This year is the beginning of the 12th Five-Year Plan. At the beginning of the year, the General Office of the Hunan Provincial People's Government promulgated the "Opinions on Further Accelerating the Development of the Textile Industry" and strongly supported the revitalization and development of Hunan's textile industry. In the first half of this year, Hunan Textile actively adjusted its structure and changed its mode, and its economic operation maintained a rapid growth. According to incomplete statistics, in the first half of the province, 458 textile enterprises above designated size completed industrial output value of 36.9 billion yuan, an increase of 34.8%; completed sales value of 36 billion yuan, an increase of 35%; completed profits of 1.075 billion yuan, an increase of 70.3%; textiles Garment exports were 312 million U.S. dollars, an increase of 24%; fixed assets investment was 4.8 billion yuan, and 178 new projects were started.
However, due to fluctuations in raw material prices, increased labor costs, continued rising energy prices and other factors, the company’s operating costs have increased significantly, and most companies’ production costs have increased by about 20%. Based on this calculation, the total cost of textile operations in Hunan Province will increase by about 10 billion yuan this year. For most textile and apparel companies in a meager state, the profitability is weakened. This also indicates the advent of the "high cost era" in the textile and garment industry.
Increased Costs of Business Increased Operating Pressures The Hunan Provincial Textile Industry Management Office conducted a survey of 14 key textile and garment companies in the province. The results showed that most enterprises had normal production and operations in the first half of the year, but the recent limited electricity and cotton price fluctuations have affected companies. Increased operating pressure:
First, it is difficult for companies to accept orders. At the Canton Fair this spring, more than 90% of companies signing orders are small and short, while long-term orders only account for 10%.
The second is weak market demand. From April onwards, the slub yarn market was very cold, and downstream manufacturers were taking a wait-and-see attitude. They neither dared to buy in large quantities nor dare to increase their inventory, leading to a continuous decline in cotton yarn prices. In the first half of the year, the price of sluggish yarn sold by Hunan in the national market dropped from 40,000 yuan/ton to 32,000 yuan/ton, and it is still difficult to sell.
Third, the operating costs soared. When the price of cotton soared last year, companies knew that there were risks, but in order to ensure adequate production and distribution of cotton, they had to purchase large quantities of cotton, resulting in excessive cotton stocks. This year's cotton prices have plummeted. As the price of cotton raw material ups and downs, downstream customers are worried that the price of cotton will continue to fall and they will not dare to take orders. Gauze products will enter the off-season in advance. At present, corporate inventories rose by 30% over the same period last year. Due to the high cost of cotton yarns, the production and sales prices are upside down, and some products are upside down to 4,000 yuan per ton of profit. In addition, the increase in workers' salaries by about 20%, coupled with frequent increases in the prices of petroleum and coal, and the apparent increase in logistics costs, have exerted greater pressure on textile companies. According to calculations, the overall operating costs of textile companies rose by 10% to 90%.
Fourth, the company’s capital is tight. Due to the poor market conditions, textile companies’ stocks of cotton yarns and grey fabrics have increased, the withdrawal rate of loans has slowed down, and cash flow of cotton spinning companies has been relatively tight.
Fifth, financing of textile and garment companies is difficult. The country has placed inflation at the top and monetary liquidity tightening. Banks have tightened monetary policy, making it more difficult for textile companies to restrict their development.
Sixth, the power supply is tight. Hunan started in mid-April, and cities around the world have been shut down. Most of the production power used by enterprises is "for four stops two" or "for three stops one." Shortages and power cuts lead to insufficient start-ups of enterprises, and it is difficult to guarantee product quality. In particular, damage to dyeing equipment and mechanical equipment with a high degree of automation is large, and orders cannot be completed on time.
Seventh, employment shortages plagued the development of enterprises. There are few textile technical schools in Hunan, and the supply of talents is in short supply. Moreover, the textile and garment enterprises are labor-intensive, and the working environment and wages are not as good as those in shopping malls, hotels, and service industries. As a result, skilled workers in textile and clothing are frequent. They flow to the service industry or textile and garment companies with relatively high pay levels in the Yangtze River Delta and the Pearl River Delta.
Since the beginning of this year, Hunan's key textile and apparel companies have generally paid about 20% of their employees. Since the implementation of the Labor Contract Law, the “five insurances and one payment†that companies pay for their employees accounted for about half of their wages, which is a heavy burden on labor-intensive industries.
