Sanitary companies generally suffer from "money shortage" and are in a difficult situation in the second half of the year

Due to the intensified market competition and the blooming of small and medium-sized sanitary ware companies, the current profitability space of enterprises is getting thinner and thinner, and the era of resources, low labor, and low environmental costs is over. The era of high production costs has already arrived. On August 23, the Deputy Minister of the Central Government and the All-China Federation of Industry and Commerce Party Committee Zeng Zhe pointed out at the seminar on Chinese private economy that the profit space of micro-enterprises is becoming thinner and thinner, and small and medium-sized sanitary ware companies are no exception.

The seminar was jointly organized by the All-China Federation of Industry and Commerce and the Jilin Provincial Government, aiming to find solutions for the development of SMEs, especially micro-enterprises.

In the first half of this year, the All-China Federation of Industry and Commerce conducted surveys on SMEs in 17 provinces including Jilin, Liaoning, and Henan. The survey found that the business environment of small and medium enterprises including cement and other industries has continued to deteriorate over 2008.

Quan Zhexi said that the survey found that SMEs face challenges such as a sharp rise in costs, a weaker profit margin, excessive dependence on resources, and a lack of key core technologies. He believes that to solve these problems, we must rely on scientific and technological progress, labor quality and management innovation and other measures to further accelerate structural adjustment and transformation and upgrading.

Businesses generally suffer from "money shortage"

Today, "the economic growth in major developed countries is sluggish, and the uncertainty in the global recovery has increased. At the same time, there are many uncertainties and uncertainties in the domestic economy." Quan Zhexi said.

According to officials from the Federation of Industry and Commerce, although external demand has been curtailed during the financial crisis in 2008, the relaxation of credit has kept corporate funds from being tight, but previously faced the dual pressures of the failure to fully restore external demand and the “money shortage”. He said that the research report showed that the situation of SMEs is even more difficult in the second half of this year. The recent closure of some companies in the southeast coast has confirmed this situation.

The Federation of Industry and Commerce learned in the survey that more than 90% of SMEs cannot obtain ** from banks, and the status of micro-enterprises is even more distressed. “SMEs can get 2 to 3 points (monthly interest) from banks* *Already quite good, the monthly interest rate of Zhejiang underground finance has even reached more than 5 points." Under the predicament, the price of the enterprise's products is difficult to increase synchronously, making profits continue to be squeezed, and a considerable part of the enterprises have suffered losses.

Challenges and opportunities coexist Cao Yuanzheng, chief economist of Bank of China, pointed out at the meeting that the future test for SMEs will continue, mainly because the entire economic environment has changed. Specifically, "the world economy will enter low-speed growth, indicating that export orientation must shift to the expansion of domestic demand; surplus labor is no longer sufficient, which means that low-cost manufacturing will no longer have a sustainable competitive advantage."

Cao Yuanzheng said, “In the future, the demographic dividend will disappear, which means that investment-driven economic growth will be weakened; energy conservation and emission reduction will become a worldwide trend, which means that the resource-consuming economy is difficult to maintain.”

In addition to these challenges, there are still many opportunities for SMEs. For example, during the “12th Five-Year Plan” period, China introduced a series of policies to better coordinate the coordinated development of urban and rural areas and accelerate the optimization and upgrading of industrial structures. Zengzhe Zheng said that these policies contain significant opportunities. Enterprises should "be good at capturing development opportunities in transforming and upgrading the manufacturing industry, cultivating and developing strategic emerging industries, accelerating the development of modern agriculture, modern service industries, and cultural industries."

How structural adjustment cuts through the many difficulties of the company, said Ai Feng, deputy director of the China Top Brand Strategy Promotion Committee, mainly focusing on two aspects. One is to increase the mode of growth from extensive to intensive, and to change the mode of economic development.

To change the status of China's “cheap wage earners”, Ai Feng pointed out that it is necessary to use two kinds of resources, one is “hard resources” and the other is material resources. The other is "soft resources", which include information resources such as information and technology. Under such circumstances, Cao Yuanzheng said that structural adjustment will become the main tone of China's economic growth in the next decade.

Quan Zhexi also stated that “accelerating the transformation of development methods has become a need for the private economy to effectively respond to the complex domestic and international economic situation; to become a private economy to meet the needs of China’s economic development stage; to become a private economy to improve its sustainable development capacity and enhance its international competitiveness. Need."

The transformation of SMEs requires project and financial support. Zhu Weihua believes that it is necessary to establish an effective way to invigorate private capital and build a new platform for the private capital market. At present, Foshan has established investment **, etc. to solve corporate financing problems.

Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology, said that in the future, it will also introduce a series of policies to support the development of SMEs, optimize the structure, and guide the development of enterprise clusters.

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