Wednesday, May 22, 2024

E-cigarette companies are generally difficult to resume work


“If I don’t resume work, I will go bankrupt next month.” This is the voice of many SME bosses.

At present, there are very few companies in the e-cigarette industry that have resumed production. The biggest problem currently facing enterprises in the industry is how to effectively resume production. This is not only a problem for the e-cigarette industry, but also for other industries.

According to our understanding, there are currently 6 problems on the heads of electronic cigarette companies, leading to the difficulty of resuming production.

1. Difficulty in getting approval
If you want to resume work, you need to get approval; if you want to get approval, you need to fill in a lot of forms and sign various documents. At present, there are many electronic cigarette companies applying for resumption of work, but few have passed; especially small and medium electronic cigarette factories.

In addition, an essential item for enterprises to apply for resumption of work is a letter of commitment. Under heavy responsibility, some e-cigarette companies have also retreated from the difficulties. Because no one dares to guarantee that there is no “if” and “in case”. At present, some places have changed to the filing system. In fact, the pressure on enterprises to change to the filing system is even greater.

Even if some e-cigarette companies are approved to resume work, they dare not really resume production. On the one hand, they want to resume work and production as soon as possible to reduce losses, and on the other hand, they’re worried that the epidemic will occur in their own company. They’re facing a dilemma.

2. Shortage of epidemic prevention materials
Enterprises need to resume work and prepare the necessary anti-epidemic materials. However, the supply of basic anti-epidemic materials such as masks, temperature guns, and disinfection supplies is still very scarce.

3. Difficulty for employees to rework
Since the outbreak, villages and communities have been closed down, roads closed, buses and buses stopped, trains and high-speed rails stopped in some large and medium-sized cities, and rural labor transportation have been severely restricted. As a result, employees in other places cannot travel and return to work. The difficulties are many, with only a few rework.

Especially as a labor-intensive e-cigarette factory, it is facing a serious problem of employee rework. In addition, the coastal developed cities, where inflows the populations, set a high threshold for labor inflows.

Except for those from key epidemic areas, all immigrants need to be quarantined for 14 days, and labor inflows are tied to the resumption of work. Old employees who have not obtained the approval for rework are not allowed to return to work.

4. Difficult logistics and transportation
At present, most cities are still strictly controlling traffic. In addition to the key guarantee of medical supplies and related personnel transportation, after the resumption of work, enterprises face difficulties in transporting raw materials and products, which affects the process of restarting production.

5. The supply chain is broken
More than 20 supply chains are directly related to e-cigarette products. These supply chain companies also face supply problems.

Different regions and different types of enterprises have varying time for resumption of work, leading to the disruption of the supply chain of e-cigarette factories, obstruction of operation, and affecting the normal production of the factory.

6. The corporate capital chain is tight
Enterprises that cannot return to work gains no revenue, but still have to pay fixed expenses such as wages, rent, and interest, and some companies have difficulty in cash flow.

According to the new epidemic statistics, as of 24:00 on February 20, new confirmed cases across the country continued to drop significantly for 8 days, which shows that the curb of the spread of epidemic disease has achieved remarkable results in battlefields. The gradual resumption of production of e-cigarette factories is imminent, and many companies can no longer afford to wait.

At present, the most important thing for an e-cigarette company is to resume work and production on one hand, and prevent the epidemic on another hand.

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