Textile enterprise manager survey highlights industry pressure

In the middle of June 2012, the China Textile Industry Federation implemented the ninth survey of business managers.

The survey period is from April to June 2012. As of July 9, 2012, a total of 442 questionnaires were retrieved in this survey, of which 437 were valid questionnaires.

The survey involved all sub-sectors of the textile industry. Of the 437 survey sample companies, cotton textile companies accounted for 20.59%, followed by home textile manufacturing enterprises, accounting for 18.54%, clothing and footwear manufacturing enterprises accounted for 11.67%, and chemical fiber manufacturing enterprises accounted for 10.07%.

From the scale of sample companies, small companies accounted for the highest proportion, reaching 39.36%. From the regional distribution of sample companies, the largest number of enterprises in the eastern region accounted for 79.18%. Among the sample companies, 71.9% of enterprises have new capacity input, and sample enterprises in the cotton textile manufacturing industry have 90.9% of new capacity inputs; 24.66% of sample enterprises have carried out asset restructuring, and the central region has reorganization of assets in textile enterprises. The proportion reached 69.44%.

The profit level of operating quality is lower than that in the first quarter

The survey results showed that the domestic textile enterprises were basically stable in the second quarter of 2012, but the profit level was lower than that in the first quarter. The demand in the international market was weak, the downward trend in the prices of raw material purchases and product sales was obvious, and the inventory growth of certain industries and enterprises was outstanding.

For the current situation of the company's production and operation, 35.9% of the companies considered it good, and 47.9% of the companies chose general, indicating that the current operation of the company is still relatively stable. The proportion of enterprises with good selection in the eastern region was higher than that in the central and western regions, indicating that the production and operation status of enterprises in the eastern region was slightly better. From the perspective of sub-sectors, the proportion of poor performance in the selection of linen, silk, knit, and chemical fiber manufacturing companies is significantly higher than in other industries. From the point of view of the type of business, small businesses are under tremendous pressure, with only 19.8% of companies choosing good.

Production remains steady and nearly half of large-scale enterprises increase production

From the perspective of the production volume of major products of the current period, 40.6% of the enterprises have increased from the previous period, of which the increase rate of large-scale enterprises is as high as 49.6%, while only 32.6% of small-scale enterprises have grown, which is lower than the average level (40.6%) by 7.9 percentage points. , indicating that large-scale enterprises are better than SMEs; from the perspective of registered capital types, the proportion of enterprises added by state-owned enterprises is 45.5%, and that of enterprises controlled by Hong Kong, Macao and Taiwan companies is up by 46.2%; In the printing and dyeing industry, apparel industry, and industrial textile manufacturing industry, enterprises with the largest increase in production of major products accounted for 59.4%, 51%, and 70.6%, respectively. The proportion of enterprises in the hemp spinning industry was relatively low, only 26.1%.

International demand for orders reduces apparel companies' order volume growth

About 34.7% of the company's orders (demand) increased from the previous period, of which the order of large companies in the size of the best type of business, compared with the previous period the growth rate of 41.4%. From the perspective of sub-sectors, the proportion of orders for apparel and wool textile companies grew at a relatively high rate of 57.1% and 53.8%, respectively. On the whole, there are also 33.8% of the company's orders (demand) decreased from the previous period.

In terms of foreign orders in this period, international order demand growth accounted for 31%, while 36.2% of enterprises’ international demand orders decreased, reflecting the sluggish international market demand. From the perspective of sub-sectors, woollen and hemp spinning companies have the least favorable international orders, with only 18.2% and 19% growth.

General decline in sales prices Chemical fiber manufacturing products are particularly prominent

Affected by the weakness of the overall economic environment, the market is in weak demand and the downward trend in prices is evident. The average price of the main products of 43% of the sample companies decreased compared with the previous period. The sales prices of major products of large-scale enterprises and state-controlled enterprises fell by a large margin, 50% and 55.8% respectively. From the perspective of sub-industries, companies with a decrease in the sales price of main products of the chemical fiber manufacturing industry are as high as 83.7%.

