Chinese footwear manufacturers are not longer low-cost? – CRI-1001 Tester manufacturer
Dongguan is a manufacturing metropolis in southern China, in the local footwear industry, the average monthly wage of 960 yuan. As one of Nike's largest contract factories, Yue Yuen Industrial is given is 1472 yuan monthly salary.
????In a lot of companies are the problem of rising costs of headaches for the industry, this gap would have been distress. But Yue Yuen Industrial is booming, a fact that may be outdoor of the Pearl River Delta, Dongguan as well as a reference for manufacturers.
????The past 5 years, China's export prices have been rising. UBS economist Jonathan – Anderson (JonathanAnderson) in a recent research report said: "(China trade) partner nation data show that in U.S. dollar terms, by 2003, imports of footwear from China , playthings, furniture and textile prices fell about 3% per year, but behind 2003, the anniversary increase to 3-4%. "
????Taking into list the cost of labor is one of the problems, and Yue Yuen Industrial and other companies face increasingly higher costs of numerous, so the price increases in recent years tin be depicted as very mild. As Taiwan's Pou Chen Group, a subsidiary listed in Hong Kong, Yue Yuen has been capable to preoccupy cost rises, which as human to understand why China's backup growth has catered some clues.
????The Chinese government last week's trade and inflation data showed that Chinese exporters is how difficult the operating environment. 11, the Chinese administration announced in February of this year's consumer cost index rose 8.7% from a year earlier, a 12-year lofty – caustic snowstorms in January of this year due to commodity shortages exacerbated at inflation. That exporters make materials aggravate, since the mid-2005,
timberland shoe, the RMB exchange rate against the U.S. dollar has risen 15%, immediately almost to crash via 7 to 1 jot.
????Inflationary oppressions in the basic stake in China, because inflation is promising to make exporters more difficult to absorb the clash of servant cost pressures. Although this year's raspy winter weather, such as seasonal elements such as a serious deformation of trade data, China in January to February's trade extra fell 29% from a year earlier to 28 billion U.S. dollars, recommending a feasible future position.
????Chairman of China equities at JP Morgan in a research report, Jing said: "We anticipate (China) in March export diagrams to rebound,
sennheiser sale, but we still expect this year's export growth will emerge more temperate slowdown … … slowdown in China's export industry is facing economic growth is one important hazard. "She referred to the reduced demand for OECD economies. On the OECD's exports account for two thirds of China's total exports.
????However, the Yue Yuen factory in Dongguan, China's export manufacture for the flexibility to provide a sufficient testify. Last year, Guangdong footwear exports increased 14.6% to 9.6 billion U.S. dollars, textile exports rose 18.4%, to 420 billion.
????Yue Yuen Industrial, and other colossal exporters to benefit from its first large scale of actions. For instance, Yue Yuen Industrial is located in Dongguan, Nike foundry affair has 27,000 employees, annual production 14 million pairs of shoes – and this is only a total digit of employees up to 10 million, larger manufacturing group a small part of total output.
????Yue Yuen Industrial mean wage higher than the industry more than 50%, but it is relatively priceless labor costs too cover the productivity incentive amounts. Most boot companies in Dongguan, the mean monthly wage is basically working hours and overtime determinations, and their overtime hours constantly exceed the legal restrict. However, Yue Yuen Industrial, the average wage is only about two-thirds of hourly wages. Nike's vice chancellor for corporate responsibility Hannah – Jones (HannahJones) said: "If you have more questions, you ambition have the quality and delivery problems."
????Yue Yuen Industrial Average pay the remaining one third, as a group from the production line to achieve the productivity and quality goals.
??These lines are modeled aboard the Toyota pioneered the "lean" manufacturing principles. Nike North Asia local adviser of compliance services Sonya – Decken – Jones (SonyaDurkin-Jones) said: "(employees) can not be a wrong chapter walk away (to another group membership) and then say farewell to it . "Nike lean ashore each production line are named" NOS "label, this is the premier letter of the Latin novusordoseclorum short, meaning" Christ Christ the new order. " This clause also appears in U.S. dollars aboard the back, may explain how it is rooted in the Nike system memory.
????Earlier this month,
five fingers vibrams, Nike executives spend 3 days with reporters visited the Yue Yuen factory in Dongguan, saying the plant is one instance of wish Nike's plenary supply necklace in China has reached such a class. Nike's supply chain, including about 180 Chinese factories, a total of 210,000 employees. One-third of all
Nike shoes made in China.
????Yue Yuen Industrial high wages the company to productivity and quality was awarded; Another convenience is that the labor market supply and demand in the most recent in a gainful environment for staff, the company's recruitment problems than those with lower wages competitors. "We have been subject to environmental challenges the industry – to provide overtime pay some of our opponents," Pou Chen Group, a director JohnsonTong said, "but the staff hopes to make money, not the (increase) in working hours."
????"In this environment, you absence to reduce the staff turnover rate," Jones joined. "Time to mart no only namely our driving coerce. If you bound from an factory to different factory, how do you effect this? This is not the pursuance of labor spend, yet rather permanence and innovation."
????The additional side of the jewelry River Delta, the private ownership of the Hong Kong shirt maker Esquel Group takes a similar viewpoint. The company's factory in Foshan employ with 26,000 workers, the company founder's daughter, Chairman Marjorie Yang,
Tods Shoes, whose customers contain Gap, JCPenney and Nike. Last year, the company produced 6,500 shirts.
????And Yue Yuen Industrial, like Esquel Group have to respond to a catena of rising costs. The company also intends to increase the cost of investment 50 million U.S. dollars to create a wash manufacturing facilities, including its own power plants and water dispose plants. It's water handling factory for sewage treatment from entire the links to the pigmenting industry.
????These investments make Esquel Group is more solid foundation in the Pearl River Delta, where there is a cloud of textile operators in the labor available to the companies. "You must pay for staff labor and knowledge," Marjorie Yang employees at the time said about her. "For us, stability is maximum essential, so we can use our management skills to handle with external problems."
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