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Yiqiao Industry, "Four Ways" Win Development Vitality

Since the beginning of this year, SMEs in Yiqiao have been facing unprecedented difficulties due to the continuous strict control of land, the continuous tightening of monetary resources, the repeated rise of oil prices, the general price increase of materials and the increase of labor costs. In the face of difficulties, the Party Committee and Government of Yiqiao Town and the enterprises of the town have overcome the difficulties, solved the problems, and searched for vitality in the cracks. From January to September, Yiqiao achieved an industrial output value of 5.643 billion yuan, a year-on-year increase of 21.8%; profit was 280 million yuan, a year-on-year increase of 9.9%.

   Trick 1: Develop new products to increase added value

   The enterprise has no profit or only a meager profit, should it reproduce? Yiqiao’s decision is: to survive by production, to retain the labor force, and to retain the "green hills" for future development; to seize new areas of the market with product development, to increase the added value of products, and to promote stable development of the enterprise.

   Hardware machinery is the pillar industry of Yiqiao, and it is mainly export. As the country adjusted the tax rebate policy, it was reduced from the original 13% to 5%, and the price of steel generally rose from 4,500 yuan per ton to 6,500 yuan. At the same time, the exchange rate between the RMB and the US dollar fell below the 7 yuan mark. A series of factors have caused the profit margins of a large number of hardware and machinery companies mainly exporting foreign exchange earning, such as Zhongtai Industry, Xinqiao Industry, Yongli Baihe, Longhe Hardware, and Yang's Industry, to shrink significantly.

   In order to survive, Yiqiao Enterprise actively negotiates with foreign businessmen and middlemen to increase prices appropriately on the original basis; negotiates with supporting enterprises to share the risk of price increase costs; leverages the advantages of large-scale enterprises, wins with quantity, seeks small profits and guarantees benefits.

  While ensuring survival, some companies are actively developing new products to increase the added value of their products. The overrunning clutch developed by Zongxing Company is listed as a provincial new product, because it reduces the cost of raw materials and improves the technical content, which guarantees the steady growth of enterprise benefits. The motorcycle sprocket developed by Xingfeng Industry, the electric hoist developed by Yale Company, and the high-precision industrial chain products developed by Renault Company have also achieved a large market space.

   Trick 2: Association leader information leads the way

Decorative cloth is another pillar industry of Yiqiao. There are more than 600 decorative cloth enterprises (including self-employed) in the town, and more than 30 enterprises with annual sales of more than 10 million yuan, with an annual output value of 1.2 billion yuan. The market share of cushion cloth is 90% of the country, which plays a decisive role in stabilizing the market price.

  As the textile industry is facing rising labor costs and falling export exchange rates, the party committee and government of Yiqiao Town actively play the role of the upholstery industry association, requiring the association enterprises not to lower prices due to competition, but to abide by industry rules to stabilize market prices.

   Exchange of information is a major advantage played by the Upholstery Fabric Industry Association. Since the beginning of this year, the Yiqiao Decorative Fabric Industry Association has actively organized a large number of member companies such as Monterrian, Tianye, Hongda, Maxim, New Yada, etc., participated in the domestic China Fair, the German National Textile Exhibition and other activities, keeping up with the development trend of the international and domestic home textile industry , And at the same time pass this information to other companies, by improving product styles, ensuring both production and sales of upholstery fabric companies.

   The introduction of advanced equipment is the highlight of the Upholstery Fabric Industry Association. In order to reduce labor costs and improve the market competitiveness of products, the Yiqiao Decorative Fabric Industry Association has recommended advanced cylindrical looms and water jet looms produced in Germany, Italy, Japan and other countries to member companies this year. So far, member companies have introduced more than 40 such looms, which not only changed the traditional production mode, but also reduced labor costs, increased output and quality, and provided a model for the upgrading of decorative fabric enterprises.

   Trick 3: Expanding operations to change and survive

  The clothing industry is the third pillar industry of Yiqiao, and it is also a labor-intensive industry. Clothing companies, such as Fuda, Deli, Jinqi, Sanhong, etc., have changed the way of receiving orders one after another, that is, from receiving orders through foreign trade companies to enterprises directly undertaking business, reducing intermediate costs. At the same time, it actively cooperates with internationally renowned clothing companies to implement OEM production, which not only reduces business risks, but also produces economic benefits.

   Financing difficulties are a common problem faced by SMEs. As a small-scale enterprise, Zhejiang Red Apple Electronics Co., Ltd. took the lead in going public in the town. At present, the preliminary preparations for the company's listing on the Shenzhen Growth Enterprise Market have officially started.

  Huazhe Industrial Co., Ltd. is a leading enterprise in the building materials industry of Yiqiao, and its PC steel bars and communication towers are well received by the market. This year, the company focused on key projects and obtained the qualification for Hangzhou subway construction. Currently, the subway segment production line with an investment of 10 million yuan has been fully put into production. Hangzhou Deli Clothing Co., Ltd. actively solves the problem of the shortage of migrant workers. In Maanshan City, Anhui Province, through the merger of a clothing company, it recruited more than 4,000 employees locally, and invested more than 10 million yuan in equipment renovation and renovation, and it is expected to create an annual output value of more than 50 million yuan. Further promoted the stable development of Xiaoshan headquarters economy.

   Trick 4: Technological innovation takes the commanding heights

  Yiqiao Industry has always been a dark horse in the southern part of Xiaoshan, forming four pillar industries of hardware machinery, decorative fabrics, clothing, and building materials. However, because these industries are highly imitable, it is difficult to occupy the commanding heights of the market.   Since the beginning of this year, the Party Committee and Government of Yiqiao Town, guided by the scientific development concept, encourages enterprises to take a long-term view and actively take the road of technological innovation.

   This year, Zhongtai Industrial invested 10 million yuan to introduce 3 aluminum chassis production lines, transforming from the original production of iron chassis to aluminum chassis. The price has been increased from 30 yuan per chassis to 100 yuan. At present, the company's three new swivel chair chassis have passed the provincial new product appraisal, and are applying for the provincial high-tech enterprise and the national torch project. Hangzhou Zongxing Gear Co., Ltd. has applied for the certification of the provincial R&D center this year. Zhejiang Red Apple Electronics Co., Ltd. is applying for certification as a national high-tech enterprise. The automobile chain developed by Hangzhou Yongli Baihe Industrial Co., Ltd. is also applying for provincial-level new product projects, while "Yongli Baihe" is applying for the evaluation of municipal-level famous brand products and district-level famous trademarks.


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