Chapter 230 Cost
"What Yuan Chao said earlier reminded me that Hong Kong has inherent advantages, and there should be a lot of room for export or re-export trade. In addition, I thought about it on the way here yesterday, and I thought that maybe we could build a factory in Pengcheng, just like the one in Daqi..."
"But Brother Zhengguo, you know the current situation in Pengcheng. Are you kidding me to build a factory in such a shabby place?" Qin Zhengguo had just finished speaking when Gu Jie couldn't help but remind him.
"It's tattered. That depends on where it is." Qin Zhengguo smiled at Gu Jie. "The policy has been issued. Although the establishment of the special zone is just a few days away, the news has already spread to Hong Kong. Many businessmen in Hong Kong are discussing this matter. Many people are very interested in Pengcheng."
"As for the conditions in Pengcheng, of course I know. Don't forget that I went to Hong Kong from Pengcheng, and I came back from there this time. I think since the country has made Pengcheng a special zone, it will definitely not watch Pengcheng remain the same forever. If I am right, with the establishment of the special zone, Pengcheng will soon usher in earth-shaking changes. The poor conditions and incomplete facilities in Pengcheng are only temporary, and all of this can be changed."
Listening to Qin Zhengguo's words, Song Yuanchao couldn't help but sigh in his heart that this guy's vision was indeed sharp and his judgment was so accurate.
Everyone present said one thing at a time. Only Song Yuanchao truly knew what Pengcheng would look like in the future. However, compared to Pengcheng now, no one else could judge what Pengcheng’s future would be like.
Qin Zhengguo was an exception. He had a sharp eye and noticed the business opportunity at that time. Perhaps this was the reason why Qin Zhengguo dared to take the risk to do border trade and made a fortune from it when everyone was concerned about border trade.
The Qin Zhengguo of today is no longer the Qin Zhengguo of the past. In the past six months in Hong Kong, Qin Zhengguo's own improvement is obvious, and he is now completely different from the past.
"There is something you don't know very well. I know a lot about it in Hong Kong." Qin Zhengguo continued, "Hong Kong used to be dominated by manufacturing. As early as the 1960s, Hong Kong's manufacturing industry was one of the best in Southeast Asia. The manufacturing of various light industrial products, such as clothing, toys, electronic products and department stores, was very prosperous. But after entering the 1970s, many places in Southeast Asia began to develop. Coupled with the rise of the real estate industry in Hong Kong in recent years, many businessmen changed their investment direction, which led to the continuous depression of the manufacturing industry."
"In the past six months, I have dealt with many factory owners in Hong Kong. They all lamented that the glory of Hong Kong's manufacturing industry is gone forever. Now it is becoming increasingly difficult for Hong Kong's manufacturing industry to survive, especially as labor costs continue to rise, resulting in increasing competitive pressure on product exports."
At this point, Qin Zhengguo suddenly asked everyone if they knew the average wage level in Hong Kong. Everyone shook their heads in confusion at the same time. Song Yuanchao knew it but pretended not to know like everyone else.
"The average salary for an ordinary white-collar worker who works in an office building is about 2,000 yuan. Supervisors can earn around 3,000 yuan, and managers and vice presidents earn around 4,000 to 5,000 yuan. For example, Xu Hui, the current vice president of our company, earns 4,500 yuan, which is not high but not low either in the industry."
"Ordinary blue-collar workers, that is, factory workers, have an average salary of around 1,800 to 2,500..."
"That's not right. How come the workers' salary is higher than those who work in offices?" Ying Caixia couldn't help but ask. Didn't Qin Zhengguo just say that those who work in offices would get around 2,000 yuan? How come the workers suddenly get 2,500 yuan?
"Haha, this is different from our country. The blue-collar wages in Hong Kong are much higher. It mainly depends on the skills and ability. Some skilled workers can earn three to four thousand, which is not worse than some managers or vice presidents. In fact, the reason is very simple. Just like in our country, some senior technicians have higher wages than factory managers. Isn't this the reason?"
After listening to Qin Zhengguo's explanation, everyone nodded slightly. This statement did make sense. At the same time, they were also sincerely envious and impressed by the high income of Hong Kong people.
The current exchange rate of Hong Kong dollars to RMB is about 5:1, that is, five Hong Kong dollars are exchanged for one RMB, one thousand Hong Kong dollars is equal to two hundred RMB, and for an ordinary worker with a monthly income of two thousand yuan, it is a full four hundred RMB.
This is almost the monthly income of a Hong Kong resident equal to the monthly income of ten ordinary workers in the mainland. And don't forget that this is the official exchange rate. If calculated according to the black market exchange rate, it is 4:1 or even higher. In this way, the income of an ordinary worker is at least about 500 yuan in RMB.
