At the beginning of 2010 , after the Spring Festival, a large-scale “labor shortage†broke out in the southeastern coastal areas of China, which aroused the attention of the whole society. Due to the same labor-intensive industries, hardware companies have not been spared.
It has been more than a month since the blink of an eye. A month ago, the word "labor shortage" was also reported by the media overwhelmingly. Now, the word has been difficult to trace, as if it had never appeared.
Although there are media speculations, the "labor shortage" at the beginning of the year is still genuine, and the deep-seated impact of the "labor shortage" is just beginning to be reflected...
The exhibition is the epitome of the industry. The problems and situations faced by an industry will be reflected in the industry exhibitions. The hardware industry is also in the industry that is seriously affected by the “labor shortageâ€.
“For the labor-intensive industries in the southeastern coastal areas including the hardware industry, the 'labor shortage' at the beginning of the year brought many problems: first, the increase in labor costs, and then the outflow of export processing orders from some industries. areas even foreign labor 'invasion'. "'10 China international Hardware show (CIHS'10) committee of experts said.
It is understood that China International Hardware Exhibition ( CIHS ), the world's second largest hardware exhibition , is currently the largest and most influential international hardware exhibition in China . It is held in Shanghai New International Convention and Exhibition Center every September . This year is already the first. Ten years. After ten years of hard work, the team of experts from the China International Hardware Show ( CIHS ) Organizing Committee has a good reputation in the hardware industry. They not only shoulder the promotion and organization of the exhibition, but also pay attention to the problems and opportunities arising in the development of the hardware industry. At any time, we will make suggestions for the development of China's hardware industry.
   The labor cost of “labor sequelae†rises
Looking back at the "labor shortage" at the beginning of the year, most companies have a lingering fear. Time has entered 2010 , and the economy has recovered rapidly. Many enterprises have emerged the embarrassing situation of “holding orders and no one to produceâ€. At that time, it was reported that the labor shortage of migrant workers in the Pearl River Delta region reached 2 million. Such a huge employment gap will inevitably have a major impact on labor-intensive industries, including the hardware industry.
It is understood that there are 900 million peasants in China , more than the majority of the world's population, and there is no sign of shortage in the total labor force. But with the economic and social development, the labor market is undergoing a structural adjustment. The essence of the problem of "labor shortage" is that the wages of workers are too low, the treatment is too poor, and the relevant rights and interests are not guaranteed. In Dongguan, Guangdong, where migrant workers are more concentrated, the wages given to migrant workers by most enterprises are the minimum wage set by Dongguan City – 770 yuan. Even if the workers are full of classes, they can only get about 1,200 yuan a month. Obviously such wage levels are not competitive in the labor market.
In order to be able to recruit enough workers, the first thing a hardware company can do is to raise wages, which directly leads to an increase in labor costs. Some enterprises have directly raised the basic salary of workers from more than 700 to 1,000 or even 1200 . This inevitably leads to an increase in the cost of employing people.
"Most of China's hardware companies are small in scale, and their innovation and profitability are relatively poor. In the past, they have relied on cheap labor and earned some meager profits in the export processing business. In China's export processing hardware companies, the main profit comes from domestic Outside the labor force difference.†China International Hardware Exhibition ( CIHS'10 ) organizing committee expert said, “But the rise in labor costs directly reduces the margin of profit that is not much, plus raw material prices are rising and exchange rate changes. Impact, some hardware companies will face difficulties."
"Since the wages of workers have been raised, what we have to do now is to make more rational use of the existing labor force and ensure that the company has been operating at 'full load', which requires the company to have a steady stream of orders. The best opportunity to get an order.†The expert went on to say, “China International Hardware Show ( CIHS'10 ) is the second largest hardware exhibition in the world and has a history of ten years. China International Hardware Show 2009 ( CIHS'09) A total of 38,925 professional visitors , including more than 3,000 overseas buyers , including many top overseas professional buyers. The rich professional buyer resources can provide more opportunities for hardware companies to obtain foreign trade orders to offset the cost of human resources. rise."
Outflow of orders for “work waste sequelaeâ€
The rise in human resource costs not only reduced the profit margin of China's hardware companies, but even led to the outflow of many processing orders. In the face of serious “labor shortageâ€, some enterprises “reluctantly cut love†and chose “outsourcing and ordering†– outsourcing orders that cannot be produced to enterprises with more cheap labor resources in the mainland, only earning a small part of the turnover. Spread income.
The more direct loss is from the outflow of orders from overseas. Traditionally, domestic hardware companies have participated in international competition, and the low labor cost is a “killerâ€. But now, the loss of this "killer" has directly led to a decline in the competitiveness of participating in overseas orders.
“Now some orders have flowed to other Southeast Asian countries such as Vietnam where labor costs are lower. In this case, our company must first expand the channels for obtaining orders and increase competitiveness; the other is to accelerate industrial upgrading and make itself Ability to produce more high-end products and get rid of the limitations of human resources costs.†Experts from the China International Hardware Exhibition ( CIHS'10 ) Organizing Committee said.
“At the China International Hardware Show ( CIHS ), more than 3,000 overseas buyers will provide more opportunities for Chinese hardware companies to obtain orders, and 78.7% of the buyers will come from the corporate management and decision-making levels. The main objectives include direct procurement of products and the search for OEM and Jv partners.†The expert continued, “In addition, during the exhibition, the organizers will also open up a 'new product display area' to provide a new product and new free for exhibitors. Technology display platform to strive to expand the more high-end product market and recover the loss of order outflow."
"Invasion" of foreign cheap labor "the sequela of labor shortage"
The “labor shortage†in the Pearl River Delta region has caused many Vietnamese to find ways to enter the Chinese factory to work. Recently, the continuous drought in northern Vietnam has caused many Vietnamese farmers who could be working at home to steal the Sino-Vietnamese border and flock to the Chinese mainland to find a "dream of working in China."
Vietnamese workers are popular in some parts of China. Currently, in China, wages of 800 yuan per month are basically not available to workers, while Vietnamese workers are only required to pay 500 to 600 yuan. Because in the severe drought in northern Vietnam, local workers can only earn up to 450 yuan a month .
   Violent illegal labor in Vietnam has entered China in large numbers, and factories in developed areas such as the Pearl River Delta have gradually formed a "one-stop service" in the illegal labor market to form candidates, organize entry, contact factories and pick up and drop routes.
   However, experts from the China International Hardware Exhibition ( CIHS'10 ) organizing committee reminded the majority of hardware companies that it is illegal to employ illegal immigrants. Once it is investigated by the relevant departments, the relevant workers will be repatriated to the country, and the enterprise is likely to be fined, and eventually it will be a "fundamental".
   "Our hardware business or from their own to find a cause, find a way, do not 'take risks'. This year September 28 to 30, at the Shanghai New International Convention & Exhibition Center '10 China International Hardware Show (CIHS'10) will not only For the majority of hardware companies to provide more opportunities for overseas orders, organize related 'new product display' activities, will also hold relevant forums and seminars, invite industry experts and companies to discuss how to deal with the unfavorable situation of rising human resources costs."
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