At the beginning of 2020, the sudden outbreak of the new coronavirus pneumonia epidemic put the whole country in a state of war. The extended holidays, the unpredictable development of the epidemic, and various emergencies have caused textile machinery companies to face great development challenges.
What is the current production situation of textile machinery companies? What confusions and challenges are you facing? What are your expectations for market changes throughout the year? With these questions in mind, the reporter interviewed some key companies in the industry. Judging from what reporters learned during interviews and the follow-up investigation conducted by the China Textile Machinery Association, although the epidemic has had an adverse impact on textile machinery companies in production, marketing, supply chain organization, etc., most companies are still determined Be confident, take responsibility, and use technological innovation and improved manufacturing capabilities to reduce the impact of the epidemic.
More than 60% of enterprises have resumed work and production one after another
In recent days, all walks of life across the country have gradually entered the stage of resumption of work and production. The government is promoting the orderly resumption of work in batches for enterprises that are conducive to epidemic prevention and control and meet the conditions. While strengthening the prevention and control of the new coronavirus epidemic, textile machinery companies have begun to resume work and production one after another in accordance with local prevention and control policies and their own conditions.
According to the China Textile Machinery Association’s tracking of the start-up of more than 260 key enterprises in the industry, as of February 17, the proportion of enterprises that had resumed work reached 62.03%.
Among them, among the tracking spinning machinery and related special equipment companies, about 51% have started construction, including Jingwei Co., Ltd., Zhejiang Rifa, Henan Second Textile Machinery, Pacific Technology, and Hangzhou Dongxia , Zhonghui Textile Machinery, Zhongbao Industrial, Suzhou Yingmaijie, Suzhou Youlian Equipment, Zhejiang Kangli, etc. Among the weaving equipment companies tracked, the operating rate has reached 66.67%. Qingdao Haijia, Tianyi Hongqi, Guangdong Fengkai, Changshu Textile Machinery, Jiangsu Songhesong, Shandong Rifa, Zhejiang Titan and other companies have started operations. In the field of printing and dyeing machinery, key enterprises in the industry have started operations one after another, including Yuanxin Industry, Sanji Industry, Lixin Dyeing and Finishing, Kangpingna Machinery, Yingyou Textile Machinery, etc. In the field of knitting machinery, companies such as Ningbo Cixing, Jinlong Technology, Changde Textile Machinery, Karl Mayer (China), Santoni (Shanghai), Precision Magnesium Machinery, and Concave-convex Machinery have all started operations, and the proportion of companies that have started operations has reached the number of tracking companies. 51.28%. In the field of chemical fiber and industrial equipment, among the dozens of key companies tracked, 75% have started operations, including Oerlikon (China), Zhongli Machinery, Bezi Technology, Wuxi Hongyuan Electromechanical, Hengtian Heavy Industry, Qingdao Textile machinery, etc.
Based on the situation of the companies interviewed, companies that have resumed production are mainly focusing on completing overseas and year-end orders. Gong Deqiang of Qingdao Delde Machinery Technology Co., Ltd. said that with the customer’s consent, the company adjusted the order sequence and moved the more urgent orders forward to ensure smooth and orderly production.
The current overall start-up of the entire textile machinery industry is limited by local government review, shortage of protective materials, isolation of non-local employees, and insufficient resumption of work by supporting enterprises. On the other hand, major domestic downstream customers are currently limited in start-up and have limited orders. reduce. In addition, domestic logistics shipment and distribution speed are still greatly affected.
Rising costs and fluctuations in orders test the viability of enterprises
In view of the main problems currently faced by enterprises Problems, judging from the results obtained from the questionnaire of the China Textile Machinery Association, the continued spread of the epidemic and the inability of employees to return to work rank the top two, with concerns of 88.53% and 65.14% respectively, while logistics issues and supply chain issues are tied for the top two issues for enterprises. It ranks third in terms of attention, with a concentration rate of 64.22%.
Due to the epidemic, various provinces and regions have strictly controlled the movement of personnel, making it difficult for employees from other places to return to the factory, and even resulted in the loss of some personnel. After the company has gone through the resumption procedures, employees may not be able to return to the factory, especially those in key epidemic areas. There is great uncertainty about the return time. In addition, they need to be quarantined for 14 days after returning to the factory. This time difference is also important for employees. Enterprise production has had a lot of impact. In addition, according to relevant analysis: In the past two weeks, the wages of front-line industrial workers have increased by 15% to 30%, and recruitment difficulties will also become a major obstacle for enterprises this year.
According to the reporter’s interviews, fluctuations in orders, variables in raw material prices, and tight cash flow caused by rising costs and order defaults are also issues that companies are currently worried about.
Qian Xuxing, chairman of Suzhou Youlian Textile Equipment Technology Co., Ltd., said: “The epidemic has three impacts on our company: First, it affects the normal functioning of employees, especially those in areas where the epidemic is more serious. Return travel will also cause increased employee mobility and instability. Second, the current control of the epidemic is still unclear, which has disrupted our production and operation plan for the first quarter and will definitely have an impact on our strategic goals for the whole year of 2020. Third, affected by this Affected by the epidemic, downstream customers cannot start operations normally and orders have been reduced, which has also affected the achievement of Youlian Equipment’s sales target in 2020.”
