Cost rise of decoration companies labor shortage h

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Cost rise of decoration companies labor shortage highlights cost contradiction

cost rise of decoration companies labor shortage highlights cost contradiction

February 27, 2014

[China paint information] after entering the peak decoration season every spring, decoration workers are very popular, especially this year. In a newly built commercial and residential community in Xiamen - Zicheng community, many owners began to decorate their new houses, but the number of decorators was significantly less than before the Spring Festival, and there were many small advertisements for bricklaying and carpentry posted at the gate of the community. A person in charge of a decoration company said that after the Spring Festival, the decoration business was busy, but the decoration workers came back less. Moreover, the salary was higher than last year, and the decoration cost would certainly increase in the future

the shortage of workers is more serious than in previous years.

generally speaking, as a newly-built community, after getting the new house, the owners begin to decorate it one after another, which will last for oneortwo years. Before the Spring Festival, many decoration companies have holidays, and decoration workers go home for the new year. Some community properties stipulate that decoration construction is prohibited during the new year. After the first month, the decoration interrupted during the holiday gradually returned to normal. At the same time, with the temperature rising, many owners joined the decoration army. However, the arrival of the peak decoration season is not consistent with the return of the decoration workers.

according to insiders, generally speaking, the decoration workers from other places have gone home on holiday around the 20th of the lunar month before the Spring Festival. After the Spring Festival, after the 15th day of the first lunar month, the decoration workers have basically returned to their posts. Those who return to work will return to work and those who start work will start work. Because the home decoration market has obvious seasonality, the spring and autumn seasons are the busiest, and the summer and winter are relatively light. However, some of the decoration workers did not return or returned very late this year, so that the shortage of staff in the decoration company is more prominent than in previous years

it is understood that the most sought after decorators are mainly skilled workers, and the ones in short supply include bricklayer, painter, carpenter, etc. Because these types of work are all basic decoration, the construction period is relatively long, the technical requirements for workers are also high, and each decoration needs, so there is a shortage of manpower. Among these types of work, skilled workers are more popular

why are it difficult to find skilled bricklayers and painters? According to insiders, among the several types of decoration work, bricklayer and painter are the hardest and the worst working environment. They are dirty and tired when dealing with cement and paint all day. Paint and cement dust also stimulate the body. Therefore, most of these workers are older workers, and fewer and fewer young people are willing to do this work

the labor cost of decoration companies rises

the shortage of manpower will inevitably lead to the rise of salary. It is reported that the prices of various types of decoration work have generally increased this year. Among them, the price of white scraping has increased the most, from 4-5 yuan/square meter years ago to 10 yuan/square meter at present, and the prices of other types of decoration work have also increased. For example, if skilled bricklayer is paid by area, the average wage of bricklayer is 25 yuan/square meter, and chamfering is calculated separately; If it is calculated by day, the remuneration of bricklayer is about yuan per day. In addition, for the wood high and low temperature experiment, generally, due to the limited travel of the experimental machine (the travel of the experimental machine when installing the standard fixture), the salary of the ceiling is 30 to 35 yuan per square meter, the cabinet is 100 to 150 yuan per square meter, and the price of installing a faucet is about 30 yuan, which is also significantly higher than that of years ago. According to a person from a decoration company, in the past, a temporary decoration worker was hired and paid 150 to 200 yuan a day. Now it is almost 300 yuan. Among the home decoration technicians, many skilled bricklayers have already earned "more than 10000 yuan" in monthly wages

with regard to the rise in the wages of decoration workers, many decoration companies said that the price rise in the past two years was clearly reflected in the raw materials. In the labor market, as this year's labor resources are not as abundant as before, workers' wages are also rising. It is expected that the average increase in public capital of decoration workers this year may be about 5%-10%, which will increase the cost of decoration companies

Mr. Wang, executive vice president of a decoration company, said that the labor cost can account for about 40% of the total quotation, and the wages of workers have been rising in recent years, so the total decoration cost will also be increased accordingly

however, the insiders said that although the price increase is a big trend, there is no fixed or unified schedule, which does not mean that the price increase must be made after the Spring Festival or in the first half of the year, which depends on the different business conditions of each business

the "labor shortage" environment affects the industry

in fact, the shortage of decoration workers is also a concentrated manifestation of the increase in market demand. More and more new houses and old houses that have not been decorated in winter have heated the decoration market. Insiders said that after the relatively sluggish decoration market last year, the decoration market recovered at the beginning of this year, which is also a reason why the supply of decoration workers exceeds the demand

experts believe that changes in labor costs are also determined by market supply and demand, not just in the field of home decoration. Creative packaging solutions Co., Ltd., located in balcova Izmir, Turkey, has developed its Mint Tec process. Before that, the wages of manual workers in all walks of life were increasing, which was the main factor causing the increase of decoration cost. In the current "urban labor shortage" environment, the reason for the lack of skilled labor is that the support of relevant national policies makes the technicians who used to be the main force of migrant farmers no longer eager to seek urban development, but choose to return to their hometown to work in agriculture; Another reason is that the knowledge economy has prompted more young people to choose to be "white collars" rather than "blue collars", resulting in an embarrassing situation in which skilled workers, mainly manual workers, are in short supply

however, enterprises can not completely pass on the price increase caused by the increase in labor costs to consumers. Market competition does not allow a single enterprise to set prices at will. The acceptance and recognition of consumers is an issue that enterprises must consider. Enterprises need to balance the relationship between their own profits and consumer purchases and make overall pricing. Enterprises should improve their own operating capacity, carry out system reform, reduce management costs and other ways to curb the excessive price growth that the market may bring, and ensure their own benefits. For example, resources integration, rational innovation, process improvement and management improvement


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