People in the Republic of China era began to rise from industry.
Chapter 3: The Opportunity to Save China's Textile Industry and Enter Heavy Industry
The system's arrival was so sudden that it caught everyone off guard.
Fortunately, Lin Yi was used to big scenes, and after a brief moment of surprise, he returned to normal.
There was no rush to check out the system to see what kind of technological upgrade it was.
Hearing Lin Fang say that he had previously suggested stopping production, it seemed quite reasonable.
The more they produce, the more they lose money, and inventory is rising rapidly. There is no possibility of the market improving in the short term.
Considering several factors, halting production is definitely the most appropriate option.
Although Lin Andao came from a triad background, he must have had a business mind to be able to build this business.
His decision to reject the offer was quite baffling.
Just as he was wondering about this, he heard Uncle Nan say from the side, "The reason why the master did not stop production is mainly for the sake of these workers."
“Life in Shanghai is very difficult. Once the factory stops production, these workers lose their income.”
"Young master probably doesn't know this, but although our textile factory has mostly female workers, many of them are the breadwinners of their families. If they lose their income, their whole family's livelihood will be affected."
"The gentleman said at the time that it wouldn't matter if we suffered some losses, but we couldn't let the workers lose their livelihoods."
These words filled Lin Yi with awe.
Although Lin Andao came from a gang background, his sense of responsibility makes him a truly conscientious capitalist.
"But this isn't a long-term solution."
Lin Fang clearly disagreed with Lin Andao's approach.
“If this continues, we will eventually be unable to bear it. If we can’t sell the fabric, the longer it drags on, the more serious the losses will be.”
As he spoke, he looked at Lin Yi and said, "Cousin, we really can't delay any longer."
He was really anxious about this.
The Lin family's business will be yours sooner or later; the money you're losing now is all your own!
Lin Yi nodded and looked at Uncle Nan, asking, "Uncle Nan, this can't go on like this. I think stopping production would be a good idea."
Hearing Lin Yi's words, Uncle Nan frowned imperceptibly.
Lin Fang, standing to the side, secretly breathed a sigh of relief.
Although there are losses from the production stoppage.
However, by stopping the salaries of several hundred workers, the losses would be greatly reduced.
To be fair, Lin Yi is quite clear-headed about this.
Unlike Lin Andao, who always had morality in his heart, it was simply laughable.
Just as he was grumbling to himself, he heard Lin Yi say, "Of course, we must also take Father's considerations into account."
"Therefore, I suggest that production be suspended but wages not be cut. Workers can come to the factory as usual, but they should not start production. Instead, a training course should be held to train them in production skills in preparation for resuming production."
Lin Yi's considerations were very simple.
Labor is cheap in this era.
Workers in textile factories earn no more than ten yuan a month.
Even the highest-paid assistant manager only earns a little over one hundred dollars.
Therefore, wages account for a very small percentage of the total production cost.
With high inventory levels, choosing to halt production at this point, cutting raw material costs—a major expense—and stabilizing cash flow is of utmost importance.
Only by ensuring cash flow can he have enough time to respond to changes.
He will be able to proceed with composure and calm no matter what changes he makes next.
Upon hearing this, Uncle Nan, who had been frowning, immediately smiled.
He nodded and said, "Alright, I'll do as you say, young master."
As for Lin Fang, his mouth was agape as he stared at Lin Yi in disbelief.
I was careless; this guy has no sense of reason at all.
He's clearly even more clueless than Lin Andao!
Paying salaries even when work isn't running is practically giving them away for free.
Lin Yi noticed his expression, but was too lazy to explain.
He's the boss; Lin Fang, this cheap cousin, is at best a high-level employee.
Now that he has made the decision, others are just responsible for carrying it out.
Questions are understandable, but the boss has no obligation to provide explanations.
The decision was made, and the textile factory's assistant manager was notified on-site to immediately cease production.
Afterwards, Lin Yi learned about the specific details of the factory.
The monthly salary expenditure is a little over 10,000 yuan, in addition to various raw materials and finished products in stock, which are worth more than 500,000 yuan.
As for the factory's cash reserves, they were less than 100,000.
Besides, even if we don't produce anything, the various taxes we have to pay each month are around four thousand yuan.
As for the revenue tax on the sale of finished products, that is calculated separately.
If there's no revenue from no shipments, then there's no need to pay.
While learning about these things, Lin Yi also checked the system's introduction.
The explanation is very simple.
The so-called technological upgrade means that Lin Yi, the host, can upgrade the technology of a certain item.
Once the specified item is selected, the system can analyze its technical composition and provide an upgrade plan.
However, this ability is not unlimited.
Instead, Lin Yi, as the system's host, is only rewarded for each national brand he successfully creates and that is recognized by the system.
Looking at the introduction, Lin Yi couldn't help but feel pleasantly surprised.
He had just lamented that he didn't know where to start in improving the equipment.
Now that the system is in place, this problem can be easily solved by following this instruction.
Perhaps the reason I was pulled into this time and space is to save China's industry from the brink of collapse!
Realizing this suddenly, Lin Yi felt even more motivated.
That's how a sense of mission is born!
As for building a national brand and obtaining system rewards, it seems to be effortless!
So after learning about the textile factory, when he left, the ambitious Lin Yi directly designated a spinning production line.
In an instant, a flood of complex information rushed into his mind...
Because he suddenly received a cheat code like the system, Lin Yi only took a brief look at the machine factory and the daily chemical factory before returning to the Lin Mansion on Ferguson Road.
He sat down comfortably in Lin Andao's study and carefully reviewed the additional information in his mind.
He could only roughly understand the machine's design and the various parameters of its parts.
However, the point he values most is reflected in the information.
Once the upgrade is completed, the new production line can increase production efficiency by 37 percent.
Lin Yi roughly estimated based on the cost structure that this meant that once the textile factory used the new production line, the unit cost would decrease by nearly 20%.
Steady!
With a sharp clap, Lin Yi smiled.
Once this step is achieved, Ando's textiles will be fully capable of competing with foreign products in the market!
Of course, this was far from enough for Lin Yi, who had developed a sense of mission.
It's not a big deal for one person to be full.
The real victory is when all of China's textile manufacturers can make a living.
Lin Yi didn't even dare to think about what a terrible scene it would be if all the textile factories in China were forced into bankruptcy.
The economy and society are interconnected.
Labor-intensive industries like textiles are also the leading industries in China's light industry.
Once a large-scale wave of bankruptcies occurs, mass unemployment is just the beginning.
Like dominoes, the impact will inevitably be felt in all aspects.
These industrial workers are the main consumers in the market.
Without their consumption, China's already weak industrial economy would inevitably fall into a deep winter.
For Lin Yi to expand his business and build a commercial empire, a sufficiently large consumer market is fundamental.
Therefore, simply making one's own textile factory better is not enough.
The entire textile industry in China needs to prosper.
So what he needs to do next is to take this opportunity to become a textile equipment supplier.
While rescuing China's textile industry, the company also upgraded its own operations, moving into heavy industries such as equipment manufacturing...
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