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Wenzhou: The company's employees self-reliance on shoes, shoes, small workshops, come back?
In the heart of Putian South Village, a transformation is taking place. Once filled with workers living in rented rooms, many of these spaces are now being repurposed into small production workshops. Guo Xiansu, president of the Printing and Dyeing Branch of the Municipal Garments Association, shared that several key players from Wenzhou’s shoe industry have started their own businesses in Bohai, Putian. These small workshops have become a new trend, especially as recruitment challenges persist.
Wu Yixiang, Secretary General of the Foreign Trade Branch of the Garment Chamber of Commerce, noted that many of these small enterprises—often employing just a dozen or so people—are located in areas like Bohai Sea, Sancha, Guoxi, and Yanqiao. The difficulty in hiring has only intensified over time.
According to data from the Nancun Community Service Center in Bohai District, there are more than 300 small workshops in Nancun, with 81 of them focused on garment production. Others specialize in shoe leather, smoking accessories, machinery parts, and packaging materials. The village, which has only 2,000 permanent residents, sees over 15,000 people living there, many of whom work in these small factories. Since 2006, the number of such workshops has grown rapidly, especially in the last two years. Rent has become a major income source for the village, with health outsourcing costs rising from 100,000 to 300,000 yuan, and security and traffic management requiring three times more manpower.
Signs of job recruitment can be seen hanging outside some homes. Many operate on multiple floors, with cooking on the first level, production and living quarters on the upper levels, while others rent houses on the outskirts. This model has spread across several villages, including Xie Haifeng, Sanhe, Guoxi, Yanqiao, and Shuangyu.
Along the Wenruitang River, a stretch of more than 100 meters features five or six small workshops producing garments, shoes, and bags. A local security guard said, “It’s easy to find a workshop here. We don’t have much else, so this is how we survive.â€
Liu Junyi, deputy director of the Party Branch Office of Fufeng Village, explained that many of these workshops originated from old shoe cover and disposable needle operations. After environmental improvements began in 2000, they gradually shifted to garment and upper production, mostly run by migrant workers and villagers.
Two batches of employees from one company opened their own small factories. In the first half of the year, four technicians left to start their own business, followed by another four skilled workers in the second half.
Zhang Hongbing, from Hubei, rented a house near the river in 2008 and hired four locals to sew shoe uppers. In a 20-square-meter room, he runs six or seven sewing machines with a small team. He worked in shoe companies for years before starting his own operation. Some orders come from his previous employer, and he earns extra from rent, thread, and glue.
Mr. Zhao, who works nearby, brought eight people from his hometown in Henan to join the workshop. He said that when workers are called from their home regions, they feel more at ease and are less likely to complain about overtime. Mr. Xu, an Anhui native, produces men’s washed leather garments and said many of his friends have also set up similar workshops in other parts of Wenzhou. They support each other with orders.
With low operational costs and high wages, small workshops attract workers. During peak season, couples working in these places can earn over 10,000 yuan a month. An old worker from Yichun, Jiangxi, said, “The difference between small sites and big companies is that you’re busy all the time or not. When you're not busy, everyone rests at home. It depends on whether the boss can get orders.â€
Many companies now outsource a large portion of their work to small workshops. As reported, the Foreign Trade Subcommittee of the Municipal Garments Association struggled to recruit workers in Nanchang, with little success. Local officials believe workers prefer to stay close to home, and many move to Wenzhou or Fujian to start their own workshops.
With high demand and a shortage of labor, small workshops are thriving. He Guoliang, general secretary of the Hohai District Shoe Leather Association, said that nearly 80% of large shoe companies in Wenzhou now rely on external processing. Simple tasks like shoe and bag production are often sent to small workshops, even if the cost is higher, due to tight deadlines.
Chairman Zhang Wenhua of Max Kay Clothing Co., Ltd. admitted that if they could recruit enough workers, their factory could easily accommodate hundreds. But due to staffing issues, they send simple clothing to small workshops instead. Many factory managers confirm that at least 30% of their orders go to these small operations this year.