In a darkened room Tatty New Century Hotel is located in the heart of Chinese manufacturing is worn chintz Dongguan, the color of gold is now peeling walls, the flash, once a dull glow in the tropical heat in summer s day less in South China.
It is a depressing place appropriately called an emergency meeting to support Dongguan Workers Union to discuss how the financial storm that hit China Manufacturer Exporter survive deadly force at the end of last year.
The persons in the room all have the same light gray forehead broke out in sweat as she revenues have fallen into 40PC in the last six months, demand for the low price for the West, mass produced products is almost dry during the night.
Do not expect to get the application to the second quarter of 2010, laments Frank Chen, a senior Factory Sun Sockets Lite when revenues fall 60pcs. Our sales to international property, which is now completely flat matched. It survived only a matter of race, he said.
Out of work Chinese factory workers outside the Dongguan Labour Exchange in Dongguan City in Guangdong Province of Southern China.
It is a familiar story in Dongguan, where the owners and managers, just a year ago turned into cash quickly snap together widgets for the world today is trapped in a ruthless natural selection. More than 60,000 businesses failed in the past 12 months.
Dongguan has always been a city quickly. Also in the fat years of the circle of economic life as the owner had lived on their sales to beat the rush to feed the global demand and again by a competitor. It was a place that has lived in the company, died and reborn, often only a few months.
Today, however, even their feet are more difficult than ever. In a bar Dongguan, the ranks of said faces tell their own story.
See this guy, said a local lost his wife is a Chinese baby next week and HES work. We need 20,000 yuan (1900) on hospital charges, and did not. Hell to borrow if it wants to save our souls with his parents.
Migrant workers, the engine of growth in human history Dongguan, life would be even more difficult. Jobs are scarce and the decline in wages as companies desperate overtime slash. After the Chinese New Year, many prefer to stay home and save time, wages living near their families.
For those who have returned as Long Jianping, a 35-year-old designer shoes from the province of Hubei, which has seen two children, just three weeks time, will find in Dongguan, the project 13 years ago, the options are few.
Despite the slowdown Donguan Merry-go-round is still working, new factories are still open after the restart when Western societies depleted stocks, even if the owners say, is up-tick practice by the rising cost of raw materials, which swept year.
Paulo Lins, a unit of General Manager for the manufacturer of Taiwan HI FI speaker Chia Maw, said the company is so pleased to develop new products while reducing the workforce from 1800 to 1200 as customer orders signals.
The alternative is to examine the internal and the effort for the Chinese market, a risky strategy, but potentially a long-term future of China, which aims to sell its economy towards domestic consumers who always want to be better.
Frank Jaeger, the German owner of a factory, industrial PC-assembled cable for export, has already decided to make the leap to re-register a company for sale in China and hire the first local sales manager.
Mr. Jaeger has the financial crisis surely drive C, is a personal loss of $ 500,000 (303.000) and increased its staff from a peak of 1200 to nearly 210 average fell worrying that the backlog at the end 2008.
But he said that the combination of economic crisis and law enforcement work runs from 2008 to the new China, which increased the cost of 15PC in an era where demand has dropped significantly to rethink its business for the better.
In the long term claimant believes that the economic crisis will take and Dongguan, sorted by cowboys and lovers of companies that are strong enough to survive, to benefit a group listed below, which was committed.
First, optimism for the future, said: My company is an example. In time, I had no sale or purchase, it was all word of mouth. It would seem simple, but the truth is that good times are all lazy and indifferent.
I talked to sales in the region for years, but never arrived. Now that I have. Ive energy saving measures to reduce electricity bills, and worked to better our time to maximize productivity with minimal cost. I never made it, but we now have.
The result is that at the end of this crisis, we should be able to sell cheaper and with great profit. And for those who survive, the cake will do more to finish.
