The Decline Of Export Profits Is Difficult To Be &Nbsp, And The Pformation And Upgrading Of Textile Enterprises Is Imminent

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Recently, the media reported that a large number of textile and garment enterprises were closed. Sun Ruizhe, vice president of the China Textile Industry Association, denied that the operation of the industry was normal. In the first quarter of this year, the annual revenue of China's textile industry above designated size enterprises reached 20 million yuan and more than 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. The growth rate is expected to be relatively stable in the second half of this 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 hit the 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, said that as a major garment export base in Pinghu, the current situation of pure foundry enterprises is not optimistic, and the efficiency of enterprises has generally declined, and the advantages of low-cost competition no longer exist.

"In the 1-4 months of 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%-30% last year and will rise by 10%-15% again 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. We are worried about whether the competitive advantage of garment export can continue.

Tao Mingfang said.

Tao Mingfang talked about the fact that some small and medium-sized enterprises are not good at production and operation. This is normal, but there is no case of batch enterprises closing down.

The local government is speeding up the pformation and upgrading of textile and clothing, and through the establishment of large garment city and other channels, to help export enterprises to export "two legged" walking.

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 some 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 -2.6 yuan / ton, and it will never return to the low price of previous years.

As for the rumors of textile export tax rebate reduction, Sun Ruizhe said this is not groundless.

This year, the relevant ministries and commissions consulted the views of the textile industry association, and we suggested 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 pformation and upgrading of enterprises.

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

Customs statistics show that in 2011 1-4, China's textile and apparel exports totaled $68 billion 500 million, 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 pformation and upgrading of industries, with the least resources and minimum capital input to get the greatest value output.

He also said that China's relative shortage of resources, such as 1/4's cotton imports from abroad, is currently facing the replacement of fiber resources, and the balance of resources is also an important goal of the 12th Five-Year plan for the textile and garment industry.