"The oldest kind" still hampers the development of hardware companies in 2011

Since 2010, the rise in ***, raw material prices, and rising labor costs have had a lot of impact on the business environment of the company. However, when the author interviewed some of Yongkang's foreign trade export companies, most of the companies are still optimistic about the export environment next year.

Question 1

Corporate profit compression "is not without orders, but we dare not take orders." A number of corporate executives invariably repeat the fact that at present companies are suffering from the dual losses caused by exchange losses and a significant reduction in exports.

Some foreign traders have complained that the company does not allow for long-term orders, especially long-term exports to Europe and the United States, emphasizing that some short-term orders will be accepted. This is because companies are mainly concerned about the loss caused by exchange rate conversion and the reduction of profit margins. Some companies even believe that as the current operating environment continues to develop, the survival of enterprises will be severely challenged.

Response: Increase the contract down payment ratio In response to this problem, some foreign trade managers proposed: “You can increase the down payment ratio of the contract to reduce the risk of exchange rate changes and prevent exchange losses. If the contract down payment rate is increased from the previous 5%-20% To 30% to 40%.” Some companies have also proposed to specify the limits of appreciation in the contract. If the limit value is exceeded, the export price of the product will be adjusted accordingly.

In addition, there are experts suggest that companies can carry out ** switch, return ***** in advance, and then into the United States **; using financial instruments to hedge against exchange rate risks, forward transactions, early lock forward exchange rate; commodity trading China strives to use *** settlement.

In addition, companies can actively explore new international markets, speed up the development of new non-US dollar settlement international markets, and at the same time accelerate the transformation and upgrading of products, optimize the settlement of export products, improve the technological content of products, create their own export brands, improve the company's core competitiveness .

Question 2

The increase in production costs "This year's increase in raw materials far exceeds the forecast at the beginning of the year. Our company's profits haven't happened much since the financial crisis began in 2008." A number of companies said that the continuous increase in raw material prices has led to increased production costs and profitability for enterprises. Problems such as narrowing, declining product competitiveness, increased pressure on capital turnover, and difficulties in purchasing.

This year, raw material price increases ranged from 20% to 60%, and some raw materials reached 100%. Such as aluminum ingots, strips, the average increase in more than 35%, copper, zinc and other prices rose by 60% -70%, plastic even rose more than 100%.

Responsiveness: Realizing product upgrades The dramatic increase in the prices of bulk raw materials has not only directly affected the company’s costs and profits, but has also affected the market competitiveness of its own products. In response to this situation, some enterprises in the Economic Development Zone have implemented cost reduction plans, Ways such as the transformation of energy structure, reducing waste as much as possible, improving the management level and reducing the unit cost, have achieved very good results.

For the new year, some experts suggested that companies can also strengthen technological innovation, achieve product upgrading, differentiate business strategies such as branding, technology, and opening up new markets to increase product added value and profit margins; Purchase, and strive to bind with the order, reduce costs and exchange losses; expand the scale, to achieve small profits but quick turnover; improve the utilization of machinery and equipment, mechanical replacement of manual operations, efforts to reduce labor costs and other methods.

Question 3

Frequent turnover of employees The job demand gap started at the beginning of this year has continued until the end of the year. For this reason, the increase in the wages of employees this year has been more than 10%. Even so, some companies still can't keep people, and the job-hopping phenomenon of employees is relatively common, especially for those enterprises below the scale. The main reason for this problem is that today's post-80s and post-90s new generations of "migrant workers" have updated their employment ideas and are now jumping, resigning, and bargaining. To the good, they say that employees' self-protection and awareness of the legal system has improved significantly. However, some employees lack the spirit of hard work.

Response: Strengthening the construction of employment networks In response, most companies hope that government departments can further strengthen the construction of employment service networks, improve the labor market service system, and improve bottlenecks in recruitment difficulties. In addition, companies have expressed their hope that government departments can give support to tax policies and bank credit funds policies, while continuing to improve the system and create a good external environment.