Four Bottlenecks Affecting The Development Of Sewing Machinery Industry In China

On the five session of the eight China Sewing Machinery Association, which was not long ago, the China Sewing machinery industry's 2009 annual economic operation analysis report released by the China Sewing Association pointed out that in 2009, China's sewing machinery industry encountered the lowest level of development in the past ten years, and it also welcomed the strong rebound signal after the crisis.

In the complex situation of low external demand and stable domestic demand, the industry insists on Scientific Outlook on Development, speeds up independent innovation, changes the way of business operation, further adjusts product structure, promotes industrial upgrading, and achieves stable and healthy development of industries in the period of readjustment and pformation.

Combined with the industry data in the report, the author analyzes the development status of the industry, and points out that the imbalance between labor supply and demand, the lagging recovery of supporting industries, low labor productivity and weak self adjustment capability have become the 4 bottlenecks restricting the development of China's sewing machinery industry.

Setting the situation - the economy is picking up and the industry is recovering significantly.

Since 2007, the market demand for sewing machinery products has been declining. For 20 consecutive months, the total output value of China's sewing machinery industry has shown a negative growth, with an annual average decline of more than 20%, and the decline in output is more than 50%.

After entering 2009, output value and output continued to decline year by year, but the decline narrowed month by month, and turned to positive growth in September 2009. The fourth quarter of the same period increased by more than 20%. China's sewing machinery industry began to develop smoothly, and the rebound trend was obvious.

Taking the output data of 97 backbone enterprises in the sewing machinery industry as an example, in 2008, the industry output value showed a continuous decline in the same period last year, reaching the lowest level in the past ten years in the first quarter of 2009, and the output value dropped to more than 50% year-on-year. In the two quarter of 2009, the output value of the industry still maintained a decline of over 30%, but the rate of decline has been substantially reduced in the first quarter. In 2009, the decline in industrial output value has further narrowed, and the output value has increased steadily in September.

From the point of view of imports and exports, in 2009, although the import and export of sewing machinery products continued to decline, the decline in import and export also narrowed every month, and the prospect is worth looking forward to.

The export of sewing machinery products in China has decreased markedly since the end of 2008, increasing to 40% in the same month, reaching the lowest level in the first quarter of 2009, a drop of nearly 50% compared with the same period last year. The decline dropped to 30% in the two quarter, and the decline in industrial output value narrowed to 20% in the three and fourth quarter.

This is also true in the import sector. Signs of a rebound in the industry.

Sales are cold and hot, showing a new prospect.

In 2009, the sales of sewing machinery in China showed a new situation of "external cooling and internal heating".

Under the continuous impact of the global financial crisis, the international market demand for sewing machines has been faced with severe challenges. The export of sewing machinery products has been lingering low in China. Although the favorable policies such as the 7 increase in export tax rebate rate have been pulled up by the state, the export decline has eased, but the export volume of sewing machinery has decreased by 24.47% over the same period of 2009, and the export volume has decreased by 20.62%.

In all kinds of products, except for the changes in the export structure of embroidery machines, the export volume of high value-added products such as sequins embroidery and towel embroidery increased year by year, and the rest of the products showed an export situation of volume and price reduction.

Domestic sales, driven by the revitalization plan of the national textile industry and a series of policies to stimulate the economy and supporting industries, the domestic sewing machine market has obviously recovered in the second half of 2009. The fourth quarter has attracted the industry sales boom, an increase of 50% over the same period.

Accelerate the pace of industry adjustment

In 2009, the pace of structural adjustment of China's sewing machinery industry accelerated.

In terms of product structure adjustment, with the development and progress of industrial technology, especially the booming demand for efficient sewing equipment in the downstream industry pformation and upgrading, the sewing machine with electric control equipment has been showing an increase of over 60% for more than a month since August.

By the end of 2009, the proportion of sewing machines in China accounted for 10% of the total sewing machines. The percentage of total sewing machine production increased to more than 25%. The electronic sewing machines and electronic sewing machines have basically achieved mass production and industrialization.

In terms of enterprise structure adjustment, according to the association, the proportion of Enterprises above Designated Size accounted for the total number of enterprises in the whole industry increased to 68%, and the proportion of Enterprises above Designated Size accounted for 87% of the total industry. The total profits and taxes of Enterprises above designated size increased by 8.65% and total profits increased by 26.75%. The profitability of enterprises gradually strengthened, and market efficiency gradually concentrated on enterprises of some above scale, and the concentration of industries continued to increase.

At the same time, as the pace of internationalization of enterprises continues to advance, the standard set up subsidiaries in Germany. Jack successfully acquired German BULLMER and TOPCUT companies, and hawk set up Japan branch "YIN-Japan company" and so on, as well as the acceleration of brand building of various enterprises. The international location and influence of the industry continued to improve, and the pace of enterprise restructuring was accelerated.

Market competition is becoming more rational.

Under the guidance of the China Sewing Machinery Association, the effect of the industry credit system construction was obvious in 2009. By the stimulation of the crisis, sewing machine enterprises began to reflect on the consequences of bad competition such as credit sale and arrears.

From the research situation of the association, reducing credit sales, arrears, and strictly controlling product prices have gradually become the consensus of industry and enterprises.

At the same time, entrepreneurs also mature in the industry adjustment in 2009.