40% of corporate profits decline Wool textile companies account for higher profits

Judging from the level of profitability of enterprises, 41.8% of the enterprises’ profits in this period have decreased compared with the same period of last year, and 27.7% of enterprises have increased their profits during the period compared with the same period of last year. From the perspective of different companies, profit growth of large and medium-sized enterprises is better than that of small ones. There are 35.4% of large-scale enterprises making profits during the current period and 32.9% of medium-sized enterprises have increased their profits over the same period of last year.

From the perspective of different industries, the profitability of up to 74.4% of chemical fiber manufacturing companies fell, and the profitability of filament manufacturing and knitting decreased by 70.6% and 60% respectively. The increase in profits of wool textile companies accounted for 61.5% respectively.

The utilization of equipment is still normal. Most wool textile enterprises are higher than 80%

The utilization rate of equipment capacity of 57% of the sample companies remained above 80%. The utilization rate of large and medium-sized enterprises was higher than that of small enterprises. The proportion of large-scale enterprises with equipment utilization above 80% was 73.7%, while that of small enterprises accounted for only 38.3%. 91.7% of wool textile enterprises' equipment utilization rate is higher than 80%.

The purchase price of raw materials dropped by 30%. The company predicts that this trend will continue.

In terms of the amount of raw materials purchased by the company, only 28.3% of the company’s purchases increased, and 45.9% of the companies were the same as the previous period. 33.9% of large-scale enterprises increase the amount of raw material purchases, which is significantly higher than that of SMEs. Only 21.2% of the companies chose to increase their purchases for the next period, and 57.4% of the companies chose to stay flat.

44% of the sample companies' purchasing prices of major raw materials fell over the previous period, and 27.1% of companies believe that the purchase price of major raw materials and energy will continue to decline in the next period. In terms of the types of enterprises, the purchase price of more than half (53.5%) of large-scale enterprises has decreased compared with the previous period.

Increase in the cost of various management factors Restricting the effectiveness of the passive response is not as active adjustment

Regarding the reasons that affect the efficiency of the company, the primary factor that selects “rising labor costs” accounts for 63.9% of the total. Especially in the central region, 76.5% of the enterprises in the central region show that this factor is the primary reason for the effectiveness of the company. From the perspective of sub-sectors, with the exception of the chemical fiber industry, all other industries consider this factor to be the primary cause of the company's profitability to be over 50%. Regarding the reasons that affect the efficiency of the company, the second highest percentage of companies choosing “inverted cotton prices at home and abroad, with relatively high raw material costs” accounted for 33%. In particular, the cotton textile industry is under greater pressure, and 60.5% of cotton textile companies have chosen this reason. The third highest percentage of "financial costs" was selected, reaching 25.9%.

The general reflection of the lack of demand for industrial enterprises is that the market is highly competitive

For the major problems encountered in the production and operation of the company at the current stage, the first sample company that selected “inadequate international market demand” accounted for 49.8%. Knitting, filament weaving, and cotton textile companies selected 70%, 64.7%, and 64.4% of the “insufficient demand in the international market”, indicating that companies in these industries are more affected by the downturn in the international market. The proportion of small businesses that choose this option is higher than that of large and medium-sized companies. It also shows that the lack of demand in the international market has a greater impact on small businesses.

With regard to the major problems encountered in the current production and operation of this enterprise, the second choice of companies with "insufficient domestic market demand" accounted for 30.5%. In terms of different industries, companies in the filament weaving industry, chemical fiber weaving, and knitting industries accounted for 56.2%, 48.8%, and 36.7%, respectively.

With regard to the main problems encountered in the current production and operation of this enterprise, the third choice of enterprises with “competitive market competition” accounted for 49.7%, of which industrial industry enterprises accounted for 67.7%, cotton textile industry 56.6%, chemical fiber, knitting industry and The proportion of home textile industry companies exceeds 50%.

