The Cost Of Labor In Quanzhou Footwear Industry Is Approaching The "Critical Point".

In February 17th, the shortage of labor in spring will definitely affect the harvest of autumn.

Since the problem of employment has become a "magic spell" on the head of a company, how to solve the curse is always a headache.

As the experts point out, on the one hand,

Needless to say, a year's plan is in this spring.

[reporter survey] structural lack of work spread to universal job shortage

"Information from the Labor Department of Quanzhou, the number of labor demand for post spring enterprises is around 1 million 600 thousand, and the employment gap is at least 150 thousand," he said.

"I have only recruited one worker in two days."

Talking about the recruitment situation in these days, the recruitment manager of Jinjiang Lao Zhi Zhi TPU manufacturing company has a face of frustration. "You see, the candidates have not recruited much."

This is more than 10 o'clock yesterday morning, Jinjiang Chen Tai Wu Qiao head, Wu Qiao head is Jinjiang's traditional recruitment market, because it is located in the middle of the two major shoe industry specialized villages of the stream side and the shore pocket, is the main base area of Chen Dai enterprise recruitment.

But in yesterday's Wu Qiao head, the reporter saw the recruitment scene was really cold, because the recruitment of workers is not many, many enterprises recruiters are intolerable "lonely", had to gather together to raise the mountain.

The same picture also appears in the labour market of Jinjiang.

Yesterday was the day of recruitment meeting held in Jinjiang's labor market, but in the recruitment area of the market, reporters saw very few people coming to apply for jobs.

Yan Yu, deputy chief executive officer of Jinjiang Huayu Weaving Co., told reporters that although the rework rate of the old employees of Huayu weaving machinery reached 90%, but because of the expansion of enterprises this year, more than 100 workers were required to be recruited. According to Huayu's regulations, each old employee could bring in 1000 yuan of cash award when he recruited new employees, but even so, there were still more than 100 employees in Huayu.

For this year's cold recruitment market, Mr. Ho, who is responsible for recruitment at the No. 16 window of the labour market, is more experienced.

According to him, the number of job hunting workers in the labour market has been reduced by at least half this year.

Over the past few days, journalists have contacted more than 20 enterprises covering textiles, shoes and clothing, food and umbrellas, and found that recruitment difficulties have become a consensus.

The figures from official data further confirm the fact that the information demand from Quanzhou's labor department shows that the number of labor demand for post spring enterprises is about 1 million 600 thousand, and the employment gap is at least 150 thousand.

In the labor-intensive enterprises such as shoes and clothing industries, the new employees who need to supplement still occupy more than 60% of the total number of employees because of the larger mobility of their employees in the industry.

Unlike previous years, since last year, the shortage of labor in spring enterprises has been spread from the structural shortage to the widespread shortage of workers. Before many years ago, because of the higher salary level and the better employment environment, there were no problems of recruiting workers. The shortage of workers mainly appeared in those small and medium-sized enterprises. However, with the large capacity expansion of many leading enterprises since last year, they also faced difficulties in employment.

The information displayed by reporters shows that after the spring tide of Listed Companies in 2009 and 2010, 2011 became the capacity expansion year for these "not bad money" listed companies.

In 2011, XTEP (China) Co., Ltd. Quanzhou factory will add 1500 people on the basis of the existing 4000 people scale.

The 31st degree (China) Co. Ltd. has planned to increase 2000 people this year with its production in the five mile Industrial Park.

The information from reporters shows that the number of new workers in Jordan, Li Lang, Fei Ke and Xi De Lang is more than hundreds of people.

On the one hand, there is a large demand for labor volume in the expansion of enterprise capacity, but on the other hand, the supply of workers is decreasing.

Liu Qingxian, vice president of XTEP (China) Co., Ltd. believes that with the development of central and Western China, the former labor force has chosen to stay in rural areas for employment or entrepreneurship. In addition, the small and medium-sized enterprises which used to be irregularities before a certain extent have vilified the overall image of Quanzhou enterprises.

At the same time, the stable labor force of the enterprise showed an aging trend. The new generation of post-80s and post-90s migrant workers had a weak sense of identity towards the traditional enterprise's single working mode, resulting in fewer and fewer human resources available to the enterprises.

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The cost of labor is approaching the "critical point".

"For this labor-intensive enterprise, the profit margin is relatively low. Once the labor cost accounts for 15% of the total cost, it is very difficult for the enterprise to maintain it.

But in fact, the proportion of manpower cost in the industry is approaching 10%.

Under the background of universality and lack of work, salary increase has become the first magic weapon for many enterprises to sacrifice.

According to the reporter, although faced with recruitment difficulties, but from the perspective of industrial structure, those industries with high energy consumption, low profits and low employee income have become difficult recruiting enterprises, while the enterprises with better treatment have a significantly higher rate of re employment after the holidays.

According to Yan Wenming, Huayu weaving has been able to get a higher rework rate, thanks to the fact that their enterprises have given higher treatment to the old employees.

The reporter from the Huayu weaving recruitment leaflet saw that the company's skilled workers earn more than 3500 yuan per month, and even the new employees, the probation period salary is 2000 yuan.

But even Huayu weaving enterprises have to raise their wages again under the pressure of recruitment difficulties.

