Market Analysis: Reflections on the Transformation Behind the Employment of Valve Enterprises

The “labor shortage” is not new in our country. As early as 2004, there was a situation of “labour shortage” and “recruitment difficulties” on the eastern coast and developed areas. This year’s “labor shortage” has come earlier than usual, and it has been fierce. Not only is the traditional migrant workers entering the Pearl River Delta and Yangtze River Delta regions, but even the traditional migrant workers in Anhui, Henan and other places, most of the valve companies are guilty of this.

China's pump valve network randomly visited Wenzhou Yongjia individual valve companies learned that in order to retain employees, to make every effort to make every effort to play "warm card", "friendship card", the most common practice is to invest in staff, but these measures also The problem of "labor shortage" cannot be fundamentally solved.

So, what are the reasons for the "labor shortage"? Is it once or a chance for the valve industry?

First of all, the direct reason for the "labor shortage" is that after the socio-economic development, labor-intensive enterprises have caused a large demand for labor in the expansion of production scale. Second, with the continuous economic development in the central and western regions, the demand for skilled workers and skilled workers increases, coupled with relatively low cost of living and local complexities, etc., so that workers choose to leave high consumption costs and basic social rights are not guaranteed. Eastern coastal city.

The most direct way for companies to solve the "labor shortage" is to increase salary treatment, but to find the root cause to solve the problem, it is necessary to "prescribe the right medicine."

According to the analysis of the valve industry, most enterprises have relatively backward production technology, low product profits, large demand for workers, and backward business philosophy. After the mid- to high-end products gradually become the future market demand, they seriously affect the operating profit of enterprises and the space for survival and development. Therefore, some valve companies that use price war as a competitive advantage have no more energy to consider the rights of workers.

At the same time, a new generation of migrant workers is generally “three highs and one low—high level of education, high professional expectations, high material and spiritual enjoyment, and low work tolerance.” They are accustomed to the prosperity of the city and fast-paced lifestyle; most companies lack Humanistic care, ignoring the basic social welfare of workers, does not give a certain sense of corporate belonging, resulting in the loss of labor.

How to treat the "labor shortage" impact on the valve industry? The author believes that everything has two sides, and it is necessary to look at the issue dialectically. In a sense, at least “labor shortage” is not necessarily a bad thing for the valve industry.

“Using labor shortage” is like a double-edged sword. On the one hand, it squeezes the profit of production and operation of valve companies, increases the cost burden and improves the salary of employees, but on the other hand, it will force SMEs to improve their labor efficiency and shift to less labor and production. Higher value-added companies with higher yields. "Recruit labor shortage" of the valve industry, in fact, the most fundamental thing is not to force wages, but to force the reform of the profit model, forcing industrial upgrading.

With the rising cost of enterprises, most small and medium-sized valve companies that rely on low-profit margins to survive are only long-term measures to increase workers' salaries, and the introduction of advanced machinery and equipment to increase automation and intelligent production levels are the operators. Need to think about the fundamental issue.

Those entrepreneurs who have taken the lead in completing "changing ideas, upgrading industries, and improving technology and management levels" may become leaders in the future industry.