Textile machinery breaks through in structure shuffling

China is a world leader in textile production and has a large demand for textile machinery. Qingdao, especially Jiaonan, is also an important textile production base in China. Currently affected by the decline in the textile market, textile machinery production is also facing a difficult breakout.

A lot of "orderly" paradoxes of orders

For most textile machinery companies, in the first half of 2012, they experienced another huge market test after the global financial crisis in 2008, and their sales decreased significantly compared with the same period of last year.

Qingdao Sanxiang Machinery Co., Ltd., located in Wangtai Town, Jiaonan City, is a textile machinery company. Huang Yongchun, general manager of the company, told reporters: “This year, due to the dramatic decline in the textile fabric market, the company’s sales in the first half of the year are not optimistic. Sales The amount is only 12 million yuan, and the products are mainly concentrated on 210 centimeters wide and 360 centimeter wide loom. But even so, as far as our company is concerned, there are still enough orders to ensure production."

There are many orders received by enterprises, is it more than the amount of money they earn? This problem, which is not a problem, is really a big problem in the textile machinery industry. In the first three quarters, most orders for textile machinery companies were still full due to inertial effects. However, rising raw material prices, labor costs, and production factor costs have severely squeezed the profit margins of textile machinery companies, plus homogenization. The increasingly fierce competition in products has made it difficult to increase the prices of textile machinery products. As a result, most textile machinery manufacturers, especially those engaged in cotton spinning equipment, have become large and thin, and some companies have even lost money.

In the face of orders, whether it is connected or not, then we lose money and lose customers. Businesses have a dilemma. A textile machinery enterprise owner with a scale of 20 to 30 people told reporters: “The order of textile machinery is often determined in advance, but the raw material and labor costs are always floating, but the price cannot be arbitrarily changed as the cost increases. As a result, textile machinery companies can only take hard orders to accept orders, do not take orders and do not work, and receive orders without making money."

"scale effect" frustrated and disorderly competition

Qingdao Textile Machinery is located in Jiaonan, while textile machinery in Jiaonan City mainly depends on Wangtai. Jiaonan Textile Machinery, Shanxi Jinzhong, and Shaoxing, Zhejiang built the “three pillars” trend of China's textile machinery industry cluster. Jiaonan City's carding machines account for 30% of the domestic market, water jet looms account for 70% of the domestic market share, and air-jet looms make up 20% of its domestic share. It has become China's largest production base for shuttleless looms.

At present, there are 81 textile machinery manufacturers in normal production and operation in Jiaonan City, 174 professional supporting manufacturing enterprises, 860 home factories, and an annual output of more than 70,000 sets of various types of textile machinery. Most of the companies are concentrated in Wangtai Town, a famous town of textile machinery in China. Although the industrial scale is large and the output is high, the outstanding issues such as disorderly competition, excessive market concentration, and serious product homogeneity have become constraints on the healthy development of the textile industry in Wangtai.

Yang Xiaohui, president of the Jiaonan Textile Machinery Industry Association, said in an interview that scale companies in Wangtai are fighting each other. Small and medium-sized enterprises, especially some assembled companies, engage in malicious price competition, making it difficult for regional brands to form; in terms of market, only in Jiangsu Wujiang Sheng In Zezhen, there are more than 300 sales sites set up by Wangtai Textile Machinery, which is evident in the fierce market competition.

Huang Yongchun also told reporters: “At present, the biggest problem encountered by textile machinery companies in the development process is the overcapacity, disorderly competition, and price distortions in the entire industry. The company’s production and business model is highly similar, and the nature of assembly can be seen everywhere. The parts designed and manufactured are also lack of industry protection and most of them are copied and borrowed by the same industry. As a result, the added value of textile products will inevitably increase slowly.

Structure shuffle expecting a share

At present, domestic textile machinery still has a considerable market space. It is expected that by the end of the “Twelfth Five-Year Plan” period, the main business income of China's textile machinery industry will reach 120 billion yuan, an average annual increase of 7%.

Xu Guangning, vice chairman and secretary-general of the Shandong Garment Industry Association, said in an interview that China is a world leader in textile production. The demand for textile machinery is very large and the market competition is very large. The current downturn in the textile machinery market in northern China is also an inevitable stage for China's transition from a textile giant to a textile power.

Huang Yongchun also told reporters: "With the continuous integration of the textile market, domestic emerging markets in Anhui, Jiangxi and other provinces are emerging, and foreign markets such as India and Pakistan are in the ascendant, which will bring tremendous opportunities to textile machinery companies. It is foreseeable that, during the 12th Five-Year Plan period, advancing structural adjustment is still the key to the continuous development of the industry, and the reshuffle process of textile machinery companies will also be further accelerated."

Then, in July of this year, Jiaonan City was identified as a high-quality textile machinery production base in Shandong Province. “It is of great significance to become an industrial base, and it can be cultivated, protected and improved in the future. The development and formation of a number of well-known brands and product lines of textile machinery with independent intellectual property rights is also a guarantee for our textile machinery," said Xue Zhanjun, head of the Quality Measurement Section of the Jiaonan Quality and Technology Supervision Bureau.

As companies grow bigger and stronger, they have gradually become industry leaders. "Qingdao Dongjia Textile Machinery Group Co., Ltd., Qingdao Global Group Co., Ltd. and other companies also participate in the formulation of industry standards, which is also the recognition of the status of the enterprise." Xue Zhanjun added.

The Quality and Technical Supervision Bureau of Jiaonan City also planned to build the Shandong Province Textile Machinery Product Quality Supervision and Inspection Center this year. The Jiaonan Municipal Government has purchased 28 pieces of inspection instrument equipment by the unified bidding. The original value of the equipment is more than RMB 1.7 million, which satisfies the entire textile machinery and main parts and components. Inspection requirements. This is the first and only textile machinery inspection and testing agency in our province.