Editor's Note: The main risks facing the textile industry in 2012: The European debt crisis continues to escalate, the domestic market is the mainstay, the growth of clothing consumption slows down, the cotton price has become a mystery, and the financing of small, medium and micro enterprises has been facing difficulties in the development of the textile industry in 2011. Many issues have still not been solved so far. Under the prediction that “the world economy will go to the bottom in 2012â€, these problems are even more severe in the first half of 2012. On March 6th, the China Textile Industry News Center held the "2012 Economic Situation Conference on Textile Industry" in Beijing. When analyzing the major risks faced by the industry in 2012, it also proposed a series of questions for the government to solve the problems and develop the industry. Suggest.
According to data from the National Bureau of Statistics, in 2011, 36,000 textile enterprises above designated size achieved a total industrial output value of 478.865 billion yuan, a year-on-year increase of 26.8%, and the growth rate was down 4.8 percentage points from the first quarter; sales value was 536.017 billion yuan, a year-on-year increase of 26.86%. , a decrease of 4.6 percentage points from the previous quarter. The total investment in fixed assets of projects with a total of more than 5 million yuan in the industry was 679.91 billion yuan, an increase of 36.3% year-on-year, and the growth rate was 2.2 percentage points lower than that in the first quarter. The enterprises above designated size achieved a profit of 295.642 billion yuan, a year-on-year increase of 25.94%, and a decrease of 27.63% and 15.31% respectively from the growth rates of the first quarter and the first half of the year. According to customs statistics, in 2011, the total value of textile and apparel exports was 254.12 billion U.S. dollars, a year-on-year increase of 19.9%, and the growth rate was 7.2% lower than that at the end of April; of which, export prices increased by 19.3% year-on-year, and export volume only increased by 0.5% year-on-year.
According to the China Federation of Textile Industry's tracking data on key industrial clusters, in 2011 the sales revenue of enterprises below designated size increased by 6.71% year-on-year, and profits increased by 9.9% year-on-year, far below the growth level of enterprises above designated size. With 9 garments clusters with an export share of more than 20%, the total profit of the companies below the scale was only 4.7% YoY.
From the data, it is not difficult to see that the major indicators of the industry maintained rapid growth in 2011, and the operating situation was basically stable. However, the various types of risks faced by the operation of the industry have increased significantly over the previous year. The continuous downturn in the international market, the ups and downs in raw material prices, the continuous rise in production costs, and the tightening of the environment have increased operating pressure, and the growth of major economic indicators has slowed. The momentum, export volume, and industry profit growth have been particularly declining. The operation of small and micro enterprises has encountered major difficulties, and these difficulties have been transferred to 2012 in the absence of a resolution in 2011. The tight and severe situation will occur in 2012. Half year appears.
In 2012: In the first half of the year, although the overall situation remained tight in 2012, the industry remained facing a series of risks, including the shrinking international market, the slowdown of the domestic market, and the rising costs of production factors. In the first half of the year, the industry will be tight. And run under a more severe situation. Accelerating structural adjustment, transformation and upgrading, striving for national policy support, reducing operational risks, and promoting stable economic growth are the arduous tasks facing the textile industry.
At the beginning of 2012, large enterprises, independent brand enterprises, and domestic sales companies had sufficient operating costs and sufficient funds. The operating rate reached 80%-90%. The return rate after employees' holiday was about 80%, and the employee turnover rate was 10%-15%. The difficulties faced by some small and medium-sized micro-enterprises are more obvious. In particular, export-oriented small and micro enterprises have reduced orders, staff shortages, tight funding, and difficulties in transition. They need to pay more attention to the government and the industry.
In the first half of 2012, the industry is facing major risks:
Continued Escalation of the European Debt Crisis The continued escalation of the European debt crisis has had a significant negative impact on the international market demand. The developed countries such as the United States and Europe have experienced weak economic recovery, the unemployment rate remains high, the employment structure has deteriorated, consumer confidence has deteriorated, and the demand for textile and clothing has been constrained. The growth rate of apparel exports in developing countries has been reduced, and the demand for related industry chains has slowed down. It is expected that in the first half of 2012, China's textile and apparel export demand will be insufficient and competitive pressure will become more prominent. In the first half of the year, the number of industrial exports will be low or negative.
