Bags because of high labor costs such as manufacturing or out of the pearl river delta
In southwest China guangzhou yinhe, an Austrian company has set up a factory for the production of high-end European brands ski, gerhard, lutz (GerhardFlatz) is the general manager of the factory. Encountered a problem today. He can‘t find enough skilled female sewing worker, even if he is the best technology of workers on the $1500 monthly salary - this is about eight times the heshan in the minimum wage.
Mr Lutz said during an inspection tour of heshan factory in "China‘s lack of skilled technical workers."
Between the past pattern - he is inside the most talented employees work - the Austrian explains some nagging, he will pay attention to not disclose their name and to avoid being the poacher.
Mr Lutz said with a smile: "like the NSA." He was referring to the America‘s most secret intelligence service - the national security agency (NSA).
On many like heshan city, guangdong province has become a "world factory". The other is a city like shenzhen, Huawei (Huawei) and Tencent (Tencent), and other company‘s headquarters.
ChristinaZhang came to shenzhen in 1983, there was a remote small fishing village. Deng xiaoping established China‘s first special economic zone in shenzhen, now in the past 30 years, shenzhen has developed into a bustling metropolis.
ChristinaZhang PCHInternational job in logistics company, said: "at that time most places here are paddy fields. I learned to ride a bike in a shennan road. The road without a car at the time, but now that is a main transportation."
Since deng xiaoping launched in 1979, since the economic reform, the establishment of shenzhen special economic zone, shenzhen from a small town is adjacent to Hong Kong‘s population of 30000, and gradually development for today‘s metropolis, with a population of 10 million, the per capita disposable income for the whole of China first.
Shenzhen, guangzhou, dongguan, foshan and other area is the heart of the pearl river delta cities. Total population of 56 million people of the pearl river delta to the world economy is crucial, because the bike, jeans, sex toys to the device, all sorts of products are produced here.
Dongguan city made toy, alone accounted for 30% of global toy shipments during the Christmas season. Deputy secretary of municipal party committee of dongguan Yao Kang said that consumers around the world wear jerseys and running shoes, is 20% and 20% respectively in dongguan production. As dongguan local people say: "dongguan to a traffic jam, the world will be out of stock."
A measure of the guangdong province recently, underlines the region‘s economic growth is extraordinary achievement: in 2013, guangdong economy grew by 8.5%, year-on-year GDP reached 6.33 trillion yuan ($1.05 trillion) -- a number between South Korea and Indonesia‘s GDP figures.
The pearl river delta was able to so to produce cheap goods for a long time, because millions of migrant workers has been willing to work in factories, they almost can‘t afford to buy the product. In shenzhen, the local government has announced that from February 1, 13% increase in the minimum wage, to 1808 yuan. Although shenzhen‘s minimum wage level is the highest in China, but a worker still need to take out two months ‘salary, to afford a iPadAir.
But the system is under pressure, the young Chinese shoppers, from London to guangdong, all kinds of people are affected: hire more and more difficult, salary rapidly rising day by day, raw materials, and land prices and rising currency value, the charm of the pearl river delta region for manufacturing advantage shrinking relative to other areas.
Clearly is facing the challenge of rising labor costs in the pearl river delta, guangdong wages in double-digit growth every year. This situation is unlikely to change, because China in its 12th five-year plan (2011-2015) put forward the national minimum wage standard of the average annual growth of 13% target, this is the Chinese government‘s efforts to stimulate consumption and to reduce economic dependence on investment of one of the measures.
Kuo-chuan lee, chief executive of the Hong Kong TAL (TAL) (RogerLee), said the workers‘ wages have doubled in the past five years. Tal has 11 factories in Asia, producing garments for dozens of global brand. In 2008, the company the production cost of garment factory in dongguan is half of Malaysia and Thailand factory, now the gap has disappeared.
Jing yuan group (CrystalGroup), said the endogenous cost (including salary and an appreciating yuan) in the past five years has increased by 10% to 12%. As a result, the company was forced to Paul for goods such as shirts and underwear production transfer to other areas. Jing yuan group is one of Asia‘s biggest clothing company, has 11000 workers in dongguan.
