Financial Recovery &Nbsp; Hidden Dangers Remain

With the gradual disappearance of the global financial crisis at the beginning of the year and the strong rebound of the upstream industry market demand, China

In view of the main problems existing in the industry, this article brings together the unique viewpoints and ideas of leaders of many leading enterprises, hoping to provide useful thinking and reference for other industries.

People often say, "there will always be new problems in the new situation."

Combined with this conclusion, Li Guanghui, chairman of Xi'an standard industrial Limited by Share Ltd, evaluated the industry situation this year: "this year, under the auspicious situation, what we see is not the waste of industry, but the new embarrassment and imbalance."

So what are the imbalances in the industry? How should we deal with them?

Predicament 1:

After the global financial crisis, the rapid rebound in demand for sewing machinery products triggered a series of chain reactions in various industries.

In the first half of 2010, the industry electronic control enterprises could not get electronic components, and the parts and components enterprises could not get the parts and blanks of castings and forgings, combined with the comprehensive influence of factors such as difficulty in recruiting enterprises, rising costs and uncertainty of market expectations. Although spare parts enterprises worked overtime to make efforts to achieve production, their capacity was still unable to achieve rapid recovery.

The pformation of the supply and demand relationship between enterprises has made the phenomenon of credit and arrears sharply reduced, and sometimes the whole enterprise has failed to pay cash.

Although this is a signal of enhancing corporate integrity and improving market order, it is a new worry for the development of the industry.

There are more and more problems in the industry, such as "loose" industry chain, less interaction among the intersections, and poor communication. How to speed up the improvement of the current loose "trade" industry chain mode and establish a compact and cooperative and interactive new industrial chain has become a major challenge for the development of sewing machinery industry in China.

Li Guanghui believes that the whole enterprise is expected to be optimistic and work overtime, while spare parts enterprises are not confident enough and underemployment, which directly leads to the imbalance between supply of the whole enterprise. This is a prominent contradiction that restricts the growth of the industry this year.

In the global financial crisis, Ruan Jixiang, the president of the new Jack sewing machine Limited by Share Ltd, who has been in the opposite direction of growth, said that because of the rapid expansion of the first half of this year and the rapid increase in output, although the supplier partners have worked hard, they still can not keep up with the synchronous development of Jack. This is a great pity for Jack.

Shi Hangfei, general manager of San Wei CNC Co., Ltd., said: "the upstream manufacturers' capacity is seriously insufficient and the logistics cycle is longer, which directly leads to the restriction of production links. Moreover, due to the influence of supply and demand, the market price of some core electronic components is rising all the way, and the cost of products naturally rises."

Ye Jianli, chairman of Hefei Bao Technology Group Co., Ltd., said that the most frightening aspect of the global financial crisis was that it disrupted the supply chain of the entire sewing machinery industry. So when the sewing equipment market was heating up, the supply of spare parts had become a common problem faced by all manufacturers.

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The way to deal with it is to create zero zero strategic partnership.

Recently, various suppliers' meetings have been held in different parts of the country. This shows that all enterprises are actively seeking the key to solve this problem, and the zero enterprise relationship has changed from cooperation to cooperation.

The company put forward the strategic thinking of joint development with suppliers, extending the idea of "creating, sharing and developing together" to the suppliers of materials at the top, relying on them, supporting each other and developing together.

Limited by Share Ltd, a gemstone sewing machine, alleviated this problem through sincere communication and sincere cooperation. It found a better way of cooperation in visits to suppliers and suppliers' meetings, and sought higher development in win-win situation.

San Wei also has many ways to deal with it, strengthen the procurement channel construction, give full consideration to the procurement cycle, make every effort to ensure that the procurement of components can meet the needs of production links, make every effort to ensure the procurement of components meet the needs of production links, optimize the design plan, avoid some components with long procurement cycle and high procurement price, strengthen staff skills training, optimize the process flow, and maximize the potential of existing human resources and equipment, and effectively improve production efficiency and quality.

Has been committed to building a strategic partnership with suppliers, in the industry created a "strategic supplier" mode of Jack company, unremittingly in the capital, manpower, technology, training, counselling and other aspects to do everything possible to support and help suppliers.

It is understood that at the beginning of this year, Jack also produced one hundred million yuan of funds to protect the supply plan.

In the second half of the year, in order to further enhance the security, stability and quality reliability of parts supply, Jack will provide more comprehensive technical support and management training for the supplier, carry out lean production guidance, etc., and introduce more preferential policies and encouragement policies, and continue to give strong support to the funds so as to consolidate and develop win-win results.

In addition, the leadership team of Jack recently discussed another issue -- how to build an excellent supply chain system, especially the supplier system, and put it on a higher strategic level.

Predicament 2: many factors affect product quality, industry production needs to be standardized.

In early 2010, sewing machinery procurement market, spare parts procurement market, electronic components procurement market were in urgent demand, and the market situation of supply exceeding demand also prompted some low-grade raw materials and components to enter the market.

At the same time, a lot of machine manufacturers are in order to rush orders, reduce parts quality procurement standards, relax product manufacturing process quality supervision, resulting in instability of product quality.

