Textile economy growth slows down the textile machinery industry

At present, the textile machinery industry is in line with the market conditions of the textile industry. This year, the sales of various types of textile machinery and the market situation that was in short supply last year are no longer the same.

In 2011, the national symposium on the exchange of textile equipment companies was held in Shaoxing, Zhejiang on October 11-12. Vice Chairman of China Textile Industry Association, Honorary Chairman of China Textile Machinery & Accessories Industry Association Gao Yong, Chairman of China Textile Machinery and Equipment Industry Association Wang Shutian, Vice Chairman Lu Honggang, Deputy Secretary General Qian Xilin, Senior Consultant Liu Rende and 50 from all over the country A number of heads of textile equipment companies attended the meeting. During the conference, the delegates introduced the current business situation of their respective companies and exchanged their views on the future market. It is widely believed that the fluctuations in the textile market have not caused too much impact on equipment companies, and most companies have maintained a booming production and sales situation.

Gao Yong analyzed in detail the operation of the textile economy, existing problems, and future development trends at the meeting.

Although the textile industry has seen a growth trend in both production and sales and exports this year, the growth rate has slowed down significantly; the growth rate of the industry's profits has continued to decline, and the benefits of small businesses have fallen. Gao Yong analyzed that the factors that have affected the economic development of the industry since the beginning of this year are mainly reflected in the following aspects: First, raw material prices have fluctuated. The soaring price of cotton has caused the prices of chemical fiber staple fibres, yarns, and cloths to rise and fall. By the end of August, the prices of major chemical fiber, yarn and cloth products have fallen by about 30% from March. Second, the issue of corporate financing is outstanding. The shortage of liquidity makes it impossible for enterprises to purchase raw materials normally. As a result, the occurrence of production cuts or production cuts in the cotton spinning and chemical fiber industries where raw materials account for a relatively large proportion of costs have occurred. Some companies have forced the sale of finished products to return funds at low prices due to financial pressure, which has exacerbated the market for products. Fluctuations in prices; Some SMEs are unable to obtain credit support from banks. With the help of private lending, asset risks have increased significantly. Third, the pressure of rising production costs has increased. In the first half of this year, although the prices of textile raw materials have entered the downward cycle, compared with the same period of last year, the prices still rose significantly. Among them, the price of cotton increased by approximately 70% year-on-year, and the price of major chemical fiber products increased by approximately 30% year-on-year. In addition, many companies have different degrees of shortage of employment, which has prompted workers to continue to increase their wages. Fourth, the appreciation of the renminbi has increased the pressure on exports. Fifth, the international market is still not optimistic. Among the developed countries that are the main exporters of textiles and garments in China, the demand for the Japanese market has shrunk due to the earthquake; the growth rate of apparel import in the EU and the US market has declined compared to the same period of last year; the rising prices of the emerging markets and the political turmoil in some regions have affected this year. End-user demand growth slowed compared to the previous year.

Gao Yong said that at present, the major issues affecting the operation of the textile economy cannot be fundamentally changed during the year. As a company that provides textiles companies with special parts and equipment, they must adjust their concepts, adapt to the current industry development and the global economic environment, and make preparations for the response.

Wang Shutian, Chairman of the China Textile Machinery and Equipment Industry Association, introduced the economy of the textile machinery industry this year. He said that the textile machinery industry is in line with the market conditions in the textile industry. This year, the sales of various types of textile machinery and the market situation that was in short supply last year are no longer the same. First of all, the computerized flat knitting machine market that has been selling hot for the past two or three years has cooled down, followed by the fact that the spinning equipment does not pick up the goods, and some spinning companies have begun to accumulate products. Wang Shutian said that with the slowdown in total sales growth, the economic operation of the textile machinery industry this year has taken on a new feature: The sales of advanced complete sets of equipment have clearly improved. According to statistics, a total of 6 million spindle spinning machines were sold in the first half of this year, and long vehicles accounted for 32%. The sales of long-distance weaving machinery even accounted for 50% of the total sales volume of spinning frames. In addition, as of the end of August, China’s imported textiles Machine equipment is close to 4 billion U.S. dollars, an increase of 40% year-on-year, and is expected to exceed the highest level in history throughout the year. This fully shows that the demand structure of textile companies is undergoing profound changes, and the market is paying more attention to those energy-saving emission reduction models that have a high degree of automation, can save labor, and improve the quality of textile products. It is worth mentioning that this year's imports of equipment have shown a negative growth, especially in steel sheets, which is the least imported type of equipment. The domestic steel sheet combination can be used to replace imports regardless of the technical level or product quality.

The heads of textile equipment companies attending the meeting generally agreed that the fluctuation of the textile market has not caused much impact on the equipment companies this year, and most companies have maintained a booming production and sales situation. When the textile market is not well-sold, companies often increase the frequency of replacement of products in order to open up the market. Since this year, due to the large fluctuations in cotton prices, many companies have changed from spinning pure cotton yarns to spinning chemical fiber yarns, and some of the corresponding equipment needs to be replaced. This has led to the sales of equipment.

For the future development of the equipment industry, delegates believe that, first of all, as the cost of labor increases, it is critical to improve the accuracy and efficiency of equipment. The development and production of equipment must also keep up with this requirement. Secondly, at present, China still has a considerable number of key components and parts that are dependent on imports. There are still gaps in the accuracy, product performance, reliability, and other aspects of domestic textile equipment and imported equipment. We should catch up as soon as possible. Third, it is hoped that industry associations and enterprises will work together to promote and improve the standardization of each type of equipment product, or they may introduce foreign standards.

During the meeting, Professor Li Jianqin of Zhejiang University also invited a report titled "Analysis of Current Macroeconomic Situations and Trends." Li Jianqin’s report was welcomed by the participating entrepreneurs. They believe that comprehensively understanding and mastering the current macroeconomic and economic environment is of great significance for the forward planning of the future development of the company.