According to Yan Wenming, the salary increase of Huayu weaving is around 10% this year.

Among the many enterprises that journalists contacted, Huayu weaving is the lowest wage raising company.

Reporters visited the more than 10 enterprises of Chen Tai Wu Bridge, the lowest minimum wage of general practitioners was above 1600 yuan, compared with previous years, the increase was over 200 yuan, while some enterprises' single process labor price rose even more than 50%. In general, this year, most enterprises' wage increase has exceeded 20%.

The pressure of large salary increase on enterprises is self-evident. Zheng Meifen, assistant director of the wild Leopard Group, told reporters that in the shoe and clothing industry, the proportion of labor cost in previous years was mostly between 8%~12%, and the brand enterprises were low, about 5%~8%. But after 2010 "raise year", the ratio of labor cost was much higher than that. The labor shortage in recent years has increased the labor cost of the whole industry by 30% annually.

"Our company's labor cost now accounts for 13.5%," nearly double that of 2004.

Mr. Zhou, who has served the textile industry for many years, told reporters that the textile industry is in the era of low wages, that is, before 2004, labor costs accounted for about 7% of the total cost. In 2009 and 2010, many enterprises repeatedly raised their salaries. For this labor-intensive enterprise, the profit rate was relatively low. Once the labor cost accounted for 15% of the total cost, it would be very difficult for enterprises to maintain it.

But in fact, the proportion of manpower cost in the industry is approaching 10%.

Obviously, the "critical point" of labor cost that different enterprises can bear is different, but the increase of labor cost and the erosion of corporate profits are obvious.

A Quanzhou listed company report shows that the company's revenue in the first three quarters exceeded 260 million yuan, but its net profit was only 8 million 340 thousand yuan.

The company has more than 1000 employees, conservatively estimated that this year, every worker raises 300 yuan a month, the first three quarters, only a salary increase, the company's net profit will be reduced by nearly 3 million yuan.

[expert forewarning] Quanzhou must make a pass.

"The speed of Quanzhou's industrial upgrading will have to run with hollowing out, and labor shortage is forcing many Quanzhou enterprises to accelerate the pace of moving inland."

There are indications that a new round of labor shortage may again have a far-reaching impact on Quanzhou's industrial upgrading.

Lv Qinghua, director of the Fujian business research center, School of business administration, Huaqiao University, believes that the sharp rise in wages caused by the shortage of labor shows the end of the demographic dividend era, the end of the cheap labor era, and the end of the Quanzhou economic development model supported by cheap labor force.

Lv Qinghua believes that, like Guangdong and Jiangsu and Zhejiang, the prosperity of Quanzhou's manufacturing industry is largely based on cheap labor and lacks the power of pformation.

In fact, the shortage of migrant workers in 2004 has already been an early warning for spring enterprises, but at that time the external environment was still good, and the manufacturing industry in Quanzhou had not yet developed to the extent that no pformation would be difficult to sustain.

The economic crisis of 2008 made 2009 the most difficult year after entering the new century. At that time, a large number of enterprises went bankrupt, and pformation was once a popular phrase.

Regrettably, when the economy began to recover, some enterprises returned to their knees at the last gasp, and after the most difficult time, they again threw the two words of "pformation" behind their heads.

Experts believe that this year's "labor shortage" once again sounded the alarm for these enterprises.

"Labor shortage" has prompted enterprises to raise workers' wages to recruit people. In order to ensure profits and raise labor costs, the only choice for enterprises is to increase the added value of products, or to increase mechanical operations and reduce the number of workers. Both of them push technological upgrading of enterprises, which will gradually promote the upgrading of Quanzhou's manufacturing industry.

At the same time, the speed of Quanzhou's industrial upgrading will have to run with hollowing out. Labor shortage is forcing many Quanzhou enterprises to accelerate the pace of moving inland.

In February 13th, a heavyweight business group in Suzhou, Anhui, "airborne" Quanzhou, launched a lobbying campaign for many spring enterprises. In fact, in recent months, similar business groups, Quanzhou textile and Garment Association Secretary General Shi Zhengzhi has received fewer than 10.

In his words, unlike in previous years, the regional merchants group and Quanzhou spinning and weaving enterprises are slowly changing from "single love" to "mutual affection and joy". Since last year, many executives of textile and garment enterprises have been inspecting various parts of the central part of the country to find suitable layout for expansion.

Accelerating migration also spread from the textile and garment industry to other fields.

It is understood that from this year, shoe manufacturers including XTEP and the company have also set up factories outside the province.

In the view of Zhao Jianhe, chairman of Green group, recruitment difficulty is the reason why many enterprises are speeding up outward expansion. "The workers in Quanzhou will only get smaller and fewer, and now we can only expand to areas with abundant labor resources".

Of course, the accelerated relocation of enterprises has exacerbated the concerns of further hollow industries in Quanzhou. A person from the Quanzhou Development Research Center told reporters that many enterprises have moved their headquarters to Xiamen before. Now, manufacturing links are also moving to the outside world. Quanzhou's traditional manufacturing industry will be more difficult, and it may become hollow like Taiwan.

"How to accelerate the speed of industrial upgrading and how to win the hollowing out will be an important step in Quanzhou's manufacturing industry."