Four Factors Plaguing Sewing Machine Industry

Since March 2010, China's sewing machinery market Demand is increasing. Sewing machine industry The pace of recovery is faster and faster, and even the production and sale of some enterprises has reached a record high. At the same time, labor shortages, recruitment difficulties, labor costs continue to rise, as well as raw material prices continue to rise, due to tight profits of spare parts enterprises, resulting in slow recovery of their capacity, which has become a constraint and hindrance to China's sewing machinery for a period of time. industry The main factors of recovery and development speed.

Although China's sewing machinery industry has achieved a strong recovery since the beginning of 2010 to the first quarter of this year, we should see some deep-seated problems that will likely affect the long-term development of enterprises and industries through the most concentrated hot issues.

Perplex factor 1 -- the decline of enterprise's profit level

In 2010, due to the superposition of multiple factors such as shortage of resources, lack of work and power restriction, the capacity of sewing machine parts, parts, and chassis could not be improved rapidly, and the situation of insufficient supply led to the phased stoppage of the whole machine manufacturing enterprises because of lack of parts.

At the same time, due to the overall rise in the prices of social labor and production materials, the profit margins of the whole machine and parts enterprises have been greatly reduced. According to the investigation and statistics of some machine parts and parts enterprises of China Sewing Machinery Association, compared with 2009, the average labor cost of sewing machinery enterprises increased by 20%-25% in 2010, the average cost of raw materials increased by 25%-30%, and other costs increased by about 15%. However, most parts of the industry maintained the original price, and the price of some key components was adjusted by 3%-5% only. The price increase ratio of the whole machine was only about 2%-3%, and it was still unable to effectively digest the rapid rise of the cost of various production factors.

At present, the overall profit level of China's sewing machinery industry has generally declined, and the average net profit of the backbone enterprises is only about 6%, and the sustainable development capacity of the industry has been seriously affected.

　　 Plagued factors 2 - the transformation and upgrading of the spare parts industry

In 2010, the labor gap of the parts enterprises of the sewing machinery industry was further expanded, and the average labor force gap was 15%-30%. According to incomplete statistics, the order completion rate of the industry parts enterprises in 2010 is 70%-75% on average, and the enterprises urgently need to carry out effective technological transformation.

On the other hand, due to the sharp rise in production costs, the difficulty of raising prices for products, the longer cycle of payment of goods and the decline in profits of parts enterprises, the confidence of enterprises in redevelopment and re investment has been greatly affected, and the atmosphere of market wait-and-see is strong. According to the investigation and analysis of 20 joint enterprises by China Sewing Association, the average amount of equipment invested and upgraded by the spare parts enterprises in 2010 accounted for only 3% of the total output value of the enterprises, and the average investment amount was 900 thousand. The average purchase of 4 new CNC equipment from 4 to 7 was difficult to meet the urgent need for the automatic upgrading of the equipment industry in China's sewing industry and the rapid increase of labor productivity.

Perplex factor 3 - product quality is in danger of slipped.

Due to the shortage of products in the whole industry, "rush speed", "up production" and "meeting the market" have become the main theme of the recent development of the sewing machinery industry in China. The overtime production of the whole machine and parts enterprises has not been alleviated.

In the investigation of nearly 20 backbone parts enterprises in sewing machinery industry in China, we found that about 45% of the spare parts enterprises clearly indicated that the whole enterprise had relaxed the quality procurement control of parts and components. According to part of the whole machine and parts enterprises, the phenomenon of neglecting the quality of products in the small and medium-sized enterprises is more serious. For example, the defective parts are not finished, the final processing or even the defective products with quality defects are also being rushed into the market, which has posed a great hidden danger for the quality problems of the sewing machinery industry in China, and will have a significant impact on the national image of the domestic sewing machinery brand.

According to many dealers, in 2010, complaints about product quality suddenly increased in China's sewing machinery market.

　 Perplex factor 4 -- escalation of intellectual property disputes

Over the past two years, with the increasingly fierce market competition and the acceleration of localization in the field of special machines and electronic control systems, the intensity of intellectual property disputes has escalate. According to incomplete statistics, from 2008 to 2010, only Japanese famous enterprises launched 6 patent dispute lawsuits to China's sewing machinery industry, including computer sewing machine, computerized sewing machine, double needle machine, cylinder sewing machine and button sewing machine. In 2010, 3 cases of patent disputes were filed in 2010, and the industry should attach great importance to it.

Intellectual property litigation based on patent disputes will delay the pace of adjustment of the product structure of China's sewing machinery industry, and will have some negative effects on the production and operation, development speed and brand awareness of industrial enterprises. Industry enterprises need to strengthen their own innovation, break through the patent technical barriers, and quickly get rid of the passive development situation.

　　 Epilogue

The decline in the level of enterprise profitability has made the labor-intensive sewing machine enterprises feel a great deal of operational pressure, especially the lack of confidence in the development of parts enterprises, and dare not invest in expanding production, and more and more diversified production is being chosen. As the foundation of sewing machine industry chain, the stability of parts enterprises is related to the development of the whole industry. More and more patent lawsuits are being launched by domestic enterprises, and enterprises have also enhanced mutual prevention.

The decline in product quality is fundamentally due to the fact that the market is in short supply to a certain extent, so that customers and dealers can relax their requirements for quality. We can not help worrying that this short-term interest will bring about the loss of the reputation of the enterprise and brand, or even the image of the industry.

The above four points are the most prominent problems in the sewing machinery industry in China at present, but from another perspective, there are many opportunities. In the market, the gloomy exit of an enterprise often means the appearance of another enterprise. The reduction of one person's strength may have another person to come to the top. It depends on who can have the strength to win in the critical moment of the transformation and upgrading of the industry. It is necessary to have the power to enhance the technological content, quality and added value of products, and rely on independent innovation to change the mode. That is the way we all have the mentality.