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    Textile Enterprises Face Difficulties In Recruiting Problems And Only Active Pformation.

    2012/11/12 20:56:00 22

    TextileTextileClothingCottonLining

     

    For textile enterprises, the recent bad news is more concentrated.


    According to relevant media reports, Wujiang,

    Chongqing

    Hundreds of textile factories have been shut down; the textile and clothing orders of the Canton Fair are getting warmer and warmer; the textile practitioners' "job hopping and recruitment difficulties" are outstanding.

    This series of domestic textile industry's survival plight makes a small number of small and medium-sized enterprises in China run thin ice.


    In the past two years, in the face of market downturn and industry reshuffle, textile SMEs are facing three pressures: the cost of raw materials fluctuates, the cost of labor is high and the risk of pformation is uncertain.


    "Gross domestic product rate of domestic large textile enterprises can reach 15%-20%, and SMEs are subject to serious factors such as homogenization of their products, and the gross margin level is only 3%-5%.

    There are many factories shutting down and closing down, especially those with a single product line.

    Zhang Jianxiang, assistant general manager of Lu Tai, told reporters.


    In order to find a way out, many small and medium-sized textile enterprises have been merged or pferred to large scale enterprises for their foundry production, and the impact of overseas competitors has further accelerated the industry reshuffle.

    In this regard, Zhu Qinghua, a light industry researcher at CIC, said many emerging market countries such as India and Thailand are China.

    textile industry

    It has caused severe impact, and the cost of labor and raw materials is much lower.


    Changes in the industry


    The judgement on the price trend of cotton and other raw materials makes the loss of reserves in the early stage significant.


    As one of the most important raw materials in the textile industry, cotton prices have fluctuated in the past two years, making many textile enterprises have to redeploy raw materials and stock including cotton, in order to resist cost risks.


    Public data show that since 2010, the domestic cotton paction price has climbed all the way, and even exceeded the 30000 yuan / ton mark at the highest level. Many enterprises predicted that the price would be high or will continue to increase their stock. The cotton price began to dive in the second half of last year, and gradually dropped to about 20000 yuan per ton, and the price shrank by 1/3.


    And with the impact of domestic cotton production and cotton production in India, and the speculation of the producers, the price of the cotton supply market has just been restored for a period of time.


    Between price opening and closing, forced to hoard.

    Stock

    Textile enterprises have become collective victims.


    "For the sake of normal production, enterprises will store a certain amount of raw materials, and early reserves will eventually cause us a lot of losses.

    Light this year has affected the profits of about 30% of Lu Tai, coupled with the depressed economic environment, the prices of terminal products are relatively low, and profits are becoming more and more diluted.

    Zhang Jianxiang pointed out.


    Assistant General Manager Lu Zhiguang, also told reporters that after the lessons of last year's cotton price drop, the inventory of textile enterprises should not be too large, just to meet the basic production.

    "No longer as high as the previous cotton prices, we have maintained two months' inventory to make profits."


    On the other hand, the operability of upstream manufacturers to shift cost pressures to downstream garment enterprises is becoming smaller and smaller.

    Recent frequent exposure such as American Apparel, Lining and other well-known clothing companies high inventory and slow sales news can be seen.


    Zhang Jianxiang said that the downstream merchants themselves are also having a bad time. Although the whole market is in demand, everyone is not confident about the market, wait-and-see mood is serious, but there are signs of improvement.

    "The one or two quarter of this year's performance data are relatively poor, from the three quarter began to improve, and by the fourth quarter is almost the same period last year."


    This is the opportunity for textile companies to wait for the high cost.

    "The market is slightly better recently, so the company expects to raise its price by about 10%.

    However, even if 10% of the price is raised, it will only return to the level of 2003-2004 years. We can see that the cost is rising and the price is low in recent years.

    Lu Zhiguang emphasized.


    {page_break}


     


    Recruitment problem


    Labor costs are still rising, but it is still difficult to stop recruitment gap. Even moving westward is difficult to solve the high cost of employment.


    Just as the management of textile enterprises is "highly alert" to the cost of raw materials, the labor cost is rising, but it is still difficult to stop the recruitment gap, and become the "second mountains" that are pressing on domestic textile companies, especially small and medium-sized enterprises.


    In fact, a number of textile famous cities in China have been exposed to labor shortage incidents, which has attracted the attention of relevant departments.

    According to the relevant data of China employment training technology guidance center, Suqian has more than 135000 employees in textile and garment industry last year, and there are more than 7000 people.

    Similar cases occurred in Qingdao and Tianjin.


    It has been reported by the media that the Tianjin Textile Group Holding Co., Ltd., a subordinate enterprise of 5800 people this year, has finished only 980 people.


