Cotton Textile Industry: Enterprise Development Meets Three Gates

Compared with last year's red fire, the cotton textile business this year has been much more difficult.

Although many cotton textile enterprises have gone through many markets.

Interviews with enterprises showed that the price of raw materials fluctuated greatly, and the cost of production rose.

One door: "cotton robbery" that can not escape

"Cotton prices have fallen and yarn prices have fallen even more.

As cotton prices are too high, downstream demand is weak and yarn inventory is increasing, enterprises are under great pressure.

The price of cotton has been discussed since the second half of last year, and it is very difficult to solve. This is really the most heavy problem on us. "

Henan Xinye textile Limited by Share Ltd yarn dyed fabric company said in an interview with the manager.

2010/2011 cotton prices have experienced a sharp rise and fall in recent years. The general trend of the roller coaster and the range of its ups and downs are unprecedented.

Many old textile companies, who have many years of experience, lamented that they had never experienced such quotations.

In March this year, cotton prices and cotton prices plummeted as cotton prices fell at a high level, and market sentiment turned pessimistic.

As cotton spinning production needs cotton and some enterprises have deviations in the situation judgment, some enterprises have a large stock of cotton, and some yarn and cloth sales are not smooth, resulting in large inventory. In the whole market decline, enterprises turn from profit to loss in the early stage, and even "vomit back the money they made last year".

Raw material cost and price fluctuation are unstable, which affects the order and operation of enterprises.

From the second half of last year to the present, cotton prices have fluctuated greatly. The fluctuation of cotton prices has driven the price of yarn and cloth to fluctuate, causing the major textile enterprises to accumulate more expensive stocks.

The influence of price fluctuation is pmitted on the industrial chain, resulting in the increase of business risks. The latter enterprises are afraid to place orders, and the short and small bills become normal.

Compared with last year, orders in overseas markets, especially in Europe and the United States, declined sharply, and the amount of single orders shrinks sharply. Some orders went to lower cost countries and regions, which affected the export performance of cotton textile enterprises to a certain extent.

Entering the new cotton year, the domestic cotton price has remained relatively stable, but the trend of the market downturn is difficult to change because the country implements the cotton temporary storage system.

Comments: the impact of cotton prices on cotton textile enterprises is disastrous.

First of all, the normal market order is disturbed.

When cotton prices rose, the market was permeated with hype atmosphere. Some enterprises were busy hoarding cotton and cotton yarn, resulting in the shortage of orders.

Demand is magnified, and crazy speculation obscures the true relationship between supply and demand.

When the price of cotton falls, the market is in a wait-and-see situation, the real market demand is suppressed, the order is suddenly reduced or even disappeared when the psychological effect of buying and selling does not buy or drop.

Second, the normal production order of enterprises has also been disrupted.

The price of cotton yarn fluctuates with the sharp fluctuation of cotton prices. In order to prevent operational risks, enterprises dare not receive large orders or long lists.

The production of cotton textile enterprises is cyclical, and cotton is usually stored for about 3 months.

Some large enterprises have tens of thousands of tons of cotton, and when the price of cotton drops to 10 thousand yuan / ton, the losses of enterprises will be more than 100 million yuan.

With the declining price of cotton and cotton yarn, the characteristics of "high output and low output" make it difficult for most enterprises to avoid losses.

The way to break the door:

Under the same market situation, the performance of enterprises shows polarization.

In the cotton textile industry exceptionally difficult situation, the new fiber yarn production enterprise efficiency has steadily increased, maintained a steady development momentum.

Depending on the product structure of many varieties, differentiation and new-type, some new fiber textile enterprises are far away from the influence of cotton price fluctuation.

In addition, those who rely on technology or management advantages to obtain higher value-added products are also affected by the fluctuation of cotton prices.

Therefore, for the enterprises themselves, it is feasible to optimize the raw material structure by adjusting the product mix and improving the added value of products to reduce the adverse effects of cotton price fluctuations.

In terms of external environment, there are still some problems to be explored in cotton planting, picking, lint processing, spinning and cotton import.

To carry out market-oriented reform of the cotton industry, give full play to the basic role of market allocation of resources, prevent cotton prices from rising again and again, and ensure the long-term healthy and stable development of the cotton market, becoming the common voice of cotton textile enterprises.

Double door: normalization of recruitment difficulties

"At present, we are most short of skilled workers. The turnover of old employees is fast, and the wages of employees have increased by about 20% over the same period last year."

The head of a textile enterprise in Shaoxing told reporters.

According to the survey, the average labor gap of small enterprises, especially labor-intensive enterprises, reached 15% to 20%, while the cost of labor increased by 15% to 20% compared to last year.

Entrepreneurs complain that the new generation of migrant workers "can not bear hardships and quit job hopping".

The results of the cotton textile industry association's survey of cotton textile industry gathering areas show that the wages and welfare levels of cotton textile enterprises have risen sharply in recent years.

But even in areas such as Henan, Hebei and Hubei, where the labor force is relatively abundant, cotton textile enterprises are facing the problem of labor shortage.

