Zhongshan'S Textile And Garment Enterprises Increased By 50% In The First Quarter.

The textile and garment industry in Zhongshan, Guangdong province has generally increased orders in the first quarter of this year, and orders for some enterprises have increased by more than 50%.

However, concerns about the appreciation of the renminbi have increased, and the increase in raw material prices and labor costs have become a great pressure on the annual profits of enterprises.

Clothing enterprises in Zhongshan, Guangdong province are mainly concentrated in Shaxi, Xiaolan, Dalong and other townships.

In the interview, I feel that the clothing enterprises in the three townships generally have enough confidence in this year's performance growth.

Some owners reflect that the overseas market is getting warmer and warmer. Orders rebounded rapidly in the first quarter of this year, and some enterprises' orders grew by more than 50%.

I understand that Zhongshan's famous casual wear brand "Xia Hu family" is in order to catch up with orders. This year the Spring Festival starts on the sixth day of the new year, and all 1700 employees are on the same day.

The order of Huambo shoe company in Nantou town has been scheduled for June and July this year.

Shaxi's Tongwei computer flower clothing factory has a bigger order, which has been released in October this year.

The three largest foreign-funded enterprise in the township, the Yuan Yuan shoe factory, expects orders for the first quarter of this year to grow by 15~20% over the same period last year.

A survey conducted by Guangdong Textile Industry Association in March this year also shows that the order and operation of Zhongshan garment industry cluster since last year are better than those in some neighboring cities.

Research Report shows that Xiaolan clothing enterprises after the commencement rate of more than 90%, some enterprises began to increase branches and purchase equipment.

Some of the T-shirts enterprises are not on holiday because of the peak season of production.

Experts analyzed that the main reason for the resumption of orders in the first quarter of this year came from three aspects: some SMEs stopped production, international orders were pferred to more competitive regions and enterprises, a considerable part of the consumption demand shifted from middle to high grade, and European and American suppliers replenish their stock after Christmas.

Although companies generally expressed confidence in annual performance growth, concerns about the appreciation of the renminbi are increasing, especially in the case of rising raw material prices and labor costs.

Some enterprises are worried that the industry competition will intensify after the financial crisis, and the profits of enterprises will be further diluted.

The author finds that the common problems faced by clothing enterprises include: recruitment difficulties, profitability difficulties and financing difficulties.

In order to cope with recruitment difficulties, many powerful clothing enterprises in Zhongshan began to add new equipment to replace manual operation with machines.

But the general rise of staff salaries has increased the operating cost of enterprises.

According to a statistical data, last year, the vast majority of enterprises promoted wages for employees, and the wage level rose by 10% to 20%.

The average wage of Xiaolan general worker increased from 1300~1500 yuan last year to 1500~1800 yuan.

Some of the pressure comes from the rising prices of raw materials and energy.

A person in charge of Taiwan funded enterprises said that cotton prices soared from the beginning of 2009, rising to 15 thousand and 900 yuan / ton in March this year, and the price of cotton yarn also rose.

Textile and garment industry has a relatively large proportion of exports. Recently, as the issue of RMB appreciation has heated up, Zhongshan enterprises are worried about the exchange rate trend.

According to the analysis of the enterprises, the net profit rate of the textile and other industries will drop by 1 percentage points every 1 percentage points, while the average net profit level of the textile and garment industries is only 3%~5%.

Experts have warned that enterprises should prepare ahead of schedule for these unstable factors.