    Speaking to the deep reasons for the difficulty of recruiting workers, Zhang Jianxiang told reporters that the conditions of the small and medium enterprises were relatively poor and that they could only raise wages in order to attract workers after the difficulty of employment, but it was limited to the cost pressure to reduce the workers' shifts and the reversal of the four shifts.

    "A few years ago, this phenomenon began to show slowly, and the deterioration of the economic environment exacerbated this contradiction."


    "SMEs are often homogenized, and wages are almost the only attraction.

    Many factories in textile city usually go to a group of workers on the payday and enter the enterprises next door.

    Textile mills can choose more factories, so job hopping is common.

    The turnover rate of workers in some SMEs is as high as 17%-18%.

    Zhang Jianxiang pointed out.


    It is reported that the average monthly salary of the workers in the industry is about 2500-3000 yuan (deducting all kinds of benefits and taxes), and the small and medium-sized enterprises are more than two thousand yuan, and the labor cost is rising gradually almost without suspense.

    Although the employment of small and medium-sized enterprises is relatively imperfect in terms of welfare and protection, and even there are some tax avoidance phenomena, the high labor cost is still a huge pressure.


    Therefore, the capacity to move westward has become the way for many enterprises to cope.

    "The pfer of domestic textile enterprises to the central and western regions is the general trend. The labor costs and raw material costs in the central and western regions are relatively low, and westward migration is conducive to reducing the operating costs of enterprises."

    Zhu Qinghua said.


    However, the idea of moving westward seems to have failed to achieve the desired effect.

    Insiders told reporters that many textile workers in the western region actually chose to return home after working in the eastern part of the country. They were accustomed to relatively high salaries, and enterprises hoped that the compression from labor costs could be resisted.


    "The pfer of production capacity to the central and western regions should pay more attention to the resources and policy advantages there, rather than the labor cost advantage.

    In addition, all kinds of phenomena show that although the textile industry goes to the Midwest, it is still a trend, but it still needs a long process. It has not been matched in related management, logistics and pportation, or it will take at least ten years to be decent.


    {page_break}


     


    Transformation and breakthrough facing difficulties, only active pformation


    In the face of difficulties, small and medium-sized enterprises have to take the initiative to pform themselves so as not to be squeezed out or merged.


    In recent years, under the promotion of relevant departments in various provinces and cities, the policy of speeding up the adjustment of textile industry structure and promoting industrial upgrading has also been introduced in turn, and the power of pformation from top to bottom is rapidly forming.


    Even so, under the background of the general trend, the support efforts of various regions are quite different.


    Zhang Jianxiang pointed out that the integration of regional upstream and downstream cooperation is crucial.

    At this stage, Changzhou and Nantong in East China have done a lot of such work, but the north and Midwest enterprises do not seem to pay much attention to integration. This year many looms in Chongqing have shut down for this reason.

    It is far from enough for small and medium-sized textile enterprises to establish a consensus on price.

    The small and complete industrial structure is not conducive to the development of the industry. After the sooner or later the industry shuffle, it will eventually form several large regional platforms and enterprise platforms, with continuous guidance and promotion behind it, and it will get twice the result with half the effort.


    "At present, there are about more than 50000 textile enterprises all over the country, of which ten thousand belong to the scale of small and medium-sized enterprises.

    These enterprises should make use of their local advantages to produce products with characteristics. For example, in the spinning process, we should focus more on functional and special characteristics of spinning, aiming at finding products that are not easy for big enterprises to choose or abandon strategically, and strive for differentiation and quality competition.

    Zhang Jianxiang further pointed out.


    Not only that, small and medium-sized enterprises often need continuous capital investment and R & D design for pformation, but these capital consumption oriented positions are always the "game rules" that large enterprises can undertake. Small and medium-sized enterprises that can not fully upgrade their technical equipment are more likely to concentrate on one or two product projects.


    It is precisely because the upgrading of the focus of "eggs" are placed in a basket, and its ability to hedge is greatly reduced.


    Lu Zhiguang told reporters that SMEs are actually risking a lot in product innovation. On the one hand, the company hopes to enhance the competitiveness of products and increase R & D investment, but on the other hand, the downstream terminals of products will not necessarily be bought.

    "Therefore, the investigation information in the early stage is very important. Whether we can predict the factors such as the fashion trend will largely affect the outcome of the final return on investment."


    It is worth noting that the advantages of labor cost in Southeast Asia and the changing environment of international trade have made many textile enterprises adjust the proportion of domestic exports in a timely manner, and reduce the links among middle traders in order to maximize profits.

    "Most textile enterprises are losing their share of export sales, and the proportion of domestic exports is about three.

    The tide that they have turned to domestic sales has also intensified domestic competition in a large scale.

    The industry said, "the export market is mostly in Europe and America, Southeast Asia, and now India and other Asian markets and the South American market are actively exploring.

    The total export volume may be reduced, but export value has increased slightly. "

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