Why did the hottest private manufacturing enterpri

Why did a private manufacturing enterprise that has been running for decades close down

Guide: it's clear that the boss of a private enterprise has no business ability. Why is he finally facing bankruptcy? The boss' son made an in-depth summary of this: ① extremely difficult financing channels; ② soaring human costs; ③ Real estate has hit the motivation of private entrepreneurs; ④ The development of enterprises needs a long process

I saw a friend say that the enterprise drop hammer impact testing machine in Guangzhou is equipped with a buffer device to avoid damaging the drop hammer impact surface; After the experiment, the factory was closed under the condition of low profit. I have deep feelings. Here I also talk about our situation

the factory was founded by my parents in 1994. It is located in a city with a very high economic level in the Yangtze River Delta. The main business is machining. When it was founded in 1994, its fixed assets were about 2 million, and it didn't have its own plant, but the machinery value of this industry was very high, and more than 2 million were almost the price of machinery

my father used to be the deputy factory director of a state-owned enterprise with strong professional ability. From the establishment of the factory in 1994 to 2006, it maintained an annual growth rate of 15%. In 2006, the enterprise reached the peak of development, with a scale of 150 people, an annual turnover of 25million and a gross profit of about 30%

at that time, my father had the awareness of upgrading the product line and began to accumulate funds to prepare to update the production line. An imported automatic line needs about 10million. My father had about 5million spare funds when he was a space-time worker. He originally planned to go online automatically in 2007 or 2008

in 2006, the local government re planned the industrial park, which required us to move the plant. At that time, all parts of Jiangsu and Zhejiang were competing to build new industrial parks. However, the county and town finance lacked sufficient funds, so they adopted some strategies that today seem very shameless:

the local government encouraged local enterprises to move into the industrial park. However, the industrial Park was a rough workshop, which did not meet the standards of industrial workshops, let alone any decoration. What the local government promised at that time was that each factory would move into the new factory in the form of lease and pay the cost of plant reconstruction and office area decoration by itself. The local government would sell the land to each enterprise at a cheap price after the expiration of the first lease term (5 years). If you don't move, you'll see what trouble you have. It's said that the municipal government will use the original land to build a landscape project around the lake

it was the head of the local government who said this. Dozens of enterprises had no choice but to agree to move into the industrial zone. The entire relocation, plant reconstruction and plant decoration cost about 5million yuan. The slow accumulation of the enterprise for more than ten years has almost disappeared, and the plan to update the production line has been shelved indefinitely

in 2006, inflation had intensified, the price of raw materials rose on a large scale, and the shortage of migrant workers in Guangdong Province first appeared in the Yangtze River Delta. In order to keep the workers, my father gave them an average wage increase of 10% in 2006. In the spring of 2007, we directly hired buses to pick up workers from Anhui and Yancheng to work

in 2007, the price of steel and industrial oil rose, and the gross profit fell by 10 points. My father began to worry. He invested the remaining funds in the booming stock market at that time, and wanted to circle some money from it, and then loan to update the production line in 2008

as a result, after six months of capital investment, A-share fell sharply in 2007. Fortunately, the amount of capital invested is not very much, but the way to make profits through the stock market is impassable. Father can only return to the original track and slowly operate

the global economy began to decline in 2008, and the order volume of our main customer, Japan, fell sharply. My father realized that the factory might face unprecedented difficulties and began to take layoffs. At the end of 2008, one third of the workers were laid off

in 2009, it was said that private enterprises in Zhejiang began to collapse. Our original supplier, Zhejiang's microenterprises, have been suspended. An enterprise that has been supporting us for more than ten years also invited us to visit Mount Putuo. That day, they went bankrupt and liquidated, and they still owe us 50000 accounts payable for high mechanical strength. When my father went to see him, he saw the factory director, a man in his fifties, being beaten on the ground by two men in his twenties. The two young people are both debtors and owe more than 500000 yuan. My father didn't mention the 50000 according to the situation, so he bought a ticket directly

in 10 years, labor continued to grow wildly, and 2000 ordinary front-line workers could not stay. The aunt who cooks in the canteen works 4 hours a day and gives 1500 is too little. The local people are carrying out large-scale demolition. After the demolition, the local workers immediately owned several houses, and sold one to realize 5.6 million. The salary of only one or two thousand has been ignored by them. This is probably an alternative impact of the real estate industry on the physical industry

