The global economic crisis caused by the US subprime mortgage crisis has led to a decline in world economic growth and even negative growth. The tragedy of the global capital markets surpasses everyone’s imagination and reshapes a generation’s values ​​and risk thinking. This will also have a significant impact on the packaging industry.
Against the background of the increasingly severe global financial crisis, in order to withstand the adverse impact of the international economic environment on China, coupled with the current overcapacity in our country due to excessive production capacity, the industrial structure needs to be upgraded, and the low-level construction will easily rebound. . The overseas market has shrunk and the sales volume has dropped. Demand for packaging has dropped sharply, and the profitability of the industry has further declined from 2009 to 2010. The impact of the financial crisis on China is reflected in:
1. The sudden drop in raw material prices in recent months has made the inventory of products during high-cost periods a deterrent for most companies;
2. Reduced demand in the industrial chain, so that the supply chain is in danger of breaking;
3. The company's own financial resilience is greatly reduced, and the capital chain is very fragile;
4. The competitiveness of the company's own products is low, especially in the low-end pure export orders (simple export-driven manufacturing development methods at the expense of high energy consumption, low output, and environmental losses);
5. "Triple rate and two price": namely, exchange rate, tax rebate rate, interest rate; raw material price, labor price, renminbi increase, export tax rebate rate reduction, loan interest rate increase and other issues.
In this case, it is not difficult to understand the deep meanings of the intensive introduction of support measures from the country to the localities.
In a series of central and local policies that promote the development of SMEs, a special fund of RMB 3.5 billion has been allocated to support the development of SMEs in light of the difficulty in financing and the increase in costs for SMEs. The Ministry of Finance and the State Administration of Taxation also announced that from December 1, 2008, the export tax rebate rate for some labor-intensive and high-tech and high-value-added commodities was appropriately raised. In addition, the government procurement method for SMEs is currently being studied. In principle, it is necessary to promote government procurement at all levels to lean towards SMEs. It is reported that the central government will also continue to study a series of supporting support measures to help SMEs tide over difficulties and develop healthily.
On November 10, 2008, the Central Government issued ten measures to expand domestic demand and promote economic growth, and implemented a proactive fiscal policy and a moderately loose monetary policy. It decided to implement the VAT transition reform nationwide and passed the "Provisional Regulations of the People's Republic of China on Value-added Tax". (Revised Draft), etc., issued by the State Council in January 2009. VAT transitional adjustment: refers to the purchase of equipment and raw materials by enterprises, and directly offsets the input tax according to the normal method; after the transformation and reform, the input tax of enterprises deducting equipment is no longer limited by whether they have the increment of VAT payable.
Packaging companies face a very serious situation and have become the consensus of the business community. However, the financial crisis not only has pressure, but also contains opportunities. The solution lies in the development of the domestic market. Economic uncertainty means business opportunities, stabilizing domestic market share When global competitors are weak, expand international business and actively explore the international market.
From the general market demand laws, demand is everywhere. Even if there is a reduction in demand, there is still demand, and the key lies in whether there is a capacity to respond to this demand-reduced product and to produce it. What really determines the fate of an enterprise depends not entirely on the external environment. The key is also the ability of the company to resist risks. For example, the financial crisis has dispelled the enthusiasm of buying new cars, but the auto parts market, which targets the maintenance and repairs of used cars, has been “bettered by the scourge†and has increased demand for auto parts. Orders received have risen instead of falling.
At present, the RMB exchange rate is basically stable, the export tax rebate rate has increased by three points, and the export tax rebate rate for 3,770 products has increased, accounting for about 27.9% of all export products. Adjusting some product export tariffs and lowering the loan interest rate will provide enterprises with a “buffering periodâ€.
In the longitudinal review, SMEs have never been closely watched as they are this year, and how companies should find opportunities from them, rebuild their confidence, and emerge from the predicament. Today, policies provide an effective platform for development, depending on how the company “learnedâ€.
For a truly capable company, it should have a capability of “winteringâ€: it is reflected in the keen grasp of the market, the principle of remembering customers first, the ability to adapt funds, and the rapid return of cash flow; mature cost control Mechanism; "Inward" to find motivation, SMEs need to practice "internal strength", through technology, brand-driven, play a "combination boxing" to find the true competitiveness; the company's ability to innovate; also depends on the ability to achieve capital integration With the ability to achieve market expansion, it has the ability to quickly rank among the top players in the industry.
In any case, whether or not there is a global economic downturn, manufacturing companies must undergo a difficult transition from low value-added to medium-high value-added. In the current financial turmoil, packaging companies must prepare for long-term protection against the cold and winter swimming.
