The Current Situation Of Textile Enterprises And The Countermeasures To Solve Them

The 08 year is a special year for China. It is also a special year for textile enterprises. Under the influence of a series of factors, such as RMB appreciation, raw material price increase, labor cost rising and monetary policy tightening, most textile enterprises have been in the "zero profit" state, and even some enterprises have been trying to survive by selling factories or machines.

The textile industry is facing enormous difficulties and challenges.

Nowadays, how to pass the "winter" has become a dilemma for many enterprises in the textile industry this year.

First, the difficulties faced by textile enterprises nowadays

Since the second half of last year, the textile industry is facing great pressure from the external environment, whether it is the international economy or the domestic economy, including policies.

From the point of view of the international economy, this year is particularly prominent. The slowdown in world economic growth and weak demand, especially in some major economies, directly affect the export of the textile industry to the outside world.

As a result, the export proportion of textile enterprises is relatively high, which makes some export enterprises, plus the factors of the RMB exchange rate, cause a large number of domestic market to be sold back, thus making the domestic market more crowded.

At the same time, from the domestic point of view, on the one hand, we see that the national economy is growing at a high speed, but the delivery of textile consumption is still down.

Now the textile industry is facing a series of policy factors, including some of its own means of production, coal, electricity, oil, pportation, labor costs, policy factors and key factors to the textile industry to bring enormous cost pressures.

On the other hand, it is policy cost, including factor cost, which is unable to sustain the affordability of these costs through the ability to resist risks through adjustment and upgrading.

Some textile enterprises are facing serious difficulties in stopping production, semi bankruptcy and bankruptcy.

1, RMB appreciation is the biggest negative factor.

The appreciation of the renminbi accelerated, especially in the textile industry.

Data show that the acceleration of RMB appreciation and the impact of the US subprime mortgage crisis has become an important factor of reducing profits for textile enterprises, and also led to a sharp decline in export profits of enterprises.

Every change in the exchange rate will affect the whole industry and the whole market.

In the 1-5 month of July 2005, the yuan appreciated by 4.89% against the US dollar. Compared with the exchange rate in July 2005, the total appreciation has reached 18%. Now it has entered the "6" era.

The appreciation of the renminbi and the export tax rebate rate have eroded the small profits of the textile enterprises, and the enterprises have to raise their export prices. However, the price increase is at the expense of many customers turning to other countries.

Without raising prices, it is impossible to survive and raise prices may lose the market. Enterprises are facing a dilemma.

Take Lanyan group as an example, in the 1-5 month of this year, the total amount of foreign exchange earnings earned by enterprises was US $36 million 562 thousand and 800, and the loss reduction brought by RMB appreciation and export tax rebate rate reached 1163 yuan.

2, soaring energy prices, a sharp increase in pportation costs of raw materials and products.

China's CPI has been rising since last year, while the price of the textile industry has dropped.

According to the data released by the National Bureau of statistics, the price of Chinese manufactured goods (PPI) rose 8.2% in May, a record high in recent years.

Among them, food prices rose 11%, general daily consumer goods rose 3.9%, while clothing category rose only 2.4%.

According to the statistical data of sub varieties, almost all the prices of chemical products rose to varying degrees in the price category of chemical products, while polyester filament decreased by 4.6%.

In addition, in May, China's consumer price? CPI? Up 7.7% compared to the same period last year.

Still at a high level.

Among them, food prices rose by 19.9%%, while clothing prices fell by 1.5% compared with the same period last year, of which clothing prices fell by 1.6%.

Statistics show that the total consumer price level of China has risen this year, but the price of clothing has dropped compared with the same period last year. This is a great pressure for the textile industry.

In terms of raw materials, the following factors are as follows: (1) the increase in oil and electricity prices in June 19th will lead to an increase in the cost of production and pportation in the textile industry. For the textile industry, which is in a troubled time, the cost of production and pportation will increase, and the price competitiveness of products will be weakened again.

(2) over the past two years, the number of low grade cotton in the international market has been reduced, and the price gap between medium and high grade cotton has been gradually reduced.