Mainly in the domestic market, slowing down the growth of clothing consumption In the first half of 2012, the textile industry will continue to exhibit the main trend of the domestic market, but the slowdown in the growth of social investment, the weakening of the export-led economy, and the deepening adjustment of the economic structure will affect macroeconomic growth. The rate of economic growth has been adjusted downwards, and the growth rate of consumption may be slower than that of the previous year, which will directly result in a slowdown in the growth of clothing consumption.
The price of cotton is a mystery. The domestic cotton market is confusing. If reserve cotton is thrown away with “cost + profitâ€, domestic cotton prices will increase, and the domestic and foreign cotton price gap will continue to widen. The international competitiveness of textile companies will be further weakened. The price of chemical fiber is affected by the price of cotton and the fluctuation of international crude oil prices, which may present a shocking trend and increase the operational risks of downstream companies.
The increase in labor costs has led to a significant increase in the cost of labor for textile companies. Samples show that more than 80% of enterprises have a shortage of labor, and wages have risen by more than 15%. Difficulties in recruitment, unreserved retention, and improvement in the living conditions of employees have all led to a rigid rise in labor costs.
The financing of small, medium and micro enterprises by small, medium and micro enterprises still faces problems such as poor financing, high financing costs, and unstable orders. In particular, export-processing companies are weak in anti-risk ability if the appreciation of renminbi still exists. Excessive closure of such enterprises will directly affect employment and social stability.
Responsiveness: The government and the industry are making efforts Textile companies need to make greater efforts to cope with the rising cost of a series of factors such as rising labor costs, fluctuations in raw material prices, and rising prices of energy and power. However, the external environment such as cotton, finance, taxation, and exchange rate issues Enterprises can not be digested by their own efforts, urging the state to issue relevant policies to give attention and support.
Policy recommendations Stabilize the domestic cotton market At present, domestic and international cotton spreads are large and international cotton resources are adequate. Seize the opportunity to expand cotton imports and reduce cotton costs for textile companies. This year, the reserve cotton reserves will be paid in a timely manner using fiscal subsidies.
Reducing the cost of banking ** closely focuses on solving the difficulties of financing and financing of SMEs in the textile industry. It is suggested that the regulatory authorities regulate the floating interest rate of banks, eliminate the acceptance acceptance system, rectify bank operations, and put the central government’s support for SME financing policies in place. .
Relieve the tax burden of enterprises Resolving problems that have long plagued cotton textiles and other industries with "high-learning and low-buckle" (17% deducted from the VAT levy 13%), reducing the taxation of cotton textile companies. The business tax will be changed to the pilot value-added tax to expand the field of production and industry in the textile industry. Considering the employment contribution of labor-intensive industries, corporate income tax is allowed to deduct a certain percentage of wages.
Implementation of the SME Supportive Policy Implement the State Council's support for various fiscal, taxation, financial, and technological support policies for medium and small-sized enterprises, and accelerate the establishment of industrial innovation platforms, public service systems, and industrial alliances that benefit the majority of SMEs.
Supporting enterprises "going out"
Encourage advantageous companies to establish raw material bases, R&D centers, and purchase brand channels abroad. To strengthen the macro guidance for the establishment of low-end production and processing enterprises in foreign countries, prevent large areas from flooding too quickly, and reduce the impact on domestic employment.
Industry measures to deepen enterprise management, improve labor productivity Faced with "recruitment difficulties" and "labor costs" coexisted significantly, strengthen basic management and information applications, increase labor productivity and reduce production costs.
Accelerate technological transformation, upgrade advanced equipment, speed up technological transformation and innovation, including elimination of outdated technology and equipment, accelerate research and development of high-end textile machinery, and ensure domestic equipment share. Appropriate introduction of foreign advanced equipment to speed up the digestion and absorption of new technologies and re-innovation.
Strengthen the development of new products and increase the added value of products Strengthen the R&D and industrialization of key technologies such as high-simulation, functional, differentiated and high-tech fiber materials, industrial textiles, and develop personalized, fashionable, low-carbon green textile consumer goods, improve Added value.
Strengthen the construction of self-owned brands, optimize the construction of marketing channels, and promote the development of the advantages of leading brand companies in the development of both ends of the industrial chain and the promotion of supporting facilities for large and small enterprises. Acquisition and integration of foreign brand companies, as soon as possible to the brand, marketing and other high value-added links.
