What does the collapse of Dongguan, the world’s factory, mean?
Business goes bankrupt! The boss is running away! ! The factory is closed! ! !
The recent news about the wave of bankruptcies has made people’s hearts ache and feel blocked. Dongguan’s local small and medium-sized manufacturing companies have seen a sharp decline in export orders and domestic orders have also plummeted. The production situation can be said to be very worrying. Low value-added traditional manufacturing industries, such as clothing and furniture, have been severely impacted and are facing a major crisis of total shutdown.
In the first half of 2022, forced liquidation, declaration of bankruptcy by the court, insolvency, and debt collection by creditors are happening today. According to the National Enterprise Bankruptcy and Reorganization Case Information Network, there are a total of 105,567 bankruptcy and reorganization case information, which is more than last year. During the same period, there was a surge of 31,427 items, an increase of 42%! Horrible!
There are 105,567 records of bankruptcy and reorganization case information from January to June 2022! There are 74,140 information records on bankruptcy and reorganization cases from January to June 2021! The contents of the notice are heartbreaking and cannot be saved after all!
The first half of the year can be said to be a torturous half for Dongguan as a whole. The factories around us closed down one by one, and those that still kept open were constantly planning their closures. Sadly, this was not the only one, but one of them. A large number of…
Dongguan! Dongguan! It’s all Dongguan!
Have you noticed that after the past few years, Dongguan is no longer what it used to be, and texturing, weaving, printing and dyeing are no longer what you used to be. Everything has changed, the consumption model has changed, and the sales model has also changed. If you still hold If you don’t change the old ideas and traditional models, your ending will be like the above, closing your business!
Differentiation! Differentiation! Differentiation! Make your product different from others! Say important things three times!
What you need to hear in 2022
It is really difficult to be the boss of a small and medium-sized enterprise. Let alone making money, being alive is actually a victory. It’s 2022. It’s a cliché. Let me give some advice to the owners of small and medium-sized enterprises:
1. Don’t expand blindly, no matter how good the opportunity is. Cash is far more insuring than factory machinery.
2. Compress inventory and do everything possible to compress inventory. The importance of assets in hand is ranked as cash > raw materials > finished products.
3. Foreign trade companies must do a good job in internal circulation and invest more energy in the domestic market in 2022.
4. Skilled workers are wealth. Try every means to retain every outstanding technical worker. Good technical workers are generally over 40 years old. No one among the younger generation, those born in 1995 and 2000, is willing to do this line of work, and there is simply no talent available.
5. Upgrade equipment. You can spend some money on automation transformation. In a few years, these people will retire and they may not be able to recruit people. Even if you recruit people, the cost will be extremely high.
6. Control the debt ratio and rely on loans to expand the scale, which is not necessarily a good thing. Especially for companies whose profit margins are not high, they will end up working for banks. There are too many bloody examples of this kind to list.
When the market is bad, you can practice internal strength! In this way, when the market comes, you can catch it in time and avoid being at a disadvantage.
</p