What's more, some parts enterprises are refusing to order and reject the new product development needs of the whole machine enterprises, making the quality improvement of our sewing machinery industry difficult.

In the beginning of the year, the recruitment difficulties and the shortage of skilled workers were becoming more and more serious.

At the same time, a large number of small businesses and processing shops that will be brought into the market will also pour a number of low-priced and low-quality products into the market, seriously affecting the good image of "made in China" in the market, and laying a hidden danger for the healthy and sustainable development of the industry.

In the first two years, the wave of redundancies in the industry has come one after another.

Since the three quarter of 2009, the difficult employment phenomenon has become a major problem restricting the development of the industry.

Among them, the shortage of parts and components enterprises directly affects the output of the whole enterprise, and the whole machine enterprises are eager to attract workers with various favorable conditions.

Although the "employment difficulty" of garment enterprises has directly promoted the demand for the mechanical and electrical integration products of sewing machine enterprises to some extent, the employment problem which is difficult to alleviate in a short time is still a bottleneck that needs to be solved and breakthroughs urgently.

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The way to deal with it is to give employees more opportunities to cultivate backbone strength.

Wan Bihai, general manager of Jewel Companies, said: "gemstones are in the stage of pformation and development.

People are an important factor affecting the development of enterprises. Now companies are recruiting people in large quantities, not only for high-end talents, but also for front-line employees.

Under such circumstances, many industries, including Jewel Companies, have adopted measures such as improving employee welfare, improving work environment and improving production lines to effectively curb these problems, such as establishing staff canteen free, providing high temperature subsidies and raising wages. "

Yin Zhiyong, chairman of Shanghai and Eagle Electrical and Mechanical Technology Co., Ltd., said that the expansion of production capacity and Eagle company's demand for employment increased a lot.

In the second half of the year, hawk will continue to adhere to a good corporate culture within the enterprise, and give employees more opportunities to train, so as to develop more stable backbone. On the other hand, it will recruit and train new employees through various channels, so that they can integrate into the eagle family as soon as possible.

Compared with the widespread recruitment difficulties of enterprises, Jack not only successfully recruited more than 1000 new employees, timely met the needs of production, but also pported workers to other enterprises.

What is the reason? I believe that the prosperity of enterprises and the high wages are certainly one of the reasons. But the new generation of employees value their development more. Jack's culture and prospects are the main reasons for attracting talents.

Ruan Jixiang, President of the Jack group, said that Jack has been relatively stable for 15 years. There are two main factors. First, decision making is always right. There are no mistakes in making forward-looking decisions on possible problems in progress. Two, internal quality is good, such as quality, technology and management has gradually entered a virtuous circle.

The dilemma is 3: the average profit of products is declining, and the motive force for sustained development of the industry is insufficient.

Li Guanghui, chairman of the standard stock company, pointed out another prominent problem. The price of raw and auxiliary materials, labor prices and the pressure of RMB appreciation remain unchanged. Corporate social responsibility has risen to an all-time high, and the price of products has been difficult to rebound since it hit bottom in 2009.

Many enterprises have ample orders, double sales, and profit margins have reached a new low. It seems that enterprises are unable to find a balance between winning and losing.

Compared with the fast rebound of industry market demand in early 2010, the profit of the industry also increased by two digits. But last year, most of the enterprises suffered losses, and the average profit was lower than the base.

In the past 5 months, the cost of employment and raw materials has been rising. However, influenced by marketing strategies such as international brands' market share and so on, domestic market competition is becoming increasingly fierce.

On the other hand, domestic sewing enterprises still lack the pricing power of international products, while exports are also affected by factors such as appreciation of RMB and slow recovery of international market. Enterprises are faced with an embarrassing situation of "selling without applause", and the motive force for sustained development of the industry is insufficient.

The way to deal with it is to speed up pformation and upgrading and control market initiative.

As a matter of fact, the sewing enterprises under the pressure of cost always have the voice of increasing prices, but because they can not grasp the initiative of the market, they do not speak hard.

Everyone knows that technology is the first productivity, innovation is the driving force, but the proportion of sewing machinery enterprises devoted to R & D is still less and less each year.

Ruan Jixiang said that Jack has been accelerating the pformation and upgrading of products, and strive to achieve breakthroughs in independent intellectual property rights. Only in this way can we grasp the initiative and the leading power of the market.

He further said that Jack has always been pricing its own long-term development strategy. Last year, Jack launched the "quality year" campaign to pay close attention to product quality, improve product quality, but not reduce prices, and earlier this year, some products of Jack had risen in price.

As a high-tech enterprise, general manager of Shi Hang Fei believes that technological innovation is the source of vitality of products.

At present, in the field of electrical control system of industrial sewing equipment, due to the rising proportion of mechatronics products such as special machines in the market, the requirements for the technical content of products are also increasing.

If enterprises want to participate in competition, we must speed up the pformation and upgrading of products. We should give full consideration to the individual needs of customers, make characteristics and make fine products. All these require us to make a difference in technological innovation.