Sewing Machine Industry Has Seen Negative Growth For The First Time In Eight Years.

According to the data released by China Sewing Machinery Association, after eight consecutive years of rapid development, influenced by various factors in the domestic and international environment and industry, the output value of the industry has been negative for the first time this year. The overall production has been completely reduced, and the profits of enterprises have dropped sharply, showing a downward trend.

The main index dropped by nearly 30%.

In 1-5 months, the main indexes of China's sewing machinery industry declined, and the growth rate slowed down by nearly 30 percentage points.

The total output value of industrial output totaled 6 billion 100 million yuan, down 21.76% from the same period last year, an increase of nearly 41 percentage points year-on-year; the industrial added value of 1 billion 600 million yuan, down 27.01% from the same period last year, an increase of 32 percentage points; the total profit and tax volume of 500 million yuan, a decrease of 43.04% over the same period last year, an increase of 45 percentage points, and a total profit of 300 million yuan, a decrease of 46.56% percent, an increase of 43.04% percentage points.

In 1-5 months, 3 million 160 thousand sewing machines in the whole industry decreased by 24.71% compared with the same period last year, 3 million 70 thousand sewing machines sold, down 27.40% from the same period last year, and 500 thousand accumulative inventory sewing machines, an increase of 27.29% over the same period last year.

At the same time, the growth rate of sewing machinery import and export trade slowed down.

In the 1-5 month of this year, the export of sewing machinery products in China ended eight consecutive years of rapid growth. The first time there was a sharp decline in export growth.

According to the statistics of the General Administration of customs, the total export trade of sewing machinery in China (excluding pre sewing equipment and spare parts) and parts and components is 780 million US dollars, down 4.88% from the same period last year, and the total trade volume is declining. The total import has been shrinking. In the 1-5 month, the total import of sewing machinery and parts was 150 million US dollars, down 22.89% from the same period last year.

Sewing enterprise turn

Nagata Mihiro, director of the China Sewing Machinery Association, said that many enterprises such as leaps, gemstones, ZOJE and other enterprises in Zhejiang and Taizhou, which are concentrated in the sewing machine industry, are faced with varying degrees of difficulty. Lack of funds has become their biggest difficulty.

Almost all the small businesses have been shut down, and the medium enterprises are in a semi shutdown state, and there are various problems in the leading enterprises.

What worries us is that many sewing machine enterprises begin to switch to other mechanical manufacturing fields, such as medical devices, tobacco, automobiles, aircraft manufacturing, etc.

Gu Liping, deputy general manager of Ningbo development Sewing Machinery Co., Ltd., told the media before: "the total number of orders this year dropped by 50%. Now the pressure is huge. We are investing in the direction of foreign trade and medical equipment, trying to see if we can develop in other industries."

Just last year, in order to carry out diversified operation, ZOJE shares illegally occupied more than 160 million yuan of funds of listed companies, and did not return all the funds occupied until April 21st of this year.

In May 26th, Cai Kaijian, chairman of ZOJE shares, made a public letter of apology, saying that "sewing machinery and equipment industry is a small industry with limited market size. My idea is that we must cultivate more and better other industries at the group level."

Chen Hongmei, a news and Propaganda Department of the gem sewing machine group, also said that apart from sewing machinery, the company has invested in such fields as electronic control, real estate, financial insurance and so on.

Merger and acquisition is the way out

The industry generally believes that the biggest disadvantage of sewing machinery lies in its excessive dependence on textile and garment industry as well as its low and medium product structure.

Most domestic clothing enterprises purchase equipment from abroad, and the closure of a large number of small and medium-sized garment enterprises directly leads to the sharp shrinkage of the domestic sewing machinery market.

To cultivate an independent market is still a "distant goal".

Coupled with the implementation of tight monetary policy and the implementation of a series of macro measures, the sewing machinery industry is just as bad as it is, and it also tests the limits of the life of this small industry.

In fact, sewing machines have a high technical content and can produce sewing machines and produce other machines.

Tian min Yu has appealed to the government to adjust the export rebate rate of the sewing machines and increase the loan intensity.

Because "China's sewing machinery occupies 70% of the world's share, it is also an absolute advantage in parts assembly. The government should treat it differently."

According to the industry association report, 95% of the sewing machinery industry in China is private enterprises.

However, the industry concentration is very low, and there is a lot of disorder competition. Small and medium enterprises almost all rely on export tax rebates to create profits.

Tian min Yu believes that to eliminate this situation, we must take the road of joint mergers and acquisitions to form a large backbone enterprise.