Five hundred yuan is an absolutely high income. There is no enterprise employee in the mainland, not even high-level people like factory directors and chief engineers, who cannot get it. But it is only the income standard of ordinary workers and white-collar workers in Hong Kong.
If it is at the level of manager, vice president or general manager, the income will be even more frightening. No wonder so many people are trying their best to go to Hong Kong. You have to know that the income from working in Hong Kong for three or four years is equal to the income from working in the mainland for a lifetime. Who wouldn't be jealous of such a gap?
"But do you know how much workers in Hong Kong earned in the 1960s?" Qin Zhengguo asked another question. Seeing that everyone shook their heads and said they didn't know, Qin Zhengguo revealed the answer: "At that time, the monthly salary of an ordinary clerk in Hong Kong did not exceed 300 yuan, and the average newcomer earned about 100 yuan. The monthly salary of workers was about the same. Starting in the 1970s, as Hong Kong continued to develop, the standard continued to rise until it reached the current level."
"More income is of course good for ordinary people, because with more money, you will be richer, right?" Qin Zhengguo said with a smile, and everyone laughed at the same time. Of course, everyone wants to have a high income and no one likes a low income. This is human nature.
Just like now, every unit is fighting for the quota of adjusting half a level of salary every year. It is common for people to take pesticides and kitchen knives to threaten the leaders just for a salary of two or three yuan a month, and shout that they will drink pesticides or chop people if their names are not on the list.
When the official notice of salary increase came down, some were happy while others were sad.
This scene is similar to the imperial examinations in the feudal era. Those who are on the list will immediately dance with joy and call their friends to get drunk tonight. As for those who fail, some are distraught and even cry loudly on the spot, dragging their dejected bodies away like zombies...
After everyone laughed for a while, Qin Zhengguo said, "This sounds like a good thing, but it is also a bad thing. Because the increase in people's income has led to a continuous increase in production costs, so if the original cost of producing a piece of clothing was five yuan, then the current cost will increase from five yuan to twenty yuan, thirty yuan, or even forty yuan..."
At this point, Qin Zhengguo looked at Li Daqi. Among them, only Li Daqi was in charge of the factory, so he had the most say on this issue.
Li Daqi nodded silently. What Qin Zhengguo said was right. Just like at the Shanghai factory, the fabric and accessories account for the largest proportion of the cost of a piece of clothing, while the labor cost accounts for the smallest proportion. The rest is the various expenses in warehousing, transportation and circulation.
If the factories in Shanghai are like those in Hong Kong, when the workers' wages suddenly increase from the current tens of yuan per month to thousands of yuan per month or even more, then if the raw materials remain at their original cost, the proportion of labor in the product cost will suddenly exceed all other costs, thereby raising the overall cost of the finished garments.
At this point, it is impossible for the price of clothing to maintain its original price base. Price increases are inevitable. Otherwise, the more production there is, the greater the losses will be. If this continues, even if the family has mountains of gold and silver, it will not be enough to fill the losses.
Qin Zhengguo continued to introduce the current industrial situation in Hong Kong. With the rise of the real estate economy and the increase in labor costs, Hong Kong's manufacturing industry is already in decline. Many businessmen are either turning to real estate or struggling to survive, and they cannot see any future in guarding their factories.
The rise of reform and opening up in China has given a shot in the arm to many factories in Hong Kong, such as the popular clothing, small electronic products and department store products in China. However, in the long run, this is just a last gasp.
Many people have seen this, and many Hong Kong factory owners have taken this opportunity to increase production in order to reap as much benefit as possible before the Hong Kong manufacturing industry completely ceases. Some factory owners have also decided to withdraw early under such circumstances, taking advantage of this favorable situation to sell their factories, cashing in on the factories and investing in other industries.
Qin Zhengguo saw it very clearly. The key reason why he raised was that he wanted to directly acquire a suitable factory at this time, and then move the equipment from Hong Kong to Pengcheng to set up a new factory.
After all, the equipment in many factories in Hong Kong is quite good, most of which are imported from Japan, which are far superior to domestic equipment in terms of both the equipment itself and production efficiency. Moreover, these equipment are not available in China, but can be purchased at a very cheap price in Hong Kong.
After acquiring the factory, we moved it to the mainland, especially to Pengcheng, which is closest to Hong Kong. This not only preserves the original factory's production capacity, but also maximizes benefits in terms of labor costs.
This can be clearly seen from the income gap between the two places. Moreover, the most critical factor for labor-intensive enterprises is labor costs. The reduction of labor costs can make products competitive again, which is cost-effective from every perspective.
"It sounds good, but how much would it cost to acquire a factory in Hong Kong?" After listening to Qin Zhengguo's story, everyone was silent for a while, as if they were digesting what Qin Zhengguo said.
After a while, Li Daqi couldn't help but ask a question. He was the only person present who was in charge of the factory, so he was naturally very interested in Qin Zhengguo's suggestion.
