It is a hard situation for upholstery furniture upholstery furniture manufacturers. It is an important part of the national economy, but the living environment is not optimistic. Recently, it has been revealed in the furniture industry that a certain furniture store intends to sell, and a certain furniture factory is about to close. A private enterprise that has been in business for nearly 10 years has finally closed down. The boss told us the following three sad facts.
From the perspective of laws and policies, the status of our private enterprises is indeed lower than that of state-owned enterprises, and the status of the private economy is indeed lower than that of the public economy. Like our private enterprises, there are self-employed businesses, partnership businesses, and buyout transformations. On the road of development of private enterprises, it is inevitable to encounter some problems, some problems come from the market, and some problems come from the system. For me, the most difficult thing is that financing channels are really difficult. Of course, it is undeniable that this is also related to our company's own limitations, such as irregular operations, financial confusion, and unclear financing needs.
Vicious low-price competition has led to lower and lower profits in this industry. However, factory rents have risen year by year, labor costs have continued to rise, and other consumption has risen, while profits have been declining. This is no different for furniture people. The wages of employees are rising, and prices are rising. This is really not a good thing. It directly breaks the production planning and layout of our upholstery furniture manufacturers.
Enterprise technology is difficult to updateMost of the development of private enterprises are labor-intensive production enterprises. In many cases, because of this production model, it is destined that companies cannot have high-tech production equipment and advanced production technology. Let's just talk about a phenomenon. In fact, the quality of employees in our company is generally not high. This is a congenital reason, and this largely restricts the speed of our company's technological update. Private industries are becoming more and more difficult to do, and it is not easy for business owners. On the road of private enterprise development, many entrepreneurs have also deeply felt: The weak and the strong are the same.