Orders increase, no profit, foreign trade companies are besieged

[China Glass Network] At present, export enterprises are facing many pressures, and their export competitiveness has declined. Among them, the rapid rise of raw materials, the appreciation of the renminbi, the rise in labor costs and the shortage of labor, and the tightness of electricity use are the operational difficulties generally reflected by enterprises.
Recently, the reporter followed the foreign trade enterprises to participate in the procurement fair held in various places and found that the number of visitors to the conference increased compared with the same period of last year. The company generally reflected that the order volume has increased significantly. However, the “happiness” of enterprises behind the growth of orders has not risen. On the contrary, the sense of crisis in the enterprise is heavy. If you can make more profits after receiving orders, a large number of enterprises have insufficient confidence.
The first phase of the 109th Canton Fair ended in popularity on the 19th. The number of overseas visitors increased by 9.05% over the same period of the previous year. The Global Sources Sourcing Fair held in Hong Kong was also popular. The President of Global Sources Exhibition Huang Tan Wei said in an interview with reporters on the 20th that as of now, the number of visitors to this year has increased by 18% compared with the same period of last year.
At the same time, many companies reported significant growth in orders. At the China Sourcing Fair, a person in charge of a health care product told reporters that orders increased by more than 20% compared with the same period last year. A Guangdong kitchenware manufacturer said that orders grew more than 50%. A survey of 1,500 export companies showed that about 80% of export-oriented export orders in March increased or remained flat.
Statistics from the Canton Fair show that as of the 18th, the total turnover of mechanical and electrical products in the first phase of the Canton Fair has exceeded US$16.21 billion, an increase of 10.9% over the previous year and an increase of 25.2% over the same period of last year. Shanghai, Tianjin and other trading groups Both reflect a significant increase in corporate transactions this year.
However, at the same time as the growth of orders, the “happiness” of enterprises has not increased. On the contrary, many companies have a deep sense of crisis. “Compared with last year, the comprehensive cost of raw materials increased by more than 10%.” Zhang Yan, manager of the export department of Ningbo Jide Electric Co., complained that the prices of raw materials and labor have risen significantly in the past year, which has brought great pressure on enterprises.
The business departments of several provinces have reported to the relevant parties that the current export enterprises are facing many pressures and their export competitiveness has declined. Among them, the rapid rise of raw materials, the appreciation of the renminbi, the rise in labor costs and the shortage of labor, and the tightness of electricity consumption are widely reflected by enterprises. Business difficulties.
A survey of 1,500 companies at the end of March showed that 74.5% of employees' wages increased compared with the same period of last year. Among them, 26.2% of employees' wages rose by more than 10%, and the operating costs of enterprises increased sharply. Even so, There are still many companies that are underemployed, and 36% of them say that they are in short supply or very scarce.
A person in charge of a Dongguan enterprise in Guangdong told reporters that due to the above factors, the current order of enterprises does not necessarily mean that they earn money. On the one hand, raw material prices, labor costs, appreciation of the renminbi, etc., compress the profit margin of enterprises, on the other hand, If the employment is not met, it may also result in a breach of contract due to failure to complete the order. Very representative.
In fact, the above survey also shows that while the orders of many companies have increased, the proportion of companies with falling profits and flattening this year has reached 77%. "In the face of rising costs caused by various pressures, enterprises are close to the critical point of digestion. Many companies can only be forced to raise prices to maintain a certain profit margin." Sun Lijian, vice president of Fudan University School of Economics, pointed out that this brings The more direct impact is the decline in export competitiveness.
A previous survey by Global Sources also showed that some overseas buyers are interested in finding alternative suppliers to transfer orders to other lower-cost countries or regions, especially in the textile and apparel industry. These phenomena have begun to appear in small areas, and customers will place some orders. Transferred to neighboring countries such as Vietnam and Bangladesh.
In addition, some companies are concerned about the possible negative impact of the current international macroeconomic environment on exports. In a reporter's interview, a person in charge of a listed home appliance company said that Standard & Poor's downgraded the outlook of the US credit rating to a negative, the US's ability to cope with the deficit and the ongoing European debt crisis, the Libyan crisis, etc. What kind of impact is "not really good to say", "Now there are so many orders after a few months of getting orders."
Industry insiders analyzed that a strong sense of corporate crisis is not necessarily a bad thing. Huang Tanwei told reporters that more and more enterprises in China are eager to further explore new international markets, including emerging markets. On the one hand, they can reach more customers closer to new markets. On the other hand, Diversification of customer structure also helps companies increase profit margins by developing new products.
In addition, building a brand has become a conscious choice for a large number of foreign trade companies. At the first session of the Canton Fair, while many SMEs' profits were affected by multiple unfavorable factors, the profit margin of some industry brand companies was more than double that of non-brand enterprises.
The relevant person in charge of the Chamber of Electrical and Mechanical Industry said in an interview with reporters that due to the rising operating costs, the original development mode of foreign trade enterprises must be changed. Among them, branding is a must. In the future, enterprises without brands are likely to be out.

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