Employment Relief Points to Internal Control and Enhance Staff Training to Improve Automation

57.8% of enterprises reported that there was a shortage of workers, which was significantly lower than the 82.2% of the previous survey. Among them, the proportion of enterprises that lacked more than 10% of the total workforce exceeded 10.2%, which was also significantly lower than the 20.8% reported in the previous survey, indicating that the shortage of labor in enterprises has eased. However, the rapid increase in labor costs has become a major problem: 81.7% of companies said that labor costs have increased in different degrees compared to the same period in 2011, 49.9% of which said that the labor costs increase in the same period in 2011 compared to 10% ~ Between 20%, 12.4% of companies rose by more than 20%.

With regard to measures taken by companies that deal with shortages of employment and rising labor costs, 54.9% of companies prefer to “increase recruitment”. In the second option, 61% of entrepreneurs choose to "strengthen employee training." In the third option, 53.3% of entrepreneurs chose to "enhance technological transformation and improve automation."

Inverted cotton prices spread to 60% of enterprises to increase the added value while reducing cotton consumption

66.3% of the companies stated that the cotton price hike to a certain extent had a negative impact on the company, and that the impact on the enterprises in the central and western regions was greater than that in the east.

In response to the cotton price upside down, the first option focused on “adjusting the product structure and reducing the use of cotton.” The preferred company accounted for 42.4%, followed by “developing new products and increasing product added value”. 34.4% of the enterprises chose this item; the second option was the “increased import yarn and cloth consumption”, 25.6% of enterprises selected this, and another 23.6% of enterprises selected “increase import cotton consumption”; In the three options, 67.8% of the companies chose “develop new products and increase product added value”.

Nearly 50 companies have filled out specific data on the measures taken to respond to cotton price upside down. After comprehensive analysis, the average cotton consumption in the first half of the year was reduced by 17.29%, and the amount of cotton used in the second half of the year was expected to be reduced by 14.72%; the amount of imported gauze was increased in the first half of this year. 9.26% is expected to increase the consumption of imported gauze by 12.88% in the second half of the year; the average number of equipment stops in the first half of the year is 14.21%; in the second half of the year, it is expected to stop at 13.41%.

E-commerce Intervene in Marketing Process Nearly 60% of Central Enterprises Select Online Sales

Seventy-one percent of companies stated that the first direction of e-commerce in marketing is the release of information. Hong Kong, Macao, and Taiwanese businesses in China are particularly concerned with this, with 79.2% of Hong Kong, Macao and Taiwanese companies using e-commerce to release information. Information sharing is the second direction for enterprises to use e-commerce, and 51.6% of enterprises choose “information sharing”. In the third option, 45.74% of the companies selected “online sales”, of which the central region performed more prominently, and 59.6% of the central region’s third option was online sales.

The situation is expected to exceed the expectations of the eastern, central and western regions

On the whole, business managers are more cautious about the overall operation of the industry. 9.9% of the sample enterprises believe that the current overall performance of the textile industry is optimistic (compared with the 8.9 percentage points in the eighth-period survey), and 43.9% of the companies believe that the operation status is normal (a 10.1 percentage point lower than the eighth-phase survey). 46.2% of companies believe the situation is not optimistic (an increase of 19% compared with the eighth survey). In terms of sub-regions, the proportion of optimists in the central region is significantly higher than those in the eastern and western regions. From the perspective of sub-industries, the proportion of clothing companies and printing and dyeing companies opting for optimism is relatively high, reaching 22% and 18.8% respectively.

Expectations of industry operating conditions:

The downstream is relatively optimistic, upstream is more pessimistic

For the next period, the overall operation of the textile industry is expected slightly higher than the current period, the expected proportion of optimistic companies is 14.1%, is expected to be the average ratio of 43.2%, the ratio is expected to decline to 42.7%. From a regional perspective, the expectations of the East, Central and West China are all higher than this period. From the perspective of sub-industries, the downstream companies are relatively optimistic and the upstream companies are more pessimistic. The clothing industry is relatively optimistic, with 30% of apparel companies optimistic about the next run, but the proportion of companies that are not optimistic about knitting, hemp spinning, printing, dyeing, and chemical fiber industries are all above 50%.