Exploring the development of the "high-cost era" To respond to the "high-cost era" of the textile industry and lay the first milestone in the beginning of the "Twelfth Five-Year Plan", Hunan Textile will follow the principle of "stretching the industrial chain, promoting high-end technology, and enhancing competitiveness. "The idea, adhere to innovation-driven, take the road of high-end development, with fiber differentiation, fabric functionalization, green printing and dyeing, clothing textile brand, technology and equipment information-oriented, integrate the industrial chain, and constantly improve technology and brand economy The contribution rate will effectively increase the added value of the products and promote the transformation of the textile industry from low-end manufacturing to high-end creation.
The first is to transform and upgrade the traditional advantageous industries, and use technological transformation as a means to improve the digital, intelligent, and informatization level of equipment, and significantly increase labor productivity. For instance, Hunan Yunjin Group invested 80 million yuan to carry out the second-phase technological transformation. The new plant is equipped with advanced equipment such as domestic first-class large-volume carding combing machines, combing machines, long-winding vehicles, automatic winders, and other production facilities. A substantial increase. From January to May of this year, Yunjin Group achieved a total industrial output value of 469 million yuan, an increase of 74.6% year-on-year, and a profit of 23.86 million yuan, a year-on-year increase of 24.5%.
The second is to speed up the construction of independent brands. Take the brand building of end products such as apparel and home textiles as breakthroughs, improve product quality through technological advancement, and build and improve design and creative centers, technology development centers, brand promotion centers, and effectively play a guiding role in R&D, sales, and distribution. Sales "determines the product competition strategy, uses "R&D + communication" to create product market influence, and "spread + sales" to achieve product marketing. In product research and development, green, low carbon, fashion, functionality, ecology and other elements are organically combined to create a sense of well-being and happiness for consumers.
The third is to accelerate industrial agglomeration. Take the market as the guide, support the superior and support the strong, accelerate the industrial combination, and focus on building the "Changde cotton textile industrial cluster", "Yiyang cotton and linen industrial cluster", "Zhuzhou textile and garment industrial cluster" that have been included in the 50 industrial clusters in Hunan Province It will guide the industrial agglomeration of small and medium-sized enterprises and focus on the development of seven industrial bases that have been awarded, effectively guiding industrial clusters from the advantages of scale to the advantages of industrial chain, technology innovation, and resource efficiency, and increase the added value and competitiveness of products.
The fourth is to use the new materials, new technologies, and new processes for product innovation in response to market demand. During the “Twelfth Five-Year Plan†period, Hunan will establish a new product development system that includes market forecasting, product process technology and structural form design, cultural creativity, resource allocation and production, and marketing feedback. , Downstream integration of production, teaching, research, and promote the transformation of scientific and technological achievements. The development of public service platforms for product R&D for small and medium-sized enterprises and industrial clusters, integration of industrial chains, minimization of resource consumption and maximization of economic efficiency, and construction of industrial competitiveness in the “high-cost eraâ€.
However, due to fluctuations in raw material prices, increased labor costs, continued rising energy prices and other factors, the company’s operating costs have increased significantly, and most companies’ production costs have increased by about 20%. Based on this calculation, the total cost of textile operations in Hunan Province will increase by about 10 billion yuan this year. For most textile and apparel companies in a meager state, the profitability is weakened. This also indicates the advent of the "high cost era" in the textile and garment industry.
Increased Costs of Business Increased Operating Pressures The Hunan Provincial Textile Industry Management Office conducted a survey of 14 key textile and garment companies in the province. The results showed that most enterprises had normal production and operations in the first half of the year, but the recent limited electricity and cotton price fluctuations have affected companies. Increased operating pressure:
First, it is difficult for companies to accept orders. At the Canton Fair this spring, more than 90% of companies signing orders are small and short, while long-term orders only account for 10%.
The second is weak market demand. From April onwards, the slub yarn market was very cold, and downstream manufacturers were taking a wait-and-see attitude. They neither dared to buy in large quantities nor dare to increase their inventory, leading to a continuous decline in cotton yarn prices. In the first half of the year, the price of sluggish yarn sold by Hunan in the national market dropped from 40,000 yuan/ton to 32,000 yuan/ton, and it is still difficult to sell.
Third, the operating costs soared. When the price of cotton soared last year, companies knew that there were risks, but in order to ensure adequate production and distribution of cotton, they had to purchase large quantities of cotton, resulting in excessive cotton stocks. This year's cotton prices have plummeted. As the price of cotton raw material ups and downs, downstream customers are worried that the price of cotton will continue to fall and they will not dare to take orders. Gauze products will enter the off-season in advance. At present, corporate inventories rose by 30% over the same period last year. Due to the high cost of cotton yarns, the production and sales prices are upside down, and some products are upside down to 4,000 yuan per ton of profit. In addition, the increase in workers' salaries by about 20%, coupled with frequent increases in the prices of petroleum and coal, and the apparent increase in logistics costs, have exerted greater pressure on textile companies. According to calculations, the overall operating costs of textile companies rose by 10% to 90%.
