A dilemma for the industrial transfer of "indecision" in leather and home textile companies

When labor costs and other types of costs generally rise, and the price of product sales remains the same, as an enterprise as a family member, do you choose to shift to low-cost inland provinces and cities, or do you brazenly withstand it? In response, most of the people in the business community who participated in the China International Leather Exhibition held at the Shanghai New International Expo Center and the China International Home Textiles Fair held earlier were mostly indecisive.

Leather industry and home textile industry are both labor-intensive industries. Since the reform and opening up, these two industries have developed rapidly, and both output and export rank first in the world. However, after the outbreak of the financial crisis, the survival space of these two industries is getting smaller and smaller. Industrial transfer as a major trend is inevitable.

Su Chaoying, executive vice chairman of the China Leather Association, believes that exchange rate changes, rising labor costs, rising prices of raw materials and energy, and environmental protection pressures are all reasons for the shift of the leather industry. This is very natural, and it has already started, but this is a gradual process. At present, some enterprises in the coastal provinces and cities such as Guangdong and Zhejiang where the leather industry is developed have transferred to Jiangxi, Anhui, Henan, Guangxi, and Liaoning. However, some of the companies have only shifted the production of middle and low-end products, while high-end products, R&D, design, information, logistics and marketing still remain in the coastal areas. He said that our association encourages the transfer of enterprises, because it is conducive to balanced development across the country, but it does not encourage the transfer of tanning enterprises to the west because the environment in the western region is very fragile and the environmental pollution is too costly.

Zhejiang Xinliu Home Textiles Co., Ltd. is a company specializing in the production and sales of home textile products. Talking about current business conditions, Fu Haifang, an exporter, said that the financial crisis has a great influence on exports, but it is a low-value consumable product that cannot be missed in life. In developed countries, due to high costs, it is almost impossible to produce. Since the beginning of this year, with the gradual recovery of the world economy, export orders have started to increase. Although many are short-term orders, this year's production tasks have been scheduled for November. At present, our biggest headache is the lack of labor. Although the income of workers has increased by about 20% this year, and the average monthly income is between 2,000 yuan and 3,000 yuan, it is still difficult to recruit sufficient labor. As a last resort, our company had to process more than half of its production orders. This is also a forced industrial transfer.

Salesman of Shanghai Qibang Leather Products Co., Ltd. told Xiang Jie that the general trend of shifting the production of leather goods to low-cost areas cannot be stopped. But not less than a last resort, companies will not easily transfer. Because as a company, it is not "a person's war" but living in a relatively complete society with upstream and downstream industrial chains. For example, we manufacture leather goods such as hand straps and wallets, and there are numerous factories in Shanghai and around us that provide leather, metal accessories, and accessories. If the company relocates to the Midwest, its industrial support and service capabilities are far less than in the Yangtze River Delta. Although the labor costs in the Midwest may be lower, but with other costs such as logistics and design, the overall cost is even higher than in the Yangtze River Delta. This is also an important reason why many corporate decision makers are tangled.

Author: Asi ( "33931,24515,21644") and Jiang heart

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