The demand for domestic and foreign sales orders is expected to:

Cotton Spins Expects the Most Growth in International Orders

For the expected future domestic and foreign markets, the international market is slightly better than the domestic market. It is expected that the domestic textile and apparel market will drop 39.7% from the current period, 41.4% which is the same as the current period and 18.9% from the current period. It is expected that the next period of the export of textile and clothing market will decrease by 35.2% compared to the current period. The period was flat, accounting for 42.8%, up 18.3% over the current period.

For the expected future demand for orders, 31.8% of companies believe that they will increase compared to the current period. The expectations of state-controlled enterprises are relatively optimistic, and 42.2% of state-controlled enterprises expect the demand for orders to increase in the next period. From the perspective of sub-industries, filament manufacturers are more optimistic about the next orders, and 56.3% of the filament weaving companies expect the next orders to increase.

However, the international market demand is expected to be cautious, only 27.4% of companies believe that the demand for foreign orders will increase compared to the current period. From the point of view of the types of branches, Hong Kong, Macao and Taiwanese companies are significantly more optimistic about holding companies. 42.1% of Hong Kong, Macao and Taiwanese holding companies believe that the next period of international orders will increase. From the perspective of sub-industries, cotton textiles, silk textiles and garment companies are expected to have a higher proportion of international order growth, reaching 39.2%, 33.3% and 33.3%, respectively.

Expected production of major products:

The growth rate of enterprise production may continue to fall

For the production of the main products of the next period, the expected increase in the proportion is 28.7%, indicating that the business managers are cautious about the third-quarter operation. Small businesses are particularly cautious, with only 21.2% of small businesses expected to grow in the next period. From the perspective of sub-sectors, only 6.7% of the knitting manufacturers believe that the production volume of the main products will increase in the next period, indicating that the majority of knitting managers are not optimistic about the operating conditions in the third quarter. From the comparison of the expected production of the main products of the next period and the actual growth of the production of the main products of the current period, only the proportion of the chemical fiber industry that judges growth in the next period is higher than the actual increase in the production of the main products in the current period. The percentage of enterprises in the remaining industries that hold growth judgments in the next period is lower than the actual proportion of enterprises in the current period. It can be seen that the growth rate of production in the textile industry may continue to fall.

Expected sales price and inventory:

Filament weaving companies have the highest growth rate of inventory

It is expected that the sales price in the next period will be equal to 52.3% of the current period. Only 18.4% of the companies expect the sales price to increase.

Affected by insufficient market demand and upstream and downstream convergence of the industrial chain, the company's inventory has increased, and 40.5% of the company's inventory has increased from the previous period. In particular, the increase in inventory of large and small companies is even more pronounced. The proportion of companies with increased inventories is 41.6% and 40.9%, respectively. From the perspective of sub-sectors, the proportion of companies with long-term weaving and textile-specific equipment companies increased their inventory, accounting for 64.7% and 64.3%, respectively. The growth of inventories and the decline in sales prices indicate that many industries and companies have outstanding operating problems.

Policy recommendations to reduce pressure to ensure international competitiveness Policy formulation Full consideration of forward-looking reduction of various taxes and fees for textile companies Many enterprises put forward in the survey questionnaire that the textile industry as a representative of the traditional real economy, but also the civilian production industry, labor-intensive industries, relations Social stability and development. Under the current macro-environment, textile companies have a heavy burden of taxes and fees and have great pressure. Therefore, companies recommend reducing the tax burden on textile companies in order to reduce business pressure and maintain international competitiveness, including:

The reduction of VAT rates for enterprises in labor-intensive industries dropped from 17% to 13%.

Solve the problem of high value-added tax deductions for enterprises that use raw materials such as cotton.

