Recently came heavy news, Foxconn parent company Hon Hai Group to invest and build factories in the United States is scheduled to start in the second half of this year. Previously, its chairman, Gou, met with US President Trump in the United States in April. Gou Touming revealed in January, Hon Hai considered the establishment of a display in the United States production plant, the investment may be more than 7 billion US dollars.
Hon Hai Group, Terry Gou, Foxconn, these names together, there is no doubt that China's OEM processing industry as a landmark enterprise, the so-called OEM is the customer information and technology, you are responsible for organizing the production of processing and manufacturing. This is also the most important part of China's economy over the past decade. To say that our advantage is our labor-intensive, and our artificial cheap. To organize large-scale production, and Foxconn in mainland China has several major factories, hundreds of thousands or even millions of employees, has become a powerful processing empire.
However, this model with the rise in house prices, has come to the brink of bankruptcy. Although the industrial plant is basically local support, but the wages of workers is in the rise. Continue to be outside interference, such as next to the small factory recruitment, because it can not be the same as Foxconn package accommodation, it must give a higher salary, which affected the choice of workers, some people are willing to earn a little money, temporarily hard The So that the industry workers frequently flow. In the community with the rise in prices, all social costs are beginning to rise, young workers in order to settle in industrial cities, we must see the hope of buying a house on wages. If you do not see hope, then they will not have a sense of belonging, where the money to go wherever there, anyway, industrial workers are not high technical threshold, more are the production line of labor. Repeated training of new workers For Foxconn, the cost is undoubtedly increased.
In addition, the wages of the wages of the manufacturing workers, the basic are also more than 2,000 yuan, so in order to make more money, can only desperately to work overtime, usually overtime is 1.5 times the wages of the weekend is 2 times, before the live, so Foxconn Will let employees free overtime, and in recent years the business is not particularly good, even overtime have become a benefit, not you want to work overtime can work overtime, if not overtime, then the wages of workers suddenly less than half, or even more More, so it also caused a lot of factories have been very difficult to recruit people, but also unable to retain the stability of the people. So it becomes a vicious circle, you can help the factory to pull new workers, you have the eligibility of overtime. A good manufacturing plant, but embarked on a pyramid scheme, pull the head of the model.
So, now we find that the organization of large-scale production has become increasingly difficult, and the cost of workers more and more to the developed countries in line. Why is this happening?
First, the demographic dividend disappears, and Lewis's inflection point has emerged. No one is wrong, that is, development, can not always be a young population, and the labor force is rich. As the workers grow old, the family burden begins to emerge and the workers will ask for more benefits Treatment, and more income, and the workforce to reduce the labor force, had to be rare. Artificial wages itself is rising.
Second, competitors appear, we are the best in developing countries, the lowest cost, but now the rise of manufacturing in Southeast Asia, so that more competitors appear, we lost a steady stream of orders, like Foxconn , Lack of orders, workers can not work overtime, no overtime income will be affected. Then the basic salary can not improve it? Can not, because it will make the cost increase, China OEM manufacturing will be further loss of competitiveness.
Third, the developed countries have to grab business, after a frequent financial crisis, we all know, the manufacturing industry is the fundamental economy, it is the protection of employment, in order to stabilize their economic environment, we must increase the manufacturing industry Of the input. Therefore, the United States, Europe, Japan have increased the attractiveness of the manufacturing sector, in the global competition for high-quality manufacturing enterprises, at the tax, the cost of various concessions. Now, as Cao Dewang said, in addition to labor, the US energy, land, logistics, financial costs are probably only half of China, coupled with the US tariffs, if you finished the export of the United States, then finished the finished product price is almost the same The There are trends in key issues, China's artificial rise, land and transportation, as well as customs clearance costs will increase, then of course not as early as in the United States layout.
Fourth, the expansion of asset prices, which is the most unfortunate thing, the original Chinese manufacturing from labor-intensive should be upgraded to capital-intensive and technology-intensive enterprises, in other words we should now be developed to Gree, Huawei, Xinjiang This sophisticated business, and has the Chinese people own brand. But a few rounds of asset bubbles down, house prices skyrocketed. So that a large number of social capital all from the enterprise began to real estate. Originally used for research and development of money, all engage in real estate, and how many manufacturing in the past few years have become real estate companies, or shares of real estate. The more real estate profits, the more the industry will not make money. The more money, it is necessary to first reduce the R & D funding, which led to the value of your brand has been improved, simply do not add value to the money. Still on the old road, naturally, income is getting lower and lower, but the real estate there is the real estate, the last angry simply put more money out of real estate speculators. So the whole economy into a vicious circle.
So, on a comprehensive point of view, there are factors, there are development problems, but also our mistakes, do not have the heart to remove the real estate of this cancer, your various organs will be oppressed, do not forget the capital is profit, where there is a cost advantage , Where there is more money to earn, where he ran, you use the ethical standards of national complex is not close to him. Sometimes we have to think about, with painkillers is no problem, but also temporary measures, but we pain to fight after the time to do what? Moonlight box time back, if you do not make changes, the results still can not change.