The Order Is Panic Linked To Labor Shortage &Nbsp; The European Debt Crisis Tests China's Manufacturing.

On the 22 day, Fitch, the world's main rating agency, lowered its long-term sovereign credit rating from two to C, which is the lowest speculative rating.

Entering the year of the dragon, the European debt crisis is still continuing to ferment, and the crisis that has not yet been solved is affecting the hearts of many foreign trade enterprises.

Recently, the city of Guangzhou, Dongguan and Yangjiang visited the "world manufacturing base" and felt the chill wind.

The contraction of EU market demand has affected China's manufacturing enterprises.

A number of business executives said that after the February 24th deposit reserve ratio was lowered, the pressure on market funds will ease.

But the crisis is still spreading.

Orders "lifeline" to tighten the enterprise some "panic"

At the beginning of February, the reporter saw at the mayton plastic electronics toy factory in Dongguan mulberry Industrial Park. There were 4 buildings with 8 7 storey dormitories, and only 4 of the other 4 dormitory buildings were full of workers.

The factory, which is Europe's main export market, has been able to accommodate more than 10 thousand workers in the past. Less than two thousand people are working now.

"The impact of the European debt crisis is very large, and the factory orders are 60% lower than the same period in previous years."

Deng Meihua, director of Meier plastic electronics toy factory, said.

Some smaller enterprises are weak in risk resistance, and the order shortage is even more serious.

When the reporter walked into a paper processing plant in Dongguan, he saw workers playing chess and playing cards in groups.

Ye Sheng, director of the processing plant, told reporters: "because the demand for upstream enterprises in the European market has shrunk, factories have been greatly affected, and since October 2011, they have been paying wages to workers by borrowing. At present, only 23 core technicians have been left, but almost no funds have been paid yet, but they still maintain wages for workers.

Because these workers are afraid that they will not be able to recruit people when they need them in the future. They hope to survive this difficult period.

Even those with more orders, the days are equally bad.

"The overall order volume of the enterprise is still fine, but the European orders have a downward trend.

In the past, European orders were more than 50 thousand yuan per month, and now they are around 25 thousand pieces per month. The future of the European market is uncertain. We worry that the more we do it, the more we will lose. "

Lin Wei, chairman of Guangzhou Jinlin leather products Co., Ltd.

Reporters learned from the Dongguan Municipal Foreign Trade and Economic Cooperation Bureau, the impact of the European and American market downturn, Dongguan enterprises orders fell by an average of 15%-20%, expected in 2012 export orders flat and fall more than 70% of enterprises.

Moreover, due to the rising cost, a considerable portion of the export orders for traditional superior products were pferred to Southeast Asian countries, such as the global production order layout of a famous brand sports shoes. Vietnam first replaced China as its world's largest production base in 2010. Its largest export business in Dongguan last year dropped by more than 17% compared with the same period last year, and its monthly decline was widening.

There are several laughs to worry about in order to survive.

Reporters in the Pearl River Delta visited a number of labor market, found that "profit thinning", "recruitment difficulties", "difficult employment" is a common problem reflected by traditional enterprises, but some early pformation and upgrading of enterprises in the European debt crisis in the wind and waves.

"Orders have been reduced by 60%, but the order is still not available."

Deng Meihua said, "at least 1600 people must be recruited to complete the order on time. After the start of last year, 100 people can be recruited every day. It is difficult to recruit 10 people every day."

At the same time, small and micro enterprises

In addition to domestic factors such as raw materials, labor force and increasing financing costs, foreign trade enterprises are also facing difficulties in the negotiation of foreign trade enterprises.

Zhang Hongxing, deputy manager of the Development Department of Huizhou Dazheng Business Management Service Co., Ltd., said: "we want to raise the price, but now the customers in Europe are more difficult, and the additional cost has to be borne by themselves."

The head of the Dongguan Municipal Foreign Trade and Economic Cooperation Bureau said that in the face of the rapid increase in operating costs, some enterprises could increase the pfer cost of product prices. However, the survey showed that only 21% of Dongguan's enterprises could pfer some of their cost to customers by raising the price of export products, and the space for raising prices was only about 20% of the total operating cost.

A survey of 300 enterprises showed that the average profit margin of enterprises in 2011 was 3.5%, a 2.2 percentage point drop from 2010.

The average export profit of enterprises in 2012 is about 2.7%, down 0.8 percentage points from 2011.

Some active pformation and upgrading enterprises have improved their competitiveness in crisis.

Jiang Chunyan, general manager of BMW automobile air conditioning equipment Co., Ltd., told reporters that the company implemented the strategy of "developing enterprises by science and technology", and established a large module development team composed of 28 senior engineers, 42 engineers, 8 microchannel experts, 15 heat exchange experts and 168 technicians. It has developed more than 50 household central air-conditioning and commercial air conditioning micro channel products, which will become the new profit growth point of the company in the future.

The eighteen sub group of Yangjiang has taken the initiative to build a complete industrial chain. From the kitchen knife manufacturer, it has developed into an integrated large-scale enterprise integrating scientific research, steelmaking, production, sales and tourism supporting services. Its own brand of cutting tools are exported to Europe, the United States and other countries and regions.

Li Ji Hui, general manager of the eighteen sub group, said that enterprises have mastered the production of raw materials and steel products, greatly reduced the cost. At the same time, adapting to the market demand and constantly innovating, launched a series of "knife culture" products. It is expected that sales in recent years will maintain a 15% increase.

Experts recommend using financial instruments to avoid danger and upgrade in pain.

Experts believe that in 2012, the European debt crisis will continue to ferment, the euro will be tested, manufacturing enterprises can take the initiative to use financial instruments to avoid risks, in the throes of pformation and upgrading.

A senior foreign exchange trader in Guangdong branch of CCB told reporters that the refinancing operation of the European Central Bank in December last year has injected a lot of liquidity into the market and has a short-term boost to the euro. It is expected to expand to $1 trillion in February this year.

The policy of quantitative easing in disguised form can solve the hunger and thirst for market funds and is good news for stimulating economic recovery.

"But in the medium to long term, the euro does not have a strong foundation.

We generally estimate that the euro will be relatively strong in the first half of this year, and that the second half of this year will probably fall sharply.

The euro is expected to fluctuate between 1.2 and 1.4 this year.

The trader predicted.

Experts suggest that in the short term, enterprises can use financial instruments to circumvent the risks of foreign trade: first, enterprises should see the risk of Euro fluctuations when they take orders, make clear the settlement period, and advance the exchange rate of the euro to the RMB in advance.

Two, we should timely change the settlement currency, for example, when the US dollar recovery remains relatively stable, we can try to adopt US dollar settlement.

Three, it is widely used to avoid exchange rate fluctuations by means of long-term settlement, RMB exchange rate options and other financial instruments.

In order to deal with the risks brought by the European debt crisis and exchange rate fluctuations, some financial institutions have developed corresponding financial products.

If the Construction Bank's "Euro loan" can help enterprises reduce the cost of financing, enterprises can also customize the supply chain financing plan that integrates internal and external trade to the bank, expand financing channels, save financing costs, and strive for the support of financial institutions in the pformation and upgrading of foreign trade to domestic trade and enterprises going out.

In the long run, efforts must be made to promote pformation and upgrading of SMEs.