Inadequate Supply Led To Insufficient Supply Of &Nbsp; Henan'S Textile Industry Was Unusually Hot.

Wage surge highlights Henan's

"I haven't seen such a flourishing textile for many years."

A senior textile industry told reporters this.

Since the beginning of this year, the major textile enterprises have been filled with orders, and the supply of products is in short supply. The situation is surprisingly good.

Cotton prices have been rising all the way since 2010, and cotton yarn prices are also rising, and are still far higher.

However, in the face of this unprecedented good situation, the entire textile industry is happy at the same time, there are also some concerns.

"To find out why the textile situation is suddenly so good, what are the underlying reasons for it?"

At the Henan textile high level forum in August 25th, Li Shuqin, President of the Henan Textile Industry Association, faced up with textile entrepreneurs and industry experts on the stage.

Strong rebound

The economic crisis in 2008 made Henan's textile industry once in a difficult position.

In the first half of 2009, textile enterprises even stopped production partly, and the growth of business efficiency was slow, and the amount of losses continued to increase.

According to statistics, in the first half of last year, the average profit margin of 30% of textile enterprises in the province was below 3%, while the average profit margin of 60% of enterprises was only 0.73%.

More than 124 enterprises in the textile enterprises above Designated Size have increased by 8.77% compared with the previous year, with a deficit of 10.39%.

In the second half of 2009,

"After the year, orders are increasing. Now our production is at the end of the year.

If our production capacity is limited, there will be more orders. "

Anyang Linzhou textile company, a responsible person said.

After 2010, all the small and medium-sized textile enterprises in the province were full of horsepower, but still could not meet the demand for orders.

During the economic crisis, the equipment that had been shut down was restarted, and the textile industry encountered unprecedented spring.

Inadequate supply leads to insufficient supply.

"At present, the good situation in the textile industry is mainly caused by the contradiction between supply and demand of the market."

Zhang Junfeng, deputy general manager of Luoyang white horse group, said: "the textile foundation of Henan is better, and the production capacity has recovered more quickly after the economic crisis, and orders are slowly tilting to Henan."

Affected by the global financial crisis in 2008, the demand for yarn at home and abroad has shrunk.

Since the economic recovery in October 2009, the international and domestic market demand has been expanding in stages, and the downstream enterprises have ordered replenishment.

This has also resulted in short term demand for cotton yarn and a rare red hot scene in the textile market.

"At present, the shortage of products is mainly due to inadequate start-up.

Many enterprises are not working because of the shortage of labor in textile mills.

This phenomenon may not be particularly obvious in Henan, but Zhejiang, Fujian and other places, this phenomenon has been very serious.

Wang Guogang said.

Since the beginning of this year, the wage surge has swept across the whole country from the south to the north, and the wage demands of workers have risen sharply. It is common for textile enterprises to recruit workers, and many textile enterprises in the South have "labor shortage" phenomenon.

Because of the abundant labor resources, Henan has a relatively prominent advantage in terms of employment.

Under the situation of full orders and short supply, this advantage is very important.

"Buying up or not buying" is the common psychology of many businessmen, and this may put a "wings" on the strong rebound of textile enterprises.

Since the economic recovery, the textile industry has rebounded strongly, and cotton and cotton yarn prices have been rising all the way, which has encouraged many enterprises.

In the face of rising yarn prices, companies are scrambling to buy, and some buyers even double orders.

{page_break}

Calm to deal with the "abnormal" hot

This year's booming textile industry has really excited the bosses of the textile industry.

However, after the excitement, they all know that this kind of popularity is not normal.

At present, the price of cotton per ton has increased by 1500 yuan, while the price of cotton yarn has risen by 3000 yuan, and cloth has also gone up slightly. However, the textile end product clothing has hardly risen, and the value of the industrial chain has not been reasonably extended.

"I think we should be more steady. Don't lose your cool because of the situation in front of you."

Cao Junhai, chairman of Jiaozuo Haihua Textile Co., Ltd. said, "we must take advantage of the good situation to strengthen our internal strength, strengthen brand building and take the road of differentiation."

The textile industry is a pillar industry in Henan, and the scale and output of spindles are among the best in the country.

However, there are few brands that can call the whole country.

In terms of products, Henan textile enterprises mainly produce cotton yarn primary products, with a single product, low added value and very fierce competition for homogeneity.

"Employment problem has been gradually highlighted in Henan. How to establish a stable and efficient workforce is the key to ensuring production and ensuring quality."

Wei Xuezhu, chairman of Xinye textile Limited by Share Ltd, said.

With Foxconn stationed in Zhengzhou, the employment of Henan textile enterprises will also become the focus of attention.

At present, the treatment of workers in Henan textile enterprises is relatively low, not only with the coastal areas, but also for other industries in Henan.

"We must prepare for the rainy day, be prepared for danger in times of danger, and do well in the development plan when the situation is good, accelerate the industrial upgrading, pform the way of development, and determine our competitive advantage."

Li Shuqin said at the meeting.