| Ruian factories | Our factory | |
| Average salary per month for worker (RMB) | 6500 | 4000 |
| Average Industrial land cost (RMB/SQM) | 600 to 900 | 100 |
| Average Commercial house price (RMB/SQM) | 25000 | 6000 |
| Risk of designs to be copied | High | low |
| Workers native place | from other province | Most local |
| Local government policy | Not very support | Highly support |
| Factory rent or owned | Most factories rent | 100% owned |
| Environmental protection policy | Strict | Not strict |
| Stability of workers | Not stable | stable |
1,It is a trend that the safety shoe making industry from coastal cities such as Ruian shifts to inland areas such as Anhui
Safety Shoe making is a labor-intensive industry, and labor costs account for a large proportion of the total cost. It is extremely cost-sensitive, that is why the production base drifts around the world every 20-30 years. Starting in the 1960s, it moved from North America to Central and South America, from Europe and the US to Japan, then to South Korea and Taiwan, and in the 1980s to the southeast coast of the mainland. Now move to the inland areas of China such as Jiangxi & Anhui province and Southeast Asia like Vietnam, Laos and other places.
2.Good designs are easy to be copied in Ruian
ruian has 33 safety shoes factories, bosses communicate each other. employees from different factories also communicate each other. You spend a lot of money to develop a new design, may still be in the making sample stage, other factories may have copied and sell the finished goods for your competitors.
3, ruian and other coastal cities local government has much more strict policy on environmental protection.
It is a good policy of course,but definitely will influence the factories.
In 2018 many ruian safety shoes factories were closed for a period of time. But our factory in Anhui is completely unaffected due to the different local government policy.
4.Land costs in anhui is much lower.
Our factory land is 100 yuan per square meter, ruian industrial land price at least our 6-9 times, the following figure is the average transaction price of industrial land in ruian,wenzhou.
Because land is cheap, our steel toe cap supplier RUIAN Mingrui has invested a 80,000 square meter factory in our city. It is the largest supplier of steel toe cap and steel plate in Asia now.
5, Anhui has better government support
The local government in Anhui has given strong support to tax reduction，tax refund is very fast , and here also give lots of subsidies for overseas exhibition,ce and other certification,automatic machines.
6, own plant, more fixed assets, It is a security to pay deposit.
Wenzhou Ruian 80% of the safety shoe factory are rented factory premises. Fixed assets less. They may be directly disappeared after the customer pay the deposit.
7. Workers in ruian are becoming harder to recruit and labor costs are high
Most of the people who work in ruian factories are from other provinces, such as Anhui, Jiangxi, Henan and Sichuan. ruian has a high cost of living and a poor quality of life. Back home in Anhui can go home at night, stay with parents and children . Home consumption is much lower the big cities, but also relatives and friends can have a care each other. Wages are not much lower than in Ruian. Our factory has a good working environment. There is only one shoe factory in our city. The workers are stable and have no chance to change jobs. The stability of workers is the premise of stable quality.
8, Anhui is close to Shanghai.
so it can undertake the industrial transfer in the Yangtze River Delta. HONEYWELL has invested a very large factory in our city since 2010. Below is the custom record from HONEYWELL CHUZHOU BRANCH.