Reduce taxes, reduce or defer some of the local taxes and fees, such as land use tax, urban construction tax, education surcharges, Hetao management fees, urban construction planning fees, property taxes, state-owned assets (land) occupation fees.

Allowing textile companies to make manual labor deductions when calculating VAT.

We will reduce the proportion of pension payment for employees of textile enterprises, ****, and unemployment insurance.

Allowing textile companies to invest in R&D and brand marketing expenses are included in the VAT input tax deduction scope.

Some value-added innovations in textile and garment enterprises and brand enterprises will implement value-added tax "recruitment and return."

Effectively solve the problem of large cotton prices at home and abroad

At present, the domestic cotton price is higher than the international cotton price by 4,000 yuan/ton to 5,000 yuan/ton, impairing the domestic textile industry chain and reducing its competitiveness. About 60% of the sample companies indicate that the domestic and foreign cotton prices are hanging up to varying degrees. This has brought about negative impacts. Although companies have already taken certain measures, such as adjusting product mix and developing new products, it is necessary to fundamentally solve this problem. We must start from the reform of the cotton management system and improve relevant cotton policies as soon as possible.

The company proposes to improve the cotton import quota management system, increase the cotton import quota, improve the cotton reserve and sell-off system, strengthen the cotton quality inspection in order to ensure the quality of the cotton, strengthen the supervision and enforcement of the cotton circulation system, and ensure the orderly operation of the cotton market.

Subsidies and incentives for the transformation and upgrading of textile enterprises

It is suggested that in the aspect of technological transformation, textile enterprises should be given more subsidies and rewards for project funds, and textile and garment enterprises should be encouraged to speed up the upgrading process, eliminate outdated technical equipment, increase technical investment, increase new product development and application of new technologies, and improve industries and The added value of products, the development of recycling economy, increase energy-saving emission reduction support. For enterprises that have been treated with textile processing wastewater, those that have been approved by the environmental protection department for approval and put into production and stably operated to meet the discharge standards, they will be rewarded for more than 20% of their actual investment, and will be subsidized for the operating costs of pollution control.

Increase financial support for textile companies

Most of the textile enterprises belong to small and medium-sized enterprises. Funding problems have plagued the development of the enterprises and urgently need to be resolved. First, financial institutions should increase their support for textile companies, increase credit, and simplify the examination and approval procedures. Second, financial institutions should accelerate financial innovation, moderately reduce the conditions for pledges, and actively explore ways of collateral other than land and factory buildings, and increase them appropriately. Mortgage rate, increase the credit line for enterprises; Accelerate the promotion of financial connection with enterprises in industrial parks and industrial bases; Financial institutions must constantly enrich the project library, and strengthen the follow-up investigation of enterprises. Financial institutions should be investigated as soon as possible for companies that have included project libraries. , early project, early declaration, strive for early results.

Stability policy, strengthen guidance

The smooth operation of an enterprise requires the protection of certain policies. Recommendations: First, in the formulation of policies, we must maintain forward-looking policy, be able to maintain a certain degree of continuity and stability of policies and be conducive to business decisions; Second, the proposed government and industry associations, in line with industrial policies and related requirements Projects and enterprises must increase support and simplify procedures, and funds should be put in place as soon as possible.

Give full play to the role of industry organizations in comprehensive services

Since the beginning of this year, the price of textile raw materials represented by cotton has been confusing, the demand in domestic and foreign markets has been sluggish, and industrial companies are at a loss to deal with. It is suggested that the Federation should take advantage of the comprehensive advantages of the industry organizations, analyze and study the international and domestic macroeconomic situation, investigate the upstream and downstream market dynamics and changes in demand, strengthen industry information services, and timely release industrial early warning information to enterprises. At the same time, strengthen the implementation of industrial planning and industrial transformation and upgrading research, assist the government to introduce more detailed and industrial policies that have guiding significance for enterprises, guide enterprises to upgrade in an orderly manner, and change the status of industrial unregulated competition.

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