Sewing machine parts industry is facing four major challenges

Source:WEIQUN KNIVES MANUFACTURE CO.,LTD.Release time:2019-09-21

      Over the past 30 years, China sewing machinery industry parts industry depends on the development path, experience, and "annual increase and can make money every year," the environment has changed. With the transformation of the overall macroeconomic pressures hidden under long-term rapid development gradually exposed, chronic illness is not eliminated, added a new injury, become China's sewing machinery industry parts industry had to face difficulties.

      In recent years, affected by the impact of domestic and international economic environment, as well as labor shortage, rising costs, policy restrictions and other factors, China's sewing machinery industry parts enterprises in production and operation, internal management, employment patterns and production methods are being subjected to a severe test .

      Although the recovery of the industry began in 2010 as an industry parts manufacturers provide adjustment and upgrading of breathing space, but with the industry as a whole into slow growth, combined with the downstream industry industrial transfer, transformation and upgrading of the changes brought by the rapid changes in demand for transmission resulting parts enterprises are facing new challenges.

      Challenge one: corporate profitability decline

      According to related statistics, in 2011 China Sewing Machinery Industry 42 parts enterprises above designated size increased by an average 19% in labor costs, raw material costs increased by an average of 15%, an average increase of 8% in other costs, fees total expenditure increased by 5%, The average gross profit margin was 20%, compared with the same period in 2010 decreased by 6%.

      According to the China Sewing Machinery Association, the survey results show that, although raw material costs since 2012 has declined, but the parts prices overall in glidepaths serious decline in corporate profits. Latest data show that the second half of 2011, the sharp decline in domestic demand, the international environment of weak demand, China sewing machinery industry parts industry an accelerated decline in value occurs momentum, industry profits fell more than 50% reached .

      Jiangsu Tiger Needle Co., Ltd. Chairman Xue Hongfei pointed out that with the expansion of labor costs, raw material price increases, utilities rise, increasing the cost of products and spare parts are not synchronized product prices have been conflicts between quite prominent.

      Challenge two: recruitment difficulties plagued enterprise development

      With the disappearance of the demographic dividend, the advantage of low-cost carriers no longer exist, the profit earned by labor advantage unsustainable model of development.

      As a typical labor-intensive enterprises, sewing machinery parts manufacturing industry in product quality assurance, production efficiency and other key production processes, quality of workers, skills, experience and other aspects of the strong dependence consecutive years of "recruitment difficulties" problems, making more difficult the development of auto parts industry.

      According to the statistics of the raphe Association, participated in the survey 42 parts enterprises above designated size, 85% of companies exist to varying degrees recruitment difficulties, particularly difficult to attract and retain "experience", "a skill" of skilled workers.

      Although parts enterprises continued to grow, wages and salaries, but also because parts enterprises widespread production and living environment is relatively poor, relatively remote location such as the reality, which led to relatively large mobility of employees, technical training keep up with job requirements development.

      In addition, because parts enterprises frequent replacement of front-line employees, to a certain extent, affected the parts production efficiency and product quality stability.

      Xue Hongfei said: "With the development of human civilization and progress, a new generation of employees on quality of life, especially in the working environment, labor intensity, benefits and other requirements change fundamentally, the enterprise has not yet mentally prepared to take the initiative and resilience, which is parts enterprises 'recruitment difficulties' problems to be solved. "

      Challenge 3: Demand has become an inevitable trend of decreasing

      From April 2012, in May, China's sewing machinery industry entered a stable period of slow development, the whole first half of the major enterprise reporting, including industry statistics are not ideal, is expected in the second half loss will be further expanded.

      Meanwhile, China sewing machinery industry since the recovery to pick up, overcapacity, oversupply fundamentals failed to improve, the early signs of price competition, low-end international brands continue to test the water market, with the whole enterprise to survive the pressure intensifies, as upstream parts enterprises mutual competition will gradually intensified.

      Jack Holding Group President Nguyen Chik-cheung, said: "From the garment industry point of view, it is inevitably on the sewing machine to the automation, intelligent direction adjustment, which is certainly the result of incremental price reduction. 2007 sewing machinery industry's total output ' historical height 'is gone, the industry's future production will decline further. "

      Further examples Nguyen Tan Chik-cheung said: "In sewing machine, for example, substantially reduced ordinary sewing machine, computer sewing machine rapid increase, leading to increasing demand for sewing machine parts reduction, it is an indisputable fact, it is future trends. "

      Challenge Four: Business upgrade underpowered

      Currently, the "low-cost business model has been difficult to maintain in the future survival and development needs adjustment of product structure, the implementation of quality strategy, the implementation of brand competition" concept become the sewing machine parts manufacturers consensus. But to achieve this goal, parts companies need to conduct long-term and significant financial, human, material and time investment, given the uncertain trends in the industry, and more companies choose to maintain the status quo, source reduction support Festival conservative attitude of wait and see .

      A parts company CEOs emotion: sewing equipment long life cycle, market demand changes, business great in parts and the whole enterprise strong dependence changes follow the whole enterprise, the enterprise lack of adaptability to the market . Meanwhile, the great advantage of some of the parts enterprise products, the cost advantage is not obvious, lack of market competitiveness and market discourse.

      "Low value-added products for a long time did not improve the situation, and in the advanced technology and high-end products, the China Sewing Machinery Industry short time is difficult to compete with the developed countries." Tianjin Ma Teng Precision Machinery Manufacturing Co., Ltd., chairman of Du Chen believes that the market downturn, seek diversified development than stick to the main industry to be more practical, more effective. In parts industry across the board to slow the development cycle, whether in the field of sewing equipment to continue to invest, how much investment, have become parts enterprises must face reality.