Trapped In Cost, 7 Textile And Garment Factories Will Be Shut Down.

In recent years, double-sided attack has been narrowed by the shrinking market demand and rising operating costs.

Industry is experiencing cost constraints.

First, increase profits and reduce costs, and garment factories will close down.

Recently, 9 enterprises in Feng Qiao Town, Zhuji City, Zhejiang, have closed down, and 7 of them are textile and garment factories.

Some garment enterprises seem to be closed down, and the most direct reason is the involvement of financing guarantee.

Mr. Zhang, director of the office of a garment factory in maple bridge, Zhuji, said: "because of the debt of the other party, you must guarantee that the enterprise will repay it. If a business goes bankrupt, the bank's credit to me will be reduced, and it will be pumped out, and it will produce a Domino domino effect."

In addition, He Zhijiang, chairman of garment manufacturing in Zhejiang, Zhuji, said: "because of the increase in labor wages, welfare and raw material prices, coupled with the increase of various taxes and fees, the competition in foreign exports has been weakened.

After weakening, there are many orders abroad.

It is understood that at present, the garment factory in Maple Town of Zhuji has been reduced from more than 50 to 30, and the entire textile and garment enterprises in Zhuji have been reduced from more than 650 at the most time to two hundred or three hundred now.

Yang Yungui, deputy director of the comprehensive Department of Zhuji Municipal Bureau of information technology, said: "when the cost is rising and sales prices are not rising, the profit margins of enterprises are very small and even losses. Therefore, some garment enterprises choose to stop production, or pfer to other areas where the cost is relatively low or choose to go bankrupt."

Two, the profit is zero, the cost account of an export suit.

He Zhijiang, chief executive of Zhejiang Kerr garment manufacturing company, said that in order to maintain production, the profit of a man's suit has already bottomed out.

If you had worked as a foundry before, you could earn 30 to 40 yuan. Now it's a guaranteed cost.

If factories and equipment are to buy new ones, plus bank loans, there is no profit at all.

He Zhijiang introduced that the retail price of ordinary woollen suits in the UK market is 150 euros, equivalent to about 1120 yuan.

However, the export price of each suit is only 470 yuan, and the price has not changed for ten years.

The cost of accessories, packaging, logistics and so on has risen from 30 yuan to 60 yuan now, accounting for 13% yuan. Water and electricity and other energy expenditure increased from 2 yuan to 3 yuan to 10 yuan now, accounting for 2% yuan. The value added tax and the added value were 25.85 yuan (accounting for 25.85). The depreciation and maintenance cost of machinery and equipment increased to RMB yuan. Judging from the cost of 470 yuan, the raw material of woollen material costs 300 yuan (64%).

From this we can see that the highest proportion is the cost of raw materials and labor, and the rising proportion is labor cost.

Although labor cost is an important aspect of the cost burden of enterprises, it is not the only factor. The clothing socks belonging to the textile industry are mainly because of the lack of bargaining power in foreign trade export products, so the added value is not high, and as competition intensifies, orders are becoming less and less, and prices are also getting lower and lower.

A clothing company in the town said that the number of garment workers in the factory dropped from 650 to 350 at the most time this year, all of which came from the decrease in overseas orders.

Mr. Zhang, the head of his office, said: "the quotation outside is lower than before, because the choice of the other side is large, and many countries are doing it, especially when the low-end clothing industry is now being pferred to Southeast Asia, so the bargaining power of the enterprises is getting smaller and smaller."

Huang Xubing, manager of Human Resources Department of a hosiery company in Datang Town, Zhuji: foreign trade is commonly known as "generation processing". The profit is very dead. If a company acts as an agent, even if it does not do it for 100 years, it will not give you the order if others do not know it.

Four, scale efficiency, machine replacement and cost reduction.

Because of the rising labor costs, there are many in Zhuji.

It's difficult.

However, the Datang town of Zhuji city has been able to reduce costs by replacing machines with machines since last year.

By the end of 2014, the Zhuji municipal government was determined to close down the "low and scattered" enterprises, and with the "machine replacement" as the driving force, the necessary socks industry was produced.

Now, in the stocking workshop of Datang Town, no worker can be found in most production lines.

From the original manual workshop to semi mechanized production, and now highly automated and intelligent robots, machines almost replace all aspects of stocking production.

Huang Qunhui, director of the Institute of industrial economics of the Chinese Academy of Social Sciences, said: the trend of machine substitution is a big trend. Of course, the labor cost will be greatly reduced for the manufacturing industry. The core of this is that you need to improve the efficiency of the entire manufacturing industry through the improvement of labor productivity, not only increasing its scale economy, but also expanding its scope of the variety economy.