Pearl River Delta Survey: Part Of Textile Enterprises Northward "Asylum"

In 2008, textile enterprises were regarded as the worst.

Now,

"We are discussing with Jiangxi and Anhui about setting up factories."

Wan Yang

Chen Jiawan said the multiple pressures are torturing the entire textile industry:

"After 25 years, it is facing the worst of times."

Jing Hui textile (cowboy) official said.

Most textile enterprises in Shunde have moved to Hubei.

In the past 3 years, Foshan ceramics has built a ceramic production area with a total scale of 2 billion square meters in all parts of the country. The "light" of ceramics attracts everyone's attention, but it makes people neglect that the labor-intensive industries that are accelerating the outward pfer are not only ceramics.

"At present, most of the textile enterprises in Shunde have moved to Hubei. The newly established textile projects or the original textile enterprises' capital expansion projects have hardly considered Shunde."

A person in charge of Shunde Promotion Bureau told reporters.

According to a survey report, in the eight pillar industries, the textile and garment industry has the most labor force and the fastest pfer rate outside the province.

This confirms that the proportion of textile products exported from Shunde in 2007 to 2010 is decreasing year by year, from 2.61% to 1.9%.

The relocation of the textile industry is inextricably linked to the "downhill" industry since the 2008 financial crisis.

"Since 2008, profits can be said to be decreasing year by year."

Avi's Bo Ying knitting factory is mainly processing cloth for a big cloth. He told reporters that the monthly turnover of the factory usually amounted to 150 thousand yuan, but in the past half a year, the peak turnover was only around 100 thousand yuan a month.

"Last month's income was the worst, with a turnover of only about 50 thousand yuan."

Apart from the 20 thousand yuan rent and the electricity charge of about 20 thousand yuan, AVI also has to pay wages for workers.

Wan Yang costumes are specially designed for OEM processing. Chen Jiawan, general manager of the company, told reporters that the instability of raw material prices and the increase of labor costs are the biggest factors affecting the turnover of the company.

Yao Ying, chairman of Sanshui Jia Lida Textile Dyeing Co., Ltd., told reporters that the new labor law has doubled the labor cost of the enterprise at least 30% this year and the starting salary has reached 3000 yuan.

Moreover, the industrial pfer and development in the central and western regions showed that labor force began to flow back, resulting in an intensification of "labor shortage".

According to the relevant information, textile service agencies are also beginning to move northward. As the number of skilled workers in textile industry in the Pearl River Delta region is less and less, vocational colleges that cultivate textile talents have mostly moved to Hubei and other places.

"Under multiple pressures, no matter how to increase revenue and reduce expenditure, we can not stop the downward trend of the industry. We are considering the pfer of the mainland construction branch to the labor force.

At present, we have discussed with Jiangxi and Anhui about setting up factories. "

Chen Jiawan said.

"The worst of times" has just arrived?

Textile companies worry that the worst is just coming.

"Since the beginning of spring, the overall start-up rate of factories is only about 40%."

Bo Ying knitting's avi said.

About 1 billion of the annual output value of the Lida, about 20% of the machines stopped.

In Zhangcha, many knitting factories have reduced orders by more than half this year, and have not yet entered the off-season completely. The operating rate has dropped to 30%.

"Two or three of China's foreign trade orders have gone to Vietnam, Bangladesh, Indonesia, India and other countries."

Yao Ying said.

It is profit that makes enterprises more nervous.

Feng Jiefang, the Secretary General of the Shunde textile chamber of Commerce, believes that there are some enterprises at present because of the cost pressure caused by the budget price difficulties, the emergence of a single loss situation, accounting for about 10%.

The head of Sanshui dyeing and printing company told reporters that this year's quotations were 10% lower than that in 2008, resulting in a 80% drop in profits.

The continued appreciation of the renminbi, the rising wages of workers, the higher cost and the rising price of products, which makes enterprises even dare not take orders even if orders are sharply reduced.

To make matters worse, cotton prices began to collapse in April of this year, and they have not been able to stabilize. Cotton price roller coaster allows textile enterprises to wait and see, merchants are afraid to place orders with orders in hand, and enterprises are also very difficult to quote.

What makes enterprises "entangled" is that orders can not be accepted at all.

"Textile and dyeing equipment must operate continuously for 24 hours.

Once you stop and restart, many devices may not work. "

The head of a knitting enterprise in Zhangcha told reporters that if they did not choose to stop production, the workers would run away and the whole enterprise would be paralyzed.

This caused the textile industry to have a strange circle: the order fell, because the profit question was single and did not dare to receive, but the order did not connect, feared that the factory was paralyzed.

Industrial upgrading or magic weapon

And industrial upgrading gives enterprises some hope to tide over difficulties.

Bavin knitting's avi told reporters that the factory had increased investment at the end of last year, and spent about 1000000 yuan on updating equipment, and moved a new factory, expanding the size of the original 8 machines to 16 machines.

"The old machine has hardly ever started work this year. It is supported by new machines. If we didn't invest in the equipment at the end of last year, it would be even worse this year."

Avi congratulated him.

Reporters also found that the reduction of orders is mainly concentrated in small and medium-sized textile and garment enterprises, and the reduction of orders from one or two to five or six.

"In fact, a series of bad news has little impact on high-end products, and low-end products are miserable."

In the past two years, nearly 80% of the turnover of Foshan Wo Jin Knitting Co., Ltd. has come from high-end machines. Mr. Chen, general manager of the company, told reporters that he has introduced a number of high-end machines from 2 million yuan in 2008. From 2009, the advantages of high-end machines began to appear, and the turnover of high-end products increased year by year.

"High end equipment investment and high technical personnel demand is also very high, many colleagues think that this is too risky to succeed."

But the fact that high-end products sell hard products at low end proves that it is a constant theme to seek renewal and change in the business world.

Today, half of the company's machines are high-end machines, which are producing more horsepower every day, while the low end machines are seriously inadequate.

Mr. Chen said that if the equipment had not been updated, the high-end products had been launched, and the industry suffered a series of attacks.

The view is obvious in Southeast Asian countries.

Yao Ying, chairman of Sanshui Jia Lida Textile Dyeing Co., Ltd. believes that there is a reason for orders to flow to Southeast Asian countries.

In Bangladesh, for example, the cost of investment in the country is low: the wages of workers are 400 yuan / month, and the land fund is 1 yuan / month.

In addition to the cost of water and Foshan, natural gas and electricity are cheaper than Foshan.

Bangladesh textile has entered the European market, enjoying 15% of the import tariff preferences, while China has not.

More importantly, Bangladesh imported cotton from Pakistan is the cheapest cotton in the world, which is about 40% of China's cotton price.

In Foshan, the wages of workers are about 3000 yuan / month (600 yuan for social security, 400 yuan for packages, 2000 yuan for wages), plus rental plants, power loss, and workers' wages are six or seven times higher than that of Bangladesh.

Viewpoint two Southeast Asian products are relatively low end.

Feng Jiefang, Secretary General of Shunde textile chamber of Commerce, believes that although the textile industry is rising in Southeast Asia, Foshan's textile industry has developed for a long time, is relatively mature, has a rapid response to the market, can provide complex products, and the quality of the products is relatively high.

At the same time, the Foshan textile and apparel industry chain is complete, with the complete production chain of Xiqiao textile, Zhangcha knitting, Junan jeans, Sanshui printing and dyeing from raw materials, fabrics to ready-made garments, and the support of the industrial chain is even stronger.

Although the cost of textile in Southeast Asia is low, the products are relatively simple.

Feng Jiefang stressed that Foshan textile and clothing should focus on improving the added value and taking the road of differential competition.