Survival Status Survey Report of Wenzhou Middle and Small Garment Enterprises

"The first one will probably stand up when it falls down"

To a certain extent, Wenzhou is a “barometer” for the development of China's private economy. Its survival status and problems encountered have certain universality and can reflect the development status of many entities in China. For many small and medium-sized enterprises in Wenzhou, they are now faced with an unprecedented "domestic and diplomatic difficulties." On the one hand, the European debt crisis continues to spread, the global economic growth slows down and export demand has dropped significantly; on the other hand, labor, raw materials, marketing, etc. With high costs, the competitiveness of enterprises and profit space are further compressed.

So, after experiencing the storm of private lending in 2011, how are the survival conditions of Wenzhou SMEs? What are the current problems and challenges? The reporter recently visited Wenzhou Longwan District, Yongjia County, Bohai Economic and Technological Development Zone and other places and conducted in-depth research on a number of small and medium-sized enterprises engaged in new industries such as shoe clothing, pump valves and other traditional industries in Wenzhou and new agriculture, environmental protection and energy conservation vehicles.

The high cost of enterprise development is facing a bottleneck From a number of companies visited by reporters, the shortage of funds, high costs and brain drain are currently three major bottlenecks in the development of Wenzhou SMEs.

“The plant is currently rented, the financial crisis has met with difficulties, and raw material prices have been rising again. It is getting harder and harder to make money.” Said the general manager of Nanjiang Group Huibao Sewing Equipment Co., Ltd. Paralyzed forest. Although the special sewing machine factory he operates has only six or seventy workers, the scale is not large, but because of the core technology of independent research and development, it has a certain reputation in the industry.

Ma Yulin told reporters that after experiencing the private lending turmoil last year, the credibility of small enterprises in Wenzhou has been significantly reduced, and the immediate consequence is that the company’s cash needs are more urgent than before. “While Wenzhou’s SMEs now need to place orders, upstream and downstream companies basically require payment of cash or cheques, and they will no longer accept acceptances or make deductions,” said Ma Zhulin.

Indeed, beginning with the Wenzhou private lending crisis in August 2011, the "domino effect" does not seem to have ended yet. According to Zhou Qingming, deputy director of the Wenzhou Banking Supervision Bureau, by February 2, 2012, Wenzhou’s problem companies, including 234 companies that went bankrupt, ran, and could not be reached, had increased by 20 from the end of last year, including 6 companies that had closed down. , running 8 roads.

The rising costs of raw materials, labor, and marketing are also important factors constraining the development of SMEs. “Our garments are mainly made of synthetic fabrics, and polyester fabrics and other synthetic fabrics are made from petrochemicals and other raw materials. Therefore, for us, the rise in oil prices is not just an increase in logistics costs. In addition, I’ve made some prediction agencies. The technical analysis shows that the cotton price is also very uncertain this year. If the United States cuts production and raises prices due to dry weather, the Chinese cotton price is likely to rise in a certain period and it will have an impact on the apparel industry.” An apparel company in the Bohai Economic Development Zone The boss is miserable for rising production costs.

“The recruitment situation after the Spring Festival is not very satisfactory. At present, only 30% of the old employees return to the factory.” The person in charge of a pump and valve company in Yongjia County told reporters that, in particular, high-end R&D personnel and managers are increasingly demanding wages. High, when business owners are unable to meet their requirements, it is easy to cause brain drain.

The rational ** away from private lending "presumably there will be a large number of enterprises that had problems at the end of last year and early this year, but now it seems that the problems have been effectively controlled." In Zhou Qingming's view, although the current state of survival of Wenzhou enterprises is still relatively severe, However, the Wenzhou economy and Wenzhou enterprises are gradually changing to a good development trend.

Last year, after Premier Wen Jiabao visited Wenzhou, the country successively introduced a series of supporting policies for small and micro enterprises, and continued to refine the financial support for small and micro enterprises, such as the credit tilt for small and micro enterprises and macroeconomic policy pre-adjustment. Fine-tuning is also mainly targeted at small and micro enterprises, which undoubtedly boosted the confidence of business owners in Wenzhou.

