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"Limited Power" Has Become A Nightmare For Shoes And Clothing Enterprises In The Yangtze River Delta Region

2011/8/2 10:26:00 47

Electricity Shortage Clothing Domestic Sale

August 2nd, July 23rd, great heat.

The booming sound of generators is particularly harsh in a factory in Suzhou.


"This is our factory's own generator sound."

For this kind of noise, Wang Yujuan, assistant general manager of a clothing company in Suzhou, seems to have been used to it.

She told reporters that due to frequent power cuts, many factories in Suzhou had their own power generation equipment, but the cost of generating electricity more than three times higher than that of ordinary power generation was difficult for many small and medium-sized enterprises to bear.

"Power restriction" seems to have become a nightmare for SMEs in the Yangtze River Delta region.


"SMEs will be trapped in another round of development difficulties since the 2008 international financial crisis."

Ceng Shaojun, director of the information research department of the New Energy Association of the National Federation of industry and commerce, told reporters that although the power rationing has caused the reduction of the profits of small and medium-sized enterprises, it has not formed the closures of the media, and the state is also working on the relevant supporting policies.


  

Two types of enterprises are trapped in power shortage.


At the gate of the garment factory, a notice on the notice board was posted on the notice board: at least two days a week.


According to the reporter, since May, Suzhou has begun to slam the gate and limit its electricity. It will limit the electricity for two days per week. After entering July, the frequency of power restriction increases significantly, and the maximum power limit is four days a week.


"According to the experience of these years, when we enter the summer vacation, we will reduce the total number of orders to reduce costs."

Wang Yujuan told reporters that her clothing factory is an export oriented enterprise, and its products are mostly sold to foreign supermarkets and wholesale markets. The profits are already very low, and the high cost of independent power generation, at present, it only guarantees the supply of major foreign customers.


Textile industry is a labor-intensive industry. It is also a fully competitive industry, especially for small and medium-sized enterprises. At the same time, the survival of textile enterprises is most vulnerable to changes in the external environment.


In addition to labor-intensive enterprises, the most severely affected enterprises are the high energy consuming industrial enterprises.


"Last week, I was told to limit the electricity for two days in a week."

Wang you and he were originally a coal owner in Shanxi. They took over a forging factory in Zhejiang two years ago, but the frequent power cuts in recent years worried him. "Now we dare not take orders, because the price of customers is very strong. If we use generators to generate electricity, there will be no profit."

In the past, we would also outsource some large single parts, but now the cost of outsourcing is higher and higher, and the profit margins are getting smaller and smaller. At present, we only pick up small bills, but when we call for overtime and stay up late, we can't afford to raise so many people, we can only lay off workers.


In the early July, Wang you and just laid off more than 30 people. "I have a friend who runs a mold factory in Shaoxing. They have more power limitation than our side. Most of them are opening four limit three (four days start, three days limit electricity). Because of the long-term power limitation, the plastic products fail to reach the contract quantity, thus losing a large number of customers, and now they have suspended production."


  

The orbit is not easy to feed.


  

Power limitation

The impact on enterprises is only short-term behavior, and the increase of labor costs.

Raw material

The rise is the main factor to reduce the profit of small and medium-sized enterprises.


"Compared with last year, the increase in labor costs is the most obvious, roughly floating about 30%, but our factory price can not be directly coupled with 30% such calculations, because customers there are such a big price adjustment is not recognized, we can only go up to 15% of the price.

At the same time, raw materials increased by 10% compared with last year, all of which compress the profit margins of our enterprises.

Wang Yujuan said.


After 80, Mr. Fan is the boss of a shoe factory in Wenzhou.

For the domestic market

Business, owning its own stores and stores.

Recently, he has been haunted by some e-commerce forums and venues, hoping to know some staff members of e-commerce websites. "Although the profits of such sales channels are low, they are very expensive and can help me consume a lot of stocks."

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However, Wang Yujuan confessed to reporters that many friends, including those around her, would not choose the way of domestic sales until they had to do so. "Domestic sales are rather complicated. We need to take into account the problems of channel construction, operation cost, and management cost, and also take into account the location and quality of products. But today's market is no longer a product oriented era. Your quality is even better, or even surplus."

But the export is different, the mode is very simple, the next one will pay a single piece of money, even if the cost of our product is 5 yuan, foreign pay me 5 yuan, we still earn, because there are 16% export tax rebates, even if it is lower than the cost price, it will not lose much money.


In response, Zhou Guangchang, chief executive of a Guarantee Corporation, appealed to reporters that the state could give some preferential policies to support small and medium-sized enterprises and eventually become hematopoietic support.

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