Manufacturing dilemma
On 2007-12-10, a news observation of the Central 2 Economic Channel caught my attention: According to the Asian Footwear Association, 25% of the 5,500 shoe-making enterprises in Dongguan moved to Southeast Asia with lower labor costs, 50 % moved into the mainland, such as Hunan, Guangxi, Jiangxi, Henan and other regions, the remaining 25% are still waiting to see. The reason is well understood: look for a lower-cost workforce. The same dilemma also occurs in other labor-intensive companies, such as clothing, home lighting, electronics and other relatively simple processing industries. The migration route from the manufacturing center from the United States to Japan to the Asian four dragons to mainland China is exactly the same. Another shame is our monthly average salary, which is $100 per month. Such a low-cost labor force still cannot meet the employment cost of enterprises, and how much is the labor cost?
I clearly remember that the export price of the 5-ton horizontal jack in 2002 was weaker than $9, and its own weight was about 8KG. According to the exchange rate at that time, it was about ¥11/KG, and when the OEM produced The jack appeared in the Wal-Mart store in the United States, and the label was written for $34.99. Take the cost analysis of an enterprise with an annual output of 1 million horizontal jacks of various specifications: In the manufacturing cost, direct material is 70%, direct labor is 10%, and manufacturing cost is 20%. The cost of sales is only 1-2% based on the cost of manufacturing, and the gross profit margin of sales is less than 5%. Enterprises of such a large scale are operating bleakly, and the difficulties of other small-scale processing enterprises can be imagined.
This is especially true in the automotive industry. After Geely blew the horn of a family car of less than 100,000, the price of the entire car industry began to fall avalanche. Moreover, it is more coincidental that while the price of the auto industry began to decline under market regulation, the market prices of non-ferrous metals, ferrous metals, crude oil plastics, rubber and other raw materials began to climb, reaching a peak in 2007. The decline in prices and the rise in raw material costs have slashed the profits of the auto parts industry step by step, eventually falling into a vicious circle. Foreign-funded parts and components enterprises control the production lifeline of enterprises, and some automobile companies' outsourcing change material costs account for 78% of the company's sales cost. It is very similar to the situation of motorcycles 15 years ago. If the momentum of motorcycle development is followed, large-scale resource integration will occur in the automotive industry. Like the United States in the early 20th century, there were only a few of the thousands of car factories left. The difference is that the integration of the United States has almost no intervention from outside sources, and every Chinese auto factory stands behind a giant.
The situation in the home appliance industry is not much better. From the import of CRT in the 1980s to the import of decoders in the 1990s, to the 21st century, barriers to LCD and plasma screen technology, China has always earned very low profits. Even the world's top Galanz, its profit margins are falling.
Judging from the performance of the Chinese manufacturing industry, its prospects are not optimistic. The main problems are:
1. The lack of strategy: On the whole, the development goals of the company are very vague, let alone the formulation of strategies, and most of them are still fighting for survival.
2. Low level of management: The techniques and theories of various management are still not applied, or stay at the primary or even prehistoric stage.
3, the cost of the strange circle: blind pursuit of low cost, has become the only new entry-oriented enterprises, or the only goal of uncompetitive enterprises.
4. The backwardness of technology: After the emergence of any high-margin product, even if it is a high technical threshold, the mainland will obtain technical access by imitating or bending.
5, the sorrow of integrity: Since the national macro-control in 1993, after the tightening of monetary policy, triangular debts began to gradually increase like snowballs.
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