Use financial instruments to defend against market risk.
Instruct companies to use **market products that are continuously enriched and developed, and adopt appropriate financial tools to avoid exchange rate risks.
Increase market development, reduce trade frictions, continue to run domestic trade fairs, actively participate in international exhibitions, and strengthen the tracking, monitoring, and early warning of key export markets.
According to data from the National Bureau of Statistics, in 2011, 36,000 textile enterprises above designated size achieved a total industrial output value of 478.865 billion yuan, a year-on-year increase of 26.8%, and the growth rate was down 4.8 percentage points from the first quarter; sales value was 536.017 billion yuan, a year-on-year increase of 26.86%. , a decrease of 4.6 percentage points from the previous quarter. The total investment in fixed assets of projects with a total of more than 5 million yuan in the industry was 679.91 billion yuan, an increase of 36.3% year-on-year, and the growth rate was 2.2 percentage points lower than that in the first quarter. The enterprises above designated size achieved a profit of 295.642 billion yuan, a year-on-year increase of 25.94%, and a decrease of 27.63% and 15.31% respectively from the growth rates of the first quarter and the first half of the year. According to customs statistics, in 2011, the total value of textile and apparel exports was 254.12 billion U.S. dollars, a year-on-year increase of 19.9%, and the growth rate was 7.2% lower than that at the end of April; of which, export prices increased by 19.3% year-on-year, and export volume only increased by 0.5% year-on-year.
According to the China Federation of Textile Industry's tracking data on key industrial clusters, in 2011 the sales revenue of enterprises below designated size increased by 6.71% year-on-year, and profits increased by 9.9% year-on-year, far below the growth level of enterprises above designated size. With 9 garments clusters with an export share of more than 20%, the total profit of the companies below the scale was only 4.7% YoY.
From the data, it is not difficult to see that the major indicators of the industry maintained rapid growth in 2011, and the operating situation was basically stable. However, the various types of risks faced by the operation of the industry have increased significantly over the previous year. The continuous downturn in the international market, the ups and downs in raw material prices, the continuous rise in production costs, and the tightening of the environment have increased operating pressure, and the growth of major economic indicators has slowed. The momentum, export volume, and industry profit growth have been particularly declining. The operation of small and micro enterprises has encountered major difficulties, and these difficulties have been transferred to 2012 in the absence of a resolution in 2011. The tight and severe situation will occur in 2012. Half year appears.
In 2012: In the first half of the year, although the overall situation remained tight in 2012, the industry remained facing a series of risks, including the shrinking international market, the slowdown of the domestic market, and the rising costs of production factors. In the first half of the year, the industry will be tight. And run under a more severe situation. Accelerating structural adjustment, transformation and upgrading, striving for national policy support, reducing operational risks, and promoting stable economic growth are the arduous tasks facing the textile industry.
At the beginning of 2012, large enterprises, independent brand enterprises, and domestic sales companies had sufficient operating costs and sufficient funds. The operating rate reached 80%-90%. The return rate after employees' holiday was about 80%, and the employee turnover rate was 10%-15%. The difficulties faced by some small and medium-sized micro-enterprises are more obvious. In particular, export-oriented small and micro enterprises have reduced orders, staff shortages, tight funding, and difficulties in transition. They need to pay more attention to the government and the industry.
In the first half of 2012, the industry is facing major risks:
Continued Escalation of the European Debt Crisis The continued escalation of the European debt crisis has had a significant negative impact on the international market demand. The developed countries such as the United States and Europe have experienced weak economic recovery, the unemployment rate remains high, the employment structure has deteriorated, consumer confidence has deteriorated, and the demand for textile and clothing has been constrained. The growth rate of apparel exports in developing countries has been reduced, and the demand for related industry chains has slowed down. It is expected that in the first half of 2012, China's textile and apparel export demand will be insufficient and competitive pressure will become more prominent. In the first half of the year, the number of industrial exports will be low or negative.
Mainly in the domestic market, slowing down the growth of clothing consumption In the first half of 2012, the textile industry will continue to exhibit the main trend of the domestic market, but the slowdown in the growth of social investment, the weakening of the export-led economy, and the deepening adjustment of the economic structure will affect macroeconomic growth. The rate of economic growth has been adjusted downwards, and the growth rate of consumption may be slower than that of the previous year, which will directly result in a slowdown in the growth of clothing consumption.
