Analysis Of Current Situation Of Filament Fabric Production Enterprises

A few days ago, we talked about

I. Problems

From the perspective of the visit, the problems existing in the production and operation of enterprises in various regions are relatively concentrated. First, the pressure of energy saving and emission reduction is increasing. Two, the market situation is not ideal.

1, increasing pressure on energy saving and emission reduction

From the point of view of energy conservation, there is a large gap in the supply of electricity, especially in the Jingjiang town.

According to the relevant regulations of the local government, almost all textile enterprises are classified into category C (one week power failure for 3-4 days), which seriously affects the normal production and delivery reputation of enterprises.

From the perspective of emission reduction, since the regulations of the Taihu River Basin promulgated by the State Council have been formally implemented since November 1st, it will be very difficult for weaving and dyeing downstream.

Although the government has strict sewage disposal systems, the cost of sewage treatment is around 4-5 yuan per ton.

But the biggest pressure will be the limitation of scale development.

It is impossible to carry out any pollution projects in the Taihu rim region. With the expansion of weaving scale, enterprises have to send products to other regions for printing and dyeing, thus increasing the logistics cost of enterprises.

In some areas, the use of water jet looms is limited. It is necessary for enterprises to consider the use of air-jet looms instead of air-jet looms, but the proportion of air-jet looms is increasing.

2.

The market situation is not ideal, mainly from two aspects: first, the market itself is affected by the current European economic situation and the pressure of RMB appreciation, and the export of enterprises is limited. At the same time, because of the large fluctuation of raw material prices and the decrease of cost prices, the domestic market has a wait-and-see attitude and orders are hard to sign, which further squeezes the profit margins of enterprises.

Two, the policy environment is becoming tighter and the financing of enterprises is more difficult.

Three, the attitude of the local governments to the textile industry is also very important. At present, some governments regard the textile industry as a "double high" industry, basically putting the textile industry in the restricted development industry. The specific measures do not actively implement the reward and payment of the energy saving and emission reduction of the higher authorities, although the long-term idle high-tech park land does not approve textile projects.

In addition, the rising trend of labor costs has been irreversible.

The wages of front-line workers increased by 30-40% compared with the same period last year, and the increase in the past three years is over 20%. The current wage level is around 3500-4000 yuan / month, and the wages of some skilled workers can exceed 5000 yuan / month.

Nevertheless, because of the obvious personality of the post-90s employees, the mobility of workers in some areas is still very high. In a sense, this is not simply a matter of raising wages and improving the working environment, but also a matter of corporate culture and enterprise cohesion.

At present, every household has looms in different areas. In some areas, through the treatment of nearly two or three years, active and effective management measures are taken in the fields of electric power pmission and sewage discharge, so as to give full play to the enthusiasm and low cost of farmers' production, and to guarantee the supply channels of the market.

However, some areas have also seen a disorderly development of small workshops, low-priced products disrupting the market and adverse effects on formal enterprises.

During the visit, we feel that although most of the member enterprises are doing well in operation, there is no stop and stop production. However, compared with the first half of last year and the first half of this year, the number of product sales has declined, the number of finished goods stocks has started to rise, and the output of inventory has reached 2-3 months. Accounts receivable cycle has been extended for 30 days to 45 days, and profits have declined significantly.

Although some quality enterprise orders are not a problem, but in order to maintain the capital chain, profits have been depressed very low, and the market is obviously sluggish.

The vast majority of enterprises believe that the market downturn will last until the second half of next year. After the rational production of chemical fiber filament production, the market will gradually stabilize.

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The main reasons for this downturn are:

1, cyclical fluctuations in the market

Market fluctuations since the second half of this year are actually cyclical.

Last year was the best year for textile enterprises in ten years. The supply of products was in short supply, and prices and profits rose month by month.

In the first half of this year, the trend of last year has been basically maintained, and a good operation has been maintained.

After the off-season in August, the market declined and orders were reduced due to the impact of the international economic situation. Inventory and accounts receivable were doubled than the best period of last year, but in a rational sense, the data just reverted to the usual level of the past year.

2, capacity expansion

The good situation of the textile industry in 2010 also brought about blind expansion of production capacity.

Production capacity is basically gradually released from the second half of this year. On the one hand, the expansion of raw material capacity has reduced the price of raw materials (the market will automatically lower the price of online products according to the downward trend of raw material prices). On the other hand, the expansion of weaving capacity has increased the supply of products.

At the same time, the domestic macroeconomic policy is tight, the international economic situation is turbulent, and the market size has not increased synchronously.

Therefore, on the whole, there is bound to be a situation of oversupply.

During the visit, we also felt that most enterprises could clearly realize this point, and some projects started to slow down, and investment tended to be rational.

3, rising costs

At present, the pressure of cost rising by enterprises is manifold.

Labor costs, electricity costs, sewage costs, exchange losses, financial costs and so on have increased substantially.

At present, the most prominent is the hidden costs brought about by the fluctuation of raw material prices, and the high financial costs brought about by the difficulty of financing.

Affected by the credit crisis in Wenzhou, banks have tighter loan qualification auditing for some small businesses, substantially raising loan interest rates for quality enterprises, increasing the loan difficulty and financial cost of enterprises, and increasing interest in private lending.

Three, coping strategies

This round of market downturn is also a process of eliminating small and medium-sized enterprises within the industry.

The key to the survival and development of enterprises in fierce competition is product development. Competitive products can have competitive prices.

In the process of visit, we also see that those enterprises that invest a lot of energy in equipment pformation and product development, enhance their ability to resist risks, and have a good reputation.

The focus of product development of filament weaving enterprises should gradually expand from household products to industrial and functional products, such as the development of single hole spun silk hemp spinning fabrics, twisting imitation memory fabrics, fire retardant and flame retardant fabrics, etc.

In the face of the current situation, enterprises should rationally analyze and prevent blind pessimism.

At present, orders have declined compared with the same period last year, but compared with previous years, the market is still normal.

Judging from the international situation, although the economic future of Europe is still uncertain, the US economy has shown signs of recovery, which will surely lead to a rebound in the world economy and the stability of the return of the renminbi is also the trend of the times.

From the domestic situation, the macro economy has begun to "orientate loosely". It may be tight for specific industries, but the overall economic environment will become ideal.