Shandong Textile Enterprises Suddenly Become Warmer And Warmer

In hot summer days, many textile enterprises in Shandong seem to be "colder". The price of raw materials has risen sharply, labor shortage has been strained, cost increases, financing difficulties of enterprises, and worries about RMB appreciation have become a difficult problem that Shandong textile enterprises have to face.

Stabilize and improve

China Economic Times reporter learned from the interview that the overall recovery of China's textile industry in 2009 has been driving well. So far, the textile industry of Shandong province has been running well, and the textile enterprise has a higher operating rate, and many enterprises have reached the end of this year by the end of this year.

"Judging from the current situation, the volume of business in the one or two quarter of this year is very good."

Lu Tai textile Limited by Share Ltd secretaries Qin Guiling told our reporter that compared with the same period last year, the biggest change of the company is to take the initiative to find customers last year, but this year is a large number of customers to visit, so that the company has the room for screening.

"Now the company has been running at full capacity and has a heavy production task."

Dong Hui, assistant general manager of the knitted Limited by Share Ltd of Ji'nan head of state, told our reporter that if the continuation of this good trend continues, enterprises will have to consider introducing new loom equipment to expand production capacity.

According to our reporter, such as Shandong Wan Tai Venture Investment Co., Ltd. one cotton branch, Dezhou Hengfeng Textile Co., Ltd. and other textile enterprises are very optimistic about the prospects for enterprise development this year, it is estimated that the annual corporate profits will achieve two digit growth.

After suddenly getting warmer, the weather has turned cold again

"Rising raw material prices and rising labor costs will constrict our already small profit margins."

Zhang Ming, manager of a small textile enterprise in Ji'nan, told our reporter.

During the interview, many textile enterprises all said that in recent years, because of the high production cost brought by the rising price of raw materials, spinning enterprises even sped up the compression of production orders.

The head of Shandong Textile Industry Association told our reporter that as the textile industry is a labor-intensive industry, many young people are unwilling to engage in this industry because of the factors such as the intensity of labor and the three class working system. The problem of recruitment is becoming more and more serious, which has become a bottleneck restricting the development of the textile industry.

The mobility of workers in textile enterprises is increasing, the workforce is unstable, and the shortage of labor shortage is becoming more and more serious.

"The appreciation of the renminbi is expected to be one of the long-term worries faced by the export textile enterprises."

Speaking of the international market environment facing Shandong textile enterprises, Sui Yujun, director of Shandong Lu You Cotton Research Institute, told our reporter that the impact of exchange rate on textile enterprises is mainly reflected in two aspects: first, the direct pricing method, and the rise in the RMB exchange rate will lead to a drop in the income of textile enterprises.

Two, the rising exchange rate will weaken the export competitiveness of textile products, leading to many orders flowing to Southeast Asian countries.

Sui Yujun said that since the beginning of this year, the economy of the United States, the European Union and Japan and other countries and regions have been on the ups and downs. Despite the increasing demand in the international market, orders are showing a trend of short term, small batch, and the demand for high-end products is weakening. This is a bad situation for Shandong's textile enterprises.

"The impact of national macro-control policies on textile enterprises will also increase."

The head of Shandong Textile Industry Association expressed concern about the policy environment faced by spinning enterprises.

He said that in 2009, the state proposed in the textile industry readjustment and revitalization plan that the textile industry should continue to optimize its industrial structure, raise its technological support level and eliminate backward production capacity.

In May 28, 2010, the Ministry of industry and Commerce issued the task of eliminating printing and dyeing 3 billion 130 million meters this year.

On the one hand, Shandong textile enterprises are facing the throes of pformation. On the other hand, the RMB appreciation expectations, domestic cotton planting difficulties and further enlargement of supply and demand gap will make the textile enterprises' future development "warm and cold".

Transformation and upgrading

"We should rely on existing enterprises, take technological pformation as the main means, focus on projects as carriers, and support policies as a guarantee, and adjust the industrial structure to specific projects. We should focus on upgrading and upgrading traditional industries, and grasp the cultivation and growth of new industries."

Shandong textile industry association responsible person said that textile enterprises should vigorously promote the integration of information technology and industrialization. "Conditional large and medium-sized enterprises should establish information systems for supply chain upstream and downstream cooperation, consolidate the technological foundation of integration."

The Shandong Provincial Commission of letters recommends that we should continue to do a good job in the construction of the apparel and home textile industry chain, play a leading role in promoting the development of industrial textiles, cultivate new bright spots in the growth of the textile industry, strive to revitalize the equipment manufacturing industry, improve the autonomy of textile equipment, and expand the production clusters to guide the healthy development of the regional economy.

According to the Research Report of Shandong Economic Commission, we should continue to do a good job in the construction of the two industrial chains of clothing and home textiles, and seriously study and explore new ways to develop industrial textiles.

Vigorously develop domestic and foreign markets, and actively cultivate famous brand products, special industrial clusters and large enterprise groups.