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Wenzhou: The company's employees self-reliance on shoes, shoes, small workshops, come back?
In recent years, the traditional manufacturing landscape in Wenzhou has undergone a significant transformation. Once dominated by large-scale shoe and garment companies, many of these enterprises have seen their core production units move to smaller, more flexible setups. In places like Putian South Village, former residential buildings have been repurposed into small workshops, marking a shift from centralized factories to decentralized, home-based production.
Guo Xiansu, president of the Printing and Dyeing Branch of the Municipal Garments Association, noted that many experienced workers from established shoe companies have started their own small businesses in Bohai, Putian. These operations are often set up in rented houses, with production lines running on the second or third floors while the ground floor serves as a living space. This model has become increasingly common, especially among migrant workers who bring in family members or fellow villagers to help run the operations.
According to Wu Yixiang, Secretary General of the Foreign Trade Branch of the Garment Chamber of Commerce, these small workshops typically employ between 10 to 30 people. They are concentrated in areas such as Bohai Sea, Sancha, Guoxi, and Yanqiao, where finding skilled labor has become a major challenge. The situation is even more acute for smaller firms, which struggle to attract and retain workers due to competition from larger manufacturers.
Nancun, a community in the Bohai District, now hosts over 300 small workshops, according to data from the Nancun Community Service Center. Of these, 81 are focused on shoe leather products, 11 on smoking accessories, 5 on machinery, and 9 on packaging materials. With only 2,000 permanent residents in the village, the population swells to around 15,000 due to the influx of temporary workers. Since 2006, the number of small workshops has grown rapidly, particularly in the past two years, turning "rent" into one of the main income sources for the area.
As the number of workshops increased, so did the costs of managing them. Health outsourcing expenses, for instance, rose from 100,000 to 300,000 yuan, while security and traffic management required three times the previous manpower. Recruitment signs are now commonly seen outside homes, with many families using their first floor for cooking, second and third floors for production and accommodation, and some even renting private houses on the outskirts.
These small workshops are not limited to one area. In places like Xie Haifeng, Sanhe, Guoxi, Yanqiao, and Shuangyu, similar models are thriving. Along the Wenruitang River, for example, there are clusters of small shops producing garments, shoes, and bags. A local security guard mentioned that it's easy to find a workshop in this area, and they have become a common feature of the neighborhood.
Liu Junyi, deputy director of the Party Branch Office of Fufeng Village, explained that many of these workshops originated from small-scale shoe cover and needle processing operations. After environmental regulations were introduced in 2000, many of these businesses closed down, but they gradually evolved into garment and upper production facilities. Most of these operators are migrant workers or local villagers who have found a way to sustain themselves through informal production.
Some workers have even taken the initiative to start their own ventures. For instance, two batches of employees from one company opened their own small factories. In the first half of this year, four technicians left to establish their own workshop, followed by another four skilled workers in the second half. This trend reflects the growing independence of workers who prefer the flexibility of small-scale operations.
Zhang Hongbing, originally from Hubei, started his own workshop in 2008 by renting a house near the Wenruitang River. He hired four local villagers to sew shoe uppers, operating from a 20-square-meter space equipped with six sewing machines. Zhang had previously worked in shoe companies for several years and still receives some orders from his former employer. He said that although the earnings are modest, the arrangement allows him to cover rent, materials, and other expenses without the pressure of a traditional factory setting.
Similarly, Mr. Zhao, who works nearby, brings in workers from his hometown in Henan. He believes that when people come from their own region, they feel more at ease and are more committed to the work. Workers tend to treat the workshop as their own, and overtime is less of an issue. Meanwhile, Mr. Xu, an Anhui native specializing in men’s washed leather garments, has also established a small factory in Nancun. He notes that many of his friends have done the same in different parts of Wenzhou, and they often share orders to keep each other busy.
The appeal of small workshops lies in their low overheads and competitive wages. During peak seasons, a couple working in such a setup can earn over 10,000 yuan per month. An old worker from Yichun, Jiangxi, explained that the main difference between small workshops and traditional factories is the flexibility—workers are busy when there are orders, and idle when there aren’t. It all depends on whether the boss can secure contracts.
With a high volume of orders and a shortage of workers, small workshops are becoming an essential part of the industry. Many workers now prefer to work in these settings, and some even bring in colleagues from their hometowns to help run the business. This trend is most prominent in Wenzhou and Fujian, where many small factories have emerged.
He Guoliang, general secretary of the Hohai District Shoe Leather Association, confirmed that almost all large shoe companies in Wenzhou outsource a significant portion of their work to small workshops. The percentage is estimated to be no less than 80%, especially for simpler tasks like shoe uppers. Even though the prices may be higher, companies have little choice due to tight deadlines.
Zhang Wenhua, chairman of Max Kay Clothing Co., Ltd., admitted that if they could recruit enough workers, their own factories could accommodate hundreds of employees. However, due to the difficulty in hiring, they often send simple clothing orders to small workshops. As Guo Xiansu pointed out, some manufacturers even provide equipment to workers and send them orders directly, further blurring the lines between traditional and informal production.
Overall, the rise of small workshops in Wenzhou reflects a broader shift in the manufacturing landscape—one driven by flexibility, cost efficiency, and the desire for autonomy among workers.