Crisis is a difficulty and a challenge, but it is also an “arena” for those who are not afraid of wind and rain. At present, the epidemic has swept the world, and the manufacturing industry, especially foreign trade enterprises, are generally under pressure. “Economic Information Daily” reporter in the “world factory” Dongguan research found that under the impact of the epidemic, some enterprises “suffered refunds, sales shrinking”, difficulties, but there are also many enterprises strive to reach the top, looking for opportunities in the crisis, creating opportunities, turning “crisis” into “opportunity”, the supply chain is being reshaped due to the “epidemic”. The dialectic of “danger” and “opportunity” is clearly playing out in the tide of fighting against the epidemic.
Some enterprises are in “unsaturated production”
Affected by shrinking international demand and other factors, in the first quarter of this year, Dongguan’s foreign trade imports and exports were 250.21 billion yuan, down 14.3%. Many companies’ orders are short orders within three months, and many companies are anxious about the uncertainty of future orders.
According to the law of previous years, from February to May is the peak period for foreign trade enterprises to receive orders in Dongguan, however, affected by the epidemic, hundreds of countries and regions have adopted entry control measures, dozens of countries and regions have adopted control measures for Chinese inbound goods, and various trade transactions at home and abroad are generally suspended, and enterprises are in trouble.
Since March, two foreign companies have stopped or canceled orders from customers in Europe and the United States, causing factories to shut down or give employees time off. Among them, due to their own business problems coupled with the cancellation of orders in Europe and the United States, the boss of Dongguan Pan Da Toys Co., Ltd. fled without pay; Dongguan Precision Watch Co., LTD., which is based on the U.S. market, issued a notice in March that workers could choose to quit their jobs or wait for a holiday due to a lack of orders.
According to the Economic Information Daily reporter observation, as of now, Dongguan has a certain scale of enterprises only a small number of stoppage production, more orders insufficient enterprises rely on reducing labor costs, peak work and other ways to enter the state of unsaturated production, slow down the pace of production, waiting for the market to recover.
Companies with a single market in Europe and the US are the most affected. Located in Dongkeng Town, Dongguan Meiguang Glasses Products Co., Ltd. is an OEM enterprise that produces all kinds of high-grade spectacle frames and sunglasses, all products are exported. General manager Yang Xuefeng says 80% of the company’s products are sold to Europe and the United States. After the outbreak of the epidemic, 8% to 10% of corporate orders were canceled, and existing orders could only reach the end of June, “the orders for the second half of the year are still unclear and cannot be picked up.”
The person in charge of a large women’s clothing company in Humen town said that due to the lack of orders, the non-production department implemented flexible work, and the production department would arrange a holiday for a month after completing the orders on hand. “At this time in previous years, business orders can not be done, will be sent to a dozen small cooperative factories to do, these small factories are mostly small workshops of three or five people, this year can not open work.”