Chapter 670: The End of the Cottage Era

Did not become the fuse of the world war, Sarajevo is just an ancient city surrounded by mountains and beautiful scenery.

Among the many cities in Austria, it is inconspicuous. Especially after the failure to compete for the provincial capital of Bosnia and Herzegovina, it is even more inconspicuous.

This also has to do with the policy 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 get together.

Sarajevo is the land transportation hub of the province of Bosnia and Herzegovina, and its industrial development is also good. It is also a historical city. These advantages have become the disadvantages of his competition for provincial capital cities.

Although the popularity is low, Sarajevo's economic development is not at all dissatisfied, especially after Bosnia and Herzegovina has become another heavy industry center in Austria, the local economy has skyrocketed.

With its geographical advantage, Sarajevo can also be ranked in the top 20 among many cities in Austria.

In an office building on Urho Avenue in Sarajevo, the headquarters of Fick Group, a giant in the field of hardware accessories, is here. At the moment, CEO Arnold is making a work report to the boss.

"Mr. Shroff, our proposal to build a comprehensive food processing plant did not pass the review. The reason given by the government was that the market was saturated and that Sarajevo was not suitable for the development of the food processing industry, and suggested that we change our investment direction."

Fick-Shroff frowned. In addition to arms, the best-selling materials during the war were food, especially food that could be eaten by tearing the package.

Compared with the arms trade of the tall, it is easier to start with food. The profit of food may not be as good as that of arms, but the sales volume is huge!

Austria is a neutral country and can export supplies to both Prussia and Russia at the same time. The total strength of the warring parties had already exceeded two million, and the number of civilians recruited was twice that number.

It is impossible for so many people to make a fire to cook every day, and many times they can only use home-made dry food in order to be in a hurry.

No one can stand eating dry food every day. This requires a lot of "better taste" and "more nutritious" convenience foods, such as: biscuits, canned food, French fries, wine...

Shroff has calculated that both Prussia and Russia consume more than 2,000 tons of fast food every day, with a total value of more than 280,000 Aegis.

If the war lasted for one year, this was a market of more than 100 million Aegis. This is only the most conservative. Shroff believes that this war will take at least two or three years before the winner can be determined. This is the market of 200 to 300 million.

During the war, the profit of trading is high, and it does not need to be much. As long as he can get 1% of the market share, he needs to make him recover his investment and make a lot of money.

After pondering for a while, Shroff said slowly: "Send someone to find out who is targeting us. Also, arrange a time as soon as possible. I want to invite Director Danilo to dinner."

Shroff didn't see the overcapacity. What he saw was that both Prussia and Russia were waving cheques to buy and buy. Where did the overcapacity come from? It's clearly in short supply!

Yanor explained with some trepidation: "Mr. Shroff, no one should be targeting us this time.

After the proposal was rejected, I sent someone to investigate, not only us, but the projects that invested in the food processing field have not been approved recently.

It may be related to the risk warning issued by the Vienna government not long ago. Recently, the capital invested in the field of food processing has soared, and the original food processing enterprises are also desperately expanding their production capacity.

It takes a certain amount of time from investment to production. The market has not reacted in the short term, and we are already late to enter the market. "

Yanor is against 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 scale of the enterprise is small, but once it becomes large, raw materials are a headache.

To be able to survive in this era of the weak and the strong, and to live a good life, Shiroof is naturally not a fool, he has long considered these risks.

Profits always go hand in hand with risk, and there are businesses that make steady profits without losing money, but it's just such a business that the great aristocrats have already divided up, so it's not his turn to do it at all.

The crisis of overcapacity, even if it is about to break out, will only happen after the war. During the war, both Prussia and Russia will try their best to scavenge the goods.

This is determined by reality, and it is up to them not to buy. If anyone doesn't buy it, the supplies will fall into the hands of the enemy. Without snapping up enough supplies, what will happen to the troops on the front lines?

It is better to buy more supplies and leave them in the warehouse than to have insufficient supplies and cause the war to fail.

In the post-war crisis, it depends on who runs faster. Anyway, I was crossing the river, and I just took a handful and left, and it wasn't my main business. Shrove didn't pay attention to whether the industry was good or bad.

Shroff doesn't care, but he can't stand the Austrian government. If you fail to pass the audit, as long as you meet the legal requirements, you can also invest in building a factory, but the government's support is gone.

