Recently, a notice for the suspension of production and dissolution of the dyeing factory has been circulated on the market.
The notice stated that due to municipal planning reasons, normal operations cannot be carried out Management, the shareholders’ meeting decided to dissolve the company.
This is not the first time this year that the printing and dyeing factory has been exposed to the news of suspending production and disbanding! As early as July, in Zhejiang, a printing and dyeing powerhouse, a company called ** Printing and Dyeing No. 2 Workshop issued a disbandment notice full of sadness, which was very sad at the time.
Not only printing and dyeing plants, but also other links in the textile industry have suspended production , the situation of bankruptcy. Sell machines, sell factories…
For the boss, the enterprise is like If you work hard to raise and train your own child, you will never “give up” it unless it is absolutely necessary. So, why are there frequent reports of printing and dyeing factories and weaving factories closing down and suspending production this year?
The textile market has entered a recession cycle, and the “cold winter” of the textile industry has arrived
The textile market has entered a recession this year The cycle, in the words of textile people, is “three years good, three years bad”. The three-year peak has passed and has now entered a downward channel. Affected by this, textile companies have generally experienced reduced orders and increased inventories. Because the market was so good in the past two years, garment factories and traders have a certain amount of inventory on hand, so they are becoming more cautious in placing orders. Textile companies also reported that in the past, orders were tens of thousands of meters underground, but this year it is A few thousand meters away, cut him in the middle!
Furthermore, people have not been very interested in buying clothing in recent years. All data show that sales of clothing and cloth have dropped significantly in recent years, and the retail sales of clothing by major large-scale retail enterprises across the country have also dropped. encountered a downward trend.
Crazy expansion has laid hidden dangers
I still remember that during the “Gold, Three, and Four” years last year, due to the traditional traditions in Jiangsu and Zhejiang, The rectification of water-jet looms in textile clusters has led to the situation of “it is hard to find a cloth” in the market. The supply of conventional products exceeds the demand, and weaving companies are trapped in production capacity and often have no time to complete the work. In addition, the application for water-jet loom quotas has been difficult. It is very strict, so there is a plan to put production into peripheral areas. By the first half of this year, the production capacity has been fully started!
According to incomplete statistics, in the past two years, the production capacity has been increased to northern Jiangsu, Anhui, Hubei, and Henan. The production capacity of emerging water-jet looms transferred from other places has exceeded the 200,000 mark, far exceeding the number of water-jet looms eliminated by traditional textile clusters in the Yangtze River Delta region. This has also led to the decline in conventional gray fabric products in the next few years. A situation where supply exceeds demand. According to data monitored by China Silk City Network, the inventory of gray cloth this year has reached a maximum of about 40 days, 20 days more than the same period last year!
As the saying goes, “Things are scarce but valuable”, once gray cloth becomes rampant, what profit will companies have? This will lead to many companies facing bankruptcy.
Business costs are too high
The editor once read an article before, titled “You can earn more by renting out a factory than you would if you worked hard for a year.”
According to the boss in the article, their sales last year reached 80 million yuan, with a gross profit of 6.32 million yuan. Of the 6.32 million yuan in gross profit, they also needed to spend local taxes, sales expenses, logistics expenses, management expenses and bank interest. After deducting the above five expenses, their factory’s total profit last year was more than 400,000 yuan. After paying corporate income tax, the net profit was only more than 300,000 yuan.
This year, this The boss plans to rent out the factory at a monthly rent of 8 yuan/square meter. The annual rent can be about 1.82 million yuan. After paying the land use tax and property tax, there will be about 1.3 million yuan left. After calculation, renting out the factory is actually cheaper than driving. The factory made an extra 1 million yuan!
During the visit, the editor also heard many bosses say that the cost of the textile industry is too high, including taxes, labor, water and electricity, etc. The situation is coming down like huge mountains, and the profit margin in the textile industry is very low. Generally speaking, the profit is around 10%. But this year, many cloth bosses said that the profit has dropped by 30%-50% compared with previous years, and it is getting higher and higher. The cost pressure is the last straw that breaks their back!
The transformation and upgrading are not timely
The production capacity of China’s textile enterprises The oversupply situation is very serious. Since this year, conventional products have been in deep quagmire, with orders missing and profits declining. If they do not transform in time, they are very likely to face bankruptcy. In fact, there is still room for transformation and upgrading of textile enterprises. They can develop into more subdivided and professional fields and take a differentiated development path!
Environmental protection is not up to standard
In recent years, the country has paid more and more attention to the issue of environmental pollution, and the textile printing and dyeing industry cannot Avoid becoming the problem of local governmentsThe strict rectification of governance targets and the elevation of corporate pollution discharges to the level of illegal crimes show the severity of the policy. A sewage treatment system is expensive, which further compresses profit margins. However, many companies still choose to “focus on money” and only focus on immediate interests while ignoring the long-term development of the company. They are also likely to be shut down or bankrupt. It became a matter of time.
Editor’s Note
This year’s textile market environment is not good, and some companies have difficulties in operating. At the same time, I also want to express my gratitude to all textile bosses. This has sounded the alarm: If we continue to follow the path of extensive development, it will definitely not work!
There are only more than one month left before 2020. Although the current market performance is still tepid, positive factors still exist. Sino-US economic and trade consultations have achieved phased results, the external environment has recovered, and spring and summer fabrics have The order volume is acceptable. Can the decline be reversed next year? Let’s wait and see. </p
