Chapter 670: The end of the cottage era (2/2)
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.
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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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