Qingdao Garment Enterprises Are Trapped In "Order Increasing Profit And Decreasing" Dilemma

At the Spring Fair of Qingdao, which ended recently, textile enterprises' overseas orders increased by 40%, and a total of 1 billion 800 million US dollars were ordered. However, due to the soaring raw materials and the increasing cost of labor, the number of orders and profits in the island textile enterprises was less. Some of the small and medium-sized enterprises even shut down because of the higher prices.

The international textile market has been on the rebound for the first time, and the Qingdao Spring Fair's 5 day trading and purchase orders reached US $1 billion 798 million.

But the increase in orders has become a sweet burden for textile enterprises.

Zheng Mingmei, President of the Qingdao textile and Garment Association, said that the shortage of labor has put pressure on large enterprises. Many medium-sized enterprises have less than 2/3 employees. Many enterprises have to raise wages and insurance, which has virtually increased the cost of labor.

The more money the company orders now, the more money it loses. Many small and medium-sized textile enterprises even turn around.

The greater the pressure of orders, the greater the pressure: 1, the shortage of skilled workers, the industry estimates, the current Qingdao textile mechanic gap is still around 10 thousand; 2, cotton prices have risen; 3, the European debt crisis, the recent Greek and Spanish debt crisis in Europe, so that the European textile market has just warmed up is likely to shut the door again, and the appreciation of the renminbi and the dollar exchange rate fluctuations will further compress the profit margins of enterprises.