"Floating tide" strikes small and medium-sized sanitary companies collectively in trouble

Since last week, rumors about the “closed tide” in Guangdong Dongguan have spread all over the country. After a few days, Zhejiang’s small and medium-sized enterprises’ “flood” has been reported. Every time, SMEs are in danger. To this end, the media investigated the crisis expectations caused by rumors of Dongguan's corporate closures. The survey results showed that Dongguan did not experience a large area of ​​collapse. Although the large-scale collapse did not occur, the statement “more dangerous than the financial crisis” has become the consensus of the industry, and production cuts have become a trend. "The collapse of the closure" rumors of long-term existence, but also facing the danger of fermentation. China's SMEs are an important engine for economic development. Their contribution to domestic GDP is 65%, and the number of jobs created is 80%. As a result, SMEs have been “closed by the tide” and are receiving attention from all walks of life.

So at present whether sanitary ware SMEs are also facing the risk of bankruptcy, how should we avoid these risks?

Small and medium-sized sanitary ware companies are faced with more difficult circumstances than the financial crisis affected by macro-controls such as real estate, new policies, and restrictions on purchase orders. For example, the end markets such as furniture and cabinets have continued to shrink, and external parties have encountered EU trade barriers. There is feedback from small and medium-sized sanitary ware business owners. Orders are reduced by at least 20%. At the same time, rising raw material prices, rising equipment and labor costs have also brought a lot of pressure on SMEs.

On the other hand, the bank deposit reserve ratio is not improved, the bank’s moneybags are tight, SMEs can hardly obtain funds from banks, and private lending becomes extremely crazy on the premise of economic policy tightening, and interest rates are rising steadily. The loan market is chaotic, which undoubtedly tests the viability of small and medium-sized sanitary ware companies.

"Floating tide" struck the small and medium-sized sanitary ware enterprises in a dilemma affected by various factors. The profits of some small factories in the ceramic sanitary ware industry were as low as historical lows and there were cases where orders were not met. According to informed sources, some factories planned to change hands and operate. Or shut down some production lines.

The collective dilemma of SMEs On July 27th, the National Development Institute of Peking University and the Alibaba Group released an “Investigation Report on the Management of Small Businesses and the Predicament of SMEs” for the current status of SMEs operations in Beijing. The results of the survey show that since 2010, with the changes in the macroeconomic environment, the background of monetary policies such as the continuous increase of interest rates and the increase in the reserve requirement ratio under such circumstances as the increase in costs, the appreciation of the currency, and the uncertain international environment Small and medium-sized enterprises are facing financial pressure and are still tenacious to survive and actively operate. However, the small businesses have not greatly improved their ** dilemma, and the majority of small businesses are eager for financial support. An official conclusion of this Ministry of Industry before this can confirm each other.

The research report also put forward this solution. The report said that ** can ease the current business difficulties faced by small businesses. First, a small enterprise credit support policy should be introduced to encourage financial institutions that specialize in small business credit to further increase service to small businesses; and to strengthen supervision to achieve special management of special risks. Second, we must innovate credit technology and improve the service capabilities and efficiency of small enterprise credit. Third, we must give preferential treatment to small enterprise taxation policies to help small businesses reduce operating costs.

The report also proposes that the state further standardize the financial division standards for small enterprises; clarify the support policies of financial institutions for small enterprises; guide small enterprises in standardizing finances and improve taxation policies; accelerate the construction of a social credit system and innovate credit technology.

Experts suggest that the tax burden of small and medium-sized enterprises should be reduced or exempted. "The capital turnover of small enterprises is not sensitive to macro-control monetary policy. Small-sized enterprises will not directly fail because of monetary tightening." One prominent person thinks that there are three types of small business failures. The main reasons are: First, the failure to invest in high-risk industries; Second, the normal elimination of the market, some small businesses are saturated and over-competitive industries, or low-capacity and industrial upgrades failed, and third, small companies take the initiative to stop production opportunities.

Xue Zhaofeng, a researcher and economist at the National Development Research Institute of Peking University, said at the press conference that the current national financial policy has formed two attacks on small and medium-sized private enterprises: First, it promoted the introduction of inflation, resulting in the operating costs of SMEs. Constantly soaring; Second, bank financing policies are rigid, making it difficult for small and medium private enterprises to raise funds. The solution should also at least be a two-pronged approach: First, to improve the exchange rate formation mechanism, the market rather than the policy to determine the exchange rate fluctuations, so that the introduction of effective management of inflation; Second, to relax the bank financing policy Improving service to small and medium-sized private enterprises. At the same time, as always, the tax burden of small and medium-sized private enterprises should also be reduced or exempted, so as to enhance their operational vigor.

How to crack and help enterprises to guide the transformation and upgrading "Enterprise transformation and upgrading is to solve the core problems of business survival difficult," which has reached a consensus in the industry, then, how small and medium-sized sanitary enterprises should be transformed and upgraded?

On the one hand, the production model innovation optimizes the industrial structure. To upgrade the industry, innovation is fundamental. In the early days, ceramic sanitary ware companies in China were mostly single production models. With the vigorous development of real estate and construction industry, people have higher requirements for the comfort, health, safety, energy saving and service life of the housing. The single production mode of the ceramic sanitary ware company can no longer meet people's needs for a complete home. , Diversified production model has become an important issue in the process of enterprise transformation and upgrading.

On the other hand, technological innovation promotes product upgrades. Ceramic enterprises have always been known as high-energy, high-pollution, high-consumption "three-high" companies. The national "Twelfth Five-Year Plan" further emphasizes the realization of rapid economic growth based on the protection of the environment and resources. In the process of building a resource-conserving and environment-friendly society, society has become increasingly demanding of enterprises in the environment. Ceramic companies can only gain more value by continuously upgrading their products through technological innovation.

In the third aspect, market innovation has opened up new channels for domestic sales. Innovation must be market-oriented. "Without innovation, there is no market discourse power. Without innovative companies, there is no development," said a ceramic industry leader. In recent years, many ceramic brands mainly focusing on foreign trade have turned their focus on the domestic market in response to insecurity factors in the international market, exchange rate changes, export barriers, and anti-dumping. Industry insiders also pointed out that sanitary ware should be sold domestically. The most important factor is market innovation and opening up new channels for domestic sales.

In addition, the relevant departments should actively assist enterprises in dealing with frequent trade barriers and strive to minimize the impact on enterprises; industrial policies to encourage enterprises to adjust the structure, the development of high value-added products, and continue to extend the value chain and speed up the entire The industry's transformation and upgrading and resource integration will enhance the competitiveness; appropriately increase industry entry barriers, tighten approvals for new investment projects, and accelerate the elimination of backward production capacity to reduce pressure on industry excess capacity.