Neither The Core Technology Nor The Right To Speak In The Market: Small And Medium Enterprises: The Upward Trend Of Costs Will Be Forced To Make Concessions To Small Profits.

Pursuing profit maximization is the ultimate goal of an enterprise.

With the rising cost of financing, raw materials and labor, some of them have no core competitiveness in the market.

Huang Yuqiang, chairman of Ningbo ordi decoration materials Co., Ltd. told reporters that the cost is rising, especially the price of raw materials is increasing. The price increase factor has a great impact on enterprises.

Raw materials increased by 20% - 30% in the second half of last year. This year it has increased by 20% - 30%. Once the electricity is stopped for three days, the production can not keep up, but the wages of workers must be paid. The original fixed cost will not be reduced. For enterprises, the profit margins will be significantly thinned.

The raw materials of the company include: oxidized coal, resin, glass fiber, aluminum alloy, steel and plastic, and it has not gone up. The phenolic resin has risen from 8000 yuan / ton to 16000 yuan / ton now. Unsaturated resin has risen from 8000 yuan / ton to 14000 yuan / ton. Phenol has risen from 5000 yuan / ton last year to 15000 yuan / ton now, and has increased two times. The steel used for production has increased from 3000 yuan / ton to 6000 yuan / ton now, almost doubled.

Xia Chengrui, chairman of Zhejiang Wei Du Li Valve Manufacturing Co., Ltd., told reporters that "the main raw materials of my company are nickel, titanium and so on. Since last year, prices have risen very fiercely. Nickel materials (blanks) were 120 thousand yuan / ton last year, which rose to 200 thousand yuan / ton from April to early May, and recently dropped to 170 thousand yuan / ton. Titanium materials (sponge titanium) last year 50 thousand yuan / ton, doubled this year, and the retail price of products has not risen, which is bound to push up the operation cost of enterprises."

"Let's see for a few more months. If the raw material is going up, our products will have to be raised, but not too much, and our competitors will compete with us."

Xia Chengrui said.

Wenzhou Jida Textile Co., Ltd. is a clothing enterprise mainly engaged in the production of underwear. Last year, cotton material rose very strong, and the enterprise stored hundreds of tons of cotton. As a result, the price of cotton fell down. Only raw material storage made the enterprise lose about 2000000 yuan, and the annual sales profit of the company was only several million yuan.

Chen Cundong, chairman of the company, complained to reporters, "raw material prices are unstable, suddenly rising and falling, which has a great impact on the long-term development of enterprises.

Last year, soaring cotton prices had a great relationship with the speculation of social hot money.

But the price of raw materials is not controlled by our downstream enterprises.

According to the production process of enterprises, they must be stored for two months. Last year, only raw material storage cost me several million yuan, which means that the profits of the enterprise will soon disappear.

Coupled with the increase in financing and labor costs, how can companies get on with their days? I can't afford to pick up a large list now, just pick up small bills.

Talking about the impact of raw material prices on enterprises, Ren Danyang, director of the office of Zhejiang Guangyuan Transformer Co., Ltd. also shared the same feeling. He told reporters that the prices of raw materials such as copper, resin, silicon and other raw materials had great impact on his enterprises. Now his enterprises have to face the double pressure of the rising price of raw materials and the low price competition of downstream products.

"Now we must pay close attention to market dynamics, pay attention to the price of raw materials and the fluctuation of RMB exchange rate, so that enterprises can make product pricing guidance."

Sun Yilian, chief executive officer of Senna group, said: "our company is the top 50 in Ruian. There is no difficulty in operating capital. The biggest difficulty for us is the cost of labor and the price of raw materials."

Senna group is an export oriented shoe-making enterprise, which imports many raw materials and imports from India. Raw materials imported from Germany are imported from chemical industry. The price of imported raw materials has increased by 30%. Fortunately, the export tax rebate has increased from 11% to 17%, which has made up for some losses.

Wage increases fail to solve employment shortage

If the price of raw materials and the upstream water supply are seen as an undercurrent for drowning small and medium-sized enterprises, then the shortage of labor and the rising labor cost will make the small and medium-sized enterprises generally feel a thorny problem, and this problem is likely to exist for a long time.

Hong Mingzhi is executive vice president of Taizhou Binhai molding group. He told reporters about the difficult process of recruiting workers: our company is now in the most short of general practitioners, especially injection workers.

Before the Spring Festival, the company raised the wages of the workers by 300 yuan. After the Spring Festival, they began to recruit workers, and sent people to recruit workers everywhere in the local and other provinces and municipalities. Up to now, they are still 1/3.

In order to retain workers, the factory not only raises wages for workers, but also provides free night snack to workers every day, and sends night snack to the workshop, often changing the midnight snack pattern.

Some injection workers stayed in the factory for a few days. Our factory almost became a training base, and every day people came in and out.

"Now some general practitioners have more requirements for work, higher wages, shorter working hours and easier living."

