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Analysis of hardware internal migration is not a long-term plan to transform and upgrade into a way out
The increase in costs and the decrease in profits have made labor-intensive enterprises have to try their best to deal with them. The author has noticed that internal migration, transformation and upgrading, and domestic sales are the most frequently used methods in the hardware industry in the Pearl River Delta, but in reality, the internal migration is not In the long run, transformation and upgrading are the way out, and domestic sales are different for different companies in the hardware industry. Inward relocation is only a resurgence of “Foxconnâ€, which allows more hardware companies to once again turn their attention to inland areas where manpower and land have advantages. Hardware is a labor-intensive industry, and labor-intensive industries started in Europe. When costs could not be supported, they were transferred to South Korea, Japan, and China's coastal areas. Experts analyze that as the cost rises and the company cannot support it, it will continue to migrate to Bangladesh, Vietnam, and China's inland areas. However, the period of development of the enterprise after the transfer seems to be getting shorter and shorter, and the company must prepare for the rainy day. Other outlets. Affected by the migration of some labor-intensive enterprises, some hardware companies began to look at the cheaper labor market abroad, but the final result was not satisfactory. "Although the wages there are much cheaper, but the labor efficiency is quite low, and the infrastructure is very bad, the raw materials are not matched. Considering these factors, the simple advantage of human resources will be weakened." A person in charge of a hardware company said . The person in charge also complained to the author that under the existing supporting resources and logistics conditions in Bangladesh, the products produced cannot quickly meet the needs of customers. More companies have chosen to move inward than outward migration. Some hardware companies have also begun pilot projects for inland migration. Taking into account the greater proportion of the cost of raw materials, they chose a place closer to the raw materials. "Our line, the problem facing Guangdong is that it may be necessary to leave this place to some remote places, otherwise it will be difficult to compete." Some companies said. However, the inadequacy of supporting facilities in the Mainland has also made many companies discouraged. Ye Zhenbo, manager of Runfeng Metal & Plastic Co., Ltd., said to the author, “Enterprises like ours that are completely exported are less likely to move in, because if they move to China and the West, transportation, procurement, and supporting can't keep up. Once you have a more urgent order, you will not be able to complete it.†The important factor that drives the company's internal migration – the cheap labor force will no longer exist in a few years. "Now the salary increase has become a nationwide trend." Ye Zhenbo said, "People in our industry say that if you want to move out, you will die immediately; if you move out, you will die later, and you will die sooner or later." Li Shaoxi, director of the director of Pioneer Hi-Tech (Dongguan) Co., Ltd., said, “Some companies moved back after moving in, because the logistics cost is too high, the supply of parts and components can not keep up, and the wages in the inland areas have risen after two years. "The coastal areas such as Dongguan, Guangdong are taking the road of Hong Kong 20 years ago, and the mainland is now taking the road of Dongguan. With the development of society, the development cycle of labor-intensive industries will also be shortened." Lin Xiaoning said, "We are Some inland investment can support 5 years. It is good for enterprises to actively transform and upgrade. In the case that the internal migration cannot solve the problem fundamentally, many hardware companies have chosen to increase investment in R&D and carry out transformation and upgrading. Runfeng Metal & Plastic Co., Ltd. previously produced traditional household products such as CD racks and stainless steel trash cans for home use. Under the pressure of survival, the company has begun to develop new products. According to Ye Zhenbo, in the first half of the year, the company has newly developed 15 kinds of products, which are relatively large in research and development, and will continue to research and develop new products in the future. Pioneer Electronics Dongguan Co., Ltd. has already tasted the results of transformation and upgrading. According to Li Shaoxi, the company mainly produced traditional DVDs and optical drives. Due to the financial crisis, orders have been greatly reduced. However, since the end of 2009, it has begun to seize the opportunity to switch to the production of high-definition Blu-ray DVDs, and the order volume has been fully recovered. "Because HD Blu-ray DVD has just emerged, the market space is still relatively large. The company has more orders in this regard. The current order has increased by more than 30% compared with the same period in 2008. And the high-definition Blu-ray DVD has a high unit price, so the output value has doubled." Li Shaoxi said. Turning to domestic sales companies have different attitudes Export-to-domestic sales were once considered to be an effective way for export-oriented enterprises to cope with the financial crisis, but after more than a year, the perception of this choice has diverged. A person in charge of the company told the author that from the end of 2008, the company's products began to be partially transferred to domestic sales, and now it will slowly put some energy into the domestic market. "The Chinese market is very amazing." Ye Zhenbo also said that The company is developing the domestic market in a planned manner. However, some hardware companies do not believe that export to domestic sales is a way out. In China, although hardware companies are in the extensive production stage, there are many brands. If 30% of hardware export enterprises are exported from domestic to export, serious commodity flooding will occur. Nowadays, companies are doing branding and selling domestically, and this is done as a "domestic movement". The result is very serious.