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Under Pressure, The Industry Is Worried That The Overall Competitiveness Of The Textile Industry Will Be Challenged.

2010/8/11 8:12:00 35

As a dominant industry in China, the textile industry experienced unprecedented pressure in the first half of this year. Labor costs rose, the appreciation of the renminbi was expected, and the prices of raw materials surged. Under the pressure, the profits of many enterprises were cut down, and the industry has even begun to worry that the overall competitiveness of the industry will be challenged.

Labor is scarce and rising.

Since the beginning of this year, the lack of coverage has occupied an important position in the major media.

As a representative of the labor-intensive industry, the textile industry has a more direct and profound sense of lack of employment.

The head of the import and Export Department of a textile enterprise in Weifang, Shandong, told reporters that even when engineers were short of work, engineers should be caught up in the production line. "Not only is the workers working, but the managers are also working. When they are busy, the production line and containers are normal."

It is noteworthy that the shortage of workers is not only in the eastern coastal areas, but also in Hunan, Sichuan, Inner Mongolia and other provinces and regions.

"Almost all factories have their production lines idle, because they are short of labor, so it is very difficult to make full use of their production capacity."

A person in charge of a linen textile enterprise in Hunan province said.

In the absence of a thorough solution to the problem of shortage of workers, a wave of nationwide wage increases has brought new confusion to textile enterprises.

It is understood that this year, a total of 27 provinces and municipalities to raise or plan to raise the minimum wage standards, Jiangsu, Zhejiang, Guangdong and other foreign trade provinces, the adjustment range is more than 10%, and some provinces even more than 20%.

In recognition of this wave of pay increases, vice president of a silk enterprise in Zhejiang also told reporters that the industry is facing difficulties today. "The pressure brought by the pay increase to the textile industry in the second half of this year is likely to exceed the impact of exchange rate fluctuations".

The exchange rate is like a fog in the fog

In addition to the labor force, another important topic in the first half of the year is also closely related to the textile industry, which is the RMB exchange rate.

The average profit margin of 3% to 5% has become the consensus of the industry. If the RMB exchange rate appreciates one point, it is very likely that the meager profits will disappear.

Amid such worries, many textile companies had to be cautious when taking orders in the first half of the year.

In June 19th, the central bank's remittance decision was made public.

Based on market supply and demand, we adjust it with reference to a basket of currencies.

Central Bank

Stressed that the current RMB exchange rate will not fluctuate significantly, hanging in the hearts of textile enterprises "big stone" finally landed.

Deputy General Li Yizhong of Tianjin northern international group told reporters that the exchange reform should learn from the lessons of the sudden appreciation of the RMB in 2008.

At present, the pressure on downstream clothing exports is still great, so the exchange rate should not fluctuate too much, otherwise the export enterprises will not be able to take longer orders.

He further emphasized that gradual appreciation is acceptable and that control is best between 1 points and 2 points.

Nevertheless, the reporter learned through multiple interviews that the current market trend of exchange rate movements in the second half of the year is still showing some degree of concern, and the uncertainty of the future will not allow textile companies to take long lists and large orders.

How high will the price of raw materials go up?

If labor force and exchange rate fluctuations originate from domestic pressure, soaring raw materials will be a major problem in the global textile market.

In the June China Manufacturing Purchasing Managers Index PMI, which was released in early July, the purchasing price index of textile industry was as high as 76.6%.

A person in charge of a textile enterprise in Nanjing, Jiangsu, told reporters that they should take cash to factories and other goods every day.

Because the price agreement signed before is totally out of the question, the price given by the factory almost varies from day to day.

Take cotton as an example, statistics show that from December last year, cotton prices rose by more than 30% year-on-year for 5 consecutive months.

Market participants generally expect cotton prices to exceed 20 thousand yuan per ton in the second half of the year.

Refresh

The highest in 10 years.

Not only that, prices of silk, wool and polyester also went wild all the way in the first half of the year, of which silk rose to its highest level in 15 years, and the IMF statistics show that the price of coarse wool used for carpet is at least the highest level since 1980.

The pressure of raw material cost faced by various types of textile enterprises is obvious.

The above Shandong Weifang city enterprise official said that many export enterprises now have orders, but there is no profit, and individual long lists will even suffer losses. "The price of finished products will never keep up with the speed of rising prices of raw materials."

In view of the textile industry in the first half of the year, there are industries.

expert

In an interview with reporters, the analysis pointed out that in terms of the domestic market, enterprises with the ability to raise prices have begun to raise prices, but it is not the overall performance. "After all, in the domestic market, channels and brand costs occupy the vast majority of the comprehensive cost of the textile industry."

For exports, this year is bound to be a difficult year. It is likely that some of the orders will be shifted to cheaper places such as Southeast Asia.

In view of the concerns of the industry on the competitiveness of the textile industry, experts say that China's textile industry is relatively well matched, and its comprehensive competitiveness still occupies an absolute advantage. "Other countries may be competitive in certain aspects of the industrial chain, but overall, China's advantages are still obvious."