Hong Mingzhi said.

Injection molding jobs require machines to work with people at the same time. When the machine is in operation, the personnel will follow suit. This is a skilled and mechanized action.

According to Hong Mingzhi analysis, the reason why workers can't stay is mainly because the work is too mechanized and too boring, and the injection workers are basically outsiders.

Hong Mingzhi also told reporters that in order to alleviate labor shortage, in early May of this year, the company had to let administrative personnel take turns to do injection molding workers, 16 people a day, and the administrative staff's original wages remained unchanged, and each day, the injection workers had to pay more than 100 yuan per person.

At the same time, enterprises are still recruiting people.

Starting from the Spring Festival this year, the company sent people to Sichuan, Neijiang, Guizhou and other places to recruit people, and even ran to the remote countryside to recruit people. The result is still not optimistic.

"Because some factories in the provinces and cities in China are also lack of rough workers and general workers, and the working environment is better than ours, so they do not want to come."

Hong Mingzhi worries about the future development of enterprises.

He said that it is the last resort for executives to support the workshop, not a permanent solution.

Finally, forcing the boss to spend money to install the manipulator, a manipulator is equivalent to the workload of 4 workers, but the trimming and other links also need manual labor.

Because of insufficient labor and power sluice and other factors, the annual production capacity of our enterprises will be reduced by at least 100 million yuan. If normal production is achieved, the annual sales volume can reach 300 million yuan, and the annual sales volume is only 200 million yuan.

"This situation must be changed, otherwise we can't finish the work all the year round.

If we go on like this, we will have to wait for the business to fail.

Yu Yifeng, deputy general manager of Taizhou Xinli Plastic Molding Co., Ltd. also confided to reporters that the hard work of employment was: more than 300 employees in our company and 60% to 70% employees in the field.

At present, the flow of workers on the front-line is very large. Although we have tried our best to get employees back to introduce their townships to work at the end of each year, each member has been introduced to work for more than half a year, giving each promoter a reward of 200 yuan.

Sometimes there are quite a lot of people, but some of them are of low quality and lack of technology, so it is difficult to meet the production needs of enterprises.

Mr. Ho, general manager of a small household electrical appliance manufacturer in Cixi, told reporters about similar experiences.

He said that since last year, wages have risen three times, from 2000 yuan to 3000 yuan, but still can not recruit people. Up to now, more than 20 people are still missing.

Every year we want to be able to participate in the Canton Fair, but small businesses like us can't get to the stalls. We have to pay for them every year. We bought 250 thousand booths this year, and received two orders. The result is that we can't recruit people. From last October to now we have raised 70% salaries, so we can't recruit people.

Huang Yuqiang said that the price level has been raised, and the peasant workers have to live. Their wages must be raised and labor prices must rise.

In 2005, the wages of migrant workers are 800 - 1200 yuan. Now, the ordinary workers will be more than 2000, the high four thousand or five thousand yuan, a few times over, the wages rise, and the labor cost has risen directly.

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Labor tensions similar to those in Ningbo and Taizhou are particularly prominent for Wenzhou, where private enterprises are more concentrated.

Tao Baojian, general manager of Ruili group, told reporters that the pressure of enterprise cost is labor cost first.

In 2009, compared with 2010, wages increased by more than 34% in only one year.

Among them, the wages of production workers increased by 54%, the average salary in 2010 was 2259 yuan, and in 2009 it was 1466 yuan, and the management staff increased by 34%.

And what makes people feel headache is that even high wages can't attract people.

Li Songlin, chairman of Zhejiang Feng Ye Group Co., Ltd., said, "for enterprises, the only way to retain employees is to increase wages and raise the seniority wage continuously. Now the wages of ordinary workers in our factory are not less than 3000 yuan / month, 6000 yuan to 7000 yuan, and 2000 yuan to the doormen."

Xia Chengrui, chairman of Zhejiang Wei Du Li Valve Manufacturing Co., Ltd., said that more than 100 workers in our factory accounted for 60% to 70% of the outsiders. Now the workers' monthly wages, the workshop workers are about 4000 yuan, the mechanical workers are even higher, 6000 to 7000 yuan, and even the wages of health care have risen to more than 3000 yuan.

Sun Yilian, chief executive officer of Senna group, also expressed frustration about the shortage of labor. "1500 employees of our factory are mostly field workers, and only about 12% of them are local.

At present, there are still 300 people in the gap. We can only rely on overtime work to complete the output.

Sun Yilian also pointed out that there are two problems in employment nowadays. On the one hand, some young people have little skills, but are unwilling to do manual labor and do their best to work hard. On the other hand, they want high wages and high treatment, which leads to the gap between the employers and job seekers.

From the Spring Festival so far, the company recruited 800 people, leaving 300 people behind.

"Now that there is a shortage of labor, there are more than one of my enterprises and the whole Wenzhou area has this problem.