The current strategy for packaging and printing machinery companies to deal with the subprime mortgage crisis in the United States is:
1. Strengthen confidence and tide over difficulties. The government recently introduced measures to expand domestic demand, promote economic growth, and a series of policy adjustments to release a strong message of “guarantee growthâ€. Market confidence will be further restored, and China’s economy will be able to guarantee stable and rapid growth. It is emphasized that China's economic growth rate in 2009 is between 8% and 9%. The growth rate of the packaging industry should be around 12%. The domestic demand opportunity has made China stand out and maintain a good growth.
2. Seize the opportunity to expand domestic demand. Fiscal policy has shifted from “steady†to “positiveâ€, and monetary policy has shifted from “tight†to “moderately loose.†This is necessary to increase domestic demand to make up for the lack of external demand and prevent a sharp decline in economic growth. In the next two years or so, about 4 trillion yuan of newly-arranged investment will be the most directly driven by the economy. Packaging companies should base themselves on the domestic market, receive funding and support from government policies, and share 4 trillion yuan in cake. The packaging machinery industry must focus on enhancing the competitiveness of the international market, upgrade its marketing, and break through the technical barriers to packaging. At the same time, in-depth exploration of the domestic market potential, from the big city market to small and medium-sized cities and rural markets. By providing innovative solutions for users, we will expand the market to acquire large customers and make large orders, so that we will rise against the trend.
3. Use policies to promote yourself. Nowadays, implementing a "moderately loose" monetary policy and rationally expanding the scale of credit is good for small and medium enterprises. "Cash is king" is a law, and the market size and timing are everything. Packaging machinery companies can take joint loans from banks and adjust financing strategies. "Inventory" and "Accounts Receivable" are two chronic problems in business operations. Enterprises should increase the recovery of payment to ensure that cash flow does not break. According to the deployment, in all regions of the country, all industries must fully implement the VAT reform, convert production VAT to consumer VAT, reduce duplication of taxes, reduce investment costs, and help increase business operations and profits.
4. The transfer or closure of some small-scale small businesses will create new space for development. Mild economic recession can achieve survival of the fittest, forcing low-value-added enterprise managers to reassess the economic model and increase the strength of enterprises that truly invest in product leadership, service design and innovation. For packaging companies with abundant cash flow, the economic downturn will be a good opportunity for industry expansion.
Due to the consolidation and reorganization faced by the packaging industry in recent years, the brand has been reshuffled. In the next three to five years, the process will be accelerated, and packaging machinery companies will not be an exception. They should actively use the credit support of the current state for SMEs and technological transformation and merger and reorganization. Integrate resources, and continue to exert efforts to make good products stronger, better and better, and at the same time, gradually lower the level of labor-intensive products to the low end of the industry chain; as far as possible to extend the industrial chain with high profit margins, The extension of the industrial chain will become the fundamental way out for those labor-intensive enterprises that only deal with low-cost processing, and will achieve the dance with the industrial chain.
5. Strengthen the internal functions of the company and adopt many "inside" measures to circumvent the negative impact of the world financial crisis. For example, the procurement of raw materials should be localized, standardized, generalized, localized, reduce inventory, optimize the supply chain, and strictly control Export-related foreign contracts; attention to changes in exchange rates and import and export tax rebate rates, to avoid accidental losses; start creating energy-saving corporate activities, in terms of energy saving, consumption reduction, emission reduction, efficiency improvement, improve efficiency and reduce costs. In order to reduce costs, many companies have learned to "outsource" and transfer non-core businesses. In addition, in the market, in order to enhance the ability to respond, many companies have gradually shifted from simplification in the past to diversification, and the two domestic and international markets have made simultaneous transitions. The company also made adjustments in its business philosophy, paid more attention to the development of high-tech and high-value-added products, and continued to dig in the fields of environmental protection and energy conservation.
6. Improve service quality while carrying out cost competition. No matter how you can not lose customers, can not lose the market, qualified companies can go out of the country, to those low-cost, low-risk countries to open up new production bases, the target is the "BRIC" and "Diamond 15 countries." At the same time, the benefits of employees and companies are shared, and the benefits of employees and companies are bundled together to strengthen the performance appraisal system of employees and improve work efficiency.
7. Vigorously promote technological innovation, promote the use of new technologies, new materials, and new equipment, make full use of the SME Innovation Fund of the Ministry of Science and Technology, the Torch Program, the six ministries' packaging innovation fund, and local technology development funds to increase scientific and technological content and seize the opportunity. Reduce the gap with foreign packaging machinery and equipment and seize the industry opportunities. Often profit compression will force companies to upgrade and grow stronger. Creating a brand strategy is a “Huashan One Way†to achieve enterprise upgrading and transformation. For example, a chief executive of a Shenzhen company said: "If you can do design or have intellectual property rights, you can get new business. The key to business is innovation. We have received new orders."
In short, the world is now saving the economy. How can we save ourselves? Instead of worrying, it is better to think and act. Facing the global financial turmoil, an effective countermeasure has been formed to obtain the attention and support of the national policy, strive for the shortest time, resolve the current industrial dilemma to the maximum, and welcome the arrival of “springâ€.
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