Low-end manufacturing capacity shifts to accelerate Dongguan's furniture exports

On October 28th, the labor-intensive industry represented by light industry and textiles was once the main force of China's foreign trade export. According to various indications revealed at the 112th Canton Fair, the medium and low-end production capacity of these industries is facing increasingly prominent orders reduction and capacity shifting pressure.

Labor hardships are becoming more and more expensive

“Vietnamese workers are 600 yuan a month, and our domestic workers’ wages account for 20%-30% of the cost.” Mr. Lu, the manager of Guangdong Xiongying Group Co., Ltd., calculated the account for the reporter. In addition to workers’ wages, land costs in Southeast Asian countries are relatively low.

Cultural proximity is also an important reason why factories can move smoothly to Southeast Asia. Mr. Lu said: "There are many ceramic factories in Chaozhou that have been transferred to Thailand, Vietnam, the Philippines, and Cambodia. In addition to the relatively low cost, Chaozhou people have been doing business in Southeast Asia for hundreds of years, and they can basically communicate in Chaozhou dialect in Thailand. Taiwanese businessmen have also begun to shift their investment to Southeast Asia."

According to a survey conducted by the China Chamber of Commerce for Import and Export of Light Industrial Products and Crafts, China's light industry has shown a tendency to shift outwards, especially in some low-end processing and manufacturing sectors. “In 2008, the light industry maintained a high-speed growth throughout the year, but the volume of some industries has begun to slow down. In 2009, there was a sharp decrease.” Li Wenfeng, vice president of the China Chamber of Commerce for Import and Export of Light Industrial Products and Crafts, said.

According to survey data from the Guangdong Foreign Trade and Economic Cooperation Department, there have been 41 investment projects transferred from Guangdong to China this year, of which 15 and 13 have been transferred to Malaysia and Vietnam respectively. They are based on textiles, clothing, shoes and hats. the Lord. In recent years, Nike and other international companies have also seen the practice of transferring some of their foundry business from China to Southeast Asia. Some enterprises in China have also taken the initiative to transfer some of their production capacity to maintain international competitiveness.

"At present, China's demographic dividend window tends to close, labor difficulties and labor costs are getting worse. Our advantages are slowly disappearing." Deng Yujun, a professor at the School of Economics and Management of South China Normal University, said that at the same time, the RMB exchange rate and target market have become The factory chooses important factors for external migration.

"Compared with the electronics industry, the product characteristics of labor-intensive industries such as shoes, hats, clothing, furniture, etc. determine that these industries have high requirements for marine transportation, and it is unlikely to reduce cost pressure by transferring to the mainland. These industries are located in the global coastal area. Regional gradient transfer is a mature path for international industrial adjustment.” Deng Yujun said.

Information from Yantian Port in Shenzhen confirms this. According to the relevant person in charge, since the first half of this year, one of the indicators of the decline in the volume of transportation in Hong Kong has been the sharp decline in the export volume of furniture in Dongguan and Shenzhen. The demand for ocean transportation is also declining. “These production capacity is mostly in Southeast Asia. Transferred."

Defects in setting up factories in Southeast Asia

However, industry insiders believe that not only the medium and high-end production capacity of China's labor-intensive industries remains stable, but even the outflow of low-end production capacity will not be too fast, mainly because China still maintains the advantage of “world factory”. “There is a big defect in the establishment of factories in Southeast Asia. The industry chain is not matched. You have ceramic soil, there is no supporting refining factory, and it is useless to dig it out.” Cai Zhentong, vice chairman of Guangdong Sitong Group, said that in addition, the quality of workers It is also a big obstacle. Although the cost of labor in Southeast Asia is low, the mobility of workers is large. The practice of liquidating wages every week also affects the liquidity of enterprises, and it is also a test for the management ability of enterprises.

In Cai Zhentong's view, China still maintains its advantages in terms of investment environment, production of cost-effective products, and product diversity.

With the continuous outflow of low-end manufacturing capacity, China's foreign trade pattern is quietly shifting from quantity to price. "From the foreign trade figures this year, the growth of light industrial products is mainly driven by price. Jewelry increased by 70% from January to August, but its average unit price rose by 60%. From January to September, furniture rose by 30%, of which prices rose. 21.5%." Li Wenfeng said.

Li Wenfeng believes that China's foreign trade needs to face up to the fact that the past comparative advantages are disappearing, and new advantages have yet to be cultivated. From the price-driven model, although some well-operated companies have gained the advantage of rising bargaining through the development of new products, most of them are driven by cost.

Experts believe that China's manufacturing needs to cultivate new foreign trade growth points. "The significance of transformation and upgrading is to promote the high-end of the industrial chain, so that China's industrial sector has entered the world's advanced level." Deng Yujun said that the individual's response is to improve independent innovation and cultivate independent brands, replace low-end production capacity, and achieve product grade upgrades. In the future, this will eventually lead to the formation of mature technical capabilities and a complete development system.

Landscape Artificial Grass

Landscaping artificial grass is immune from climates, soils, water temperature and other natural conditions. Therefore, it could remain green in different season. Even during the autumn and winter, when the natural grass is withered, it could still provide you a warm atmosphere just like spring. Besides that, by referring to the principles of bionics, we successfully manufacture an artificial grass which has barely any difference to natural grass. Moreover, our turf is quite soft and full of resilience. Application Landscaping artificial grass is widely used in parks, hotels, gardens, rooftops, balconies, sides of pools, kindergarten, amusement parks and so on. It could also be used as decorations for home and sport courts.


Landscape Artificial Grass

Landscape Artificial Grass,Artificial Grass Installation,Artificial Grass Factory,Artificial Turf

JIANGSU WMGRASS CO., LTD. , https://www.wmgrasslawns.com