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Tooling Production Enterprises To Speed Up Production Adjustment

2008/12/5 13:10:00 154

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Recently, Japanese tooling manufacturers are actively adjusting their production.

Most tooling manufacturers believe that due to the impact of the global financial crisis, the problem of underemployment in the manufacturing industry has emerged, and the labor dispatch business will be severely damaged, resulting in a reduction in the demand for tooling.

A medium-sized garment manufacturer said that the production will be reduced by 20% at least in the second half of this year.

At the same time, there are not many enterprises that announce their annual sales targets.

In 2009, Japan will revise the building standards act. The industry believes that the revision of the law will lead to a sharp reduction in the demand for the work clothes in the construction industry.

Two listed companies that announced the target of reducing sales performance are self weight hall company and Kirk Xin Gang company.

The industry's largest self defense hall company announced its annual sales revenue by 6.4% and sales profit by 10%, while Kirk's sales and sales profits were cut by 6.8% and 48.4% respectively.

The reason for downgrading sales performance is the deterioration of the tooling industry market.

For the tooling industry, production relies heavily on China.

However, with the improvement of China's wage level in recent years, the cost of production has increased sharply.

However, when the enterprises have not yet digested the cost rising factors, the reduction of market demand is a serious blow to the industry.

The reason why Kirk believes that the reason for the sharp reduction in sales profit is that "dealing with backlogs will cause huge losses".

The production of tooling production enterprises is mostly concentrated in China, Vietnam and other countries. A trading company said, "compared with 2007, China's labor costs rose by 20% to 30%."

Therefore, many enterprises began to try to pfer part of their production to the ASEAN region. However, influenced by Vietnam's inflation, the labor cost in the same area has increased by more than 30%, and next year it will probably increase by 20%.

Although the tooling business expects the signing of the economic cooperation agreement between Japan and ASEAN can bring benefits such as tariff reduction, it is only a drop in the bucket for the rapidly deteriorating market.

Under the double pressure of reduced demand and rising production costs, Japanese tooling manufacturers have to adjust their production scale.

However, if the financial crisis can not be alleviated in the short term, financial institutions will restrict the scale of loans more strictly, and the capital operation of tooling sales enterprises will face greater difficulties.

Therefore, it is necessary for tooling enterprises to further strengthen risk management.

The content of this article is exclusively provided by Japan's Research Institute of fibre research.