From the situation reflected in the China Textile Machinery Association’s questionnaire survey of enterprises , half of the companies participating in the survey have been saturated with orders in the past three months. However, due to the epidemic, most companies were suspended before February 10 and awaiting resumption of work.
In addition to the impact on orders, Gong Deqiang is also worried that prices will rise due to the epidemic, resulting in zeroThe cost and price of parts have increased. “I think there are a lot of uncertainties in received orders, follow-up orders, profit margins, etc.”
Of course, many companies are also trying to alleviate the sudden epidemic in their own way. The survey questionnaire reflects that more than 56% of companies use remote working to coordinate operations, and half of the companies use the time they cannot put into production as an opportunity for the company to innovate product technology, focusing on building the core competitiveness of the company. In addition, expanding online Marketing methods and active application for loans and subsidies also reflect the practices of about 40% of companies.
More than 88% of the companies in the survey put the rapid organization of production capacity as their top priority after resumption of work. In addition, there are two other tasks that have become the top priority for more than half of the companies participating in the survey after resumption of work. The focus: organizing supply chain resources and contacting upstream and downstream partners to better overcome difficulties.
Be firm in confidence, take responsibility and actively overcome difficulties
The market demand is already weak Under the circumstances, the epidemic has made many companies feel “worse”, but textile machinery companies are still relatively rational in their expectations for the next six months and even the whole year. Among the surveyed companies, more than 31% believe that their operating income in the first half of 2020 will decrease by 10% to 20% year-on-year compared to 2019, and more than 25% expect that their operating income will decrease by 20% to 50% year-on-year.
In view of the relatively difficult operating conditions, more than 69% of companies will focus on new products in their future operating plans. In addition, about 64% of companies will focus on automation transformation in order to Enhance the comprehensive competitiveness of enterprises.
As for the impact of the epidemic on the industry, although industry companies cannot be optimistic about the macroeconomic and industry development expectations in 2020, about 34% of the participating companies still believe that it is necessary for the industry to eliminate backward production capacity. , which will be of great help in accelerating the reshuffle of the industry. Judging from the situation reflected in the survey, the current Chinese textile machinery companies have become more and more calm, and everyone has regarded technological innovation and improvement of manufacturing capabilities as important means to reduce the impact of the epidemic.
Wang Lanxi, chairman of Jinan Tianqi Special Flat Belt Co., Ltd., said: “For many companies, especially private companies, the epidemic will inevitably have a greater impact. Rent, loans, workers’ wages, etc. are all necessary for companies. Under the pressure, many companies are facing the risk of going bankrupt if they stop production for two months. Tianqiping belt’s early start of construction will also cost the company a lot of money, but thanks to Tianqiping belt’s many years of good operations and Accumulated, we can internally digest the current losses within a few months. But for an enterprise, adapting to various environments is a required course, and the development of the enterprise cannot be smooth sailing. Therefore, blacksmithing must be hard on its own, and the first thing is to have a goal A team that is consistent, capable, and cohesive; secondly, the company’s products must be competitive in different environments; and finally, it is clear about the company’s social responsibilities. Just like in this national epidemic prevention campaign, companies must also fulfill their duties. Do your best to fulfill your social responsibilities.”
Jinan Tianqi Special Flat Belt Co., Ltd., which originally postponed the Spring Festival holiday to February 10, had to arrange for some employees in the production workshop to come to work in advance due to the new coronavirus. , has entered into intense working status since February 4th. Among Tianqiping’s customers are many textile companies that produce masks and protective clothing. During the current epidemic, these companies are going all out and working overtime to produce urgently needed protective products for the prevention and control of new coronavirus pneumonia. Therefore, especially Need reliable flat belt accessories support and protection. In fact, for this early start of construction, Tianqiping Belt has only opened a limited production capacity to meet needs, but the company’s boilers and constant temperature and humidity air conditioners must be fully turned on, and corresponding supplies, logistics, equipment, technology, etc. need to be provided. , Such resumption of work has greatly increased corporate costs and resulted in negative profit production.
Like Tianqiping Belt, there are many textile machinery companies that have bravely shouldered the responsibility in this national epidemic prevention campaign regardless of cost. Hengtian Group Hengtian Heavy Industry Co., Ltd. spared no effort to send personnel on-site to escort the health material company to start work, and produced 10 protective clothing layering machines in 8 days; Shanggong Fuyi Company urgently convened a technical team to produce fully automated medical disposable masks production line; Baiyuan Company organized technical backbones to research and formulate a project to build a mask production machine. In addition, many textile machinery companies such as Ningbo Cixing Co., Ltd., Hubei Tianmen Textile Machinery Co., Ltd., Ruineng Technology, and Qingdao Global Group actively donated money and materials to fight the epidemic. They have demonstrated the responsible spirit of textile machinery companies in this national epidemic prevention campaign and demonstrated the power of Chinese textile machinery companies. </p
