What I hear these days is almost all bad news!
Whether it is the factory on the supply side or the C-end store on the sales side, there is a feeling of turmoil.
First, let’s take a look at the recent holiday notice from a factory in Dongguan:
It is said to be a “holiday notice”, but in fact everyone knows that once the holiday is over, there will be almost no time to start working again. Saying a holiday is just the last bit of comfort given by the boss to himself and his employees.
Although this factory is not large in scale, it has existed for more than 8 years. It has been producing some small household products, mainly private models and general goods for some cross-border e-commerce customers. The boss has been talking about it before. Expanding production, but now production has not only failed to expand as planned, but has come to an end.
The company’s scheduled closure date is September 9, 2022. The next day will be our traditional Mid-Autumn Festival. For the employees of the factory, this Mid-Autumn Festival may be the most bitter one in life!
This is just one of the many pessimistic news recently. In addition to the above-mentioned factory, we have also seen the following shutdown news:
On August 29, Dongguan Kaiwei Knitting and Garment Co., Ltd. issued a “Closing Announcement”. It was unable to continue operating due to its own reasons and decided to close down from the date of the announcement.
On August 30, Dongguan Hongpeng Textile Co., Ltd. issued a “Holiday Notice”, saying that due to the severe epidemic situation, the supply of processing orders was insufficient. After research and discussion, it was decided to have a holiday from August 30, 2022 to February 9, 2023, according to the lunar calendar. Construction will start on January 18, 2023.
The list is a bit long, so I won’t list them all here…
In addition to the factories above that have announced their dissolution, other factories are also having a hard time. We are about to enter the fourth quarter, which should be the prime time for major factories to work overtime to catch up on work. However, the current situation of weak domestic demand and halved external demand has not seen any effective improvement. The remaining factories will also be walking on thin ice in the future.
Large factory industrial parks are on the verge of bankruptcy. Where should Dongguan workers go?
In the second half of this year, I have been conducting market research in the Pearl River Delta. I have investigated hundreds of large industrial parks, industrial parks, and large enterprises, as well as the current status of some of the remaining small and medium-sized enterprises in the park.
Today’s Chinese manufacturing industry is struggling and profits are too low. Some industrial zone property owners said that factories used to be crowded with people, and there would be long queues to eat in the canteen. Large enterprises also continued to drive the actual income of surrounding shopping malls and shops and rents, bringing them long-term profits. Now the factory is on the verge of collapse. If it goes bankrupt, they can only slowly leave…
I wonder when the huge crowds and busy traffic of the past will appear again? I really miss the more than ten years of starting a business here and the days when I worked here. Some business owners said that when they looked back on the past few years, profits were relatively optimistic. But now, after excluding rent, workers’ wages, water, electricity, sanitation fees, and other miscellaneous expenses, monthly profits are basically increasing every month. I was losing money until now I just can’t stand it any longer…
Many times, in order to maintain the normal operation of factory machines, even one or two cents of processing profits need to be competed with customers. If you don’t take orders, someone will take them, but think about the monthly wages that workers need to pay, and they also need to live. Thinking about this, I have no choice but to bite the bullet and humbly compete with those young people who are just starting their own businesses.
He said that the saddest and happiest days of every month were the days when wages were paid. He was happy that he finally got through this month again; the sad thing was that the workers’ wages were still a long way from being paid in full…
In addition, current enterprises feel that taxes and fees are too heavy because the original operating conditions are not ideal. Secondly, capital costs are too high, labor costs are rising, and the three major dilemmas of no longer advantages are constantly troubled.
Due to the economic depression, most companies have no business to take over. Due to the falling profits of the manufacturing industry in recent years, and the lack of sufficient attraction for capital and talents, a large number of factor resources have been separated from the real economy, and some of the existing ones are tiny. Enterprise workers are given 2-4 days off every week.
When passing by a large factory, you can barely hear the roar of machines, and the workers are basically in vacation mode.
Now that we are in an economic crisis, many large industrial parks and large-scale industrial areas are basically semi-empty, so deserted that they are almost unpopular. Some workers have paid off their salaries and are on vacation. The gates of the industrial parks are half-open and seem to be motionless.
A few days ago, I saw a message from a netizen on the Internet, which was very sad.
He said: “These few months of the epidemic have basicallyWork has not resumed, there is no work and no income, transportation has finally slowed down, and the epidemic has gotten better, but the company is gone, there is no place to work overtime, and I don’t know what to do in the future. ”
Under the rolling wheel of the times, after all, it is difficult for anyone to stay alone.