Reduce costs to the heart of the enterprise
2024-08-18
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Text/Photo: Hubei Daily Omnimedia reporter Liu Yu and intern Wang Tongyi
Reasonably reduce the overall cost and tax burden of manufacturing.
——Excerpt from the "Decision of the CPC Central Committee on Further Comprehensively Deepening Reform and Promoting Chinese-style Modernization"
At 3 pm on August 15, when the Hubei Daily Omnimedia reporter came to the Provincial Department of Economics and Information Technology, Liu Liangbo, director of the Small and Medium Enterprise Development Department, and his colleagues were discussing the arrangements for the third quarter "Double Links and Double Hundreds" enterprise survey. One of the main contents of the survey is to follow up on the implementation of several cost reduction policies previously issued by our province, and to do a preliminary investigation for policy iteration and optimization.
Liu Liangbo said that in recent years, affected by the international and domestic economic environment, the overall cost of manufacturing has remained high and small and medium-sized enterprises have faced more difficulties in production and operation.
In his view, the "Decision" proposes to reasonably reduce the overall cost of manufacturing, which is an emergency measure to stabilize economic growth at present, and it is also a long-term strategy to consolidate the foundation of the real economy.
On August 8, employees of Dongke Knorr Commercial Vehicle Brake Co., Ltd. (Shiyan Zhangwan) were producing brakes. The company has won the fierce market competition by introducing new intelligent production lines, optimizing operation programming, and improving production quality and efficiency. (Photo by Hubei Daily All-Media Reporter Tian Yue, Correspondent Ye Hang and Feng Qianyu)
Where exactly are corporate costs so high?
Liu Liangbo explained that the comprehensive cost of manufacturing includes both explicit costs, such as tax burden, logistics costs, energy, labor, financing and other factor costs, as well as implicit costs such as business environment and institutional transaction costs.
"How to help companies reduce costs?" the reporter asked.
"Cost reduction is the focus of deepening reform, and we will not miss any opportunity to reduce costs." Liu Liangbo said that reducing the comprehensive cost of manufacturing is a systematic project, which requires facing pain points, bottlenecks, and difficulties, and breaking them one by one. In recent years, the provincial party committee and government have attached great importance to the cost reduction work of enterprises, and have continued to optimize the business environment with cost control as the core, and accelerated the construction of a comprehensive cost "lowland". Last year, the "33 Measures" for reducing enterprise costs were launched, and this year, 25 tasks of the "Five Major Actions" were deployed, striving to reduce costs to the heart of enterprises.
For example, in terms of reducing the cost of electricity for industry and commerce, Hubei has introduced 20 measures, including the implementation of a new policy on time-of-use electricity prices. In the first half of this year, the average electricity price for industry and commerce in our province has dropped from 10th to 17th in the country, saving 4.5 billion yuan for enterprises across the province.
In terms of reducing financing costs, a "white list" of key enterprises that receive financial support will be established to support loan extensions, deferred principal and interest payments, incremental loans, etc., as well as focus on specialized and innovative enterprises to carry out financial early spring activities.
Xiangyang has built the province's first county-level comprehensive supply chain public service platform. (Photo by Hubei Daily Omnimedia reporter Tian Yue, correspondents Liu Jun and Chen Yuelin)
In terms of reducing logistics costs, this year, the Provincial Department of Economic and Information Technology teamed up with the Provincial Port Group to organize and carry out the "Logistics Supply Chain Helps Industrial Enterprises Reduce Costs" campaign, and has equipped nearly 100 enterprises with "exclusive butlers" for logistics cost reduction.
Reform measures have brought a sense of gain to enterprises. In the first half of the year, Hubei has reduced the burden of various business entities by 57 billion yuan, a year-on-year increase of 26.7%; the cost of every 100 yuan of industrial revenue in the province was 85.46 yuan, a decrease of 0.39 yuan from the same period last year; the profits of industrial enterprises above designated size increased by 36.5% year-on-year, ranking third in the country.
"The key to further deepening reform in an all-round way is to establish mechanisms." Liu Liangbo introduced that the Provincial Department of Economic and Information Technology, as a department that focuses on industries and serves enterprises, will focus on exploring the establishment of three major mechanisms in the next step, including maintaining a reasonable proportion of investment in manufacturing, comprehensive cost-performance evaluation of manufacturing, and long-term mechanisms to reduce the burden on enterprises.
For example, we should better play the role of provincial-level coordination agencies such as strong manufacturing provinces and breakthrough development of advantageous industries, strengthen departmental coordination and provincial and municipal linkage, and promote cost reduction with the supply of high-quality policies. We should continue to improve the cost monitoring and evaluation mechanism for small and medium-sized enterprises, find gaps by comparing with advanced provinces, and tap potential and reduce costs by benchmarking. We should continue to deepen the service brands of the economic and information departments such as "Together Benefiting Enterprises" and "Double Links and Double Hundreds", build public service platforms such as "Chuqitong", improve the closed-loop work mechanism for enterprises to reflect problems and solve them, and promote special actions such as reducing the burden on enterprises and clearing accounts in a normalized and long-term manner, so as to promote cost reduction with precise services.
For details, please see the second page of Hubei Daily on August 16>>
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