Apparel Manufacturing Is Experiencing Cost Constraints: Successive Closes Are Commonplace.

China is the largest clothing producer and consumer country in the world. It has absorbed a large number of employees and has contributed a lot of fiscal and tax revenues to the region. However, in recent years, China's garment manufacturing industry is experiencing the cost of being hit by two sided attacks, which are narrowed by market demand and operating costs are rising.

At the end of last year, 9 enterprises in Feng Qiao Town, Zhuji, Zhejiang, were closed down, and 7 of them were textile and garment factories. In some clothing enterprises in the town, these enterprises have closed down one after another. The most direct reason is the involvement of financing guarantee.

A town in maple bridge, Zhuji Garment factory Mr. Zhang, director of the office: because of his debts, you must guarantee that the company will repay. If a business goes bankrupt, the bank's credit to me will be reduced, and it will produce a Domino effect.

He Zhijiang, chairman of garment manufacturing in Zhejiang, Feng Qiao Town, Zhuji: due to the improvement of labor wages, welfare improvement, raw material prices and the increase of various taxes and fees, our export competition has 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 2 or 300 now.

Yang Yungui, deputy director of the comprehensive Department of Zhuji Municipal Bureau of information technology: under the pressure of rising costs and rising sales prices, the profits of the enterprises are very small and even losses. Therefore, some garment enterprises have chosen to suspend production or transfer to other areas where the cost is relatively low, or they choose to go bankrupt.

Garment manufacturing industry is experiencing a cost constraint. What are the costs of processing a garment? Next, we will calculate the cost account for an export suit. In the town of maple bridge in Zhuji, the garment company, which acts as a foreign trade agent, said that in order to maintain production, the profit of the men's suit has already bottomed out.

Plus loan financing. cost There is no profit left for production enterprises (profit 0).

Judging from the cost structure of this suit, the highest proportion is the cost of raw materials and labor, and the rising proportion is labor cost.

He Zhijiang, chairman of garment manufacturing in Zhejiang, Feng Qiao Town, Zhuji: abroad, it should be said that the price is relatively stable. Now that our cost is high, the thirty or forty yuan will be eaten for our wages and other things.

Because of the rising labor costs, many garment enterprises in Zhuji are struggling. However, in Datang town of Zhuji, since last year, through the "machine substitution" to reduce costs, the socks industry has come back from the desperate situation. Let's see how they do it.

In the survey, almost all enterprises took The labor Cost is the main cost burden. This is especially evident in the Datang Hosiery Industry, which started with manual workshops.

Zhang Qiang, vice general manager of Zhejiang socks industry Co., Ltd., Datang Town, Zhuji, now means that labor costs and wages of workers have increased very rapidly. In the past, their salaries were only more than 1000, more than 2000, and now the average salary is three thousand or four thousand, which means that the growth rate is faster. This is a great pressure for our company.

In Datang Town, every household has made socks for over 30 years. In this household registered population of only 30 thousand people, but has more than 12000 enterprises Township, mainly rely on migrant workers to work. As the industry is "low, small and scattered", low quality and low price competition of products, in the past long period of time, enterprises also fell into the unprofitable predicament.

In view of the present situation of the Datang socks industry on the verge of extinction, 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 supporting 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: the trend of robot substitution is a big trend. Of course, the labor cost will be greatly reduced for this manufacturing industry. The core of this problem is that you need to increase productivity through the improvement of labor productivity, not only improving its scale economy, but also expanding its scope of variety economy.

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