This year's shoe industry suffered "supply difficulties"

In the summer of this year, Emma Wang, CEO of Dongguan Emma Digital Technology Co., Ltd. frequently appeared in the talent market in Guangzhou, Shenzhen, and Dongguan to personally recruit. Can face the deserted recruitment scene, a number of positions, especially the senior management of technology and management, regardless of online recruitment and on-site recruitment results are satisfactory. In the twinkling of an eye several months later, companies still have serious shortcomings. In the face of long-term, 3-4 month orders, there is a shortage of production personnel and the supply of materials for the upstream supply has not been able to meet the needs of customers. In Dongguan's shoe machine industry, Emma's CNC technology is not the only one. Many older shoe machine companies have been in short supply since the beginning of this year. Like the sales manager of Houjun Shoe Machine, they often say to the customers who are urging the goods on the phone: "We can't arrange the goods in the last six months. I'm really sorry!". What we see is not only the joy of the industry colleagues in recovering the economic situation, but also the lingering “delegation of supply”.

What is "difficult to supply"?

From the end of 2009 until now, with the gradual recovery of the economy after the financial turmoil, the demand for shoe machine equipment industry has seen a spurt increase. This is something many people are not expecting, which is contrary to the expected slow growth of the industry, whether Is the spare parts, or the whole machine, all in tight supply. Faced with a large number of orders, many companies are very happy when they get their orders, they are unable to supply them due to insufficient production capacity, and they are afraid to accept orders after coming. Among these, yes, it is helpless.

What kind of reason has caused this situation?

Employment issues cannot be ignored. The earlier financial crisis has caused companies to lay off large numbers of employees, and the layoffs of individual companies have even reached 50% to 60%. This was indeed a substantial reduction in the expenditure on labor costs of enterprises. However, when the market was picking up, the lack of labor directly led to the production line. Inadequate, many companies have begun to recruit workers, industry workers wages rose by 20% to 30%, from which we can see the extent of the hot demand of workers. However, even so, many companies are still underemployed, and even recruiting workers is not necessarily a skilled mechanic because skilled craftsmen are always in short supply. It takes many months for average workers to grow into skilled workers within a company. For a long time, the real capacity of the shoemaker factory will hardly be restored before the financial crisis.

Loss of capacity during the financial crisis. The economic crisis has made many companies conservative and cautious. At that time, the weak demand of the market determined that companies could only reduce their production capacity and gradually absorb their inventory. Excessive inventory not only has the risk of breaks in the company's capital chain and has no other benefit. In two years, inventory has been digested so long ago that it is already running out. After the storm, even if there is a normal production demand in the market, companies will not be able to supply large quantities in the normal production cycle, which will directly lead to difficulties in supply.

The shortage of upstream supply products is a deeper problem. When the company has sufficient manpower and production capacity, but the upstream suppliers can not come up with raw materials in time, production still can not run. Take Emma CNC technology as an example: This year is a lot of orders, but the upstream supply companies are also in short supply, so many key core components are facing serious shortage: lack of servo motor, lack of control board, lack of imported precision motors, precision screw missing , Missing rails, lack of imported precision bearings... As for Panasonic's servo motor orders, there was actually a phenomenon of “contract can be signed, but delivery date is not guaranteed”. The upstream supply was not timely, which seriously affected the production and delivery of the entire plant. This year, there are many similar situations in the shoe and machinery industry.

Market demand is over-amplified. An example of the image of a corporate manager: An example of the three shoe machine factories at the same time to understand the demand situation to the same agent, because understanding the current situation of insufficient supply, agents to ensure their own needs, they have 30 sets of separate judgments The order of the machine, then to these three shoes machine factory, will produce 90 machines, the market demand has been enlarged 3 times. Individual agents will even place orders for 90 units in each company to fully guarantee their own needs. In this way, the bubble of market demand will inflate, and companies will be troubled by this empty bubble.

In addition, the normal production of the shoe machine equipment also has a certain period, before this period is completed, the supply difficulties are inevitable. As the saying goes, it's too late. Overheated market demands also carry hidden crises. In the shoe machine equipment industry, after-sales service has become an important part, directly determining the development of the company and the establishment of word of mouth, while too many products are manufactured, but the corresponding after-sales service can not keep up, which has become difficult for many companies nowadays. The pain of words. In the face of similar conditions, more companies expect the development of the industry in the second half of the year to be more stable, allowing the market to help avoid some risks and enable the company to operate in a sound market environment.