The “good start” on the raw material side has arrived as promised. After the opening of the downstream textile market, it also ushered in a completely different start from last year. The editor visited a boss yesterday. When this company opened last year, the editor I have also visited and the contrast is very obvious.
Last year, I sat in the sales department and chatted with the boss for a long time, but no one came in. But this year, the situation became completely different. After a while, people came in to check out samples, or just to get samples. Seeing that the boss was busy, I sat there for half a day. Within hours, the editor retreated.
The operating rate of some manufacturers has been restored
The boss of this company said: “Now 80% of the machines in the factory have been opened, and there are still a few machines that have not been opened yet because the employees are not in place.” After the policy mobilization at the end of last year, the number of orders in the market gradually increased. The market situation has obviously continued after the New Year. Some companies mainly engaged in foreign trade said that they had already received orders from customers during the holidays, so the factory’s operating rate has reached 100%.
Although according to market rules, the textile market at the beginning of the year is relatively busy. The domestic textile market has begun to partially recover to what it should be like in the peak season a year ago, and the order wave after the year is also what it should be like in this season. However, it should be noted that in previous years, it was already around mid-February, which is the early stage of the “Gold, Three, and Silver” periods. This year, due to the early Spring Festival, it is only the beginning of February, and orders have been placed one after another. It can be seen that this has been The compressed spring can’t wait to be released.
However, there were orders at the beginning of the year, but there were still problems: the biggest problem was the increase in costs!
Rising raw material costs
As mentioned in the first sentence of the article, the “good start” at the raw material end has come. The increase in the raw material end means an increase in costs for textile companies! Now, because the dyeing factory has not officially resumed work, and the wind vane of the textile industry has not yet been operational, textile bosses are in a relatively hesitant state during this period. One boss who mainly deals in spot goods said: “I feel that the market is good. But this illusion happens every year, and the dyeing factory hasn’t officially started yet, so I’m still a little nervous.”
However, some bosses believe that this wave of rising raw material prices is part of speculation and is due to the market’s optimistic expectations for the future. Therefore, they do not take the increase in raw material prices very seriously, and they still adhere to last year’s purchase-as-you-go purchasing policy. In principle, continue to maintain a wait-and-see mentality towards the market.
Workers’ wages increased
In addition to the increase in raw material costs, workers’ wages will be raised at the beginning of every year, and this year is even more so. Because the market is expected to improve, companies want to recruit more experienced technical employees so that they can cope with the situation when there are many orders. Don’t panic because of all the problems, but mature technical employees often have higher wages. For example, the salary of a newly recruited experienced inspector in a company reaches 8,000-10,000 yuan/month. An experienced inspector can reduce the company’s scrap rate. Pull it all the way down. Other companies also charge 7,500-10,000 yuan/month.
As for the wages of workers, bosses often dare not slack off. The main reason is that employees in the textile industry are basically migrant workers. There are more and more textile factories in these employees’ hometowns. How to maintain the stable employment of old employees? Working in a factory, the only way to keep production stable is to raise wages. The boss of a post-processing company said: “Every year, employees’ wages are raised by about 5%.”
In general, the textile market seems to be on the right track again in 2023. Even though there is still a full month before the Golden Third Day, in the atmosphere of orders being placed at the market opening, the “Golden Third Day” can still be expected.
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