Pearl River Delta Survey: Knitting Industry Is Overburdened, Facing Death And Death

On the afternoon of 22, there were nearly 10 freight cars entering and leaving the village of Pingyang in Zhangcha every 5 minutes. Industry There are also many people who come to ask for information about hiring and workshop rental every day. But in fact, behind this prosperity, "RMB appreciation, labor price rise, raw materials" Price The three big stumbling blocks make Zhangcha small and medium-sized. knitting Companies are overburdened, and the recent financing difficulties are exacerbated by them.

Beginning with the financial turmoil in 2008, the "good days" of the knitting industry came to an end. The burden of several years superimposed many small and medium enterprises on a zero profit or even a loss. Management Struggling in the middle of the struggle, many enterprises have shouted: This is the most difficult time in history.

Although Foshan is not as big as Dongguan. Bankruptcy But the development of the knitting industry is not optimistic. Insiders said that if the knitting industry continued to develop under the high pressure situation, many small and medium-sized businesses in the second half of the year. enterprise Will face death and death.

　 Absent in the first half of the season

"This year is the worst year I've ever seen in knitting industry." Ai Wei, owner of Zhangcha Bo Ying knitting factory, does not shy away from the fact that many knitting enterprises are running low. The knitting enterprise in the Pingyang Industrial Park currently operates only 1/4 machines, and most of the rest of the machines are almost shut down. "We have operated at a loss for third consecutive months, and we haven't finished it in July, but we can see that the situation is definitely not improving."

Avi's factory has been in the whirlpool of losses since April, and the average monthly loss of 456 over the past three months is more than 30 thousand yuan. Let avi feel very lucky that the factory has been upgrading the machine last year. Almost all the shutdowns this year are old machines, and now the new machine keeps the company running normally.

"The output value of the 8 machines in the first half of last year was equal to the output value of the 16 machines this year, but the expenditure is more than double that of last year." He said frankly that if we rely on the income of the factory to support the operation of the enterprise, we will not be able to sustain it. {page_break}

　　 Profits still need to be hired.

Tan Mingkuang, chairman of Foshan Everbright Clothing Co., Ltd., said that in the case of the sharp drop in consumer demand in Europe and the United States and other countries, the performance of Everbright clothing this year was "up against the market", and orders were better than last year. But after all, big enterprises have stronger ability to resist risks. They have the unparalleled advantages of small and medium-sized enterprises. The more common situation is that "reducing production" and "losing money" have become an inevitable fact for many small and medium enterprises in the knitting industry.

"At this time of the year, my factory started up to 80%, only 40% now, half the production. The sales point of our company in Zhejiang is also dismal, and sales have fallen by half. Chen Weiwo, general manager of Foshan Wo Jin Knitting Co., Ltd., bluntly pointed out that the environment has made great progress. Now that money has been tightened up, the financing of enterprises is becoming more and more difficult. It is a blessing that the company can still keep its balance.

Financing is very important to enterprises. If the market shrinks by half, if we blindly expand the capacity on a large scale and raise financing problems at the same time, it will be very difficult for enterprises to operate and even lead to bankruptcy. Chen Weiwo said that his company did not expand production capacity this year. "The operation of the capital chain is still normal. It is still within my control. But if the survival environment of SMEs is deteriorating, I think it will be difficult for them to do their best." Chen Weiwo said.

As a matter of fact, the crushing of cotton prices by "roller coaster" and "busy season" is still not able to completely crush these knitting enterprises that have been in business for many years. What makes Zhangcha knitted small and medium sized business owners more hesitant is that they still lack jobs when profits are bottomed out.

In the wall behind the village head bus station in Zhangcha, the red poster of recruitment and factory spanfer is particularly conspicuous. The "new imported computer equipment" and "rent and electricity tariff are cheap" and other clothing factory spanfer information together with the attractive factory recruitment conditions to climb the dark walls. On this red and black wall, the demand for the decline and development of enterprises is intertwined.

A worker at a factory in Pingyang Industrial Park told him that more than half of the factories in his factory had stopped working, and that the factory was still understaffed, even though the machine was less needed by the workers. "When a machine is running, it is usually a person who takes care of 1 machines, but there are few people in the factory. Now we are all looking after 2 machines."

The peak season of knitting industry generally occurs between March and May, and the loss of enterprises has foreshadowed the embarrassment of "busy season". In the peak season, it is no exception for avi's business. From the electricity bill shared by each building in Pingyang Industrial Park, we can see that the nearby factories are facing the same predicament. In the few months of the traditional peak season of the knitting industry, factories in the industrial park do not use much electricity.

In addition, the "no peak season" in the first half of this year has not only become a difficult scrub for many knitting enterprises, but also injured garment workers with "piecework wage" each month.

