The dilemma of “indecisive” industrial transfer of leather and home textile enterprises

when labor and other costs generally rise, and the sales price of products remains unchanged, as the leader of an enterprise, do you choose to move to low-cost provinces and cities in the mainland, or do you stick to it? 1n this regard, most of the business people who participated in the China 1nternational Leather Exhibition being held in Shanghai New 1nternational Expo Center and the China 1nternational Home Textiles Exhibition held earlier said that they were hesitant

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

Su Chaoying, executive vice president of China Leather Association, believes that exchange rate changes, rising labor costs, rising prices of raw materials and energy, and environmental pressure are all the reasons for the leather industry transfer. 1t’s very natural, and it has begun, but it’s a gradual process. At present, some enterprises in Guangdong, Zhejiang and other coastal provinces with developed leather industry have transferred to Jiangxi, Anhui, Henan, Guangxi and Liaoning. However, many enterprises only transfer the production of medium and low-end products, while high-end products, R & D and design, information, logistics and marketing remain in coastal areas. He said: our association encourages the transfer of enterprises because it is conducive to the balanced development of all localities, but does not encourage the transfer of tanning enterprises to the West because the environment in the west is very fragile and the cost of environmental pollution is too high

Zhejiang Xinliu Home Textile Co., Ltd. is an enterprise specializing in the production and sales of sewing quilt and other home textile products. Referring to the current survival situation of enterprises, Fu Haifang, an export salesman, said that the financial crisis has a great impact on the export of sewing quilts, but sewing quilts are low-value consumables, which are indispensable in our life. Due to the high cost, it is almost impossible for developed countries to produce their own sewing quilts. Since the beginning of this year, with the gradual recovery of the world economy, export orders for sewing machines have begun to increase. Although most of them are short orders, this year’s production task has been scheduled to November. Now our biggest headache is the lack of labor force. Although the income of workers has increased by about 20% this year, and the average monthly income is between 2000 yuan and 3000 yuan, it is still difficult to recruit enough labor force. As a last resort, our company has to outsource more than half of the production orders for processing, which is also a forced industrial transfer

the salesman of Shanghai Qibang leather products Co., Ltd. told Xiang Jie that no one can stop the general trend of leather goods production transferring to low-cost areas. But less than a last resort, enterprises will not easily transfer. Because as an enterprise, it is not a “war of one person”, but a society with relatively complete upstream and downstream industrial chains. For example, we make leather goods such as handbags and wallets. There are countless factories in and around Shanghai that provide us with leather, metal accessories and accessories. 1f the company moves to the central and western regions, the industrial supporting and service capacity there will be far less than that in the Yangtze River Delta. Although the labor cost in the central and western regions may be lower, combined with other costs such as logistics and design, the comprehensive cost is higher than that in the Yangtze River Delta, which is also an important reason why many enterprise decision makers are entangled

by Jiang Xinhe

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