Fourth, the company’s capital is tight. Due to the poor market conditions, textile companies’ stocks of cotton yarns and grey fabrics have increased, the withdrawal rate of loans has slowed down, and cash flow of cotton spinning companies has been relatively tight.
Fifth, financing of textile and garment companies is difficult. The country has placed inflation at the top and monetary liquidity tightening. Banks have tightened monetary policy, making it more difficult for textile companies to restrict their development.
Sixth, the power supply is tight. Hunan started in mid-April, and cities around the world have been shut down. Most of the production power used by enterprises is "for four stops two" or "for three stops one." Shortages and power cuts lead to insufficient start-ups of enterprises, and it is difficult to guarantee product quality. In particular, damage to dyeing equipment and mechanical equipment with a high degree of automation is large, and orders cannot be completed on time.
Seventh, employment shortages plagued the development of enterprises. There are few textile technical schools in Hunan, and the supply of talents is in short supply. Moreover, the textile and garment enterprises are labor-intensive, and the working environment and wages are not as good as those in shopping malls, hotels, and service industries. As a result, skilled workers in textile and clothing are frequent. They flow to the service industry or textile and garment companies with relatively high pay levels in the Yangtze River Delta and the Pearl River Delta.
Since the beginning of this year, Hunan's key textile and apparel companies have generally paid about 20% of their employees. Since the implementation of the Labor Contract Law, the “five insurances and one payment†that companies pay for their employees accounted for about half of their wages, which is a heavy burden on labor-intensive industries.
Exploring the development of the "high-cost era" To respond to the "high-cost era" of the textile industry and lay the first milestone in the beginning of the "Twelfth Five-Year Plan", Hunan Textile will follow the principle of "stretching the industrial chain, promoting high-end technology, and enhancing competitiveness. "The idea, adhere to innovation-driven, take the road of high-end development, with fiber differentiation, fabric functionalization, green printing and dyeing, clothing textile brand, technology and equipment information-oriented, integrate the industrial chain, and constantly improve technology and brand economy The contribution rate will effectively increase the added value of the products and promote the transformation of the textile industry from low-end manufacturing to high-end creation.
The first is to transform and upgrade the traditional advantageous industries, and use technological transformation as a means to improve the digital, intelligent, and informatization level of equipment, and significantly increase labor productivity. For instance, Hunan Yunjin Group invested 80 million yuan to carry out the second-phase technological transformation. The new plant is equipped with advanced equipment such as domestic first-class large-volume carding combing machines, combing machines, long-winding vehicles, automatic winders, and other production facilities. A substantial increase. From January to May of this year, Yunjin Group achieved a total industrial output value of 469 million yuan, an increase of 74.6% year-on-year, and a profit of 23.86 million yuan, a year-on-year increase of 24.5%.
The second is to speed up the construction of independent brands. Take the brand building of end products such as apparel and home textiles as breakthroughs, improve product quality through technological advancement, and build and improve design and creative centers, technology development centers, brand promotion centers, and effectively play a guiding role in R&D, sales, and distribution. Sales "determines the product competition strategy, uses "R&D + communication" to create product market influence, and "spread + sales" to achieve product marketing. In product research and development, green, low carbon, fashion, functionality, ecology and other elements are organically combined to create a sense of well-being and happiness for consumers.
The third is to accelerate industrial agglomeration. Take the market as the guide, support the superior and support the strong, accelerate the industrial combination, and focus on building the "Changde cotton textile industrial cluster", "Yiyang cotton and linen industrial cluster", "Zhuzhou textile and garment industrial cluster" that have been included in the 50 industrial clusters in Hunan Province It will guide the industrial agglomeration of small and medium-sized enterprises and focus on the development of seven industrial bases that have been awarded, effectively guiding industrial clusters from the advantages of scale to the advantages of industrial chain, technology innovation, and resource efficiency, and increase the added value and competitiveness of products.
The fourth is to use the new materials, new technologies, and new processes for product innovation in response to market demand. During the “Twelfth Five-Year Plan†period, Hunan will establish a new product development system that includes market forecasting, product process technology and structural form design, cultural creativity, resource allocation and production, and marketing feedback. , Downstream integration of production, teaching, research, and promote the transformation of scientific and technological achievements. The development of public service platforms for product R&D for small and medium-sized enterprises and industrial clusters, integration of industrial chains, minimization of resource consumption and maximization of economic efficiency, and construction of industrial competitiveness in the “high-cost eraâ€.
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