The price of cotton is a mystery. The domestic cotton market is confusing. If reserve cotton is thrown away with “cost + profitâ€, domestic cotton prices will increase, and the domestic and foreign cotton price gap will continue to widen. The international competitiveness of textile companies will be further weakened. The price of chemical fiber is affected by the price of cotton and the fluctuation of international crude oil prices, which may present a shocking trend and increase the operational risks of downstream companies.
The increase in labor costs has led to a significant increase in the cost of labor for textile companies. Samples show that more than 80% of enterprises have a shortage of labor, and wages have risen by more than 15%. Difficulties in recruitment, unreserved retention, and improvement in the living conditions of employees have all led to a rigid rise in labor costs.
The financing of small, medium and micro enterprises by small, medium and micro enterprises still faces problems such as poor financing, high financing costs, and unstable orders. In particular, export-processing companies are weak in anti-risk ability if the appreciation of renminbi still exists. Excessive closure of such enterprises will directly affect employment and social stability.
Responsiveness: The government and the industry are making efforts Textile companies need to make greater efforts to cope with the rising cost of a series of factors such as rising labor costs, fluctuations in raw material prices, and rising prices of energy and power. However, the external environment such as cotton, finance, taxation, and exchange rate issues Enterprises can not be digested by their own efforts, urging the state to issue relevant policies to give attention and support.
Policy recommendations Stabilize the domestic cotton market At present, domestic and international cotton spreads are large and international cotton resources are adequate. Seize the opportunity to expand cotton imports and reduce cotton costs for textile companies. This year, the reserve cotton reserves will be paid in a timely manner using fiscal subsidies.
Reducing the cost of banking ** closely focuses on solving the difficulties of financing and financing of SMEs in the textile industry. It is suggested that the regulatory authorities regulate the floating interest rate of banks, eliminate the acceptance acceptance system, rectify bank operations, and put the central government’s support for SME financing policies in place. .
Relieve the tax burden of enterprises Resolving problems that have long plagued cotton textiles and other industries with "high-learning and low-buckle" (17% deducted from the VAT levy 13%), reducing the taxation of cotton textile companies. The business tax will be changed to the pilot value-added tax to expand the field of production and industry in the textile industry. Considering the employment contribution of labor-intensive industries, corporate income tax is allowed to deduct a certain percentage of wages.
Implementation of the SME Supportive Policy Implement the State Council's support for various fiscal, taxation, financial, and technological support policies for medium and small-sized enterprises, and accelerate the establishment of industrial innovation platforms, public service systems, and industrial alliances that benefit the majority of SMEs.
Supporting enterprises "going out"
Encourage advantageous companies to establish raw material bases, R&D centers, and purchase brand channels abroad. To strengthen the macro guidance for the establishment of low-end production and processing enterprises in foreign countries, prevent large areas from flooding too quickly, and reduce the impact on domestic employment.
Industry measures to deepen enterprise management, improve labor productivity Faced with "recruitment difficulties" and "labor costs" coexisted significantly, strengthen basic management and information applications, increase labor productivity and reduce production costs.
Accelerate technological transformation, upgrade advanced equipment, speed up technological transformation and innovation, including elimination of outdated technology and equipment, accelerate research and development of high-end textile machinery, and ensure domestic equipment share. Appropriate introduction of foreign advanced equipment to speed up the digestion and absorption of new technologies and re-innovation.
Strengthen the development of new products and increase the added value of products Strengthen the R&D and industrialization of key technologies such as high-simulation, functional, differentiated and high-tech fiber materials, industrial textiles, and develop personalized, fashionable, low-carbon green textile consumer goods, improve Added value.
Strengthen the construction of self-owned brands, optimize the construction of marketing channels, and promote the development of the advantages of leading brand companies in the development of both ends of the industrial chain and the promotion of supporting facilities for large and small enterprises. Acquisition and integration of foreign brand companies, as soon as possible to the brand, marketing and other high value-added links.
Use financial instruments to defend against market risk.
Instruct companies to use **market products that are continuously enriched and developed, and adopt appropriate financial tools to avoid exchange rate risks.
Increase market development, reduce trade frictions, continue to run domestic trade fairs, actively participate in international exhibitions, and strengthen the tracking, monitoring, and early warning of key export markets.