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The Situation of Major Hanger Manufacturing Base – Lipu |
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| Release time:2013-05-22 Source:admin Reads: | |
| A labor shortage that has been confounding manufacturers in China's burgeoning coastal regions is now spreading to the underdeveloped central and western areas, prompting most provinces to hike minimum wages by 10 to 20 percent after the Chinese New Year to attract employees. Yao Shujie, professor of economics at Nottingham University in the United Kingdom, said China's labor shortage will be a long-lasting issue and the ultimate solution to the problem is the transformation of China's economy from a labor-intensive, low-skilled, manufacturing model to a high-tech, more diversified economy. The government has inscribed economic restructuring into the draft 12th Five-Year Program, the national development plan for 2011 to 2015, which is under deliberation of legislators at the ongoing annual plenary session of the National People's Congress (NPC). Restructuring is pivotal to the survival of Lipu's belt hangers sector, Chen said, as the land-locked county does not have an edge in resources or in transportation. The county emerged as one of the major belt hangers manufacturing base as the county's hanger work-shops seized the market earlier than those in other parts of the country. Further, Lipu's market status in China's hanger sector had been consolidated over the years with significant support from the local government. "We succeeded because Lipu's daring entrepreneurs entered the sector ahead of others in the 1990s," Chen said. "After about two decades, the sector is now facing tremendous challenges." Lipu officials said the government is pushing for the merger of hanger workshops and the manufacturing of competitive hi-end products to help the county's hanger companies survive, while urging entrepreneurs to branch out to other sectors, including tourism and modern farming, in which Lipu has a potential edge. It remains uncertain whether Lipu will emerge again from the country's sweeping economic restructuring. However, everyone in the sector knows that changes are needed, and immediately. Otherwise, China's 'capital of belt hangers' will die with the country's other light industry towns, Chen said. |
