Economic Focus In The First Half Of The Year: Textile And Garment Industry Encountered "Cold Winter" To Speed Up Structural Optimization And Upgrading Is The Only Way To Break Through The Plight.

"More than 20 branches of our enterprise, only seven or eight of them are in production now, and most of them have been shut down."

In July 24th, Guo Yonghong, general manager of Baoding Hongxing Clothing Co., Ltd., told reporters about the current situation faced by their company.

Various situations show that the textile industry of Hebei province has entered the "cold winter" period due to the combined influence of various factors at home and abroad.

Provincial Textile Industry Association official told reporters that this year, the textile industry in Hebei is facing an unprecedented grim situation. The overall situation of the industry has worsened, the growth rate has slowed down, the profitability has declined significantly, the losses of deficit companies have increased significantly, and the number of enterprises shutting down and half stopping production has been increasing.

According to statistics from 1035 textile enterprises in the province, the total profit realized from 1 to May was 1 billion 367 million yuan, an increase of 14.24% over the same period last year. The growth rate decreased by 40% compared with the same period last year. The deficit was 15.27%, with a total loss of 250 million yuan, up 65.75% over the same period last year.

Among them, the textile industry is the backbone industry in Baoding, and nearly 20% of the existing enterprises are closed down. Most of the enterprises that maintain their production are changed from three shifts to two shifts.

"The textile industry is difficult and difficult to sustain. It is caused by many factors, such as rapid appreciation of RMB, rising production costs and shrinking international market."

Provincial Textile Industry Association analysis.

Ji Hongxing Garments Co., Ltd. is a large textile and garment export enterprise in Rongcheng county.

Guo Yonghong said: "influenced by the appreciation of RMB, the orders we signed with foreign businessmen are settled within two months.

Even if the list is too large, I dare not answer it.

Affected by this, the proportion of exports of the company's products has dropped to 60%, much lower than last year.

"In the best year of export, we can export more than 90%."

This year, the rapid appreciation of RMB has not been reduced, from 7.3046 to 1 in early June 30th to 6.8591: 1 in June 30th. The new record of RMB against the US dollar has been rewritten 50 times in six months, and the appreciation rate of RMB against the US dollar has nearly 6.5%.

Some small businesses and processing households, which are living on secondhand orders, have closed down, and most of them have reduced profits and increased losses.

Most enterprises shorten the order cycle, and many enterprises turn to the domestic market.

According to statistics, from 1 to May this year, the delivery value of the exported textile enterprises in the province was 3 billion 200 million yuan, down 3.45% from the same period last year.

"Our textile County, Gaoyang, is generally short of labor in textile enterprises."

The relevant departments in Baoding said that local enterprises above Designated Size lack manpower from 10% to 20%, and small businesses lack 30% to 40%, and the industry as a whole is short of about 50 thousand workers.

As a traditional labor-intensive industry, the textile industry has been beset by labor relations in recent years, and the continuous decline of corporate profit margins has aggravated the shortage of labor.

Enterprises generally reflect the difficulty of recruiting workers, the large turnover of workers, and the shortage of front-line operators, which seriously affect the stability and improvement of output and quality.

With the implementation of the labor contract law this year, the minimum wage standard has been raised in Hebei province. For textile enterprises, the difficulty of production and operation and the cost of labor are further increased.

It is understood that Handan Haisheng Wei Textile printing and Dyeing Group in the first half of the year only increased wages and additional expenditures of 5 million 50 thousand yuan, Gaoyang County labor costs accounted for the proportion of manufacturing costs increased from 55% to 69%.

Because the added value of products is generally low, many small and medium-sized enterprises have a larger share of labor costs in total costs, and wage increases bring greater cost pressures.

On the morning of July 24th, the reporter walked into Baoding Hualing Garment Co., Ltd., located in Rongcheng county.

In office hours, there are few people in office buildings.

He Huimin, the chairman of the company, reluctantly said, "our factory building with more than 5000 square meters has been empty for a long time, so we can not recruit workers at all."

"Nowadays, the wages of our textile and garment workers in Rongcheng county have doubled since 2005.

Over the past 3 years, the wages of workers have increased by 20% to 30% per year, and the labor cost of enterprises has been high. But we dare not use the method of raising prices to digest the increased cost.

Raising prices is a double-edged sword. Nowadays, the competition in textile and garment industry can be seen as white hot. Anyone who raises prices means who will voluntarily withdraw from the market.

He Huimin said.

Since the beginning of this year, the growth rate of domestic textile sales has surpassed the average level of the whole society, which has aggravated the structural surplus of domestic textiles.

Fierce market competition makes textile sales price difficult to synchronize with cost.

"In the first half of the year, the domestic consumer price index has remained high, but textile products have become a rare product with a negative price index."

For example, the market price of 80 pure cotton yarn has dropped from 50 thousand yuan / ton at the beginning of the year to less than 40 thousand yuan / ton, and 120 yarn has dropped from 74 thousand yuan / ton in 2006 to 54 thousand yuan / ton recently, and the average price of grey fabric and dyed fabric has decreased from 5% to 15%.

The price of textiles has fallen sharply, which has seriously reduced the profits of enterprises.

Hebei Sheng Mo textile company, one of the leading textile companies in Handan Province, now has only 0.4 gross profit per spinning frame per day.

According to statistics, from 1 to May this year, the province's integrated textile enterprises should pay a value-added tax of 509 million yuan, an increase of only 3.45%, compared with an increase of 13.43% in the same period last year.

Guo Yonghong told reporters that they earned only two yuan for a shirt made by an American enterprise, with an average profit of less than 5%.

"Even so, we are still Rongcheng county many of the same industry in the high profits, many enterprises profit is lower than ours."

"At present, the textile and garment industry of Hebei province is experiencing a new round of industry reshuffle under the continuous impact of various unfavorable factors."

Expert analysis of the Provincial Textile Industry Association believes that the harsh situation once again shows that Hebei is an old disease that is "a big province of textile and clothing, but not a strong province of textile and clothing". Only by speeding up structural adjustment and accelerating industrial upgrading is the only way to break through the plight.

In March of this year, Baoding worked in cooperation with China Textile Group to set up Baoding textile and cotton textile Co., Ltd., and planned to invest 1 billion 73 million yuan to build "China Textile and cotton boutique textiles and garments" project. Finally, the annual production capacity of 26 thousand tons of new fiber yarn, 66 million 700 thousand meters of cloth and 2 million pieces of garments were finally formed.

"China Textile Group has strong operational capacity and financial strength. Bilateral strategic cooperation is of great significance for Hebei to readjust its industrial structure and accelerate the development of its textile industry."

The source pointed out.

Reporters learned that at present, the overall relocation and upgrading of Changshan's textile industry is being implemented in four phases, with a total investment of 5 billion 800 million yuan.

After the project is completed, the production scale of 800 thousand spindles, 4100 shuttleless looms and 200 circular knitting machines will be formed. The equipment level will reach the advanced level in China, with an annual output of 95 thousand tons of high-grade yarn and 150 million meters of high-grade garment fabrics.

Facing the very unfavorable industry situation, some textile enterprises in Hebei province are speeding up "turning around".

They have intensified efforts to adjust their product mix, accelerate the elimination of backward equipment such as shuttle looms, reduce labor costs, and improve product quality and production efficiency.

At the same time, in order to survive, many textile enterprises have stepped in or ready to intervene in other industries such as real estate development, trade, finance and so on.

Data show that in the first half of this year, the proportion of various auxiliary industries in the textile industry increased gradually.