Export Textile Enterprises Profit Decline, Multiple Difficulties Forced Spanformation And Upgrading

The benefits of foundry enterprises have generally declined, and the low cost competitive advantage is no longer there.

The textile industry "12th Five-Year" development plan will be released in June, China's textile and apparel industry. industry In the new round of adjustment, the industry will accelerate spanformation and upgrading.

Sun Ruizhe, vice chairman of the China Textile Industry Association, denied yesterday that the industry was operating normally. In the first quarter of this year, the profits of China's textile industry above scale enterprises (annual revenue of 20 million yuan and above) reached 55 billion 400 million yuan, an increase of 53.57% over the same period last year. "Overall, the overall competitive advantage of China's textile industry is still on the rise this year, and exports and domestic sales are good, and the growth rate is expected to be relatively stable in the second half of the year."

But he also pointed out that the high cost manufacturing of textile industry will be inevitable, especially for SMEs.

Export enterprises profit decline

　 "Labor shortage" has also been attacked. Garment industry 。

Huacheng Industrial Investment Group Co., Ltd., which mainly produces trousers for export, has raised its wages by 20% or so. It also cancelled the overtime work this year. Zhang Xianglin, chairman of the board of directors, said that it was very effective to deal with the shortage of labor. Under the condition that most textile enterprises were generally short of work, the number of employees increased from more than 4000 to more than 5000 this year. The demand of the new generation of migrant workers has changed, not only pay attention to pay, but also pay more and more attention to the working environment and other conditions. All these forces enterprises to make corresponding adjustments.

But Zhang Xianglin admits that the increase in labor costs has a great impact on the profits of enterprises. The company is also making plans to expand its domestic brands while increasing the price of high-end customers overseas, so as to digest the cost pressure.

Tao Mingfang, vice mayor of Pinghu, Zhejiang Province, admitted that Pinghu, as one of the most important garment export bases in China, is not optimistic about the current situation of pure foundry enterprises, and the efficiency of enterprises has generally declined. The advantage of low-cost competition is no longer there.

"From 1 to April this year, the output value of clothing in Pinghu increased by 16%, but the efficiency decreased significantly, which did not match the main garment industry in the country. One of the main reasons is the rise in wages of workers, which has increased by 20% to 30% last year and will increase by 10% to 15% this year. At present, many workers earn about 3000 yuan per month. It is said that the wages of Southeast Asian (textile enterprises) are only 1/3 or even 1/4, and we are worried about whether the competitive advantage of clothing export can continue. Tao Mingfang said.

There are more than 1600 garment manufacturers in Pinghu, mainly in processing. Exit Mainly. Tao Mingfang talked about the fact that some small and medium-sized enterprises were not good in production and management. This situation was normal, but there was no case of batch enterprises closing down. "In particular, none of the 289 garment enterprises above Designated Size failed." He also said that the local government is accelerating the spanformation and upgrading of textile and clothing, and through the establishment of a large garment city and other channels to help export enterprises to export "two legs" to walk.

Industry calls for policy stability

At present, textile and garment enterprises are faced with many uncertain factors such as labor cost, raw material price, exchange rate and policy. Sun Ruizhe analysis pointed out that since last year, due to the speculation of international hot money, the cotton price has been ups and downs, which has caused a certain impact on the normal operation order of the industry. At present, cotton price has been almost near the bottom. In the coming months, it will be between 24 thousand yuan / ton and 26 thousand yuan / ton.

As for the rumors of textile export tax rebate reduction, Sun Ruizhe said this is not groundless. "The relevant ministries and commissions have consulted the textile industry association's opinions this year, and we suggest that it is not advisable to adjust the policy at present."

Sun Ruizhe believes that China's textile industry will not avoid high costs and maintain policy stability in order to facilitate spanformation and upgrading of enterprises.

"Now that foreign trade orders are undergoing subtle changes, there is a shift to Southeast Asian countries, but retailers in some of the leading export markets in Europe and the United States have been emphasizing that they will never easily spanfer orders. China, as such a huge textile industry base, still has advantages over Southeast Asia in terms of labor support and industrial matching."

According to statistics from the General Administration of customs, China's textile and apparel exports totaled US $68 billion 500 million in 1~4 months in 2011, an increase of 27.4% over the same period last year. "The export structure is in the period of readjustment. This is not the increase of quantity, but the increase of price. The cost pressure of the front end of the industrial chain is passed to the end of the industrial chain. We analyzed the export price of the first quarter, the average export price of yarn increased by 27%, the fabric increased by more than 20%, and the clothing increased by 20%. Sun Ruizhe said that the "12th Five-Year" period will accelerate the spanformation and upgrading of industries, with the least resources and minimum capital input to get the greatest value output.

Sun Ruizhe also said that China is relatively short of resources, such as 1/4's cotton is imported from abroad, and is now facing the search for alternative fiber resources. To solve the balance of resources is also an important goal of the "12th Five-Year" planning of the textile and garment industry.