The Supply Of Sewing Machine Parts Is Urgent.

Early in June 24th, Taizhou leaps.

A director of the administrative department of the leap Group told the daily economic news reporter that with the implementation of the revitalization plan of the textile industry, the garment and textile industry began to show signs of recovery from the end of last year, and the demand for sewing machines was also revival in this round of revitalization operations, and the upstream parts were in short supply.

According to the data released by the Ministry of industry and Commerce in June 24th, the export of sewing machines increased rapidly in 1~4 months, and the export of non domestic sewing machines increased rapidly.

Cash grab parts

"Some enterprises are beginning to phase out traditional sewing machines. Electromechanical integration sewing machines are in great demand this year.

Our company's purchasing staff has been carrying cash for more than once.

The executive director of the leap said that in order to enable suppliers to deliver goods in time, they also helped suppliers to identify production personnel, not only in the way of payment for parts, but also more flexible than before, in cash pactions, and also in technical guidance for suppliers.

"Despite the considerable efforts made in the support of suppliers, there is still a demand for higher level electromechanical components for sewing machines."

Because some of the upgraded parts of the sewing machine need to be moulds, under the pressure of supply demand, the flying buyers often work with parts suppliers to go to the next level of mold supplier to track the progress of the mold and other parts.

In order for the upstream suppliers to speed up the supply, the buyers even run several times a day to urge the delivery schedule.

ZOJE sewing machine Limited by Share Ltd (ZOJE shares (002021), 002021) securities investment center manager, securities affairs representative Jamina told the "daily economic news" reporters, their company has also appeared with cash to take delivery of goods, the main components are computerized sewing machine electronic components.

Leaps the administrative director disclosed, after the financial crisis in 2008, the sewing machine industry has been greatly reduced by the textile and clothing downstream industries, and some upstream parts and components manufacturers have been able to tide over the difficulties by reducing the scale of production.

When the textile and garment industry has been warming up this year, the supply of these sewing machine parts enterprises appears to be lagging behind.

"Despite the great support from suppliers in the supply and production capacity, some of the upstream parts enterprises are relatively reluctant to work in these enterprises because of their relatively poor working conditions. It is difficult for them to raise their production capacity because of difficulty in recruitment, and the supply lag is often difficult to solve in a short time."

Leaps the administrative director tells the daily economic news reporter, under the situation that the upstream parts enterprises are difficult to supply, they have also thought about developing new suppliers, but considering that they have established long-term partnership with suppliers, and the development of new suppliers needs to be increased.

In addition, the development of new molds and samples takes a long time, and the quality of new suppliers is difficult to stabilize at the stage of cooperation. "It might be better to spend their minds on existing suppliers". Adding new personnel is the most troublesome problem for existing suppliers.

Apart from the shortage of spare parts as the biggest cause, the absence of personnel in the whole plant also restricts the upgrading of production capacity.

Yao Mina told reporters that the shortage of ZOJE shares (002021) was more intense at the beginning of the year and is slightly better at the beginning. But it still hopes to meet the demand of capacity increase by recruiting new personnel continuously.

Sun Jianxin, general manager of Wuxi Ke Ma Machinery Co., Ltd. (hereinafter referred to as Wuxi), told the daily economic news reporter that a mature welding worker, if calculated according to the day's wages, if less than 80 yuan per day, almost no one did.

Sun Jianxin introduced that the wages of welding workers in Wuxi were 100 yuan / day, and based on the 8 hour working day.

If you work overtime, plus all the benefits of the factory, the annual income of welding workers will be around 50 thousand yuan.

"Even for a sewing machine factory which requires less welding technology, the annual income requirement of workers will not be less than 30 thousand yuan."

Yao Mina told the daily economic news that ZOJE's (002021) sewing machine chassis was made by the company itself, and the cost of purchasing raw materials accounted for about 80% of the manufacturing cost. Among them, steel and pig iron accounted for about 8% of the manufacturing cost, while the outsourcing parts accounted for 72% left and right.

Preliminary estimates show that the purchase cost of raw materials such as pig iron has increased by about 10% in the first half of the year, and the purchase cost of outsourcing parts is relatively small compared with the previous year.

It is reported that the company has now established a direct business relationship with the steel plant, and signed a long-term supply agreement, which has reduced the intermediate price from the traders in the past, and avoided the increase in steel prices due to the rising price of iron ore, and the cost of foundry steel increased accordingly.

Last year, due to the impact of the financial crisis, ZOJE shares (002021) reduced orders, failed to make full use of their capacity, and saw a large loss in total revenue.

Daily economic news from ZOJE shares (002021) reported in the first quarter of this year, the company's total revenue in the first quarter of this year was 199 million yuan, an increase of 99.78% over the 99 million 850 thousand yuan in the same period last year.

Yao Mina told reporters that ZOJE shares (002021) accounted for about 30% of exports in the first half of this year, and the company's export business was mainly based on the US dollar.

The company and banks carry out long-term settlement, exchange rate locking and other financial services to avoid exchange rate risk.

"Exchange rate changes in the first half have little impact on the export of the company".

ZOJE shares (002021) will increase the gross margin of the company's products by increasing market development, constantly adjusting product mix and speeding up the development and pformation of new products, so that the company has larger profit margins.