Introduction: Recently, the prices of PTA, MEG, and polyester have been rising one after another. Today’s chemical fiber manufacturers, as soon as the raw materials rise, they will immediately take advantage of the situation to raise prices, starting the “little motor” of price increases. It can be said that “The aggressive price increase requires no reason”, grabbing the limelight! But the ones who suffer the most are the cloth bosses who are seeing price increases for everything but cloth prices!
Many weaving manufacturers really can’t hold on under this high pressure. No, they have also posted price increase notices! The notice to customers in the picture below reads: Due to the recent continued rise in raw material prices and high costs, various weaving companies are facing negative output values. On the basis of the price adjustment on October 18, the price will be increased by 0.3 to 0.5 yuan per meter according to different varieties. No wait!
Recently, the editor has also seen signs that many companies are raising prices in the circle of friends↓↓↓
Although weaving manufacturers are also trying their best to squeeze in the price increase, will they really do so? Let’s take a look at the last time raw materials surged and downstream weaving companies had to boycott an example:
In the early days of the G20 summit, chemical fiber manufacturers took advantage of the situation to grow rapidly, but gray fabric customers did not increase prices. Therefore, weaving factories that originally had meager profits suffered losses of at least 1 to 2 cents per meter of fabric, which was unbearable. Downstream weaving companies cannot resist the surge in raw materials and can only form a group to stop production and boycott!
The notification in the picture below states: Due to the rise in upstream raw materials, companies are in a state of long-term losses, coupled with the continuous high temperature, dozens of large textile companies in Jiapu decided to suspend production for ten days from July 25 to August 5. At the same time, the editor noticed that a total of 20 entrepreneurs signed and fingerprinted the “notification”!
▲ On July 23, 20 major textile companies in Huzhou, Zhejiang signed a decision to suspend production for 10 days
It can be said that at that time, these 20 manufacturers felt like they were ready to die, but what was the effect? As you can imagine, it’s very small!
The prices of raw materials are rising at the top, and buyers are lowering the prices at the bottom. Weaving manufacturers are really under great pressure! Perhaps the “high-ranking” raw material companies should really stop and wait for the downstream and listen to the voices of the weaving companies. After all, the brutal price increase of raw materials will only reduce the production enthusiasm of the downstream, and in the long run will have a negative impact on the later market. , is definitely not a long-term solution for sustainable development!
Six big mountains weighing on textile companies
1. Raw material costs continue to rise
As we all know, raw materials account for 70 to 80% of the cost of gray cloth and fabrics! Prices of raw materials such as polyester filament, cotton, and viscose staple fiber have risen sharply since June. At the same time, the increase in dyeing fees has added fuel to the fire. However, the prices of gray cloth and fabrics have remained weak, and the profits of textile companies have been reduced. Devouring, many weaving bosses even lamented, “I will lose money as soon as the goods come out.”
2. The operating burden is getting heavier
Recently, many textile factories and even well-known enterprises have been unable to escape the fate of losing money. Incidents such as bosses running away and factories closing down have occurred frequently. Behind these appearances, it proves the heavy pressure that textile factories are facing at this stage. Behind the seemingly prosperous landscape, most textile companies have less than 10% profit margin. A textile factory with an annual output value of 80 million yuan may only have a gross profit of more than 6 million yuan. Among these gross profits, the company still needs Expenditures include local taxes, sales expenses, logistics expenses, management expenses, and bank interest, and the final net profit is very little.
3. Labor costs increase every year
According to industry insiders, since 2006, the wages of front-line employees in textile factories have generally increased from 3,000 yuan to around 5,000-6,000 yuan today. If the “five insurances and one fund” are added, the labor costs of textile factory workers will directly double. Even so, textile factories still face the embarrassing situation of finding people, especially technical talents. Workers’ wages have been rising year by year, but profits have been stagnating!
4. Equipment expenditures are getting higher and higher
Most textile companies do not have high technical content, but now it is a general trend to use equipment instead of labor to reduce costs. This means spending more money to buy more advanced and intelligent equipment, ranging from several million to tens of millions!
5. Customer requirements are more demanding
These days, textile making is no longer as simple as making a piece of cloth. It is an out-and-out work of art! With the improvement of people’s living standards, the requirements for personalization are also getting higher and higher. In recent years, downstream clothing companies have also put forward more stringent requirements for all aspects of fabrics, such as shortening delivery time, being innovative, and reducing total costs. cost and impeccablehigh quality. Once the fabric has quality problems or fails to keep up with the fashion trend, it will soon be eliminated without mercy.
6. It is getting harder to collect payment every year
At the end of the year, almost everyone in the textile circle is “demanding debt”! Funds are already tight at the end of the year. If a bunch of accounts receivable are not returned, there will be no way to open the business in the coming year! A textile factory owner once roared on social networks: “The raw material factory cannot owe debts. It must either be settled or paid in advance, but the gray fabrics and fabrics produced are sold to users by themselves first!” “The money is paid first!” It’s very difficult to collect! The debtors are all uncles, they are always dragging them back and forth, and they won’t give them life or death… Our profits in textile industry are already very low, but now the bank is calling for debts every day, the rent has increased, and the wages of workers have also dropped. It’s increased! In addition, the country is now strict with old people. If you can’t get the money back and don’t have the money to pay, you may be blacklisted! The word ‘difficult’ can be said!”
Afterword
Although Boss Bu’s life is difficult now, he must always believe that “the road is tortuous, but the future is bright!” Instead of feeling sorry for oneself, it is better to retreat and build a network, either by transforming and upgrading, or by updating one’s own equipment. , or improve the internal cultural connotation of the enterprise. Only in this way can we keep up with the great changes of the times! In addition, you must always firmly believe that the price of gray fabrics will also increase! ! !
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