Once, the textile industry made many people get rich overnight, creating countless bosses of township enterprises who have valued more than 10 million yuan or even billions of dollars. Once, textile prices doubled in just a few months, and the number of textile mills tripled in a short time. However, all the good things seem to be like a singer's flower. After blooming, it will quickly wither. At present, there has been an unprecedented low tide in the textile industry. Even in some textile-based areas, nearly half of the textile factories are facing downtime or even closing down. Although there are more than 40 days away from the Spring Festival, many textile mills have already placed long-term annual leave in advance.
According to industry insiders, because the ups and downs of the textile industry, textile mills have closed down in large areas. "After this crisis, a large part of the textile industry will withdraw from the industry and choose to change course."
1. Workers placed annual leave on December 10 in advance, and there are more than 40 days before the Spring Festival. Some textile mills in Changyi City have given annual leave to textile workers. In the face of nearly 2 months of holiday, textile workers are not happy but worried. "The boss just said that he had put the annual leave early. As for when the work will start after the end of the year, there is no definite news."
Changyi City is a county-level city with a textile industry as the mainstay. There are thousands of large and small textile mills throughout the region. Textile products are distributed all over the country and are even exported to some developed countries such as Europe and the United States. However, such a city dominated by the textile industry is suffering an unprecedented blow. A large number of workers placed annual leave 40 days in advance. This year is only a microcosm of the crisis in this industry.
“In 2011, the textile industry has been sluggish. If we hardly start to work, the factory will suffer more losses.†Mr. Yang, a textile factory owner in Yinma Town, Changyi City, told reporters, “I have been doing For more than ten years, this has never happened."
According to Mr. Yang’s introduction, thousands of large and small textile mills and textile-related companies in Changyi City have had different degrees of influence. "Now, there are only a few factory losses, and some factories have a small loss." And for the current problems faced by the textile industry, we must start with last year's "crazy cotton."
“Last year, the basic raw material cotton in the textile industry experienced a substantial increase in prices. In the most frantic October, there was a myth that one day will be able to rise by 1,000 yuan, and the corresponding textile products will also rise in price, and one day will rise. One or two thousand dollars.†Recalling last year’s madly rising textile products, Mr. Yu, a textile mill owner in Yinma Town, Changyi City, told reporters that “The price of finished yarn (a type of textile) at the beginning of 2010 was only RMB 15,000 per ton. However, in October, the maximum rose to 35,000 yuan a ton. At that time, many people did not dare to sell the processed textiles, fearing that they would sell them today, and that the price increase would be a loss tomorrow."
2. More than half of the textile mills have stopped work. Mr. Yu told reporters that although the price hike was only for a few months, the textiles that have increased their prices madly have made some companies taste the sweetness. Leaders of some textile enterprises have begun to purchase new textiles in large quantities. Equipment, increase productivity. Some people who were not originally engaged in this industry started to raise money to purchase textile equipment and join the army of the textile industry.
“Because of the dramatic rise in textiles, the number of textile mills has increased by about three times compared to the beginning of 2010. In some townships, there has been almost a national textile boom,†said Mr. Yu.
However, the crazy price increase did not last long. On October 11, 2010, there was a sudden and dramatic turnaround. “I remember this day in my life. On October 10, 2010, I sold some finished yarn at a price of RMB 35,000 a ton. Then on the second day, suddenly all the middlemen did not want to.â€
Since then, textiles have been declining all the way. Although there have been brief fluctuations during the period, the overall downward trend has not changed. By December this year, "the price of finished yarn fell to 13,000 yuan per ton."
Mr. Yu introduced that more than half of the textile mills are currently in shutdown. "Now a lot of products are piled up in many textile mills' warehouses. Looking at the current sluggish market, many textile mills want to handle the backlog of products, at least until after the Spring Festival. This is also the time for many textile mills to take early leave. s reason."
In a textile mill in the development zone of Yinma Town, Changyi City, the reporter saw that the machinery and equipment at the entire plant had ceased to operate, and there was no one in the large textile factory workshop. “In the past, the plant’s workshop had heard the roar of the machine working 24 hours a day. Now, our factory has been shut down for more than half a month.†Mr. Sun, owner of the textile mill, told reporters, “A factory like me that has stopped work is What's more is that the factories that are in operation are also losing money."
3. The three main reasons for being trapped So, why is there a crisis in the textile industry this year? What caused the collapse of old companies for decades? When reporters interviewed more than a dozen textile companies, they learned from them that there were some reasons.
The first reason is that the current export volume of textiles has shrunk dramatically. In an interview, the reporter learned that Chinese textiles are highly valued by some European and American countries because of their low prices and high quality. However, since the European debt crisis erupted, China’s textile exports to Europe have been blocked. “Qingdao’s foreign orders for textiles are estimated to have shrunk by 40%. In addition, countries such as Pakistan, Bangladesh, and Turkey are competing with Chinese textiles with far lower cost advantages than China. These countries’ offers are some 10% lower than China’s. Our net profit is less than 10%. We can only give up such orders.†Mr. Liu, a foreign trade company manager who mainly exports textiles, told reporters that “mainly export-oriented textile processing companies are now difficult to survive, and they have to export. A large number of foreign trade textiles have been turned into domestic sales, which has increased the pressure on the domestic textile market."
"The export is not going out. The domestic market can't digest it. Nowadays, textile products are in an impassable state. Many processing companies attached to this industry can imagine the current situation." Liu told reporters.
