Passing The Electrical Industry's "winter"

According to report: "Since the second half of 2008,Wenzhou, in the face of this unprecedented financial
affected by the impact of the global financial crisis,crisis, some enterprises to make timely adjustments,
China's economic slowdown, market demand, productmainly in one hand, the redistribution of resources,
prices fall, profits fell sharply, sales to productionnot only between the enterprise, but also in business
disruption, coal, electricity elements weaker demand.to business performance , so not only to market risk,
With the financial crisis transmission, sluggish domesticbut can enhance the market competitiveness of
demand, external demand is suppressed, the powerenterprises; the other hand, would choose to
industry be hit. "crisis, half of the power industry forchanging products, the products open a new path, or
the occupation of the" Electric City "Willow City,temporarily suspend production, consolidation of
Zhejiang Province Electric Power Company, there areinternal resources, recharge your batteries, when the
How much impact? How to respond?timing is better, then a repeat of the market. Of
Zhejiang Electric Association Secretary-General, Mr. Hucourse, the arrival of the financial crisis, but also a
Liben told us that the financial crisis to Liushi electricaldirect result of a small number of business failures,
enterprises, especially Low Voltage Enterprises hadwhich is now the industry reshuffle phase for the
been hit hard, the domino effect began to appear inelectrical industry is not necessarily a bad thing, for
the industry. From October 2008 began, thethe promotion of industry, the rapid escalation of
industry's sales decline in export orders decreased;practical significance.
11,12 a two-month decline in production; someFor the economic crisis, Zhejiang Electric Industry
enterprises workers ahead of a holiday, there areAssociation held a special study measures the Council
some though not yet a holiday, but theand to the company made several recommendations:
implementation of the rotation to work system will(1) do the transformation and upgrading. Not because
no longer work overtime at weekends. This isof the economic recession that led to the electrical
different from the previous year-end situation in fullindustry, but the problem has existed, when the
swing. Nevertheless, the power industry andfinancial crisis, the problem will be highlighted.
Wenzhou Other Such as textiles, shoes, etc. than aWenzhou electrical products industry is not high tech
dozen major industries affected by the degreein general, can not withstand the economic impact is
remains the least. Electrical products, production,difficult to win in fierce competition. Low-end
sales, production, etc. still ranks first in more than aproducts are not named "low", not fake, not poor
dozen major industries. In 2008, Wenzhou entirequality, but the grade is not high. The so-called
electricity output of about 620 million, an overallscientific and technological content is not high, the
increasing trend, but the growth rate declined overratio is not high tech. If electrical appliances are
the past 10 to 13 percentage points.divided into high, middle and low grade, then the
Compared with the national, private enterprises inproducts are low-end products in Wenzhou, the
Wenzhou hardy, rarely failing, the main reasons weremarket, while significant, but because technology is
the following: Wenzhou private enterprises are "wild",not high, competition is fierce. On the one hand the
the native has the ability to adapt to changes ininternational front, China's accession to WTO,
external environment and the ability to resist risks;international companies such as old appliances ABB,
reform and opening up three decades, accumulated aSchneider, Siemens and so moved to "house"
great wealth of Wenzhou, about 1.2 trillion investmentproduction, and by virtue of their strength, brand,
in fixed assets, private capital is about 600 billion, withtechnology occupied 70% of the domestic high-end
the material basis risks; the private economy inmarket Now they have infiltrated into the low end,
Wenzhou has a flexible system that can quicklyso low-end products in the market of Wenzhou on
changes in the external environment, adjust theirbeing dangerous, "cake" will be cut away; the other
strategies; Wenzhou tide of the market economyhand, the original base of several major domestic
has experienced numerous ups and downs in time toappliances such as Tianshui, Xi'an, Foshan, Guangdong,
avoid risks; Wenzhou businessmen have a number ofShanghai, Shenyang and other places state-owned
outstanding teams, they have been through theenterprises, due to the impact of production is not,
baptism of the market economy, determination,but after the past few years restructuring the past,
perseverance tenacious.production has increased, exacerbated by the
This legend with the outside world 20% of collapseindustry competition.
completely false. Predictability of strong enterprise in