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According to Wu Xiaobo's report, 247000 enterprises closed down in January February this year, including more than 30000 in Guangdong.
Many enterprises shout: either layoffs, or pay cuts, or really can't live!
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The final diagnosis is more than 700000, and entry into China is strictly controlled! Food crisis + crazy money printing, great depression? Stop work notice! Chemical giants cut production by nearly half! What's worse: all orders are suspended! The customer has stopped production! The number of confirmed cases has increased dramatically! 60 countries are in a state of emergency, and production stops! Domestic enterprises are facing the challenge of shutdown and bankruptcy again!
With China novel coronavirus pneumonia epidemic, China's economy has been stagnant for nearly a month. In 2020 1-2, the profit growth rate of industrial enterprises dropped sharply, the lowest since 1999.
According to the data released by the National Bureau of statistics on March 27, the profit of Industrial Enterprises above Designated Size from January to February decreased by 38.3% year on year, 35% lower than that of the whole year last year, 24.3% lower than that of the same period last year.
Under the outbreak, exhibitions at home and abroad have been postponed. For the industry relying on the exhibition to receive orders, no exhibition means no new orders. The cancellation of the exhibition led to a precipitous 80% drop in orders. Last March, orders were received for 16 million yuan, and this March was about 2.5 million yuan.
Notice of frequent suspension of textile clothing! Stop work notice broke the circle of friends
On March 27, a cowboy finishing factory in Zhongshan, Guangdong, issued a notice of suspension, and decided to officially stop work on March 31, and gradually settle all employees' wages.
Down stream shoe factory order drops 80%!
Nanbao resin, a world famous shoe glue factory, has also been affected. "The shoe factories are not producing any more. Of course, our glue can't be sold. The orders have been on and on." Sun Decong, chairman of Nanbao resin (China) Co., Ltd., said helplessly.
In addition, the business manager of a large foreign trade shoe factory in Wenzhou also revealed: "more than 80% of our orders have been cancelled. If the remaining orders continue to be cancelled and no new orders come in, they will close soon." At the end of February, the factory employees were recalled to work by the boss because of the backlog of orders, but they did not expect to face the risk of unemployment a month later.
Since the middle of March, some European and American customers have cancelled their orders, but they only account for less than 20% of the orders. After March 20, the number of customers who cancelled orders suddenly increased. By March 26, more than 80% of orders had been cancelled. There was no reason for cancellation that was not related to the epidemic situation. Worker's feeling: one change a day, last week's order can last to July, this week's order can only last to May. Although there are some orders coming in at present, they are all small orders, which can not meet the production demand at all.
Some large foreign trade shoe factories have begun to inform all employees that they will take unpaid leave from April to the end of may at least, and then decide whether to return to work according to the order.
Under the heavy pressure, either layoffs or pay cuts!
Many enterprises are cutting staff and salaries, encouraging employees to find their own way out. Many enterprises are cutting their arms to survive.
At present, the status quo of the whole supply chain is: suppliers dare not do it, dare not credit; factories dare not do it, nor can they buy materials in cash; foreign trade companies are in a dilemma: both factories and customers are Party B.
A common phenomenon in Wenzhou's supply chain is to allow credit. Because Wenzhou has always believed that as long as the business is done and flowing, it will have money to earn. If it is all cash, it is not conducive to the liquidity of the whole chain.
It is reported that a week ago, some shoe factories in Zhejiang, Fujian and Dongguan began to dismiss employees.
Due to the nature of key customers, all the production factors of the factory will run around several key customers. Once the production is stopped, the workers will have to support them, thus losing money every day. In fact, it's very hurt for the migrant workers to leave. Once the epidemic situation improves, it's very difficult to recruit temporary workers, but even if so, they should be let go, because they can't be supported only by the minimum wage. Now many factories that make big customer orders have begun to arrange workers to leave their posts and encourage them to make their own way. Workshop management welfare performance is cancelled, and only basic wage to guarantee life is paid. It's all about cutting meat with a quick knife. It's gone without waiting for the pain.
Under the pressure of all levels, we can only reduce the number of staff or discuss the measures of temporary salary adjustment, otherwise we can't stand it.
Some foreign trade enterprises encounter order cancellation!
Liu Chang, a second-class inspector of the Department of foreign trade of the Ministry of Commerce, said: the downward pressure on global economy and trade has increased significantly, and some foreign trade enterprises have encountered order cancellation. Novel coronavirus pneumonia epidemic has spread to more than 190 countries and regions, and the external environment of China's foreign trade development has increased, and the pressure on international trade demand has increased, Liu Chang told a news conference in March 26th. The main trading partners in Europe, America, Japan and South Korea are affected to varying degrees in terms of domestic production and consumption demand, which inevitably brings certain pressure to the normal development of China's bilateral trade. The spread of the epidemic has a phased impact on foreign trade enterprises: first, it has affected international demand. China's major trading partners have successively entered the emergency state of "anti epidemic", and foreign trade enterprises are facing the impact of weak international market demand in a short period of time;
The second is to affect international trade cooperation, the import or impact of China's intermediate products and raw materials, and then affect the export of final products; the third is to affect international trade activities, the exchange of economic and trade cooperation personnel tends to stagnate, all kinds of exhibitions and conferences are postponed or cancelled, and enterprises face problems such as ineffective traditional methods and traditional channels to obtain new orders.
Although the external environment uncertainty of China's foreign trade development is increasing, and the downward pressure of international trade demand is increasing, we should also see that China's foreign trade industry chain structure is complete and competitive, Chinese enterprises have strong innovation ability, and foreign trade enterprises have strong adaptability to turning crisis into opportunity.
These capabilities have been proven in past crises, and will certainly be tempered in this epidemic test. At present, the interests of all countries are deeply intertwined. On the one hand, the Ministry of Commerce will strengthen the research and judgment on the epidemic situation of relevant countries, especially China's key trade partners and the situation of bilateral economy and trade, increase the international cooperation against epidemic, deepen the practical cooperation of bilateral economy and trade, and try to reduce the external risks of foreign trade development.
On the other hand, it is also the most important. We will make full use of various foreign trade policies, especially policies and measures to promote accurate assistance to enterprises, such as finance, taxation, finance, export credit insurance, etc., to achieve results as soon as possible. We will support local, industrial organizations and trade promotion institutions to provide necessary legal and information services for enterprises, guide enterprises to prevent risks, and help enterprises to protect market, order and share.
Article editor: Guanghua transaction
Article source: Professor of footwear industry, senior clothing technology circle, etc
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