Reborn 80s

Rebirth in the 1980s Chapter 294 Raw Material Prices

December is quite chilly, but for business people, it is very hot.

Yuzhou once again held an entrepreneur exchange meeting. The exchange meeting lasted for five days. The entire exchange meeting will conduct exchanges on various aspects such as enterprise management, economic expectations, and exchange of enterprise development concepts.

In addition to communication, this conference is also a good opportunity to expand your circle.

For example, if some companies want to find investment or discuss business, they can come to this exchange meeting.

Many people came to this exchange meeting, largely because of Chen Huaiqing.

Chen Huaiqing is recognized by everyone as the first entrepreneur in China.

Everyone has been researching the Murtagh Group over and over again, but no one wants to replicate the success of the Murtagh Group.

It's really too difficult.

Of course, we cannot copy the entire Motta Group, but there is still no problem in copying the previous part.

Nowadays, no one is pursuing a large and comprehensive enterprise development model or a small and comprehensive enterprise development model.

Host manufacturers began to purchase large quantities of external parts.

And some weaker factories began to gradually specialize in one thing.

There are many such successful examples in Sichuan.

For example, a company that specializes in automobile wheels now specializes in automobile wheels and supplies them to Mota Automobile and Sichuan Automobile.

You know, in the past, car wheels were made by car manufacturers themselves.

A large industrial division of labor was rapidly formed within Sichuan, and production efficiency naturally improved quite quickly.

Throughout 1987, Sichuan's industrial output continued to maintain rapid growth.

This year’s Entrepreneur Exchange Meeting will not have an outdoor dinner inside the school.

It's already December, and even in Yuzhou, it's very cold at night.

Song Qi: "If we hold another exchange meeting next year, we can hold it in our new hotel."

Next year, Shengshi Hotel will officially open for business.

Shengshi Hotel integrates accommodation, catering, and conference halls. It covers an extremely large area.

Anyway, the current land is not valuable, so it is natural to build bigger.

Of course, if it is built large, it will also have a functional partition.

The accommodation must be quiet and quiet. No one wants to hear the sound of traffic or various noises when sleeping at night.

The soundproofing of some hotels is so poor that you can hear the cheers at night.

Isn’t this torture?

Chen Huaiqing: "Next year, this exchange meeting may be held in Chengdu."

Yuzhou has been doing this for two years, and Rongcheng wants to do it too.

Among the people attending the Entrepreneur Exchange Meeting now, there are not only entrepreneurs from Sichuan, but also from all over the country.

The Entrepreneur Exchange Meeting had previously sent invitations to domestic business owners or managers.

Of course, there are not many people who can get invitations, only a few hundred people in total.

All of these have been carefully selected and are the best in the industry.

It's obvious that everyone came to this meeting not to have fun.

It is obviously a rare opportunity to communicate with industry leaders.

In addition to invited attendees, the Entrepreneur Exchange Meeting also welcomes other business owners or business executives to attend the meeting.

As long as you come and register, you can still get a sign to attend the conference.

There must be momentum.

Holding an entrepreneur exchange meeting is very beneficial to the promotion of the entire city of Yuzhou.

It can let everyone know about Yuzhou.

Only after a personal visit to Yuzhou can you understand what the current situation in Yuzhou is like.

As a well-known industrial city in the country, Yuzhou has great reform efforts.

There are many reasons why Yuzhou can make such great strides.

Anyway, no matter what the reason, Yuzhou’s economic vitality is visible to the naked eye.

"Then let the construction company work overtime!"

Chen Huaiqing: "In this way, the cost will go up. By the way, the price of raw materials has increased a bit fiercely now!"

There are always two rising costs: labor costs and raw materials.

Song Qi nodded tangledly: "I was just about to tell you about this! The price of raw materials has risen too fast, and our profit margin has dropped a lot."

This is the best time for manufacturing!

As long as the product is produced, the profit is extremely high.

The prices for labor and raw materials are very low, but the product prices are very high, so it’s strange that the profits are not high.

The high profits of manufacturing companies are borne by raw material companies.

Of course, they were all state-owned enterprises in the past, so there was actually no problem with the low prices of raw materials. Anyway, it was all a matter of hand-to-hand trade.

But now, the market is not just state-owned enterprises, but also private enterprises, collective enterprises, township enterprises, joint ventures, foreign enterprises, etc.

If the price of raw materials is too low, for enterprises, the performance is that the enthusiasm for production is reduced.

When the enthusiasm for production decreases, the production capacity will naturally decrease. The production capacity will decrease while the market demand will increase...

Then the price of raw materials in the market will naturally rise.

When prices rise, production companies should expand production capacity.

However, the market price has not been reflected by the manufacturing enterprises, and the manufacturing enterprises are still producing and selling at low prices.

Market regulation is of no use at all.

Chen Huaiqing: "I remember that there are all raw materials and so on here in Sichuan, right?"

Song Qi said helplessly: "Yes, yes, but now they are all joint-stock enterprises. They just follow the market trends."

Is it okay to just follow the market?

After the joint-stock reform of enterprises in Yuzhou, the enterprises have shown extremely high development vitality.

Now that the pilot is successful, the advanced experience must be promoted.

The joint-stock reform was directly implemented throughout Sichuan.

Basically, employees hold shares, and a board of directors is formed, and then the board of directors appoints the general manager, instead of being appointed by the top.

Municipal-level state-owned companies have been established in each city, and state-owned companies have also been established in provinces.

State-owned companies hold corporate shares.

After this change, the vitality of the company's development immediately burst out.

Chen Huaiqing couldn't help but feel a headache. This matter was really troublesome.

You can't block people's way of making money, right?

"Can we accept the current price?"

Song Qi: "It only affects profits. For us, the impact is not too big."

Motta Group is now investing purely in the semiconductor business, and all other businesses are profitable.

"In addition to the rising prices of industrial raw materials, building materials are also rising now. It feels like the entire price is rising."

Chen Huaiqing naturally knew that prices were rising and he also knew the reasons.

The previous prices were, to a certain extent, artificial pricing, not market pricing.

Now is the market return for commodity prices.

Here in Yuzhou, prices have been liberalized for a long time, and the market prices are basically followed.

Prices fluctuate, and everyone is used to it.

The price of such things is too high, so don’t buy it!

There are still cheap ones in the market after all.

As long as the supply of materials is sufficient, prices cannot rise so high. If it exceeds people's purchasing power, it will not be sold.