There was a textile man who was in a bad mood after coming back from get off work. He squatted in a corner alone and found a bug. He chatted with it for a long time and shared his views on the industry, environmental protection, current life conditions and pressures. I told it to it, and after listening to it, it was…sad to death…
What the editor wants to say is of course not just a joke to make everyone laugh, but also to express a resonance. Under the current industry structure, the situation of textile people is indeed not easy! Especially since this year, due to the superposition of various factors, whether it is domestic sales or foreign trade, textile people will inevitably be severely abused!
Domestic sales encounter an environmental storm: dyeing factories are closed and water-jet looms are stopped! The list is too difficult to make!
This summer, for textile people, the wind of environmental protection is as cold as winter. Under the heavy pressure, wherever the storm went, there was a roar of wind and cranes. Especially in the Jiangsu and Zhejiang regions, which are at the center of the storm, the intensity of rectification is unprecedented.
In June, dyeing factories in the Shengze area encountered limited production suspensions twice in just one week, significantly disrupting the company’s production rhythm. Following the printing and dyeing enterprises, the sword of environmental protection once again pointed at the weaving enterprises in July. Water-jet looms (enterprises) without certificates, no environmental impact assessments, and no registrations have to face shutdowns, power outages, water outages, and cessation of sewage discharge…
Of course, what makes it even more difficult for textile workers to accept is that this hard life is far from over. Facts have also proved that since the second half of the year, textile printing and dyeing clusters have been pushed to the forefront of environmental protection rectification: Wujiang, Huzhou, Jiaxing, Xiaoshan, Shaoxing… Every now and then, there is a region’s textile printing and dyeing enterprises that have to face the baptism of environmental protection.
The red-headed documents and notices of production suspensions have also brought a series of chain reactions to the entire textile market: water-jet looms have been eliminated on a large scale, production capacity has shrunk, market supply has exceeded demand, and orders have been difficult to place; dyeing plants have been shut down. The delivery time of fabrics has been extended, making it difficult to ship goods; the price of dyes has increased, fabric merchants have increased dyeing expenses, and the competition for conventional fabrics with price advantages has intensified…
In particular, the fourth batch of central environmental protection inspection teams are about to arrive in Zhejiang recently. With the coming storm, textile, printing and dyeing, chemical and other enterprises will undoubtedly become the focus of inspections. In the future, there may be more and more voices like “Out of stock in peak season, cloth is hard to find”, “The machine is sold, the factory is sold, where should we go…”.
Foreign trade encounters exchange rate risks: RMB continues to rise! Profits shrink again and again!
Since the domestic environmental protection storm will not stop for a while, domestic sales are difficult to make, and it is difficult to collect payment, someone will definitely jump out and suggest: It is better to transform into foreign trade!
As everyone knows, today’s foreign trade market is not “peaceful” either. What is disturbing this pool of water is the recent continued surge in the RMB exchange rate. As of the 10th, the central parity rate of RMB against the US dollar broke through the 6.66 mark, setting a new high in 10 months.
In the past, some companies may have believed that exchange rate fluctuations had far less impact on companies than rising raw material and labor costs. However, as the floating range of the RMB exchange rate continues to expand, coupled with sluggish foreign demand, corporate profit margins will inevitably be compressed. Assuming that the RMB appreciates by 5% a year, based on the export volume of my country’s textile industry of US$5 billion, domestic enterprises will suffer a loss of US$250 million a year.
▼Foreign trade people lamented
In the fierce competition in the foreign trade market, the profit margin of many products is only 3 to 5 points. In addition, fluctuations in the RMB exchange rate will also make foreign buyers increasingly more sensitive to prices. In order to avoid risks, middlemen will place more short-term orders and reduce large and long-term orders.
Therefore, the strength of the RMB will cause many textile foreign trade companies to encounter the dilemma of falling both volume and price. According to industry analysts, the RMB will continue to maintain a strong position against the US dollar in the future.
In 2017, it will not be easy to follow the textile path, but please believe that if you stick to your original intention, the future will eventually belong to every hard-working textile person.
Finally, the editor gives you a song to express your feelings:
“On top of environmental protection”
I’m looking in the distance, above the market
How many things are rising freely
Environmental protection has gone crazy and the factory has been demolished
I want to meet you again on the way to grab goods
Supply is getting tighter and tighter, I can only think back
The days when goods are available are like being in heaven
Vomiting…vomiting…
Who is shouting, prices are going up soon
Expensive raw materials are floating like white clouds
Prices are adjusted today, but will rise again tomorrow
Stacks of banknotes, all invested in inflation
In the midst of being unable to accept orders
Where is the road for textile people?
Want to close the factory and return home early?
It’s difficult… it’s difficult…
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