China Sewing Machinery Industry: After The Storm Is The Rainbow.

A brief analysis of the current development of sewing machinery industry in China

After eight years of rapid development, China's sewing machinery industry has been slowing down since the second half of 2007.

When the enterprises in the industry are still judging by past experience, when the hopes and preparations for the stock market are coming up before and after the coming Spring Festival in 2008, a series of unfavorable factors superimpose, causing the industry to experience "winter" which has not seen for many years.

According to the statistics of China's Sewing Machinery Association for the main production enterprises in the industry, as of the first half of 2008, the sales volume of the enterprises decreased significantly compared with the same period last year, with a decrease of 30-50%, and a larger drop in profits. Nearly 1/3 of the enterprises suffered losses.

According to the data of the General Administration of customs, the export volume of sewing machines in China decreased by about 9% in the 1-4 months of 2008, and the export volume dropped by about 2% compared with the same period last year, the first negative growth in seven years.

At present, enterprises are generally faced with problems such as shortage of funds, underemployment, overstock of products and sluggish market.

Multiple factors lead to industry predicament.

There are many factors leading to the current sluggish machinery industry's recession.

That is, the world economic recession caused by the subprime mortgage crisis in the United States has led to a decline in consumption, a shrinking demand, a continuous rise in the RMB to us dollar exchange rate, soaring raw material prices, a 4 percentage point reduction in export tax rebates, and an increase in labor costs, leading to a sharp increase in the cost of enterprises.

The tight monetary policy and macro control measures adopted by our country to control overheated investment and inflation have severely challenged the rapid development of enterprises' low cost advantages. The financial costs, human costs and environmental costs of enterprises have risen sharply, and the extensive growth mode of scale pulling has come to an end.

- because of the macroeconomic situation at home and abroad, the adjustment of domestic garment industry has intensified and there has been a depression.

Guangdong, China's largest garment Province, exported $6 billion 650 million in clothing and accessories in 1-4 this year, down 15.1% from the same period last year.

Shandong, another big clothing Province, managed less than 30% of textile enterprises in the first quarter of this year, and more than 20% of the enterprises suffered losses or even stopped production or converted production.

The situation of garment industry in other regions is also the same.

Over the past year, a large number of small and medium-sized clothing enterprises have been forced to close.

The closure of a large number of small and medium-sized garment enterprises directly led to the sharp shrinkage of the domestic sewing machinery market.

The industry that has been developing rapidly for many years has made periodic adjustments to itself.

Since the entry into the new century, sewing machinery industry has maintained an average annual growth of nearly 30%. However, a series of problems, such as blind expansion, unbalanced structure and weak core competitiveness, require the industry to put down the growth rate, adjust the structure and pform the low cost and extensive mode of growth.

Because the industry is relatively young and the foundation is relatively weak, enterprises and entrepreneurs are not mature enough, especially in the recent leading industries in the industry, and some problems have also appeared. It has also aroused some doubts and worries about the development of the industry, and the confidence in the development of the industry needs to be strengthened.

Sewing machinery industry has a bright future.

To analyze the development prospect of China's sewing machinery industry, we must look at the two aspects of supply and demand.

From the perspective of supply, China is currently the largest and most important sewing machine producer in the world, accounting for more than 70% of the world's total output.

At present, China has concentrated the best sewing machinery manufacturers in the world. The products are geared to more than 170 countries and regions in the world. The comprehensive strength of the manufacturing foundation, matching advantages, product cost performance, market expansion capabilities and labor quality of the sewing machinery industry in China will not be replaced in the next ten years or even longer.

Especially after this round of industry adjustment, the survival of the fittest, the enterprises left behind are more excellent, the market competition environment is more benign, and the prospect of Chinese sewing machinery industry is very broad.

From the perspective of demand: at present, the global population has exceeded 6 billion 500 million. According to the UN forecast, the global population will exceed 9 billion in 2050.

The rapid growth of the global population and the upgrading of consumption mean that the development of downstream industries such as textile, clothing, clothing and so on is huge, which means that the potential of sewing machine market is huge.

In the short term, there are also a series of good news about downstream industries such as textiles and clothing.

It is reported that recently the Ministry of commerce is working with other departments to work out relevant plans to prevent the export of labor intensive industries such as light industry and textile industry suddenly dropping sharply.

Previously, the Ministry of Commerce expressed the need to maintain steady growth in textile and clothing trade, leaving enterprises with time for industrial upgrading.

For export enterprises with market, orders and efficiency, the state should give necessary credit support.

According to the analysis of the people concerned, the achievements in the earthquake relief work have been achieved, and the post disaster reconstruction has entered a stable state. After the Olympic Games, the central government will introduce a series of policies to stimulate the development of the economy, including the possibility of raising the export tax rebate rate to promote the development of labor-intensive industries such as textiles and clothing.

From the international perspective, the current global clothing production is mainly concentrated in Southeast Asia, South America, Eastern Europe and other developing countries and regions, such as Vietnam, India, Brazil, Mexico, Pakistan and other countries are all the world's garment producing countries. Their clothing industry is in the ascendant. The government has a series of support and encouragement measures for the development of the textile and garment industry.

The sewing equipment for garment production in these countries is mainly from China.

Therefore, we have full confidence in the development prospects of China's sewing machinery industry, and the current low tide and difficulties in the sewing machinery industry are temporary.

Strengthen your confidence and tide over difficulties.

In the face of the current grim situation, we must maintain a sober, rational and calm mind, strengthen our confidence and tide over difficulties.

- as an enterprise, we must correctly understand the situation we are in, and regard the current adjustment as a good time for hard work and physical fitness. We can not wait passively for adjustment.

Enterprises should first strengthen management, reduce costs, improve the overall operation quality and efficiency of enterprises; secondly, we must pay close attention to product quality, vigorously implement the "quality strategy", strive to improve the quality of products to a new level; third, we must enhance our capability of independent innovation, develop products with independent knowledge and property rights and core technology; finally, we must improve the ability of market regulation and operation, and base ourselves on international and domestic two markets, rational competition and efficiency, so that the industry can have a good competitive environment and market order.

- as a trade association, we must carry out correct analysis and guidance, and establish a firm confidence in the whole industry.

We should strengthen publicity so that all sectors of society can correctly understand and understand the industry and create favorable public opinion environment for the development of the industry.

At the same time, we should do more work in promoting the integrity of the market and improving the scientific and technological innovation ability of the industry according to the characteristics of trade associations' self-discipline.

In addition to the work done in early this year to reinventer the industry market order, the association will also focus on improving the technological innovation capability of the industry, and plans to produce 5 million yuan special funds for science and technology to support the implementation of the 11th Five-Year "science and technology development planning goals and guidance projects".

At present, China's manufacturing industry is facing different degrees of difficulty. The government is currently conducting intensive research, hoping that there will be a series of policies and measures to support the development of enterprises.

Sewing machinery is a high value-added electromechanical product that the State encourages export. Last year, the export tax rebate rate dropped from 13% to 9%, which is obviously unreasonable.

We have been reflecting the situation to the relevant departments through different channels, which has also aroused the attention of the Ministry of Commerce and hopes to be solved.

We also hope that the tight monetary policy currently implemented by the state should not be cut across the board. For enterprises with market, brand and product competitiveness, they should be treated differently and actively supported.

In short, the difficulties faced by the industry are temporary. The prospects for the development of the industry are beautiful. As long as we unite and tide over difficulties, the industry will end up in the near future and usher in a new development cycle.

After the storm is a rainbow!