Chapter 670: The end of the cottage era

Without becoming the fuse of the World War, Sarajevo is just an ancient city surrounded by mountains and beautiful scenery.
It is insignificant in many cities in Austria. Especially after the failure to compete in the provincial capital of Bosnia and Herzegovina, it became even more inconspicuous.
This also has to do with the policies of the Vienna government. In order to avoid excessive concentration of resources and unnecessary waste, administrative centers, economic centers, and industrial centers usually do not gather together.
Sarajevo is a land transportation hub in Bosnia and Herzegovina. The industrial development is also good, and it is also a historical city. These advantages have become his disadvantages in competing with provincial capitals.
Although the popularity is low, Sarajevo's economic development is not dissatisfied at all, especially after Bosnia and Herzegovina became another heavy industry center in Austria, the local economy has skyrocketed.
With its geographical advantage, Sarajevo can also rank among the top 20 in many Austrian cities.
In an office building on Urho Boulevard in Sarajevo, the headquarters of Fick Group, a giant in the field of hardware accessories, is here. At the moment, CEO Jarno is giving a job report to his boss.
"Mr. Schloef, we proposed that the plan for the establishment of a comprehensive food processing plant has not passed the review. The reason given by the government is that the market is saturated and that Sarajevo is not suitable for the development of the food processing industry, and we suggest that we change our investment direction."
Fick-Shloff frowned, except for the arms during wartime, which was food, especially food that could be eaten by tearing the packaging bag.
Compared to the tall arms trade, food is still easier to get started. The profit of food may not be comparable to the arms, but the sales volume is large!
Austria is a neutral country and can export goods to both Russia and Russia. The total troop strength of the two warring parties has already exceeded two million, and the number of people raised has been doubled.
So many people ca n’t make a fire every day to cook. Many times, in order to hurry, they can only use homemade dry food.
Everyone can't stand eating dry food every day. This requires a lot of convenience foods that are "better in taste" and "more nutritious", such as: biscuits, canned food, french fries, wine ...
Schloff calculated that the two countries consumed more than 2,000 tons of fast food per day, with a total value of more than 280,000 Aegis.
Calculated by the duration of the war for one year, this is the market of more than 100 million Aegis. This is only the most conservative. Schloff believes that it will take at least two or three years for this war to be able to separate the victory and defeat. This is a market of two or three hundred million.
The profit from trading during the war is high, and it doesn't need to be much. As long as he can get 1% of the market share, he needs to get his investment back and make a lot of money.
After pondering for a while, Shilov said slowly: "Send someone to check who is targeting us. In addition, arrange the time as soon as possible, I will invite Director Danilo to eat."
Overcapacity, Slovov did not see it. What he saw was that both Russia and Russia waved checks to buy and buy. Where did the excess capacity come from? Obviously supply is in short supply.
Yanoler explained a little bluntly: "Mr. Schloff, this time no one should be targeting us.
After the plan was rejected, I sent someone to check. Not only us, but also the projects invested in the food processing field in recent time have not been approved.
It may be related to the risk warning issued by the Vienna government not long ago. The capital invested in the field of food processing has soared in the recent period, and the original food processing companies are desperately expanding their production capacity.
It takes a certain amount of time from investment to production. The market has not responded in the short term. We are now late to enter the market. "
Yanor is opposed to entering the food processing industry. Even if there is no concept of food safety these days, investing in the food processing industry in the center of heavy industry is not a reliable business.
The size of the company is small, once it is large, raw materials are a headache.
Being able to survive in this age of weak meat and strong food, and lived a very nourishing life, Sloof is naturally not a fool. He has considered these risks long ago.
The huge profits always go with the risks. Naturally, there is a business that does not lose money, but this kind of business, the big nobles have long been divided up, and it is impossible for him to do it.
The crisis of overcapacity, even if it breaks out, will only happen after the war. During the war, both Russia and Russia will desperately sweep the goods.
This is a reality decision, and they cannot afford not to buy it. If anyone does not buy, the supplies will fall into the hands of the enemy. Without buying enough supplies, what should the frontline army do?
It would be better to buy more supplies and leave them in the warehouse than to run out of supplies and cause the war to fail.
The post-war crisis depends on who is running fast. Anyway, he was Jiang Long, and he went away with a grab, but not the main business, and the industry was not good or bad.