"If we can't get government support, how much will the cost of investing in the plant increase?" Shroff asked.

After pondering for a while, Yanuoer replied slowly: "According to the relevant government regulations, the food processing industry is a key support industry, which mainly includes: the government provides free land for the construction of factories, and the tax is halved in the first three years.

According to our plan, about 158 ​​acres of land will be needed to build factories and warehouses. At the current land price in Sarajevo, it will cost about 126,000 Aegis.

Tax relief involves a wide range of aspects, and it is difficult to determine specific figures, but the tax rate for the food processing industry is relatively low, roughly equivalent to about 3.5% of turnover. "

After hesitating for a moment, Shroff sighed helplessly: "

Well, the plan is canceled. Use the funds to expand our hardware accessories production capacity, faster. "

No way, if you can't get free land use rights, the cost of land alone accounts for one-third of the total investment; without tax incentives, profits will drop significantly, and risks and benefits are no longer proportional.

This is still industrial land, and the price is relatively low. If it is commercial land or residential land, the price of land will increase significantly.

The Vienna government has not vigorously developed real estate, but with the continuous advancement of urbanization, land prices are still rising.

This is not something the government can control. Apart from state-owned land, most of Austria is private land. These lands follow the principle of free trade, and the price cannot be controlled at all.

The price of land in Sarajevo is relatively moderate, and there is a sky-high land price of tens of thousands of Aegis in the center of Vienna. Except for the development of high-end residential and commercial real estate, other industries cannot afford it at all.

This is still multi-polar development, the result of Vienna's small population, otherwise the land price will be even more crazy.

...

Unable to get involved in the most lucrative industry, Shroff can only choose to take the second place and expand the original industry. In the face of the crazy market, all industries are now making money.

After hesitating for a while, Yanor suggested: "Mr. Shiloff, why don't we add some auxiliary businesses. For example: processing canned boxes.

Now the canning industry is developing rapidly, and the demand for boxes is also growing rapidly. With our technology, there is no problem in producing canned boxes. "

This year's cans are mostly made of iron boxes, and glass cans are luxury goods.

It is not that the glass production technology is not good, mainly because the cost of glass jars is relatively high, and the transportation is difficult and prone to damage.

Costs have gone up, prices have gone up, and market competitiveness has been lost.

Not to mention in the war years, we must use high-quality and inexpensive tin cans! Food safety, this has never been a problem, anyway, big people don't eat it.

Processing canned boxes is just a small business, but no matter how small mosquitoes are, they are meat. As a qualified capitalist, Shroff never thinks he has too much money.

"Very good, Yanor. Your proposal is very good, it's just right to open your mind.

Now that the market competition is so fierce, we must expand new businesses as much as possible and increase corporate profits in order to survive in the future market competition.

Not only cans, wine bottles, water bottles, we can also produce these small items, you can arrange it! "

Since Austria joined the free trade system, market shocks have occurred every day, and "crisis awareness" has gradually become popular among people.

If it weren't for the timely arrival of the Prussian-Russian War, an industrial market competition that spreads across the European continent might have already erupted.

Smart people know that war only delays the process, and what should come will still come. This cannot be stopped by individuals.

Either take advantage of this opportunity to soar into the sky, or sink in the competition.

The Russian-Prussian war, while delaying the crisis, is also exacerbating it. Every day in the Austrian newspapers propaganda, the capitalists will not be unresponsive.

Some people choose to diversify development, expand new businesses, and share risks; some people choose to cultivate and improve the competitiveness of enterprises in the industry.

Shroff himself is also an advocate of diversity, wanting to take advantage of the Russian-Prussian war to expand his business into the food processing industry.

Don't look at the fierce competition in the field of food processing, but this is the trump card industry in Austria, and all competitors in Europe are younger brothers in this field.

Under the free trade system, the Austrian food processing industry, which occupies a dominant position, is more resistant to risks than other industries.

However, reality has pulled Shroff back. There is no way that Sarajevo is an inland city after all, and the news is relatively closed. Shroff's response is not fast enough.

Unable to expand into the food processing industry, he had to choose to develop hardware accessories as the core to expand related businesses.

As for Austria's more competitive fields of electric power and internal combustion engines, it's not that Schroef has no idea, but it's not enough.

These fields that rely on technology for food are not something that ordinary people can participate in casually.

The era of playing cottages has passed. Austria has long entered the patent era. Without its own core technology, it is impossible to gain a foothold.