Dezhou Cotton Association: Textile Industry, Spring Is Coming?

Stimulus package in the country, the economy gradually stabilized, the textile industry also will bottom out. Especially after the Spring Festival, which continues to flourish in the domestic market under the support, showing a sales booming textile industry, and gradually a good situation for the better.

Stabilizing the economy starts to recover textile enterprises

Dezhou City, Shandong Province, is a major cotton producing city is also famous textile city, now has textile and apparel enterprises above the scale of 397. Second half of 2008, by the international financial crisis, the domestic textile industry have been seriously affected, in exports, rapidly shrinking market, many businesses have ceased or semi-shutdown state. October 2009, the national macro-control policies, the cotton textile industry gradually bottom out, the steady rise. To promote the main reason for this change: First, the strong support of the domestic market. Currently, residents from spending continues to climb, domestic consumption remains strong, especially the Spring Festival Golden Week 2010, the National consumer goods market is hitting a new high growth rate in recent years, high domestic demand growth on China's textile industry continues to play important role in supporting and contribution increased over the same period. Second, textile and garment exports pick up, is growing rapidly. To support the textile industry in trouble, since late last year, the state several times raised the export tax rebate rate of textiles and apparel, the tax rate from 11% to the current 15%, effectively reducing the burden on enterprises to improve export competitiveness of products force.

Difficulties still not optimistic

Although the state has introduced include the expansion of investment to stimulate domestic demand, export tax rebate rate adjustment, financial policy to relax, reduce deposit and lending rates and a series of preferential policies, the recent substantial increase in the price of cotton yarn, textile industry and gradually pick up, but domestic demand has not been a fundamental turning point, the textile enterprises are still faced with many difficulties: First, the market situation has not fundamentally changed. For now, China's textile industry production, domestic sales, export the data show both Chengxian Le faster the recovery growth momentum, but this is the last year Di base on growth this year face more Fuza operating environment, external reducing its inventory more. International markets, governments to protect their own industries, by improving the safety, health, environmental standards and to take anti-dumping, countervailing measures to build trade barriers facing China's textile and garment exports growing trade friction. Second, the quickly rising costs of raw materials. Since last October, the domestic and international cotton prices rise too fast. As the current relatively low efficiency in cotton, cotton-growing farmers enthusiasm down, the next few years is difficult to increase domestic cotton area, the cotton price will remain at high levels. Third, the industry faces hard labor. In order to sustain production, enterprises have raised wages, lower education, and age restrictions, to ease "labor impasse." It is understood that a number of textile workers in the recent wage gains generally exceeded 20%. Substantial increase in labor costs will be the impact of textile industry in 2010, an important benefit of reducing its inventory.

Adjust the structure of competitive advantages

Dezhou many textile enterprises, the textile industry has become the city's pillar industries, and place a large number of staff employed. Recent textile industry and gradually pick up, but with the era of high cotton prices, the textile enterprises in the future of the road is still facing difficulties, the textile enterprises to Go? Industry experts recommend:

First, the high count yarn, multi-component development, and increased non-cotton fiber and the fiber content of ecological environment, reduce dependence on cotton. Faced with a high cotton prices run textile enterprises should make more efforts to develop new products, use of non-cotton fibers to resolve the impact of high prices of cotton. In recent years, Dezhou Huayuan Science and Technology, Prudential textile, Baoding and textile enterprises have increased their Tencel, Modal, milk fiber and bamboo fiber, corn fiber and other new fibers and cashmere, fox cashmere, silk and other animal fiber application and product development, accounting for non-cotton fiber consumption gradually increased.

Second, speed up the adjustment of product structure to raise the overall market competitiveness. Introduction of advanced technology and equipment, through technology, equipment renewal, and improving technological level and production capacity, reduce production by large-scale production costs. Brand strategy implementation support and enhance independent innovation. Extend the industrial chain, the formation of spinning, weaving, dyeing, fabric, garment processing one-stop complete industry chain, the textile industry bigger and stronger, to improve the fight against market risks.

Third, the backbone of enterprise culture. Although a number of textile enterprises in Dezhou City, but most small scale, low technological levels. The city more than 180 cotton spinning enterprises, the production scale of more than 50,000 enterprises accounted for only 14%, should be said that most or small businesses. The backbone of the future should cultivate leading enterprises, support competitive enterprises, export backbone enterprises, fostering the growth of a pool of well-known brands and independent intellectual rights, businesses, strong core competitiveness of large enterprises and enterprise groups. Speed up the training with competitive potential, high technology and innovative capacity of SMEs and large enterprises to improve their supporting capacity, create more competitive business group structure.

I am an expert from China Quality Digital, usually analyzes all kind of industries situation, such as ippc pallets , discount wallpaper online.