For Feng Mei, who has worked in the knitted apparel industry for five or six years, her average maximum salary can reach more than 4000 yuan, but in May and June this year, she could only get 1200 yuan minimum wage. In order to reduce the operating costs and reduce losses, some knitwear companies in Zhangcha even laid off 1 to 3 months' vacation.

Many enterprises believe that last year's "cotton yarn palms" made a heavy blow to the knitting enterprises, and foreshadowed the fall of cotton prices and business shock this spring. And looking back at the present situation, "the peak season is not prosperous" is undoubtedly a precursor to the knitting enterprises: the most difficult moment is coming. {page_break}

　　 The second half of life or death

In the process of increasing bottlenecks, many knitting enterprises in Zhangcha are still struggling to maintain their business. For the closure of some enterprises, Wu Haoliang, Secretary General of the Foshan Textile Industry Association, believes that the collapse of sporadic enterprises is the result of the survival of the fittest in the market. This situation is staged every year, and there is no "closure tide" in the entire textile industry.

"Under the current situation, it is certain that the business operation is rather difficult, and many business owners are also under tremendous pressure." Wu Haoliang analyzed the reasons for this. First, because prices of raw materials had risen sharply in the past few days, they had been trying hard to "drop prices" in the near future. Two, the state is currently in the macro regulation and control, the difficulty of raising funds on the return of funds, the serious difficulty of capital turnover, and the impact on the circulation of enterprise production. The third is that at present, the CPI is getting bigger, and the cost of all aspects is rising, which results in the upsurge of the price of accessories. The accessories are rising and the price increases are not small. The cost advantage of the products is gradually weakened. The fourth reason is that the problem of labor shortage has been plaguing small and medium-sized enterprises for several years.

Wu Haoliang has visited some Foshan textile enterprises which have been spanferred to western Guangdong and North Guangdong. The business environment of these places also carries the same challenges. The change of employment concept after 80 and 90 has made the knitting industry's former employment hot spot become a cold wasteland with enthusiasm.

"The most important thing is the problem of the market. The export market is very competitive. The knitting enterprises are greatly influenced by the international market. The lower grade products are affected by Southeast Asia, and the orders are spanferred to Vietnam and India. Even though many enterprises have made efforts to develop some emerging markets, they have lost many orders. " Wu Haoliang said that the export volume of the industry has not declined significantly, which is mainly supported by the large and medium-sized enterprises, but the overall situation of exports is still not very satisfactory. The shrinking of the European and American markets is an important factor.

"In the second half of the year, the operation of knitting enterprises may be more difficult due to the fluctuation of raw material prices, tightening of money and downtime. It is hard to say if there will be a closing tide." Wu Haoliang said that in the 2008 financial turmoil, the loss of enterprise exports was mainly made up by domestic sales. Now the export market is blocked, and domestic sales are also blocked. The dual pressure of the domestic and foreign sales market has become the burden of knitting enterprises. "The next part of the small and medium-sized enterprises will have to face the gates of life and death, and we will not exclude some enterprises from going bankrupt." {page_break}

　　 Closing the "Pandora box" requires hard work.

Starting from the financial turmoil in 2008, the textile industry is like a "Pandora box" that has been opened. Many enterprises have been working hard for years.

In fact, the formation of the winter of knitting industry is not a cold day. The knitting enterprises in Zhangcha experienced the rise in cotton prices last year and the cotton prices in March and April this year, and the "peak season" did not begin until the beginning of May, and then the news of the export tax rebate or the 5% reduction in the textile and garment industry in June. Facts have proved that the news of the export tax rebate reduction is only "floating clouds", but the author combed the experience of Zhangcha knitting industry, and found that many uncertain factors such as cost, market and exchange rate, like the sharp sword hanging on the top of the enterprise, also accelerated the arrival of the severe winter.

The consequence of all kinds of information and pressure is that the small and medium-sized enterprises with poor risk tolerance have reached the point where they are at a loss. No one knows what next point will be the last straw to crush the enterprise.

When the market is booming, until the evening, the major industrial parks are still brightly lit, and the industry slump can be seen from more than half of the industrial parks. Whether it is the Yangtze River Delta or the PRD, the news of the "collapse" of enterprises is thick and dense. The failure of several large enterprises in Dongguan has led to the problem of manufacturing industry: the "low, small and scattered" mode of development of private enterprises.

Facts have proved that this way, I understand that most of the enterprises that run difficulties or even lose money are small and medium sized enterprises with their own products, brands and technology companies. Even if they are in a dangerous environment, they can still stick to a corner.

Only if we hope that the government can implement policies to support small and medium enterprises, SMEs themselves will need to establish a firm belief that they should be a hundred years old shop. They will keep their feet in the severe winter, flexibly adapt themselves, and work hard for internal strength, waiting for the next round of market timing to come to a "Jedi counter attack".