Wuxi'S Textile And Apparel Industry Is Facing Life And Death Tests.

Under the pressure of RMB appreciation, export tax rebate policy adjustment, raw material and labor costs rising, and tight money tightening, the textile industry has been struggling for four years.

Yesterday, we learned that the textile industry in Wuxi lost 300 million yuan in the first 5 months of this year.

"Textile and garment enterprises are more and more difficult to export."

Wuxi, a company with more than 2000 employees, has calculated a "loss" account for enterprises. Since the reform in 2005, the appreciation of the renminbi has risen to around 20%. The company has been able to raise its price moderately by 8% with the export exemption and brand advantages, but still 12% can not digest it.

Last year, the appreciation of the RMB also affected the profit of 6 million 500 thousand yuan.

At the same time, the reduction of the export tax rebate rate has "eaten" the profit of 1 million 380 thousand yuan, while foreign importers generally do not accept the price increase.

Rising cost is another big pain of corporate profits.

Labor costs increased by 20% after the Spring Festival.

The rise in energy costs caused electricity costs to rise by 2 and a half cents, and coal prices rose to 630 yuan from 630 yuan per ton in November last year.

Chemical fiber fabrics, clothing accessories and international and domestic freight rates are all up by about 20%.

Roughly estimated, these three prices will increase the cost of enterprises by about 5000000 yuan.

Under tight money, textile and garment enterprises are listed as "blacklist" by banks. The compression of loans has greatly increased the financial cost of enterprises.

The "four heavy" pressure has made this profitable enterprise a new loss making enterprise.

The textile industry's recession has affected the upstream cloth processing industry.

Due to the lack of sufficient orders, the cost of maintenance and maintenance, and so on, a small printing factory for printing and dyeing fabrics in Qian Qiao area has sold a printing machine in the factory, leaving only one machine running.

"Three or four years ago, one meter cloth made one or two yuan, and now only 10 Fen of the rice cloth is printed."

The person in charge of the factory sighed bitterness.

According to the economic operation Department of the Wuxi Municipal Economic and Trade Commission, there are 1178 textile export enterprises and 300 thousand employees.

From 1 to May this year, the textile industry in Wuxi showed a low level of operation. The industry realized the current price, the industrial output value was lower than the city's average growth rate of 18.2%, the profit growth rate dropped by 1.6% compared with the end of last year, the textile industry and garment industry exports showed negative growth, the total industry loss amounted to 300 million yuan, and the number of deficit enterprises increased by 35 over the same period last year.

According to the insiders, textile and garment enterprises are labor-intensive and their profit margins are low. Nowadays, with the increase of the cost of various enterprises, some textile and garment enterprises will be faced with survival crisis.

Some textile and garment enterprises say that this year will be the "severe winter" and "life and death period" of textile and garment export enterprises.