in 2011, it was rumored that the government would increase assistance to private enterprises and microenterprises, but there was only thunder, not rain. The loan standard is also very high. In the past 10 years, private lending has become popular. We have contacted some private lending institutions, and the annual interest rate is almost above 40%. It is difficult for private entities to have such a profit margin. I don't know what kind of enterprises are lending to them, but we certainly can't. In the past 10 years, labor continues to grow rapidly, and raw materials continue to grow rapidly. Low profit orders that originally did not do much should also be scrambled. There is no way, you still have to pay if you don't do labor

in 2012, there was a loss on the book, which was the first time in 16 years since the plant was opened. Moreover, labor disputes began to increase gradually, and new workers received a pay rise after two months. It takes about two months of training for workers from entering the factory to being able to produce products. Workers put forward these requirements as soon as they can produce. I know they can't help it. The wages outside are now very high. If they don't do it for us, they can do it for others. The whole society has become impetuous in the case of high inflation. Everyone wants to make fast money. You must make money faster than the depreciation of money

13 years continued to be difficult, and my father began to reform and further large-scale layoffs. The number of people fell from 100 to less than 40

it's funny to say that business is getting bigger, but we are getting smaller. We no longer have the ability to digest orders and began to make large-scale acquisitions. In other words, we began to gradually change from a production-oriented enterprise to an unlucky one, only checking. And these things must not be known by the family. When someone from a major customer came to inspect, my father asked his relatives to help, and all stood on the production line to pretend. There was no way, it was really difficult! My eyes are sour when I write

until this year, my father has not considered the problem of updating the production line, but how to arrange these backbones for them to have a good return

at the party at the end of last year, except for the two enterprises, which are the key support objects of the town government, with an annual turnover of more than 100 million, dozens of other large and small enterprises are almost facing the same dilemma. The annual meeting became a grievance meeting. In the past, these people were all people who paid attention to face and had experienced storms and were unwilling to show weakness in front of others. This time, everyone drank too much. I don't know who started first. They all joined with their hearts and lungs

I have summarized the following:

1. Financing channels are extremely difficult. Banks rarely lend to microenterprises. As far as the Yangtze River Delta is concerned, micro enterprises with an annual turnover of less than 50million are considered, but these micro enterprises bear 95% of the working population in the Yangtze River Delta. In their p-failure load, in addition to the additional classification of smoke toxicity of materials in A2, B, and C levels, and 85% of the tax, but such enterprises cannot borrow money

a large number of private enterprises in Zhejiang began to close down in 2009. Later, the bosses became smarter, borrowed a loan at a high interest before leaving, and then the whole family went abroad. This is why we have heard one after another that there are national loans in Zhejiang, and the capital chain has collapsed. And the Wu Ying case

2. Soaring labor costs. Raising wages is a good thing, but it is not a good thing if prices and wages rise together. We can accept the increase of labor cost by% every year, but it is not a jump of 30% every year. This will break the original production planning and production layout of private enterprises, and 90% of enterprises fall on the eve of the upgrading of production lines

3. Real estate has hit the motivation of private entrepreneurs. Like my father, many entrepreneurs regret not buying more suites when making money. Take a friend of my father's as an example. From 2004 to 2009, he bought two suites per year on average. After 10 years of hard life in the factory, he closed the factory directly. In 10 years, he sold two suites, each with a profit of 300%! This is a good thing for him, but is this really what our government wants to see

4. The development of enterprises needs a long process: first, we should solve the problem of survival, then gradually become bigger and stronger, starting from the low-end processing industry and gradually moving closer to the upper reaches of the industrial chain, and finally solve the independent R & D ability. No enterprise can do it in one step. Most private enterprises in China were ruthlessly strangled in the process from the first stage to the second stage. The government can't wait to kill the goose that lays the egg without raising the chicken. This pain will gradually appear in the next decade of the great depression, and officials will also be more aware of it

I don't want to complain. I just want to know how many private enterprises can survive well if entrepreneurs like my father who have created countless successful entrepreneurs have come to this stage with strong business ability and dedication