In an interview, the reporter learned that the banking industry in Wenzhou actively responded to the policy call and boldly innovated in the system, mechanism, and credit marketing of small business services, and increased credit support for small and micro enterprises. As of the end of December 2011, financial institutions in Wenzhou had allocated 1633.3 billion yuan of SMEs, an increase of 26% over the beginning of the year, especially in the fourth quarter of last year, SMEs increased 1.47 billion yuan, accounting for an increase in SMEs throughout the year. 40% of the amount. At present, the growth rate of the balance of SMEs in Wenzhou is second only to Hangzhou, ranking second in Zhejiang Province, and Zhejiang Province ranking first in the country.

As for the bank's support in the enterprise's difficult time, Lv Zhongke, general manager of Zhejiang Lulu Food Co., Ltd. felt deeply: “To the bank, we must provide collateral, our company has no fixed assets, and there are no previous records, so We have never thought of banking.** Last year, the credit turmoil caused the company to face operational difficulties. Huaxia Bank (600015) Wenzhou Branch not only did not reject our ** request, but also innovatively passed the credit model and provided us with 3 million yuan."

Lin Xianbin, president of Huaxia Bank Wenzhou Branch, told reporters that since last year, the shortage of funds for some small businesses and the negative impact of individual business owners fleeing to the Wenzhou economy have prevented the spread of credit risk in guarantee chains. The Huaxia Bank’s Wenzhou Branch is in a special period of time. A differentiated credit policy has been implemented. Enterprises that have normal production and operations but are tightly funded do not draw loans, do not pressure credits, and encourage preferential policies such as interest rate cuts for small businesses to help companies tide over difficulties.

Like Liao Zhongke, most Wenzhou small business owners now think of banks as the first thing they need to do, and “would not touch '***' anyway.” A person in charge of lighters in Longwan District recalled that last year In September, he had not recovered many of the documents, but also coincided with the day of loan repayment and urgently required a cash flow of 5 million yuan. At that time, the “***” organization had set a price of six points per month, but unfortunately it was time-consuming and he could only accept it. This makes the company's vitality greatly hurt, it is estimated that it will take nearly a year to get out of the vicious circle of the capital chain caused by the “***”.

In addition to the rational economy, the Wenzhou business owners have also undergone significant changes in their business philosophy.

“After experiencing the turmoil of the private lending crisis, Wenzhou enterprises have become more mature. Many business owners understand this reason. When loose monetary policy and loose macroeconomic regulation, many companies blindly and excessively expand, once they encounter tight macroeconomic controls, With the tight scale of bank credit, the capital chain is prone to problems, and now they realize that the economic cycle cannot always be on the upswing, and if it depends too much on the virtual economy and invests large amounts of money in real estate, stocks, and foreign exchange, there will certainly be problems. It is still necessary to do a good job in the main business and do a solid job in the real economy," said Zhou Qingming.

Li Yizhong, general manager of Yongjia County Kaitian Jewelry Co., Ltd., has been engaged in the commercial sea for more than 20 years. After experiencing investment in real estate and participating in capital operation, he now has the greatest experience: “It is still necessary to return to the real estate industry, but also to have a core Competitive, promising industries.” A few years ago, Li Yizhong switched from the jewelry industry of making luggage buckles, carabiner, and pet hooks to the new energy industry, and engaged in the research, development, and production of environmentally friendly garbage cleaning vehicles and environmental police vehicles. Good economic benefits.

"The new energy industry is supported by national policies. We have patents in hand. The market prospects for electric vehicle products are good. It is relatively easy from banks. The capital chain of enterprises is relatively healthy." Li Yizhong said with a smile, this year will also increase technology. R&D investment stands firm in the industry.

Liao Zhongke’s modern agricultural enterprises are seeking innovations in production models and marketing models. He explained that "the company is establishing a modern production line and cooperating with Zhejiang University to use their scientific and technological advantages, combined with the company's production and operation, to expand the varieties and grades of vegetable products, so that the whole process of vegetable products in the process of production and standardization, pollution-free To increase the added value of products, and to expand the upstream and downstream companies to achieve one-stop production and sales.”

The poor will change, the change will pass, and the general will reach. It is precisely because of the above changes that Zhou Qingming believes that "the first fall may be the first to stand up and the rise of Wenzhou will not be far behind."

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