Schloef didn't care, but couldn't stand the Austrian government. If it fails to pass the audit, as long as it meets the legal requirements, it is also possible to invest in building a factory, but the government's support is gone.
"If we can't get government support, how much will it cost to invest in a factory?"
After contemplating for a while, Yanor slowly responded: "According to relevant government regulations, the food processing industry is a key support industry, mainly including: the government provides land for factory construction free of charge, and the tax for the first three years is halved.
According to our plan, about 158 ​​acres of land are needed to build factories and warehouses. At the current land price in Sarajevo, about 126,000 Aegis is required.
The tax reduction and exemption are relatively broad, and it is difficult to determine specific figures, but the tax rate of the food processing industry is relatively low, which is roughly equivalent to about 3.5% of turnover. "
After hesitating for a moment, Shilov sighed helplessly: "No more, the plan is cancelled. It is faster to use the funds to expand the capacity of our hardware accessories."
There is no way, without obtaining free land use rights, the cost of land alone accounts for one-third of the total investment; without tax concessions, profits have fallen sharply, and risks and benefits have become disproportionate.
This is still industrial land and the price is relatively low. If it is commercial land or residential land, the land price will increase significantly.
The Vienna government did not vigorously develop real estate, but with the continuous advancement of urbanization, land prices have continued to rise.
This is beyond the government's control. Apart from state-owned land, most of Austria is private land. These lands follow the principle of free trade, and prices are simply beyond control.
The price of land in Sarajevo is relatively modest, and there are sky-high land of one acre in the center of Vienna. Except for the development of high-end residential and commercial real estate, other industries simply cannot afford it.
This is still the result of multi-polar development. The population of Vienna is not large, otherwise the land price will be even more crazy.
...
Unable to get involved in the most lucrative industries, Schloff can only choose to retreat and expand the original industries. In the face of the crazy market, all industries are now making money.
After hesitating for a moment, Yanol proposed: "Mr. Schloff, we might as well add some auxiliary services. For example: processing canned boxes.
Now the canning industry is developing rapidly, and the demand for boxes is growing rapidly. With our technology, we can produce canned boxes without any problems. "
Most of the canned food these years are iron boxes, and glass canned goods are luxury items.
This is not to say that glass production technology is not feasible, mainly because glass cans are relatively expensive, and transportation is difficult and prone to damage.
Costs have gone up, prices have gone up, and market competitiveness has been lost.
Not to mention the era of war, we must use cheap tin cans! Food safety has never been a problem, anyway, big people don't eat.
Processing tin cans is just a small business, but mosquitoes are as small as meat. As a qualified capitalist, Schloff has never considered himself too much money.
"Very good, Yanor. Your proposal is great, just open your mind.
Now that the market competition is so fierce, we must expand and expand new business as much as possible to improve corporate profits, in order to survive in future market competition.
Not only canned boxes, wine bottles, kettles, we can also produce these small objects, you can arrange it! "
Since Austria joined the free trade system, market shocks have occurred every day, and "crisis awareness" has gradually become popular.
If it did not come in time for the Russian-Prussian War, a competition in the industrial market that affected the European continent would have erupted.
Smart people know that war just delays this process, and what should come is still there. This is not something that individuals can stop.
Either take advantage of this opportunity to soar into the sky, or sink in competition.
While delaying the outbreak of the crisis, the Russian-Russian war is also exacerbating the crisis. Every day propaganda in Austrian newspapers, capitalists naturally will not be unresponsive.
Some people choose to diversify their development, expand new businesses, and share risks; others choose to deepen their cultivation and improve their competitiveness in the industry.
Mr. Schloff himself is an admirer of diversification and wants to use the opportunities of the Prussian War to expand his business into the food processing industry.
Don't look at the fierce competition in the food processing industry, but this is Austria's ace industry. All competitors in Europe are younger brothers in this field.
Under the free trade system, the dominant Austrian food processing industry is more resistant to risks than other industries.
However, Slovak was pulled back by reality. There was no way that Sarajevo was an inland city, and the news was relatively closed. Slovov did not respond quickly enough.
Unable to expand into the food processing industry, he had to choose to deepen hardware accessories as a core to expand related businesses.
As for the more competitive field of electricity and internal combustion engines in Austria, it is not that Schloef has no idea. It is completely out of reach.
These areas that rely on technology to eat are not something that ordinary people can casually join in.
The era of playing cottage has passed, and Austria has long entered the patent era. Without its own core technology, it simply cannot stand on its own.
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