Textile And Garment Industry: Urgent Supply Of Sewing Machine Parts

On June 24, the purchasing staff of Taizhou Feiyue Sewing Machine Company came to the supplier with cash, hoping to get the parts of the sewing machine before work through a full day of on-site expediting.

A director of the administrative department of Feiyue Group told the reporter of the Daily Economic News that with the implementation of the revitalization plan of the textile industry, the clothing and textile industry has shown signs of recovery since the end of last year, the demand for sewing machines has also recovered in this round of revitalization, and the upstream parts have fallen short of demand.

According to the data released by the Ministry of Industry and Information Technology on June 24, from January to April, the export of sewing machines grew rapidly, including the export of non household sewing machines.

Take cash to "grab" parts

"Some enterprises began to gradually eliminate the traditional Sewing machine The demand for electromechanical sewing machines is very strong this year. Our company's procurement personnel have gone to pick up goods with cash more than once. " The administrative director of the above leap said that in order to enable suppliers to supply goods in a timely manner, they also helped suppliers to find production talents. Not only were the payment methods for purchasing parts more flexible than before, they implemented cash transactions, but also helped suppliers to provide technical guidance. "Although Feiyue has made more efforts to support suppliers, the supply of electromechanical sewing machine parts representing a higher level still exceeds the demand."

Because some upgraded sewing machine parts need mold opening, under the pressure of supply demand, leaping purchasers often go to a higher level of mold suppliers together with parts suppliers to track the progress of mold opening and other parts arrival on site. In order to enable upstream suppliers to speed up supply, purchasing personnel even run several times a day to speed up delivery progress.

Zoje Sewing machine Yao Minna, manager of the Securities Investment Center and securities affairs representative of Zoje Co., Ltd. (002021), 002021, told the reporter of the Daily Economic News that their company had also taken goods with cash, and the main parts were electronic components of computerized sewing machines.

Personnel shortage or major bottleneck

The administrative director of Feiyue revealed that after the financial crisis in 2008, the sewing machine industry shrank significantly due to the impact of downstream textile and clothing industries. Some upstream parts manufacturers overcame the difficulties by reducing production scale. When the textile and clothing industry recovered this year, the supply of these sewing machine parts enterprises appeared to be lagging behind.

"Although Feiyue has given more support to suppliers in terms of supply capacity and other aspects, due to the relatively poor working conditions of some upstream parts enterprises, even migrant workers are often reluctant to work in these enterprises. The difficulty in recruiting personnel restricts the capacity improvement of these enterprises, and the supply delay is often difficult to solve in a short time."

The administrative director of Feiyue told the reporter of the Daily Economic News that when the upstream parts enterprises had difficulty in supplying goods, they also thought about developing new suppliers. However, considering that they had established long-term partnership with suppliers, and the development of new suppliers needed to increase costs. In addition, it also takes a long time to develop new molds and samples, and the quality of new suppliers is also difficult to be stable in the just cooperation stage. "It is better to focus on existing suppliers", and adding new personnel becomes the most troublesome problem for existing suppliers.

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In addition to insufficient supply of spare parts, the lack of personnel in the complete machine factory also restricts the improvement of production capacity.

Yao Mina told reporters that the staff shortage of ZOJE (002021) was even more tense at the beginning of the year, which is slightly better now, but still hopes to meet the demand for increased production capacity by constantly recruiting new personnel.

Wuxi Kema Mechanics Sun Jianxin, the general manager of the limited company (hereinafter referred to as Wuxi Kema), disclosed to the reporter of the Daily Economic News that a mature welding worker, if his daily wage is less than 80 yuan, almost no one will work. Sun Jianxin introduced that the salary of welding workers in Wuxi Kema is about 100 yuan/day, and it is based on an 8-hour working day system. If you work overtime, plus various benefits of the factory, the annual income of welding workers will be about 50000 yuan. "Even in sewing machine factories with low requirements for welding technology, the annual income of workers is not less than 30000 yuan."

Countermeasures of enterprises

Yao Mina told the reporter of the Daily Economic News that Zoje (002021) Sewing machine The cost of raw materials purchased by the company accounts for about 80% of the manufacturing cost, of which steel, pig iron, etc. account for about 8% of the manufacturing cost, and outsourcing parts account for about 72%. According to preliminary estimation, the purchase cost of raw materials such as pig iron increased by about 10% in the first half of the year, while the purchase cost of purchased parts had a relatively small change compared with the previous year.

It is reported that the company has now established a direct business relationship with the steel mill and signed a long-term supply agreement, which not only reduces the middle price of goods purchased from traders in the past, but also avoids the impact of the rising cost of casting steel caused by the rising price of steel ore.

Last year, affected by the financial crisis, orders of Zoje (002021) were reduced, production capacity was not fully utilized, and the total revenue was low, resulting in a large loss, but this year it has recovered significantly. The reporter of the Daily Economic News saw from the financial report of Zoje (002021) in the first quarter of this year that the company's total operating income in the first quarter of this year was 199 million yuan, an increase of 99.78% over 99.85 million yuan in the same period of the previous year.

Yao Mina told reporters that the export proportion of Zoje (002021) in the first half of this year was about 30%, and the company's export business was mainly settled in US dollars. The company carries out financial businesses such as forward exchange settlement and exchange rate locking with banks to avoid exchange rate risk. "Exchange rate changes in the first half of the year had a small impact on the company's exports". Zoje (002021) will improve the gross profit margin of the company's products by increasing market development, constantly adjusting the product structure, and accelerating the development and transformation of new products, so that the company has a larger profit space.