Someone once said that the real economy and manufacturing are the foundation of other industries. Although in the past few decades, the manufacturing industry has led China's economic development to a new level, with the passage of time, the manufacturing industry has gradually become inadequate and fell into a "dilemma", which makes manufacturing enterprises and employees very distressed. So, what is the reason why China's manufacturing industry is in trouble?
1、 All costs are rising
No matter how the manufacturing and machining industries are analyzed, the rising cost has always been the primary reason. First, with the rise of human capital, capital expenditure has increased by 12% - 15% every year. Raw materials rose, and the prices in the first half of the year and the second half of the year were quite different. Other expenses, such as rising gas, water and electricity bills, are exacerbating the difficulties of manufacturing development. Moreover, the rise in house prices has led to the rise in factory rental prices, coupled with the cost of logistics, each of which is very distressing for small and medium-sized manufacturing enterprises.
2、 Financing difficulties
Rising costs require more money. Banks have a lot of requirements in terms of lending, and it takes a long time to wait for approval. Generally, after the loan is approved, the managers of machining enterprises also think of other ways to raise money. Most of the money borrowed by this "other way" has high interest, so the direct result is that the cost is increased again and the profit is reduced.
3、 Labor transfer
Many employees on the production line of manufacturing industry will switch to other jobs because of low wages. However, due to the pressure of its own loans, the manufacturing industry is unable to bear the high wage standard of employees. Therefore, the manufacturing industry is short of people but unable to employ people, which has brought many problems to the development of machining enterprises.
4、 Damage of the real estate industry to the real economy
One data shows that China's GDP was 67trillion last year, and the income from land sales was 3.4 trillion. Among the house prices, the land price mainly accounts for 30%. At the same time, coupled with intermediaries, decoration, household appliances and furniture, it also drives other related industries. In this way, real estate investment accounts for more than 45% of GDP. It can be seen that the impact of real estate on the manufacturing industry is not just rent.
5、 Low social status
In China, people engaged in the real economy are often ridiculed by people engaged in emerging industries. Moreover, many people will feel that the manufacturing environment is dirty and messy, and the boss's quality is low. In fact, the real situation is not the case. In China, manufacturing has created many jobs and maintained 70% of China's labor force.