How the printing industry adapts to supply-side reforms

Since the reform and opening up, investment, exports, and consumption have been the troika driving the upward development of China's economy. In view of the lingering global economic crisis and the weakening of exports, the practice of “promoting economic growth by increasing social demand” for quite some time seems to be a bit of a failure. As a result, the central government has put forward new requirements in recent months, believing that growth cannot be achieved. Like the stimulus used in history and changing the demand side to achieve it, it is achieved by "believing that the market can automatically adjust to return actual output to potential output". After the Central Economic Work Conference was held, five prescriptions were directly formulated based on the guiding ideology of the supply-side reform: that is, "de-capacity," "de-inventory," "deleveraging," "cost-cutting," and "make up for shortcomings." It is a new idea to reverse the poor economic situation.　　 Printing, which has a place in the overall situation of China's economy, should, in accordance with the requirements of the central government, contribute to the development of China's economy by reforming the supply side.

　　 Printing overcapacity is an indisputable fact

After more than 30 years of continuous development after reform and opening up, the annual output of printing in China has increased from 4.797 billion in 1997 to 10.8575 billion in 2014, which is more than 200 times higher, although it came from the 1979 of the China Printing and Equipment Industry Association. There may be discrepancies between the 2014 data and the 2014 data from the State Administration of Press, Publication, Radio, Film and Television in terms of statistical caliber. Moreover, the 2014 output value also includes non-main income from printing companies’ housing rental income, raw and auxiliary materials trading, etc. It seems to be too large, but it is an indisputable fact that the printing capacity is greater than the market demand. The supply-side reform of "cutting capacity", "reducing costs" and "making up for shortcomings" is imperative for the entire printing industry.　Printing capacity is greater than market demand, resulting in insufficient equipment utilization and a decline in corporate profitability.

According to the available statistics, in the 13 years from 2001 to 2012, my country has imported 10,738 folio printing presses with four colors or more from overseas, with an average of 895 units per year. The introduction of a large number of advanced equipment, on the one hand It has greatly improved the quality of domestic printed products. On the other hand, because the growth rate of production capacity is greater than the market growth rate, the equipment startup rate is insufficient, the sleep duration is increased, and the profitability of enterprises is declining. A few years ago, overseas newspapers have quoted Dongguan printing workers, saying that the current night printing plant is black and light, and it is no different from the previous enthusiasm.

Printing capacity is greater than market demand, resulting in sluggish product prices, and some have fallen to the level of the second decade of the twentieth century.

In the past few years, the operators of printing companies have always complained that labor costs have risen, but printing labor costs have not risen but fallen. In fact, this is the result of the relationship between supply and demand. Because the production capacity is greater than the actual demand, in order to win the business, it is inevitable to fight a price war. In the end, the fish die and the net is broken, and the entire industry is going downhill. Ren Yucheng, chairman of the Beijing Printing Industry Association, pointed out a few years earlier: "The fierce market competition has caused the printing cost of publications to fall between 1991 and 1994. Trends.” He also took the operating conditions of 625 publication printing companies in Beijing’s printing industry in 2009 as an example, and pointed out that those factories that year “achieved sales of 8.6 billion yuan, profits of 193 million yuan, and a profit rate of 2.2%, the average profit rate of my country’s industry in the same year. It’s 5.47%.” The profitability of the printing industry is far below the social average. This is the result of greater capacity than demand.

Printing capacity is greater than market demand, resulting in limited labor income and increased employee mobility.

Lower profitability will inevitably lead to low incomes for printing enterprise employees. Because of the lack of skin, Mao will be attached? Even in the face of the annual minimum wage increase line proposed by local governments in recent years, printing enterprises are also a little angry. Breathing for breath, so the mobility of employees is increasing, and the difficulty in recruiting becomes more prominent. In order to stabilize the key employees, some operators have to give up limited profits and provide employees with two working meals a day, free accommodation and other benefits. However, as long as the status quo of the industry cannot be changed, as long as there is environmental pollution in the printing production If the problem is over-exposed, the problem of high employee mobility is difficult to be solved in essence.

The current situation of oversupply determines that the entire printing industry must carry out supply-side reforms.