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    Textile Factory Pfer: The Central And Western Regions Should Not Be Favoured But Favor Southeast Asia.

    2019/2/1 16:13:00 52

    Textile FactoriesManufacturing PferSoutheast Asia

                                                                         

         

    In the eastern coastal cities, the cost of land is rising, wages are rising sharply, and the cost of labor is too high, which is a big problem for the manufacturing industry. The profit of manufacturing industry is low. In the past, our country became the world factory.

    The main reason is that China's labor costs were very low in the past, so it took over Japan, Japan, and Taiwan, China.

    Therefore, low cost is the key factor for the survival of the manufacturing industry.

    Now the manufacturing cost of the southeast coastal cities is too high and there is no competition in the world. Is there any solution?

    Many domestic experts suggest that the industry should be pferred to the central and western regions. The cost of land and labor in the Midwest should be relatively low relative to the coastal areas.

    On the face of it, this is indeed a solution, but if people who really understand the manufacturing industry will find that it is entirely blind to solve the problem, the root will not work.

    Because many experts think that the pfer of manufacturing to the central and western regions has become a national policy. In the past, there were more than 4000 industrial parks throughout the country.

    But in the past few years, most of the industrial parks in the central and western regions have been closed down or vacant, especially in many Midwest counties and towns.

    It seems that few people think about why this is the result.

    Many experts still think that the idea of pferring industry to the central and western regions is correct.

    A big coffee in the industry has been working in the manufacturing industry for many years.

    The fundamental reasons why the southeast coastal manufacturing industry can not pfer to the Midwest in large scale are as follows:

    1, the southeastern coastal cities have formed a complete industrial chain and industry matching. This Midwest region can not be formed in the short term. Whoever moves the factory to the Midwest will be isolated.

    Completely divorced from the industry chain, no business at all.

    Just like the yarn factory, the line is produced, and it is necessary to dye the dyeing factory to make the finished product.

    For example, there are many yarn factories in Jiangsu and Zhejiang provinces, and many dyeing factories. With these supporting industrial chains, yarn factories can run normally.

    But if the yarn factory moves to Wuhan, the central parts of Zhengzhou will encounter it. In Wuhan and Zhengzhou, no dyeing factory can be found at all, then the yarn it has to be pported to Zhejiang will be dyed and eventually pported back. At such a time, the freight cost will be enormous and almost impossible to operate.

    There are also garment processing plants. In Jiangsu and Zhejiang provinces, there are international textile cities such as Shaoxing. Guangdong has Guangzhou International Textile City, which can provide fabrics and accessories for making clothes.

    Therefore, there are so many garment factories in Jiangsu and Zhejiang provinces and Guangdong that it is very convenient to buy Fabrics.

    But if the clothing factory moves to Wuhan, then buying fabric accessories, and going to Guangzhou or Shaoxing to buy it, this is almost impossible.

    Because many garment factories almost have to buy Fabrics and accessories every few days. If they travel from Wuhan to Guangzhou every time, they will be too expensive.

    If the factory is located in a small county in the central region, it will be a dead end.

    Although the high-speed rail network is dense and time is shortened, the cost of the high-speed rail is expensive. Wuhan takes the high-speed rail to Guangzhou and Shanghai. It costs 500 yuan for a trip to return to the high speed rail. The cost is 1000. If the Guangzhou Shanghai stayed overnight for one night, the cost would be 1500. The cost would be too expensive, and it would not be suitable for running back and forth.

    So this is why most factories are reluctant to move to the mainland. Whoever moves away from the industrial chain is equivalent to wasting their skills and losing their way.

    Some experts will say that there are also some southeast coastal cities moving to Wuhan in reality.

    It is true that a small number of manufacturing industries have moved their factories to the central part of Wuhan, but only a small part of them, and these factories are often sub branches of large groups and have relatively complete industrial chain factories.

    For example, some big factories make their own yarns, and open their own dyed factories at the same time. They do not need to rely on other dyeing factories to reprocess them. For example, some clothing sets are designed to process their own garments, while printing can be done by themselves.

    Headquarters completes fabric purchase and sends it directly to branch processing.

    But these are big groups. Small factories rarely move to the central part of Wuhan.

    Some people say that Wuhan can also form a supporting industrial chain, but the natural formation of the industrial chain is not what the government can do in the short term.

    In the past, foreign businessmen saw that China had low labor costs and many opportunities, so they invested heavily in coastal cities.

    But now that China has no cost advantage, it is impossible for a large number of foreign businessmen to invest in the manufacturing industry. It is impossible to invest in the central region again as it did 20 years ago.

    Therefore, the central region has been unable to form a complete industrial chain.

    2, only the provincial capital cities in the central region can gather population and have a large number of labor force.

    If factories are pferred to the central region, they can only go to the provincial capital cities to recruit workers. The surrounding cities of the provincial capital can not attract talents and have the ability to reserve talents.

    However, the cost of land in the capital cities of the central region is not cheaper than that in the southeastern coastal cities. On the contrary, it is more expensive.

    For example, the price of housing in Wuhan is almost the same as that in Suzhou. When it comes to the cost of the system, it will cost more to go to Wuhan to run factories than to go to Suzhou to run factories.

    So what is the significance of the relocation of Suzhou's factories to Wuhan?

    Look at the wages of employees. The average wage of Suzhou factory is 4000-5000 yuan per month. The monthly wage of Shanghai Baoshan Iron and steel works is about 5000. In Wuhan, Nanchang, Zhengzhou, the factory's wages are probably 4000-5000. Imagine the difference?

    No difference!

    Shanghai's wages are high, mainly for high end talents, low wages, low end talents, such as factory workers.

    Therefore, the relocation of Suzhou's factories to Wuhan can neither save land costs nor save labor costs. On the contrary, recruiting workers in Wuhan is certainly several times more difficult than in Suzhou.

    That is why many manufacturing industries are pferred to Southeast Asian countries rather than professional ones.

    In Southeast Asia, wages are very low, almost 5 of China's total, and Southeast Asia has a relatively complete industrial chain, because a large number of foreign investment, a very short time to form a complete industrial chain, which is the same as foreign investment in China's coastal cities in the past.

     

    Original title: Why did the textile factories pfer to Southeast Asia instead of the Midwest?

         

         

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