The hottest OEM industry survey in Dongguan tonigh

  • Detail

Dongguan is not OEM tonight - OEM industry survey

Guide: in the current Dongguan first international CBD, countless cafes and small loan companies are distributed on the streets, most of which are run by the original OEM factory owners. The brilliance of OEMs is no longer there. They gather in a rush to pursue their own business logic, just as it was natural to make leather shoes and furniture in a rush

in the eyes of the outside world, Dongguan is often regarded as a prosperous metropolis on the East Bank of the Pearl River Estuary, with rapid GDP growth and extremely developed manufacturing industry. But until today, taxis here do not issue invoices

Longgang District of Shenzhen, which is also the representative of China's manufacturing industry and borders Dongguan, is filled with ferries composed of electric vehicles among rows of high-rise buildings, playing the main role in the rental market. In the night, the sound of squeaky horns came and went, ringing through the streets and alleys of Longgang

as the industrial hinterland of Shenzhen, Longgang District has not only produced the world's top 500 enterprises such as Huawei and BYD, but also gathered many OEM factories with an output value of more than 100 million, such as furniture, toys, electronics, footwear and so on. On the one hand, it is scientific and technological innovation, on the other hand, it is low-end OEM, which is seriously polarized, but it jointly supports Longgang economy. In the first half of 2015, the total GDP of Longgang District reached 111.5 billion yuan, a year-on-year increase of 10.8%, of which the added value of industries above designated size was 69 billion yuan, accounting for 62%

the output value is huge, but the profit is insignificant. With the accelerated rise of factory rent and employee wages in recent years, the net profit of traditional OEM enterprises generally fell to less than 5% or even lost money

similar contradictions and conflicts are everywhere, which seems to be a metaphor for the doubtful future of China's OEM industry

it is said that China's OEM industry is suffering from historical transformation problems. Since 2014, the Pearl River Delta region represented by Shenzhen and Dongguan has experienced another round of rumors of chairman suicide, boss runaway factory listing and auction. Dark clouds hang over the Pearl River Delta for a long time

data showed that China's official manufacturing PMI (purchasing managers' index) fell to 49.7 in August, falling below the boom and bust line for the first time in six months, the lowest level since August 2012

the OEM industry in Dongguan and other places is dominated by the outward oriented economy, and most orders come from European and American countries. Affected by the European and American economy, export tax rebates, RMB appreciation and other comprehensive factors, the upstream orders are shrinking, and the hollowing out of the industry is intensifying

at the same time, the demographic dividend that this industry once had is also receding, and its labor cost is much higher than that in Southeast Asia, South Asia and other places. According to the data released by Boston Consulting, the average cost of manufacturing in China was 5% lower than that in the United States in 2013. By 2018, the cost of manufacturing in China will be 2% to 3% higher than that in the United States

China's manufacturing industry has inevitably reached the juncture of new and old changes, among which the OEM industry is the most volatile. Dilapidation and vitality collide to create a tangled new business ecosystem, shuffling cards while moving forward

Fuchang death sample

after clothing and furniture, processing has become the largest source of orders for the OEM industry

on October 8, 2015, Shenzhen Fuchang electronics, a primary supplier of Huawei and ZTE, announced its bankruptcy due to the rupture of the capital chain, with debts of more than 500 million yuan, including 350million yuan of loans from more than 500 suppliers, 150million yuan of loans from banks, and more than 13 million yuan of wages for 3800 workers. For a time, Fuchang Electronics was blocked by suppliers and workers. Three days later, its chairman Chen Jinjin was criminally detained on suspicion of contract fraud

there is a saying that the collapse of Fuchang was foreshadowed in July 2014. In order to obtain the order of Huawei plastic shell, Fuchang electronics directly forced the other two bidding enterprises out at the supply price of zero profit. Therefore, in the next year, Fuchang Electronics will do more and lose more. Due to low technology content and limited capital constraints, extensive OEM enterprises are basically unable to undertake the manufacturing of brand all-in-one machines, and can only provide simple processing of low-end machines with meager profits

as the growth rate of the smart market slowed down in 2015, the price of low-end fatigue life improving machines further sank, and the profit space of the supply chain was compressed again. An agent factory owner once told the media that a car itself only earns 1.75 yuan, which is basically unprofitable except for labor and equipment costs. If I don't answer, someone else will answer in two hours

orders have been pressed down again and again, and we still have to rush; But at the same time, there are many small and medium-sized suppliers and trading companies who dare not accept orders or try to accept as few as possible

it is understood that the payment collection cycle of Dongguan OEM enterprises in 2014 was about 60 days, and now it has been extended to 90 days or 120 days. The longer accounting period will undoubtedly affect the capital turnover rate and operation efficiency of enterprises, so that many enterprises are in a dilemma in the face of orders

the check withdrawal period issued by many brands has also become 6 months. In this case, the contract manufacturing enterprises that are short of money have to withdraw by discounting. The bank pays the purchase price in advance on behalf of the brand and deducts the corresponding interest according to the time limit. A check of 1million yuan may reach the enterprise only 900000 yuan, or even 850000 yuan. Yan Weilu, a lawyer representing Fuchang electronics in the bankruptcy case, told

in the past year, Chen Song, the person in charge of Shenzhen chufei integration company, had the biggest experience that it was much harder to collect money than in the past. Accordingly, he was also cautious in signing contracts. In order to reduce the risk, when signing the supply agreement with new customers, Chen Song began to look for a third-party evaluation company for evaluation, and asked the insurance agency to make a contract guarantee, so he missed many orders

most of the orders of Fuchang electronics come from Huawei and ZTE, which is fairly stable, but they also began to realize that the production of all-in-one machines is gradually replacing the assembly machines, the brand concentration is getting higher and higher, and the whole OEM industry is moving towards serious polarization

