Chapter 240: The End of the Cottage Era

Instead of being the trigger for a world war, Sarajevo was just an ancient city surrounded by mountains and beautiful scenery.

Among the many cities in Austria, it is not at all impressive. Especially after the failure of the competition for the provincial capital of Bosnia and Herzegovina, it is even more inconspicuous.

This 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 are usually not clustered.

Sarajevo is the land transport hub of the province of Bosnia and Herzegovina, has a good industrial development, and is a historical city, which has become a disadvantage for the provincial capital.

Although it is not well-known, Sarajevo's economic development is not at all satisfied, especially since Bosnia and Herzegovina became another heavy industrial center in Austria.

Thanks to its geographical advantage, Sarajevo can also be ranked in the top 20 among many Austrian cities.

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

"Mr. Shlov, we did not pass the review of the proposal for the establishment of an integrated food processing plant, and the government gave the reason that the market was saturated, and that Sarajevo was not suitable for the development of the food processing industry, and suggested that we should change the direction of investment."

Fick-Shroef frowned, the best materials to sell during the war, in addition to munitions, were food, especially food that could be eaten by tearing the bag.

Compared with the high-level arms trade, it is still easier to get into food. The profit of food may not be as good as that of arms, but the sales volume is large!

Austria was a neutral country and could export goods to both Prussia and Prussia at the same time. The total number of troops on both sides of the war had already exceeded two million, and twice that number had been levied.

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

Eat dry food every day, no one can stand it. This requires a large number of "tastier" and "more nutritious" convenience foods, such as biscuits, canned food, French fries, wine, ......

Slov calculated that the Prussian side consumed more than 2,000 tons of instant food every day, with a total value of more than 280,000 Aegis.

Based on the fact that the war lasted for one year, this is a market of more than 100 million Aegis. This is only the most conservative, and Shlove believes that it will take at least two or three years for this war to be decided, and this is the market of two or three billion.

In wartime, the profit of buying and selling is high, and it does not need much, as long as he can get one percent of the market share, he needs to be able to recoup his investment and make a lot of money.

After pondering for a while, Shlof said slowly, "Send someone to find out who is targeting us." Also, as soon as possible, I will invite Director Danilo to dinner. ”

Overcapacity, Shlov didn't see it, what he saw was that both Prussia and Prussia were waving checks to buy and buy, where did the overcapacity come from? It's clearly in short supply, okay!

Arnoel explained with some apprehension: "Mr. Shlof, it shouldn't be someone targeting us this time.

After the proposal was rejected, I sent someone to investigate, and not only us, but also the recent projects to invest in the food processing field have not been approved.

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

In the short term, the market reaction is not obvious, it takes a certain amount of time from investment to production, and we are too late to enter the market. ”

Arnole is against entering the food processing industry, even if there is no concept of food safety in these years, investing in the food processing industry in the center of heavy industry is not a reliable business.

The scale of the enterprise is small, and once it becomes large, raw materials are a headache.

Being able to survive in this era of the jungle and live a nourishing life, Shlove is naturally not a fool, and he has long considered these risks.

Huge profits always go hand in hand with risks, and there is naturally a business that makes sure that there is no loss, but this kind of business, the big nobles have long been carved up, and it is not his turn to do it at all.

The crisis of overcapacity, even if it is going to break out, will only break out after the war, and both Prussia and Russia will desperately sweep up goods during the war.

This is determined by reality, and it is impossible for them not to buy it. Whoever doesn't buy it, the supplies fall into the hands of the enemy. What will happen to the army on the front line if there are not enough supplies to rush in?

It is better to buy more supplies and leave them in the warehouse than to have insufficient supplies and lead to the defeat of the war.

The post-war crisis depends on who runs fast. Anyway, he is a dragon crossing the river, and he will leave after taking a handful, and it is not the main business, and Schloff does not care about the quality of the industry.

Schloff didn't care, but he couldn't stop the Austrian government from caring. If you can't pass the audit, as long as you meet the law, you can also invest in building a factory, but the government's support is gone.

"If we don't have access to government support, how much will it cost to invest in a factory?" ”

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

According to our plan, about 158 acres of land are needed to build factories and warehouses, and at the current land price in Sarajevo, about 126,000 Aegis is needed.

The tax relief covers a wide range of aspects and it is difficult to determine the exact figure, 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, Slov sighed helplessly: "That's it, the plan is canceled." Use the funds to expand our hardware accessories production capacity quickly. ”

There is no way, if you can't get free land use rights, the cost of land alone accounts for one-third of the total investment; There are no tax incentives, profits have dropped sharply, and risks and benefits are no longer proportional.

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

The Vienna government did not develop real estate, but with the continuous urbanization, land prices continued to rise.

This is not something that the government can control, and in addition to state-owned land, the majority of land in Austria is privately owned. These lands follow the principle of free trade, and the price is simply uncontrollable.

The price of land in Sarajevo is modest, and there are tens of thousands of acres of land in the center of Vienna, which cannot be used for other industries other than the development of high-end residential and commercial real estate.

This is still the result of the development of multipolarity, the small population of Vienna, otherwise the land price will be even more crazy.

……

Unable to get involved in the most lucrative industries, Shlof had no choice but to settle for the next best thing and expand the original industry. In the face of the crazy market, all industries are now making money.

After a moment's hesitation, Arnoll proposed, "Mr. Shlof, why don't we add some more ancillary business. For example: processing canned food 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. ”

Most of the canned food in this year is made of iron boxes, and glass cans are luxury goods.

It's not that the glass production technology is not good, but the main thing is that the cost of glass jars is relatively high, and it is difficult to transport and easy to be damaged.

The cost has gone up, the price has also gone up, and the market competitiveness has been lost.

Not to mention the war years, it is definitely necessary to use high-quality and inexpensive tin canned food! Food safety, this has never been a problem, anyway, the big guys don't eat it.

Processing canned boxes is only a small business, but no matter how small the mosquito is, it is also meat, and as a qualified capitalist, Shlove has never thought that he has too much money.

"Good, Arnoor. Your proposal is a great one, just open your mind.

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

Not only canned boxes, wine bottles, kettles, these small items can also be produced, you go and arrange! ”

Since Austria joined the free trade system, market shocks have been happening every day, and the "crisis awareness" has gradually taken root in the hearts of the people.

If it weren't for the timely arrival of the Russo-Prussian War, a competition in the industrial market that affected the European continent would have broken out.

Smart people know that war only delays the process, and what should come will still come, and this is not something that one person can stop.

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

While delaying the outbreak of the crisis, the Russo-Prussian War also exacerbated it. The Austrian newspapers advertised it every day, and the capitalists naturally did not fail to react.

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

Shroef himself was a proponent of diversity and wanted to take advantage of the Russo-Prussian War to expand his business into the food processing industry.

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

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

However, the reality pulled Slov back, there was no way Sarajevo was an inland city after all, the news was relatively closed, and Slov's reaction was not fast enough.

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

As for Austria's more competitive fields of electric power and internal combustion engines, it's not that Schloff doesn't have ideas, it's completely out of reach.

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

The era of playing copycats has passed, and Austria has long entered the era of patents, and without its own core technology, it cannot gain a foothold at all.