We can only increase welfare benefits and increase corporate culture so as to attract and retain employees.

Sun Yilian said.

Lu Rongdong, general manager of Zhejiang the Great Wall commutator Co., told reporters about the dilemma of enterprise development.

These include the price of raw materials, labor shortage, labor costs, financial costs and pportation costs.

As for the difficulty of recruitment, Lu Rongdong analyzed that there are many reasons, some of which are not well educated, have poor growth environment, and have low pursuit of life goals and are not suited to modern production needs of enterprises.

"Our factory needs more than 1400 employees, and now there are 100 people missing.

We tried every means to recruit workers. We sent 3 people to Ruian to recruit workers, and 3 days to recruit 1 people to come back.

Now we do not worry about orders, but we can't produce any orders if we can't finish them.

Reporters learned in the interview that many migrant workers generally have no sense of belonging in the field, and they hope to go back to their hometown in a few years.

Wang Bin, a 21 year old worker in Ruian, worked in Anhui after graduating from high school. Now Ruian the Great Wall commutator Co., Ltd. is a general worker with a monthly salary of 2700 yuan.

He told reporters that his work during the day and night shift two hours, working hours eight or nine hours, it is not very hard, he is generally satisfied with the current income, but there are still some gap with some townships, there is pressure.

As for how long it takes to work in the factory, it is hard to say that if the old family has a better job, they will choose to leave.

"Many of my fellow townsmen are working in the field.

No money, no money.

In the eyes of many people, business is for profit and business is for profit.

But in the new pattern of international and domestic economic and environmental changes, where does the profit of small and medium-sized enterprises come from?

In the interview, the reporter learned that for the small businesses at the edge of survival, the current dilemma is comprehensive. In their own words, entrepreneurs are "Besieged everywhere", but as long as there is a certain profit margin, they must be supported.

Xu Lijun, deputy director of the Huangyan economic and Trade Bureau of Taizhou, told reporters that the shortage of employment is the most urgent problem facing enterprises at present, which will inevitably lead to a significant increase in labor costs.

Many enterprises have reflected that this year's wage level has increased by about 20% on the basis of last year, but the relative increase in the price index did not appeal to workers at all.

Similarly, due to the general increase in prices and the rising prices of raw materials, the bargaining of manufactured products is difficult to synchronize. Some old products even need to reduce prices to save the market, so most enterprises feel the cost pressure has increased significantly.

In addition, foreign trade enterprises will further narrow their profit margins due to exchange rate changes.

When it comes to corporate profits, many entrepreneurs say they are not optimistic.

Li Songlin said, "under normal circumstances, the profits of our enterprises can reach 7% to 8%, which may not be reached this year. The enterprises should repay about 30000000 yuan to the banks, about 10000000 of the workers, plus other office expenses.

If we can balance our revenue and expenditure, we will be lucky. If we fail, we will lose money. "

Sun Yilian said that raw materials rose and increased wages, the wages of employees generally rose 18.4%. Under normal circumstances, footwear enterprises can achieve 5% to 6% profit, but that is a few years ago. It is good to maintain 3% to 4% profits now.

Huang Yuqiang said that the profit margins of enterprises are relatively small now.

"Originally, the added value of my product is OK, but now the cost has gone up badly, and the added value is basically gone."

The products of Huang Yuqiang's company belong to the scientific and technological products, independently developed, so they have certain competitiveness in the market.

Like other low technology enterprises, the profits in the market are very small, so they can not afford to keep workers, so many enterprises are waiting for hope in production.

Because once the production is stopped, the consequences will be bankrupt, and then will be insolvent.

Xia Chengrui pointed out that now the profits of enterprises have dropped by half. In the past, more than ten percent, and now a small scale enterprise profit is only a few percent. The labor cost of Enterprises above designated size has increased by 20% - 30%, and now mainly depends on inventory consumption.

Some small businesses are also subject to the restriction of film production, and their enthusiasm for production is even lower.

"Private enterprises are at the bottom level, with too little spire, failure to collapse, and poor risk tolerance.

Now we are all on the road, walking on thin ice.

Lu Rongdong sighed.

Some analysts pointed out that with the rising cost of financing, raw materials and labor, the price of orders has been different for some time in a few months. The profits of production enterprises are very low, almost zero, and some are also reversed. The survival space of small and medium-sized enterprises is getting smaller and smaller.

Once the enterprise fails, it will lead to a large number of unemployed people, which will bring serious impact to the society.

Xu Lijun also stressed that the price of raw materials and wages increased significantly, while the soaring fuel prices made the price of electricity likely to rise, and the economic benefits of enterprises were challenged. Even after the overall increase in production costs, many terminal products did not dare to raise prices, and for many years they had to rely on quantity and price to win.

Enterprises obviously feel the squeeze of profit from the rise of costs, especially for some small businesses, which have little stockpiling of raw materials and can not afford to lose money. They are easily eliminated from competition or swallowed up by large similar enterprises.