China'S Textile Manufacturing Enterprises Take The Lead In Cost Pressure Relocation

It is affected by the rapid rise of domestic labor, energy, land and pportation costs, plus the pressure of overcapacity, and the low cost abroad and close to customers.

There are many reasons why preferential policies such as investment and taxation have good continuity.

Enterprises began to move out.

Manufacturing enterprises expect the government to further reduce the tax burden, reduce the cost of energy and logistics, improve the overall quality of the workforce, and enhance the competitiveness of traditional manufacturing enterprises.

At the same time, the remanufacturing strategy of developed countries led by the United States also reminds us that persisting in improving quality and efficiency is the only way to realize the upgrading and development of China's manufacturing industry.

The low cost of enterprise relocation is due to the low cost abroad.

A number of manufacturing enterprises said that the main factor of relocation is the low cost of foreign comprehensive, and the obvious advantages of raw material and energy pportation.

Cole Group Co., Ltd.

Other areas include real estate and gold jewelry, with annual sales of 3 billion 500 million yuan and annual output value of about 2000000000 yuan.

"In 2013, the problem of overcapacity in domestic pure cotton spinning is particularly serious and disorderly competition. Although we are famous brands in the province, we have some bargaining power, but the overall situation is not good, and the efficiency is significantly reduced."

Huang Guogang, director of the office of the company, said that this year we proposed the pfer of main industries and industrial pformation. At that time, we realized that it was a good investment place in the state of South Carolina. When it launched the project in South Carolina, it planned to invest 218 million yuan in total in 5 years.

Cole group's cotton textile products mainly include ring spinning and air spinning.

"The amount of cotton used in air spinning products is very large, which is a product of running volume and is not refined, which means that the cost of raw materials is very large."

Huang Guogang introduced that in the total cost of the company, the cost of raw materials was the largest, followed by electricity, labor, taxation and land.

Domestic cotton is about 15 thousand yuan per ton, and the US cotton is about 10 thousand yuan per ton, which is about 5 thousand yuan. In the country, it is industrial electricity, 7 cents per kilowatt hour, and South Carolina is 3 gross. The annual output value of 150 thousand tons is completed in accordance with the 5 year plan, and the photoelectric fee can be saved from 2 to 300 million yuan per year. From the perspective of pportation cost, the freight from Xinjiang is higher than that of the US finished product.

The labor cost is higher than that of the domestic market, but because of the high degree of automation, the amount of labor is not large.

In labor costs, 50 thousand yuan per person per person in the United States and nearly 200 thousand yuan in the United States, according to 5 years of recruitment of 500 people, the cost of labor in the United States is about 75 million yuan higher than that in the United States.

It is understood that the first phase of the Cole group has been put into operation this year, with an estimated capacity of 30 thousand tons.

"We bought about 1000 acres of land in South Carolina, using American cotton and American workers."

Huang Guogang said that the purpose of going out is to reduce the cost of raw materials. Our main customers are still in China.

According to the current development situation, the advantages of the cotton textile industry in the coastal areas have been very few. We hope that by pferring the air spinning out, the capacity of the cotton spinning will be replaced by ring spinning.

The cost of ring spinning is lower than that of air jet spinning, and it can increase strengths and circumvent weaknesses and increase the added value of products.

Zhejiang Cixi Jiangnan Chemical Fiber Co., Ltd. was founded in 2000, specializing in the production of recycled polyester staple fiber, with an annual capacity of 110 thousand tons, 65% to 70% products exported to the United States and more than 10 countries.

In June 2013, the company purchased an old factory building covering 340 acres in Chester County, South Carolina, and built 2 automatic production lines with an annual output of 50 thousand tons, employing about 170 people. It is expected to pilot production in November this year.

Sun Ya, deputy general manager of the company, said that the manufacturing cost of our industry in the US is controllable, the labor cost is about 5 times that of the Chinese factories, but the energy cost of electricity and natural gas is less than half of that of the country.

Foreign preferential policies should be used for reference.

According to the press survey, there are many reasons that lead to the relocation of manufacturing enterprises. Apart from domestic factors, some countries are close to the market, the industrial chain is gathered, and the continuity of relevant preferential policies is also an important reason.

Close to the market and industrial chain.

"The United States is the largest market country for our products. Setting up factories in the target market will help the company to develop new products, win customers and enhance market share, so as to complement each other and promote each other in two ways."

Jiangnan Chemical Fiber Co., Ltd. deputy general manager Sun Ya said.

As a leading enterprise in the glass fiber industry, Boulder Group Limited has invested $300 million to build a 80 thousand ton glass fiber production line in the United States.

In 2014, the company set up its first overseas production base in Egypt.

"The United States is one of the largest producers and consumers of glass fiber in the world. Boulders now have nearly 100 thousand tons of annual sales volume in the United States. Many large customers in the United States and factories in the United States are better served customers."

Cao Guorong, vice president of megelite group, said that the United States has the most advanced downstream application market in the world, and a large number of high-end glass fiber R & D, production and management personnel. Directly facing the market will also help promote product research and development.

The related preferential policies have good continuity.

"As far as I understand it, there has been no change in the investment environment in South Carolina. The state has always attached importance to the development of manufacturing industry.

In terms of the county where the company was located, the depression of the textile industry more than 10 years ago made the local government and people generally welcome the foreign investment, but all policies, laws and regulations had not changed.