Many entrepreneurs have reviewed and summarized the past development methods of excessive pursuit of scale, and proposed that they should be pragmatic and rational, speed up adjustment and innovation, strengthen and highlight their main businesses, and many entrepreneurs should speed up the development of new products, brand building and management, and take quality and professional development.

One year's practice has accumulated rich and valuable experience for entrepreneurs and accelerated the construction of entrepreneurial teams.

Speaking of challenges - the imbalance between labor supply and demand and the first problem facing the industry recovery

Since the third quarter of 2009, with the gradual warming of the industry, there has been a shortage of skilled workers in major production areas. By the end of 2009, the labor shortage of the main backbone enterprises in the industry was generally over 30%, and the shortage of labor force has become a major obstacle to the recovery of the industry.

On the one hand, the contradiction between labor supply and demand comes from the contraction of enterprises in the period of adjustment of industrial structure in 2008 and 2009. On the other hand, it is also caused by the long-term mobility of employees and the failure to effectively form a stable and reasonable team of technicians.

With the implementation of the national economic policy and the rise of the benefit agriculture and the Midwest economy, the shortage of technicians and the rising labor costs in our sewing machinery industry will become the norm, which will be a great pressure on the recovery of the industry.

Supporting industry recovery is not synchronous, test industry comprehensive response ability

The development of sewing machinery industry is closely related to the development of upstream industries such as steel, energy, electronics, machinery and equipment.

Due to the failure of the electronics industry to recover effectively, its supporting capability of sewing machine controller related chips and control components is obviously insufficient, resulting in the capacity of sewing machine electrical control products can not be recovered synchronously.

Since October 2009, with the gradual progress of sewing machinery industry, the demand for mechanical and electrical sewing machine products has been greatly increased, and the products of electronic controlled sewing machines in the industry are in short supply, which has slowed the recovery of the industry to a certain extent.

Judging from the current situation, this adverse effect is expected to continue to the three quarter of 2010, during which the industry will bear the dual pressure of the upstream and downstream industries.

Labor productivity is low, which affects the development potential of the industry.

According to the Research Institute of China Sewing Association, the per capita labor productivity of China's sewing machinery industry is less than 100 thousand yuan / year, of which, the whole machine enterprise is about 120 thousand yuan / year, and parts enterprises are lower, about 80 thousand yuan / year.

The average profit margin of sewing machinery industry in China is only about 5%. The low labor productivity hinders the pace of technological innovation and industrial upgrading, makes the industry less attractive to social capital, reduces the enthusiasm of enterprises in the industry, and faces the trend of outflow of industry capital.

The ability of self adjustment is weak, and the hidden trouble of industry development is getting more and more obvious.

In 2009, China's sewing machinery industry had the fastest pace of adjustment and the most effective year.

But on the whole, the technological foundation of sewing machinery industry in China has not been substantially improved. The industry has not yet effectively broken through the basic principles of sewing and the general technology of the industry. The gap between the overall quality of products and the international advanced level has not been significantly shortened, and the homogenization and low price competition modes of enterprises have not been completely reversed.

Judging from the recent industrial recovery characteristics, the industry adjustment is not yet in place, and its ability to adjust itself is unable to meet the effective demand of the market. The industry foundation needs to be strengthened, and the adjustment process needs to be speeded up.

Look at development --

According to the world economic cooperation organization OECD and other professional institutions, the world trade will steadily recover in the next few years, and the world economy is expected to achieve a low growth rate of around 1%.

With the government's active and effective policy support, China's economy will continue to rebound in 2010, and there is no suspense.

On the macro policy level, the state is studying and deploying the plan for further adjustment and revitalization of key industries, which will bring positive benefits to the development of China's sewing machinery industry. Enterprises should take the opportunity to increase investment in innovation and pformation, and further accelerate the pace of structural adjustment and pformation.

In addition, with the gradual relaxation of the national financial credit and the implementation and implementation of various fiscal and tax incentives, domestic and foreign trade factors such as labor force, raw material and other factors will increase and the fiscal and tax tightened will result in a reduction in the business burden of the industry and the expected growth in domestic demand.

On the export side, with the gradual weakening of the crisis, the world economies show signs of recovery in varying degrees.

According to the available data, the overseas orders of China's sewing machine industry have increased significantly, and some enterprises have increased exponentially over the same period last month. The external demand of the industry is expected to increase substantially in 2010, but we should pay attention to the export pressure brought about by RMB appreciation.

At the same time, we must also soberly realize that 2010 is still a critical year for the consolidation and recovery of the sewing machinery industry in China, and to promote the deepening of industrial pformation and upgrading. Various uncertainties affecting the development of the industry will also exist for a long time, and to some extent, the constraints on the development of the industry should not be overlooked. The industry needs to respond positively to innovation and development.

It is a pressing matter of the moment to make rational use of various adjustment measures to further speed up the adjustment of enterprises and improve the quality of the industry recovery.

To sum up, the gross industrial output and gross output of industry in 2010 will have a larger recovery than that in 2009, with an increase of more than 10%. On the export side, the fast-growing emerging markets and the slow callback of the European and American markets will likely bring about a new prospect for the export of the industry. It is expected that in 2010, it will achieve positive growth in the same period, and the industry should make a comprehensive preparation for sustained economic recovery.