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With the rise of human capital, the Pearl River Delta is losing edge foundry, foundry enterprises are facing reshuffle

 Trends in the Pearl River Delta manufacturing enterprises pay the transformation and upgrading the investigation (on)  The Daily News on Xie Jin Zhang Jian Chao Li Yuan Qing   intern Road Tao

staff to deal with suicide, Foxconn two substantial increase in pay; to deal with employees on strike, the South China Sea Honda had to raise wages.

Foxconn caused by the tide is sweeping the entire Pearl River Delta pay to spread throughout the country, established on the basis of cheap labor in the Pearl River Delta OEM history about to end?

China Times reporter found that with the rise of human capital, the Pearl River Delta is losing edge foundry, foundry enterprises are facing reshuffle, the low value-added enterprises will close down.

pay irreversible

experience substantial pay rise to a rare peer of the doubt.

June 28 interview to the dot-com Holding Group  Shenzhen,Louis Vuitton handbag 95106_5249, Ben Deng management, he said, companies pay through scientific analysis, a gradual increase, rather than wild-type to add, this does not comply with the law firm growth.

in Shenzhen,Louis Vuitton handbag M98877_5374, who declined to be named, electronic products OEM business owners also Gou said the initiative did not understand,Louis Vuitton bag Monogram Canvas M45714, he told reporters: Gou did not know for what purpose is to combat opponents, or pass the cost to downstream products, are now hard to say. electronic products manufacturing enterprises, many of the same industry have to bear with the pay rise, otherwise staff will not agree. Meanwhile, the pay rise also other industries and even the entire Pearl River Delta foundry produces pressure.

Economic Times reporters that the salary increase is a trend, is the inevitable result of labor market adjustment.

Industrial Park in Dongguan Hou Jie, Hao Yang Cheng Shoes Co.,Louis Vuitton bag Monogram Canvas M95177, Ltd. into the personnel director told the China Times reporter: shortage of workers, we should pay to recruitment. Workers banner hanging in front of the building side. This year in April,Gucci bag New arrival 130739, the reporter once again came to Houjie, find that the situation remains the same, recruitment difficulties continue.

to Yang Jin example where the shoe business, in order to hire workers, wages for last year's general reached 1,200 yuan, 2,000 yuan technology wages. Yang Jin said: CMA and the HKTDC Hong Kong enterprises in the PRD survey conducted recently in the investigation of the 160 enterprises in Hong Kong, 150 Hong Kong enterprises that over ninety percent are experiencing labor shortages. If the rate is estimated by lack of work, lack of overall number of 29,517 workers, accounting for 160 Hong Kong enterprises in the PRD, 20.8% of the total number of staff, an average of 197 short each company workers.

high instrument that, at present, the labor market supply and demand situation in China is undergoing a fundamental change: the rural surplus labor has been limited by the unlimited supply into surplus, that does not raise wages to get workers from the countryside can be continuously supply is gone.

foundry pressure

Foxconn International recently issued a profit warning that due to price declines and product mix changes, in the first half losses will increase. As of July 5, Foxconn International's share price has grown from 18 January to 11.68 Hong Kong dollars all the way down to 5.01 Hong Kong dollars, or more than 57%.

While Foxconn International's profit warning on its pay nothing about influence, but the market is widely expected to lead to loss of pay will be further expanded.

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in Shenzhen, a company with 20,000 people scale electronics OEM business owners complained to reporters of his awkward position: profits earned by workers is very low, between 3% and 5%, wages increased by 20% then 30%, no profits in the business. most of the profit margin of not more than 10% of the average gross profit from electronic manufacturing services sector to 6.2% in 2006,Gucci Wallets 181669 1061, plummeted to less than 3% today, while the net profit of less than 1%.

on the weak,Louis Vuitton handbag M93224_3856, no strong bargaining power and fixed customers, prospects are not optimistic.

foundry bargaining with customers to pay the cost shift advocated by many outsiders, but the reporter learned that situation, even if the world's largest electronics contract manufacturer Foxconn with customers Apple bargaining difficulties also exist,Chanel bag 2.55 Logo Classic 1112, Foxconn requested transfer part of the increase of labor costs, Apple can not get a positive response.

Apple iPad tablet more than 100% gross profit margin to Foxconn represented assembly plant, and their gross margin is only 2% to 4%.

Some analysts believe that foundry companies in the industry chain, the role of brands is to help reduce costs, reduce risk, so the nature of its operations and cost minimization,Louis Vuitton bag Monogram Canvas M41428, but also determines the lower bargaining power, Foxconn OEM if required to improve profits,Gucci bag New arrival 201538PVC, customer orders will be put down to its competitors.

However, the increase in labor costs is an inevitable trend, the State Council Development Research Center of Macroeconomic Research, a research fellow Li Jianwei told China Times reporter held that, is an ongoing labor Chengbenshangsheng of Wen Ti, was sooner or later pay the things, the Pearl River Delta manufacturing enterprises will face reshuffle, some excess capacity will be eliminated, some companies will upgrade and some other companies will move out.

moving tide yet formed

following increases in pay, the Foxconn spokesman Tong Wenxin, said recently that the end of this year, the company can complete the majority of production moved north of the plan, eventually there will be only part of the production capacity in Shenzhen, Inland purpose is to reduce labor costs. It is understood that Foxconn would be relocated to Tianjin, Chongqing, Henan and other places were much lower than the minimum wage in Shenzhen.

It is reported that many companies follow suit and fought in the mainland, forming a moving locust effect. Press survey found that the Pearl River Delta have moved most foundry business is only the idea of a real move or isolated.

Management Group Ltd. Mr Tang said.

moving tide is not formed, it has also been general manager of Guangzhou, China Sun Group Deng Jinsheng's identity, he believes that opened a wide gap between salaries is not possible. in the western region, the current competition for business is far better than the Guangdong labor intense, and relatively abundant supply of migrant workers, the recent sharp rise in wages and the possibility of not too great.

also reported that the foundry is the Pearl River Delta to Vietnam, India and other countries with lower labor costs shift.

reporter found that some of the transfer to Taiwan-funded enterprises in Southeast Asia thunder, little rain, including Foxconn is to invest in Vietnam, the capital did not fully in place.

industrial enterprises unable to transfer, and international orders will be down to the local manufacturing enterprises,

high instrument that, even if there is transfer of the phenomenon, it is no big deal with China's labor quality and labor productivity, China's position in the global division of labor certainly relative to the low end can not always areas, so the world's wage earners.