Sun Ya said that policies have been consistently extended and linked to the actual investment amount, actual employment, real wage level and profit after operation.

Many executives said that investment in the United States should be "heavy capital", focusing on cash flow, high automation and less employment, and high energy consumption, gasoline, electricity and other energy consumption advantages are very obvious.

"Like our spinning production, the investment is very large, several billion US dollars, with less industry and higher energy consumption. We think this enterprise is suitable to go."

Huang Guogang said that from the perspective of resolving excess capacity, we also saw the hope of resolving production capacity, such as North America and South America.

The production of high-tech enterprises does not apply to other traditional labor-intensive industries to a certain extent.

In addition to the relocation of local manufacturing industries, Panasonic, Daikin, SHARP, TDK and other Japanese enterprises are planning to further promote the manufacturing base to move back to Japan.

World famous enterprises such as Nike, Foxconn, ship well motor, song Le, Samsung and so on have opened new factories in Southeast Asia and India, accelerating the pace of leaving China.

On the eve of the Spring Festival, Microsoft plans to close NOKIA Dongguan factory and Beijing factory and pport production equipment to Vietnam factory.

Expert analysis shows that the rising labor cost in China is also an important reason for the relocation of manufacturing enterprises.

Compared with the continuous reduction of China's demographic dividend and the continuous rise of labor costs, the strength of labor in Southeast Asia and other regions is increasingly prominent.

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Reducing tax burden and strengthening industrial policy pertinence

Relevant experts and directors of enterprises suggested that the government should further reduce the tax burden, reduce the cost of energy and logistics, improve the overall quality of the workforce, and enhance the competitiveness of traditional manufacturing enterprises.

According to industry analysis, for China's entire manufacturing industry, investment in the US is only a separate case.

For individual enterprises, overseas investment is a big step in their integration into the international market.

But no matter who has stepped out or plans to go out, every step needs to be cautious.

Experts have judged that the relocation of manufacturing enterprises has become a trend.

In the future, more companies will move the production base to a place where the comprehensive cost is lower.

Gan Jie, a professor at the Yangtze River Business School, said that at present, whether China's per capita income or industrialization level or urbanization rate has not reached a more advanced stage, the manufacturing industry is not only shifting to low-income countries, but also returning to developed countries.

Gan Jie has conducted a quarterly survey of about 2000 industrial enterprises since the two quarter of 2014.

The analysis found that manufacturing enterprises are mainly worried about insufficient orders, rising costs, difficulties in pformation and upgrading, and so on. The main challenges are overcapacity and rising costs.

Gan Jie said that the development of the real estate industry also had a "crowding out effect" on the manufacturing industry: the high housing prices significantly increased the land cost of manufacturing enterprises; the real estate industry occupied a lot of social capital and pushed up the cost of the whole society.

In the first quarter of this year, the balance of RMB loans of financial institutions was 98 trillion and 560 billion yuan, of which the balance of real estate loans was as high as 22 trillion and 500 billion yuan, accounting for 22.43% of the total loan balance.

According to a survey conducted by the Boston Consulting Group, the cost of manufacturing in China is close to that of the United States. The United States is carrying out the strategy of "re industrialization". Japan is also attracting the return of manufacturing industry due to currency devaluation. China's manufacturing faces dual challenges.

China's manufacturing industry is very difficult because of technological upgrading and brand building. It may pform to financial services and other industries, resulting in the phenomenon of "industrial hollowing out".

Relevant experts and business leaders suggested that the government should further reduce the tax burden, energy and logistics costs of manufacturing enterprises, improve the overall quality of the workforce, and enhance the competitiveness of traditional manufacturing enterprises.

First, strengthen the pertinence of industrial policies.

Gan Jie said that the survey found that 72% of the industrial enterprises had no investment in R & D.

In the case of weaker expectations, the multiplier effect of monetary and fiscal stimulus is not great, and the cost of policy is higher.

If the duration is too long, it is possible for people to maintain excess capacity, which is not conducive to the long-term development of the industrial economy.

In view of the fact that the international market supply and demand is better than the domestic market, reducing the exchange rate appropriately will help alleviate the pressure of overcapacity and have a certain balance effect on the domestic capital market with high valuations.

Two, China's labor cost advantage is losing, and the pformation from low-end labor to high-end skilled workers is an inevitable way out.

Sun Qunyi, Secretary of the Specialized Committee of China Labor Association, said the government should encourage and strengthen the training of high-end skilled workers.

The three is to explore targeted tax cuts and financial loans to high-quality small and micro enterprises.

Gan Jie and other experts believe that the current corporate tax value-added tax is heavier, which means that enterprises do not make profits, but also to pay taxes, may reduce the enthusiasm of private investment.

On the other hand, VAT is calculated according to the scale of production, which is easy to breed local protectionism and reduce the enthusiasm of local governments to capacity.

Therefore, for industries that represent the future direction and help employment, we should consider targeted reduction and exemption, and for surplus industries, we should reduce local governments' reliance on value-added tax.

In the long run, lowering tax burden will help private investment and consumption, but this goal needs a series of systematic reforms.

At present, the pformation and upgrading of manufacturing industry has become the trend of the times.

On the one hand, China's demographic dividend is decreasing. On the other hand, "green water and green hills" urgently needs our country to abandon the extensive development mode.

China's manufacturing industry already has the foundation of pformation and upgrading. At present, manufacturing enterprises urgently need to improve their R & D capability, increase R & D investment, and push more innovative and innovative products.