In order to improve the working environment, living environment and raise wages, enterprises are attracting workers for full insurance and provident fund, free shuttle bus service, and so on. Even so, recruitment difficulties still exist.

In order to ensure the basic operation, cotton textile enterprises give employees a general salary increase of 10%~30%.

The average wage level of cotton textile industry is lower than that of other manufacturing industries, which is the direct cause of the shortage of labor. The labor intensity of cotton textile enterprises is high, and the unfavorable conditions such as high temperature, high humidity, noise and frequent night shifts have increased the difficulty of recruiting workers.

It is understood that the age structure of cotton textile enterprises is generally large, and people over the age of 40 occupy a high proportion. After 80 and 90 years, young people tend to choose low wage restaurants, supermarkets and other service industries, and do not want to enter the three class textile enterprises.

Comments: in recent years, cotton textile enterprises are facing increasingly prominent employment problems.

The trend of normalization and expansion of "labor shortage" is becoming more and more obvious. The rapid rise of labor costs has also made it impossible for small profit cotton textile enterprises.

"Labor shortage" reflects the urgency of accelerating the pformation of development mode, and the survival state of cotton textile enterprises needs to be changed through adjustment and upgrading.

The rapid rise of labor costs has gradually become the normal shortage of labor shortage, and is forcing enterprises to pform and upgrade.

The way to break the door:

In the long run, the rise of labor costs in China is an inevitable trend.

In order to solve the problem of employment and strengthen technological pformation, we can solve the problem of labor difficulties fundamentally by using advanced equipment to improve production efficiency, reduce employment, and gradually get rid of over reliance on labor force and strive to pform from labor-intensive to technology intensive.

To achieve this pformation, we must start with equipment pformation, upgrading management and improving personnel quality.

In the situation of rising labor costs and tight labor, cotton textile enterprises should pay more attention to tap their potential and reduce the number of workers.

In addition to using advanced equipment to speed up the upgrading of equipment to effectively reduce employment, through the improvement of production technology, the improvement of staff quality and basic management level and the optimization of organizational structure can reduce labor costs and reduce dependence on labor.

Three door: insoluble financing

"Since July, we have been on the road to loan."

The relevant person in charge of Anhui Ying Rui Textile Co., Ltd. is winding up the loan matters, and the company has come to order, but it can not wait for the working capital to be pferred.

In desperation, the boss had to mortgage the house.

This year's frequent monetary tightening policy has raised the financing cost of the textile industry rapidly.

The increase in reserve ratio and interest rate of bank deposits and loans has raised the interest rate of private credit.

This will increase financing costs for some textile enterprises which can hardly raise funds through banks, but can only seek private financing.

In the recent research conducted by the Federation of textile industry, "financing" has surpassed "order" as the first difficult problem commonly reflected by enterprises.

According to the data of the National Bureau of statistics, the financial cost of China's textile industry increased by 34.49% over the same period of 1~8 this year, higher than that of the main business revenue growth of 4.48 percentage points during the same period.

Data show that the average interest rate of SMEs financing through state-owned commercial banks is about 8%, and the interest rate is more than 10% through the joint-stock banks, and the interest rate is up to 35% through private lending.

This year 1~9 month, Sichuan textile industry interest expenses amounted to 653 million yuan, grew 49.3% compared to the same period, increased 8.9 percentage points compared with the first half year.

When cotton prices rose, businesses rushed to buy cotton for fear of shortage of raw materials.

After the collapse of cotton prices, high storage prices hit a sharp drop in prices, sluggish demand, and occupied a large amount of capital, making it difficult for some textile enterprises to cash in.

Comment: textile enterprises, especially small and medium-sized enterprises, have a long history of financing difficulties.

Under the current system, SMEs lack credit, the credit system is not perfect, it is easy to produce problems such as arrears and non repayment. In order to prevent risks, banks are unwilling to lend to small and medium-sized textile enterprises.

In the textile industry boom index decline, this situation is more prominent.

Because of the fluctuation of raw material prices, the increase of production costs and the sluggish demand in downstream markets, the turnover of cotton textile enterprises is more difficult this year, and many enterprises are forced to stop production.

The way to break the door:

Although the financing difficulties of SMEs have attracted the attention of the relevant departments, they are being actively resolved.

But the Federation of industry and Commerce Research believes that the existing financial system arrangement is difficult to solve the financing needs of small businesses.

In addition, the "shortage" of capital is just a representation. It is the biggest difficulty for enterprises to grasp the expected certainty and adjust to tight macro-control.

Therefore, enterprises must adapt themselves to the "loose" and "tight" of macroeconomic regulation and control.

Paying attention to ensuring the safety of capital chain, arranging cash flow scientifically and rationally and forming a good cycle can make enterprises far away from danger.

In addition, the input tax of cotton textile enterprises in current value-added tax deduction is deducted by 13%, and output tax is deducted by 17%, which makes the burden of enterprise tax burden heavy.

In the case of serious squeeze of production costs and profit margins, many people in the industry have called for a solution to the problem of high and low deductions in cotton spinning enterprises. By adjusting taxes and other measures, the profit level of enterprises can be improved, which will be conducive to the pformation and upgrading of enterprises.