intensive enterprises and find ways for them in the industrial upgrading and pformation, especially for SMEs, is an important lesson to be solved.

The low end market is shrinking and Chinese enterprises are on the defensive.

Behind these industries is a large number of labor-intensive enterprises that are large and spread throughout China's eastern, central and western regions.

Over the years, relying on low labor costs, complete industrial chain and other multiple production factors, these enterprises have won stable large international orders for a long time, and have formed a relatively stable mode of production and operation, playing a decisive role in the global industrial chain.

However, this industry mode is suffering from a sharp change in the international market caused by the financial crisis, which is characterized by the sharp decrease, urgency and shortening of international orders.

As demand growth shrinks, international orders become smaller and smaller.

At the Canton Fair, the designer of Shandong Cao Pu craft co., Ltd., who exports wood products, rattan furniture and furniture, said that one European customer of the company had 100 containers and a total value of about 10000000 yuan last year. This year it turned into two containers, with a total value of less than 200 thousand yuan. Chen He, the Export Department of Shun Mei Refco Group Ltd, Quanzhou, said that nearly 70% orders received by enterprises this year were 20 thousand to 30 thousand dollars.

Affected by exchange rate fluctuations, international orders are getting shorter and shorter.

The head of a daily porcelain enterprise said that the former customers could keep the order from February to July. "Now considering the appreciation of the renminbi, the list is only one or two months at most. In the past, the orders for the middle of the year have basically disappeared."

Yang Yanjing, assistant manager of Shanghai East Hao crafts and Limited by Share Ltd business, said that Chinese manufacturers also tend to take short orders, or else profits will be diluted or eaten even during the production period because of the increase in prices of raw materials and exchange rate changes. "Five

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Affected by market fluctuations, international orders are becoming more and more urgent.

Export enterprises generally reacted. Since the beginning of this year, the European debt crisis and the US debt crisis have shown an explosive nature. Many countries are in a state of unstable market, leading to orders for developed countries to rush orders. Sometimes, they hate to give you the order today, and sell them quickly, so that the order will become more urgent.

Liu Zhouqun, director of the Department of foreign trade development of the Ningbo Municipal Bureau of foreign trade and economic cooperation, said that behind the "short and urgent" order is the objective reality of China's low-end manufacturing industry, whose export volume is increasing but its profit margin is getting lower and lower.

"Some enterprises feel more and more hardworking and unwilling to do it again.

In fact, the status of orders indicates that China's manufacturing industry is on the defensive even though it has an absolute advantage in the world, especially the market of low-end products is shrinking.

He said.

Contractors are active and traditional employment changes.

In the face of "short and urgent" orders, the impact of China's labor intensive enterprises is not only simply reduced profits, but also the traditional employment situation.

First, the contrast between the peak and high season of employment is getting larger and larger.

Chen He said that due to the shrinkage of orders, the annual employment volume of enterprises decreased by 30% compared with last year. "In the past peak season, the proportion of labor consumption was 1 to 2, and this year it has dropped to 1 to 3.

A metal toy product company in Zhejiang said that the number of workers employed by the company dropped from 1000 before the crisis to 300.

Two, the proportion of temporary workers in eastern parts of the country is increasing.

Lin Yipeng, general manager of Minmei five Mine Co., Ltd., Fujian, said that for many labor-intensive enterprises, the employment of casual workers has changed because of the financial crisis. "But at the moment, too many urgent orders are too short, and the pressure on temporary adjustment of employment is increasing. The temporary labor market has once again become active."

Wu Yingxi, deputy director of the business liaison office of the Shandong Provincial Department of Commerce, said that as a populous province, Shandong's traditional labor-intensive enterprises originally relied mainly on the rural surplus labor force to engage in production during slack season, which is decentralized and family oriented. The "short and urgent" order has the greatest impact on such enterprises. "Many enterprises can not complete the order in the traditional mode, but can only take less or even receive it, which directly affects the development of the industry."

In addition, influenced by the order changes, some areas also appeared "employment with more and more busy foreman".

Cao Jianhui, a Quanzhou Quangang craft company, said that with the active market of temporary workers, the "foreman industry" appeared in the area. "Foreman often takes a group of skilled workers to negotiate with employers everywhere to find job opportunities, which has formed industrial agglomeration."

Zhao Jun, deputy general manager of Foshan Tian You Industrial Co., Ltd., said that in the Pearl River Delta region, furniture enterprises mainly obtain labor through the form of labor market and labor contractor. "Under the current order and production situation, the proportion of the latter is higher and higher," said Zhao Jun.

This is not uncommon in Shandong.

Wu Yingxi said that the local cities and suburbs of some labor-intensive enterprises tend to have a skilled labor market formed spontaneously. "Unlike regular employment, the mobility is very large. Everyone follows the order and follows the lead. When entering the factory, there is an ID card."

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The industry should face up to the challenge of survival.

The relevant people believe that the "short and urgent" order caused employment shock wave, reflecting that China's traditional labor-intensive industries are facing a test of survival.

"At present, the light industry is facing a stage trend. The lack of consumer confidence in the international market caused by the global economic crisis will not be completely changed in one or two years. Enterprises should recognize this trend and face it positively."

Liu Zhouqun said that, from the present view, the temporary and liquidity of enterprise employment has not been fatal to small and medium-sized enterprises, but in the overall situation, it also reflects the lack of the ability to reduce the demand for fluctuations in these labor intensive enterprises, especially small and medium-sized enterprises.

"The competitiveness of the middle and low end enterprises is weak, unable to start or unwilling to open high wages, and the long term order of the order is not necessarily conducive to their development, because now the market favours big enterprises that can keep commodity prices stable."

He said.

In view of the plight of labor-intensive enterprises, the China Light Industry Chamber of Commerce held that the relatively low labor cost is an objective fact at the Canton Fair. It is a long-term policy to expand exports and promote economic growth through the development of exports. Therefore, while optimizing the export structure of related industries, it should also prevent enterprises from having too much impact.

To this end, the chamber of Commerce experts suggested that we should actively reduce the burden on enterprises, clean up disguised charges against enterprises and the rules and regulations that are not conducive to the export of enterprises, enhance the ability of enterprises to adjust their exchange rate policies, and actively promote the pformation and upgrading of industries, expand the domestic market, and establish a smooth market mechanism for the circulation of domestic and foreign trade.