Textile Industry Puzzled: 2547 Enterprises Have Disappeared!

Recently, the Ministry of industry and Commerce issued a more than 16000 word "textile industry development plan (2016 to 2020)", which was put forward textile Garment exports account for the global market share and remain basically stable.

The reality is that over the past few years, the number of textile enterprises has been decreasing rapidly, and large textile enterprises are also in a situation of profit loss or even loss. Layoffs, business diversification, and overseas factories have become the means of textile enterprises to avoid being eliminated. Can such a plan really save the textile industry in such a predicament?

Nearly half of the textile industry collapsed and 2547 enterprises have disappeared.

With the rise of China's cost, the small profit textile industry has been seriously affected. The collapse tide has already appeared in the past few years.

According to CCTV, recently, 9 enterprises in Feng Qiao Town, Zhuji, Zhejiang, have closed down, and 7 of them are textile and garment enterprises. At present, the garment factories in Maple Town of Zhuji have been reduced from more than 50 to more than 30, and the entire textile and garment enterprises in Zhuji have been reduced from the most more than 650 to the current 200 to 300. The number of textile industry households has decreased by more than 50%.

The situation in the whole country is not optimistic. According to the National Bureau of statistics, as of June 2016, the number of textile enterprises in China with more than 20 million yuan in revenue was 19937, compared with the number of 22484 textile enterprises in 2011, which was reduced by 2547. The more than 2000 textile enterprises disappearing on the statistical data are only data changes, and how much blood and tears are there behind the disappearance?

And even if the enterprises have not disappeared, their production business has also been changing. A large number of textile enterprises are turning production to overseas. According to the listed textile enterprises' earnings reports, large textile enterprises including Huafu color spinning, Lu Tai A and Bailong East have set up factories overseas, and some factories in China will be discontinued. Baron East started construction in Vietnam in early 2013. In just three years, the production capacity of Vietnam's spindles accounts for 40% of the total capacity of the company.

60%, companies can't afford to lay off listed companies.

In fact, not only a large number of small textile enterprises are disappearing, but even large textile enterprises listed on A shares are also suffering from the decline of profits or even losses.

According to Wind data, in the 36 textile enterprises listed on A shares, 10 were in a loss in the first half of the year, with a loss ratio of more than 25%, while in 2010 only 1 textile enterprises lost money. In the first half of 2016, the net profit of listed textile enterprises also continued to decline in the first three years, and net profit dropped more than 10% over the same period last year.

In the background of profit falling or even losing, the textile industry, as a typical representative of labor-intensive industries, has opened up a layoff mode. According to statistics, in 2015, of the 36 textile enterprises listed on A shares, 21 were laying off workers, accounting for nearly 60% of the layoffs, and such a wave of layoffs began since 2013.

In addition to layoffs, many textile companies began to seek transformation, but this transformation is hard to define as the upgrading of the main industry, and more into other industries. Take Changshan shares of textile enterprises as an example, in 2015, the revenue of Changshan shares included not only cotton and clothing bed products, but also system integration and industry solutions, customized software and services. In addition to clothing and fabrics, Jiangsu sunshine main business also includes such industries as electricity and steam.

Can difficulties be solved in a single paper?

In addition to the dilemma of domestic textile industry due to rising costs of rent and labor, foreign environment has also posed severe challenges to Chinese textile enterprises. According to CCTV financial report, a textile enterprise in Zhuji, Zhejiang, OEM each. Man's suit The export price is 470 yuan, and the price has not changed for ten years. Behind the price unchanged for ten years is the reduction of bargaining power and the loss of comparative advantage of Chinese textile enterprises. This can also be seen from the growth rate of China's textile exports.

According to the General Administration of customs data, as of August this year, China's textile exports decreased by nearly US $1 billion compared with the same period last year. In 2015, China's textile and garment exports had both plunged into negative growth.

Ministry of industry in textile industry development planning (2016 - 2020) also bluntly: the development of China's textile industry is facing the double squeeze of the "re industrialization" of developed countries and the acceleration of industrial development in developing countries. The labor cost advantages of developing countries in Asia and Africa are obvious, and the international comparative advantage of China's textile industry is weakening.

In the context of negative export growth of textile industry, the Ministry of industry and Commerce put forward that during the "13th Five-Year" period, the average annual growth rate of industrial added value of China's textile enterprises above Designated Size remained at 6% to 7%, and textile and garment exports accounted for the global market share to remain basically stable.