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Renminbi appreciation of hardware companies have strokes
2011-3-14 9:54:36  

    Since 2010, the appreciation of the renminbi, raw material prices and rising labor costs on the business environment, although there have been many effects, the appreciation of the renminbi is a blessing is the curse of domestic and foreign scholars have different opinions. International Mold and Hardware Plastic Industry Supplier Association Luo Baihui interview with foreign trade enterprises found that most companies are still optimistic about the export environment next year.

Phenomenon 1 corporate profit compression

    At present, enterprises are suffering from exchange losses and exports significantly reduced the double losses caused. Some foreign trade personnel to tell, and now the company will not let a long list, especially exports to Europe and the United States long single, stressed that some short-term orders. Because the main business concerns, taking into account the exchange rate after the settlement caused by the loss and profit margins narrow. Some enterprises even think that according to the current business environment development, business survival will be a serious challenge.

Response: Increase the contract down payment ratio

    In response to this problem, foreign trade managers have proposed: to improve the contract down payment ratio, to reduce the risk of exchange rate changes to prevent exchange losses. Such as the signing of the contract down payment from the previous 5% -20% to 30% -40%. There are enterprises in the contract agreed to limit the appreciation limit, more than the limit on the corresponding adjustment of product export prices to deal with. In addition, Luo Baihui suggested that enterprises can switch to the loan, the early return of RMB loans, and then replaced by US dollar loans; use of financial instruments to avoid exchange rate risk, forward transactions, ahead of the lock forward long-term exchange rate; commodity transactions in the use of RMB settlement; But also can actively explore the international emerging markets, accelerate the development of new non-dollar settlement of the international market, while accelerating the transformation and upgrading of products to optimize the export product settlement, improve the technological content of products, create their own export brands, improve the core competitiveness of enterprises.

Phenomenon 2 production costs rise

    This year, the price range of raw materials in the 20% -60% of the majority, some raw materials have reached 100%. Such as aluminum ingots, strip average increase of 35% or more, copper, zinc and other prices rose 60% -70%, plastic or even more than 100% increase. A number of enterprises said that raw material prices continue to rise, so that enterprises have increased production costs, profit margins narrowed, decreased product competitiveness, cash flow pressure and procurement difficulties and other issues.

Response: to achieve product upgrades

    Large raw material prices rose sharply, not only directly affect the cost of enterprises and profits, but also affect the market competitiveness of their products, for this situation, some enterprises in the Economic Development Zone through the implementation of cost reduction plans, energy structure transformation methods , As far as possible to reduce waste, improve management level to reduce unit costs, and achieved good results.

    For the new year, Luo Baihui suggested that enterprises can also strengthen technological innovation, to achieve product upgrading, through the brand, technology, open up new markets and other differentiated business strategy to improve product value and profit margins; export at the same time, adhere to raw materials outsourcing And to fight with the order bundled together to reduce costs and exchange losses; to expand the scale, to achieve small profits; to improve the utilization of machinery and equipment to mechanized alternative manual operation, efforts to reduce labor costs and other methods.

Phenomenon 3 staff frequency is now quit

    Earlier this year, the beginning of the employment gap has continued until the end of the year, this year, the wages of enterprises to raise wages are more than 10%. Even so, some companies still can not keep people, staff turnover phenomenon is more common, especially the size of the following enterprises. The main reason for this problem is that today's 80, 90 after the new generation of migrant workers to update the concept of employment, frequent job-hopping, resignation, bargaining phenomenon, to the good side, is the staff self-protection and legal awareness significantly improved, but There are some employees lack the spirit of hard-working.

Response: Strengthen the employment network construction

   In this regard, most companies hope that government departments can further strengthen the employment service network construction, improve the labor market service system, improve the bottleneck of recruitment problems. In addition, companies have expressed the hope that the government departments in the tax policy, bank credit policy to give support, and to continue to improve the social security system, to create a good external environment.


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