*** Appreciation brings to the development of hardware companies three strategies

Since 2010, the rise in ***, the price of raw materials, and the increase in labor costs have had a lot of impact on the business environment of the company. The appreciation of *** is a blessing or a curse. The opinions of scholars at home and abroad have been divided. Luo Baihui, head of the International Mould, Hardware and Plastics Industry Suppliers Association, interviewed foreign trade export companies and found that most companies are still optimistic about the export environment next year.

Phenomenon 1 Corporate Profit Reduction

At present, companies are suffering double losses caused by exchange losses and a significant reduction in exports. Some foreign traders have complained that the company does not allow for long-term orders, especially long-term exports to Europe and the United States, emphasizing that some short-term orders will be accepted. This is because companies are mainly concerned about the loss caused by exchange rate conversion and the reduction of profit margins. Some companies even believe that as the current operating environment continues to develop, the survival of enterprises will be severely challenged.

Response: Increase contract down payment

In response to this problem, a foreign trade manager suggested that the proportion of down payment for the contract can be increased to reduce the risk of exchange rate changes and prevent exchange losses. If the contract down payment rate from the previous 5% -20% to 30% -40%. Some companies have also proposed to specify the limit of appreciation in the contract. If the limit is exceeded, the export price of the product will be adjusted accordingly. In addition, Luo Baihui suggested that companies could carry out ** switching, return ***** in advance, and then convert it into USD **; use financial instruments to evade exchange rate risk, forward transactions, and lock forward exchange rates in advance; Settlement with ***; companies can also actively explore new international markets, speed up the development of new non-US settlement international market, while speeding up product transformation and upgrading, optimize export product settlement, improve product technology content, create their own export brand, improve The company's core competitiveness.

Phenomenon 2 Increase in Production Cost

This year, raw material price increases ranged from 20% to 60%, and some raw materials reached 100%. Such as aluminum ingots, strips, the average increase in more than 35%, copper, zinc and other prices rose by 60% -70%, plastic even rose more than 100%. A number of companies stated that the continuous increase in raw material prices has caused companies to face rising production costs, narrowing profit margins, declining product competitiveness, increasing pressure on capital turnover, and difficulties in purchasing.

Responsive: Realize product upgrading

The substantial increase in the prices of bulk raw materials has not only directly affected the costs and profits of enterprises, but also affected the market competitiveness of their products. In response to this situation, some enterprises in the Economic Development Zone have implemented cost reduction plans, energy structure transformation, and other methods. , To reduce waste as much as possible, improve management level and reduce unit costs, and achieved good results.

In light of the new year, Luo Baihui suggested that companies can also strengthen technological innovation, achieve product upgrading, differentiate business strategies such as branding, technology, and opening up new markets to increase product added value and profit margins; while exporting, insist on raw material outsourcing , and strive to tie up with orders, reduce costs and exchange losses; expand the scale, to achieve small profits but quick turnover; improve the utilization of machinery and equipment, mechanical replacement of manual operations, efforts to reduce labor costs and other methods.

Phenomenon 3 Frequent job-hopping by employees

The gap in demand for labor that began at the beginning of this year has continued until the end of the year. For this reason, the increase in the wages of employees in the company this year has been more than 10%. Even so, some companies still can't keep people, and the job-hopping phenomenon of employees is relatively common, especially for those enterprises below the scale. The main reason for this problem is that the current renewal of the concept of employment of new generations of migrant workers in the 1980s and the 1990s is frequent job-hopping, resignation, and bargaining. To the good, it is the awareness of employee self-protection and legal awareness, but Some employees also lack the spirit of hard work.

Response: Strengthen the construction of employment network

In this regard, most companies hope that government departments can further strengthen the construction of employment service networks, improve the labor market service system, and improve the bottleneck of recruitment difficulties. In addition, companies have expressed their hope that government departments can give support to tax policies and bank credit funds policies, while continuing to improve the system and create a good external environment.