How can the textile machinery industry break through the triple pressure and seek steady progress in 2023? Annual meeting releases important signals

Faced with the triple pressure of “demand contraction, supply shock, and weakening expectations”, when uncertainty becomes the norm, how do textile machinery companies plan for a “certain” future?

On December 20, the seventh session of the eighth standing council of the China Textile Machinery Association and the 2023 National Textile Machinery Industry Production and Operation Work Symposium were held online.

Xu Yingxin, Vice President of China Textile Industry Federation, Gu Ping, President of China Textile Machinery Association, Liu Song, Zhao Xiaogang, Hou Xi, Vice Presidents, Cong, Secretary-General Government officials and more than 100 representatives from textile machinery companies attended the meeting to share market information and analyze future development situations.

The foundation for economic recovery is weak

The industry must prepare for emergencies

Xu Yingxin, vice president of the China Textile and Apparel Industry Federation, introduced the current situation of the economic operation of the textile industry in 2022. From January to October, orders in the textile industry decreased compared with the same period in previous years, production growth slowed down, and the industrial added value of enterprises above designated size in the industry decreased by 0.9% year-on-year. The textile industry is in a period of overlapping supply and demand pressures of sluggish demand and rising costs. The overall economic operation is showing a slowdown, and the pressure on enterprise production and operation is highlighted. Most links in the industrial chain maintained low startup levels, and the decline in industry production continued to deepen; among major categories of products, only the output of chemical fibers and natural fiber products such as wool, hemp, and silk increased, while the output of other products decreased year-on-year.

In terms of domestic sales, the growth of real income of residents has slowed down, clothing consumption expenditure has declined, the scale of domestic sales has decreased, and the growth rate of online retail sales has gradually picked up. From January to November 2022, my country’s textile and clothing exports were US$297.6 billion, a year-on-year increase of 4.5%. Among them, textile exports were US$136.9 billion, a year-on-year increase of 4.7%; clothing exports were US$160.7 billion, a year-on-year increase of 4.3%.

Since the second half of the year, the industry’s foreign trade export pressure has increased, and the purchasing power and consumption structure of major overseas markets have undergone significant changes. my country’s textile exports have shown continuous negative growth since August, and clothing exports have fallen into the negative growth range since September.

The growth rate of domestic investment in the industry is still high, but is slowing down month by month; in terms of foreign investment, the epidemic factors have not significantly weakened the industry’s enthusiasm for foreign investment, and companies are still overcoming difficulties to carry out overseas operations.

The efficiency shows the characteristics of increasing revenue without increasing profits, and the pressure on corporate profitability is still high. From January to September this year, 36,000 designated enterprises in the textile industry achieved operating income of 3,856.25 billion yuan, a year-on-year increase of 3.1%; profits were 134.54 billion yuan, a year-on-year decrease of 23.6%. There is great pressure on raw material costs in the upstream of the industrial chain. The profit decline of cotton spinning companies continues to expand, and the profit of the chemical fiber industry has dropped by more than 60%. The performance of linen spinning, filament, and clothing links has been relatively stable, with revenue and profits growing.

Xu Yingxin also analyzed the future development environment of the textile industry. He said that the current global economic growth is weak, inflation is at the highest level in decades, and the slowdown in trade growth may continue. The domestic economy has basically bottomed out, but the foundation for recovery is still weak. The current trade environment is undergoing drastic changes. Sino-US economic and trade frictions have brought challenges to the healthy and sustainable development of China’s textile industry, and the international textile and apparel supply chain continues to adjust. In this regard, China’s textile industry should accelerate the construction of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other. Enhance the endogenous power and reliability of domestic large-scale circulation, improve the quality and level of international circulation, strive to improve total factor productivity, and strive to improve the resilience and safety level of industrial and supply chains. Build a mutually beneficial and win-win industrial chain and supply chain cooperation system, enhance the linkage effect of two resources in domestic and international markets, and improve the quality and level of trade and investment cooperation. According to the relevant requirements of the Central Economic Work Conference, we must strengthen our confidence in doing a good job in economic work, industrial policies must address both development and security, enhance the status and competitiveness of traditional industries in the global industrial division of labor, promote the transformation and upgrading of traditional industries, and promote the overall economic operation. Improvement, achieving effective improvement in quality and reasonable growth in quantity.

Looking forward to the future development trend of the industry, Xu Yingxin believes that enterprise differentiation will become increasingly fierce, and enterprises must adapt to the reality of rapid changes. There will be pressure on external demand in the first half of next year, and domestic sales are expected to pick up in the second half of next year. In the short term, there may be greater pressure in the next six months, and companies should start a survival-first mode. For textile machinery companies, the demand for industrial transformation and upgrading is still growing, and they should focus on improving their own innovation capabilities and levels to better meet market demand. He specifically reminded textile machinery companies to pay attention to key investment destinations in the industry and actively deploy overseas. In the future, new foreign production capacity projects may increase, which will bring good opportunities to expand the export of textile machinery products.

The operating pressure of textile machinery is high

Expansion of overseas market space

Since 2022, the situation at home and abroad has been complex and severe, with repeated global epidemics, tense international situations, and the continued interest rate hikes by the Federal Reserve, which have had a huge impact on the global economy. The pressure on my country’s macroeconomic operation has further increased, and the prosperity of my country’s textile industry has shrunk. It has had a great impact on the operation of the textile machinery industry.

<pStandardize the industry; an important cornerstone to support foreign exchange reserves and an important force in maintaining financial stability. However, there are also hidden worries about market saturation and lack of growth, fierce competition within the industry; facing the pressure of continuedindustrial transfer; and the impact of the aging population onemploymentThe erosion of domestic demand; the impact of the international economic cycle; and the painful experience of supply chain disruption have left international buyers with lingering fears.

Liu Ming pointed out that new textile machinery equipment has greatly promoted the cost reduction and efficiency improvement of the textile industry, reduced labor employment, and increased employee income. China is still the main battlefield for new equipment and this will not change in 3-5 years. Domestic equipment has made gratifying breakthroughs and qualitative leaps. The trend of global equipment upgrading will continue. Half of the new spinning equipment capacity is outside China. The U.S. sanctions on Xinjiang cotton and other Western countries may accelerate this trend. There is a clear trend among Asian countries other than China to catch up with China in increasing production capacity. Innovation in the textile and apparel business model has put forward higher requirements for nearby production and has become a driving force for production capacity transfer.

Zhao Xiaogang, Vice President of China Textile Machinery Association, introduced the exhibition. The 2022 China International Textile Machinery Exhibition and ITMA Asia Exhibition will be postponed to November next year. The name and location will remain unchanged, and it will be postponed for a full year. According to reports, due to the long delay and the complex and severe industry situation, companies that have signed up to participate in the exhibition can apply for refunds based on their actual circumstances. But in the end, 91.89% of the companies retained their booth fees and their exhibition qualifications were still valid. Nearly 900 domestic and overseas companies will retain their exhibition qualifications and insist on participating in next year’s exhibition. Zhao Xiaogang said that this shows that global textile machinery companies are full of confidence in the future situation, and also reflects their trust and support for the exhibition, conveying their trust in the China Textile Machinery Association.

The promotion of the exhibition, especially the invitation of professional visitors, is an important task of China International Textile Machinery Exhibition and ITMA Asia Exhibition. Having a full-time team in charge, including overseas cooperation teams; having the advantages of professional associations; having a huge database, etc., are the most basic technical guarantees and measures for the exhibition to be successful for many years. At present, domestic epidemic prevention and control measures have been relaxed, and the number of new exhibitors at home and abroad has begun to increase significantly.

AAA

Disclaimer:

Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.