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Small and medium-sized textile companies face a test of profitability

  • Author:Junqian Nonwoven
  • Source:Junqian Nonwoven
  • Release on:2019-05-30
Looking at the operation status of domestic textile enterprises in various provinces, industry experts believe that the current domestic textile enterprises are more serious, and the industry is “shuffled”. When the market demand is low, small and medium-sized textile enterprises often face more serious operational problems.

The head of a small textile company in Shandong said that his company's downstream customers are mainly yarn exporters, and downstream customers have more orders for yarn exports before September 2018. However, after this, due to factors such as Sino-US trade friction, the sales volume of downstream customers became worse. Some downstream customers even closed the factory because they could not accept the order, which eventually led to a sharp drop in the sales of cotton yarn. In addition, the past three to six months are the peak season for knitting yarn sales, and this year's season can only last until the Ching Ming Festival.

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Judging from the difficulties faced by textile companies at present, in addition to the above-mentioned orders reduction, profit decline, recruitment, environmental protection, rising capital and cost pressures are also issues for textile companies. Experts say that the degree of automation of textile(PP Nonwovens Wholesale) enterprises is constantly increasing. Some new enterprises have only 10 people than ingots. Because most small and medium-sized textile enterprises are aging and backward, these enterprises have higher labors than ingots, such as Hebei and Shandong. The labor of ingots is 35~50 people, the difference between enterprises is obvious, and the market selection process is accelerated.

Compared with the operation of small and medium-sized textile enterprises, large-scale textile enterprises have longer industrial chain, higher added value of products, better production and operation, and safer supply of funds. At the same time, the company invested a lot of manpower and material resources in product research and development, and achieved good comprehensive benefits. The company's overall competitiveness is strong and its market position is high.

"In the long run, the division of the textile industry and the restructuring of the industry will continue. Industry experts believe that textile(Polypropylene Spunbond Nonwovens Factory) companies should not only pay attention to the labor force, financing difficulties, cost increases, but also face positive market conditions. The long-term development of enterprises, product development, etc. need to keep up with changes in market demand, improve the working environment of workers, and change business philosophy. Textile enterprises should actively carry out technological transformation and equipment upgrades.