Fuchang electronics once spent a lot of money to introduce two production lines to adapt to market changes in 2013, but due to the rapid renewal of electronic products, it caused overcapacity six months later

according to public information, Fuchang electronics had a revenue of 459 million yuan, a net profit of 19.05 million yuan and a debt of 590 million yuan in 2014. In the past two years, Fuchang electronics has basically relied on bank loans and arrears of payments to suppliers to maintain its operations. Some suppliers told that most of the suppliers had not settled the payment since last October, and the amount owed ranged from tens of thousands to millions of yuan

Fuchang is in urgent need of blood transfusion, but looking at the whole industry, the profit is weak and the accounting period is too long, which indirectly increases the financing cost of enterprises. While the OEM enterprises themselves have no brand advantages and technical content, and their survival is entirely dependent on the orders of upstream customers, and they are hardly favored by capital

Chen Jin checks the ambient temperature (10 (3) 5 ℃) and humidity (relative humidity is not greater than 80%) day by day. Se himself also tried to save Fuchang electronics. He transferred most of the equity of Fuchang held by himself to natural person shareholders, and the 20million yuan of cash obtained was directly injected into Fuchang electronics, but this is tantamount to a drop in the bucket in the industry

in September 2015, more than 20 suppliers jointly sued Fuchang electronics for malicious arrears of payment. Fuchang electronics and Chen Jinjin's own companies were all frozen by the court, and the debt crisis broke out

it's better to pay interest to the bank than to do OEM now. Many bosses will choose to leave this industry. Jiangguodong, CEO of Guanxiang capital, told that the investment methods of OEM bosses mainly include: first, fixed asset investment, real estate or land speculation; Second, set up small loan companies or investment companies; Third, smart hardware companies or Internet companies that turn to asset light operations, except for the matt new aluminum project

at the same time of the collapse of Fuchang, Shenzhen Zhongwei electronics, Shenzhen hongkaixing electronics, Huizhou Chuangshi technology and other well-known enterprises fell down one after another. In just three months, the number of bankrupt enterprises reached 76. It is mainly concentrated in labor-intensive industries such as ceramics, furniture, textile shoes, toys, paper packaging, electronics, led, etc

machine replacement and market rescue conjecture

a media person who has worked in Dongguan for more than ten years told him that his biggest feeling now is that there are fewer people. Twoorthree years ago, if there were no 2000 people in your factory, they might be laughed at by peers. Now the situation is that there are more than 2000 people, and others feel very terrible

the decline in factory efficiency has led to a large number of personnel loss. The population of Dongguan has shrunk from 13million at the peak to 8million now. Some people were forced to leave due to factory layoffs and closures, while some people went home for employment and entrepreneurship. At the same time, more and more people begin to consider the comprehensive factors such as working environment, working hours and welfare benefits. The younger generation of workers are even unwilling to engage in mechanical and repeated assembly line operations at all

since March 1st, 2015, the Shenzhen municipal government has raised the minimum monthly wage from 1808 yuan to 2030 yuan, and the overtime wage from 16.5 yuan/hour to 18.5 yuan/hour; The minimum wage in Dongguan was also raised from 1310 yuan to 1510 yuan. However, enterprises represented by Foxconn mostly adopt the salary system of low base salary + overtime pay, and workers can't get high wages without overtime

the improvement of the minimum wage base has also directly increased the labor cost of enterprises. When the demographic dividend on which China's manufacturing industry depends comes to an end, large enterprises such as Foxconn, on the one hand, have their eyes on South and Southeast Asian countries. According to relevant data, local labor costs are at least half lower than those in China; On the other hand, the idea of replacing people with machines to realize industrial intelligence began to surface

in 2012, the Ministry of industry and information technology issued the 12th Five Year Plan for the development of intelligent manufacturing equipment industry, and industrial robots ushered in a strategic development opportunity

Midea proposed the machine replacement plan as early as 2011. Up to now, the number of employees has been reduced from 200000 at the peak to 120000 now. Wu Shoubao, vice president of Midea household air conditioning division, believes that automation is the only trend in the future

Dongguan ruibida technology company mainly provides touch screens for Huawei, Xiaomi, Lenovo, oppo, Meizu and other brands. When it was founded in 2011, it had only twoorthree employees, with a monthly production capacity of about 100000 tablets. After the introduction of industrial robots in 2014, the monthly production capacity was increased to 8-10 million pieces, and the qualification rate of finished products was also improved. In 2015, ruibida expected annual revenue of 500million yuan, profit of more than 50million yuan, and annual growth rate of more than 80%

after another company, Dongguan Changying precision technology company, set up an unmanned factory, its operating revenue in the first three quarters was 2.743 billion yuan, an increase of 84.92% year-on-year

but the problem is not so simple. The popularity of industrial robots in the market incubates many robot manufacturing companies. There are more than 200 enterprises engaged in the robot industry in Dongguan, but few enterprises with real international influence. In 2014, China digested 56000 industrial robots, only 16000 of which came from local suppliers. Moreover, there is still a significant gap between the stability and processing accuracy of international brands, and the core technology and equipment are still dependent on imports

Ren Zhengfei, the founder of Huawei, once said publicly that industrial automation is the front station of industrial informatization, and only after informatization can it be intelligent. Many enterprises cannot achieve semi automation in industry. By implication, it seems that enterprises still have a long way to go to achieve industrial intelligence

for more than 200000 small and medium-sized OEM factories in Dongguan, the implementation of industrial automation is also difficult: first, OEM enterprises rely on demographic dividends to start, and cannot adjust the labor structure for the time being; secondly

Copyright © 2011 JIN SHI