Luo Zhengliang, chief executive of jing yuan group (DennisWong) said: "our strategy is... in Vietnam or Cambodia in regions with lower labor costs, such as production. This is the reason why we can still live at present."
In jing yuan group companies moving production to southeast Asia, such as some other companies have moved to lower labor costs in mainland China. Luggage maker Samsonite (Samsonite) will be 65% of the outsourced production company in China, and in recent years many of its suppliers has moved to Shanghai in the Yangtze river delta surrounding provinces.
Samsonite‘s chief executive, Tim parker (TimParker) said: "in the past we have about 80% or 90% of the partners are in southern China, now we mainly... from eastern China procurement."
Despite rising labor costs, but for foreign companies and local manufacturers in China, it‘s not easy to want to make up my mind to leave the pearl river delta region. To without causing other costs increase, creation and the pearl river delta is the ecosystem - from the cluster of suppliers, the pass-through of shenzhen and Hong Kong port road and rail infrastructure, is very difficult.
KPMG (KMPG) consumer markets in Asia, President Nick? DE Boer ham (NickDebham), said of textile industry (for example), and other industry manufacturers, the low technical content of production to countries such as Bangladesh and Cambodia easier, even though wages in those countries is also rising. But toy manufacturing industry is not so easy to transfer, because these industries cluster survival depend on the concentration of suppliers. Mostly located in southern China toy industry.
Yvo DE Boer hamm said: "we need to install a lot of assorted accessories, it is difficult to put the whole equipment fixed, packaging, and out of China."
Even for only considering moving to inland China, rather than by overseas companies, decided to move is not easy. Tal kuo-chuan lee said his company did a survey in the five years ago, it was found that moving inland labor costs can be reduced by 15%, but the mainland‘s infrastructure level may not be in guangdong province.
For not easily migrate manufacturers, one solution is to improve the automation level. Samsonite parker says many of his Chinese suppliers did. , he said, ‘there‘s still a lot of automation, equipment used in many Chinese factories than samsonite factory in Belgium (for example) is much more humble.
Parker said: "... you will find a completely different equipment in China, it is caused by the relatively low labor costs.... With rising labor costs, all this is changing, so in our suppliers, some of the more aggressive factories to reduce Labour costs, have begun investing some of the more... the precision sewing equipment."
Dongguan local government is trying to through subsidies, to speed up the automation process of the enterprise. Deputy secretary of municipal party committee of dongguan Yao Kang DaLang knitting town as a typical of success. DaLang, he said, the factory in the town of using government money to buy the 40000 computer knitting machine, can reduce 200000 workers.
Although manufacturers in order to solve the problems of the Labour costs rising racked his brain, but the trend is still expected to continue to deteriorate, for many reasons. Wage growing part of the reason is that local governments to raise the minimum wage standard, in its economic plan from 2011 to 2015 in guangdong province is put forward in the minimum wage standard growth target of 40%. But the main reason is that more, in an increasingly tight labor market supply, factory is forced to pay higher wages to attract workers.
There were many causes of worker shortages, but the main reason is that demographic factors. Due to the adopted a policy of family planning for many years, in 2012 China‘s working-age population (aged 15 to 59) fell for the first time for many years, to 937 million, was down more than 3.45 million people a year before.
Migrant workers in his home province now have a much better job opportunities, exacerbating the Labour market supply the tense situation in the pearl river delta. These new opportunities are the result of the central government‘s policies, the policy aims to promote the development of the mainland, to cut the rich coastal areas in the mainland and the income gap. The strategy of "western development" created employment opportunities for the inland provinces, for those who are in the past the children home, to the factory in guangdong to working women, this opportunity is particularly attractive.
Manufacturers have to raise wages, another reason is that the workers are becoming more and more captious to work, because as the pearl river delta region the Labour market started to become good for workers, they have more choices. Compared with the previous generations of migrant workers, young workers are also more reluctant to engage in hard work.