The second reason is the oversaturation of the number of textile companies. In less than two years, the number of textile companies in Changyi City has tripled. "There are so many cakes. It was originally eaten by one person. Now three people suddenly come to us. Then, these three people will be hungry." Mr. Yu told reporters in the textile company. "Because of the temptation of crazy prices for textiles last year, many People have played textiles, which has caused the textile companies to become oversaturated."
"However, this situation will not persist for too long. Now that some textile companies have begun to suspend operations, the next step may be to close down and change jobs." Mr. Yu told reporters.
The third reason is that the increase in labor costs drags down companies. “At the beginning of last year, the wages of workers were 1,400 yuan a month, and this year, the maximum wage has risen to 2,600 yuan a month. Workers’ wages have increased by half.†said Mr. Yu, the boss of the textile company. “Now the wages of workers in various industries such as construction, processing, and catering, etc. Both are rising. If the wages of workers in the textile industry do not rise, then they face the embarrassment of being unavailable."
4. The high-margin days were gone. "The wages of workers have risen, but the prices of products have fallen, even lower than last year." Mr. Yu said, "The rising wages of workers make companies less profitable, and they can say that they have lost more. This is also a major issue facing the textile industry."
At one time, the textile industry made many people rich overnight, and the bosses who cost more than 10 million were emerging in township enterprises. “As long as tens of thousands of people get a few machines and hire a few workers to work, they will be able to make a steady profit. This is a textile industry a few years ago, and therefore it has created a lot of valuable corporate owners. But this kind of In the highly profitable industry, after the fluctuations of last year and this year, high profits are gone forever."
Mr. Yu said, "After one ton could earn a few thousand yuan of profit, after this disturbance, it would be very good to have several hundred yuan or even a few tens of yuan in profits."
The downturn in the textile industry has caused some people who blindly entered the industry to suffer, but after this disturbance, the textile industry will usher in new adjustments. "Perhaps, after this adjustment, the profit distribution of the textile industry will be more reasonable." Mr. Yu said.
The price of raw materials and finished products with money-losing prices are upside down. "Some textile mills that have not stopped production during the financial crisis have now stopped production for more than a month. They have not been able to start work and have lost money as soon as they started. Now, many factories have a backlog of hundreds of tons of stock. Some of the inventory needs to be consumed, at least until after the Spring Festival next year. In fact, as long as there is a ray of life, the factory will not stop work. But now it has come to a halt. As long as the machine is in operation, it will always be in a state of losing money." The owner of the mill, Mr. Yu told the reporter, “The reason for losing money is because the cost of processing is far higher than the profit generated by product sales.â€
"In addition to the workers' wages and the cost of electricity, the processed raw material I processed was a ton of 14,000 yuan, and after processing, I sold the product, which is also the money, even lower than this. That is, live. White dry, but also lose money.†Mr. Yu told reporters, “The raw materials of some factories were purchased last year. At that time, 20,000 yuan a ton, and now let them process, they will lose more money.â€
Everyone is reluctant to do the business of losing money, so now more than half of the factories have stopped working. "No downtime does not mean that you don't lose money. It's just because they don't want to lose their long-standing customers, so they have to lose money if they have to lose money."
Mr. Yu introduced that because the ups and downs of the textile industry, textile mills have closed down in a large area. "After this crisis, a large part of the textile industry will withdraw from the industry and choose to change course."
In an interview, the reporter also learned that in this big wave, a textile company owner surnamed Tian, ​​who could not afford the pressure of a huge loss, chose to hang himself and forever leave his company and his family.
According to industry insiders, because the ups and downs of the textile industry, textile mills have closed down in large areas. "After this crisis, a large part of the textile industry will withdraw from the industry and choose to change course."
1. Workers placed annual leave on December 10 in advance, and there are more than 40 days before the Spring Festival. Some textile mills in Changyi City have given annual leave to textile workers. In the face of nearly 2 months of holiday, textile workers are not happy but worried. "The boss just said that he had put the annual leave early. As for when the work will start after the end of the year, there is no definite news."
Changyi City is a county-level city with a textile industry as the mainstay. There are thousands of large and small textile mills throughout the region. Textile products are distributed all over the country and are even exported to some developed countries such as Europe and the United States. However, such a city dominated by the textile industry is suffering an unprecedented blow. A large number of workers placed annual leave 40 days in advance. This year is only a microcosm of the crisis in this industry.
“In 2011, the textile industry has been sluggish. If we hardly start to work, the factory will suffer more losses.†Mr. Yang, a textile factory owner in Yinma Town, Changyi City, told reporters, “I have been doing For more than ten years, this has never happened."
According to Mr. Yang’s introduction, thousands of large and small textile mills and textile-related companies in Changyi City have had different degrees of influence. "Now, there are only a few factory losses, and some factories have a small loss." And for the current problems faced by the textile industry, we must start with last year's "crazy cotton."
“Last year, the basic raw material cotton in the textile industry experienced a substantial increase in prices. In the most frantic October, there was a myth that one day will be able to rise by 1,000 yuan, and the corresponding textile products will also rise in price, and one day will rise. One or two thousand dollars.†Recalling last year’s madly rising textile products, Mr. Yu, a textile mill owner in Yinma Town, Changyi City, told reporters that “The price of finished yarn (a type of textile) at the beginning of 2010 was only RMB 15,000 per ton. However, in October, the maximum rose to 35,000 yuan a ton. At that time, many people did not dare to sell the processed textiles, fearing that they would sell them today, and that the price increase would be a loss tomorrow."
2. More than half of the textile mills have stopped work. Mr. Yu told reporters that although the price hike was only for a few months, the textiles that have increased their prices madly have made some companies taste the sweetness. Leaders of some textile enterprises have begun to purchase new textiles in large quantities. Equipment, increase productivity. Some people who were not originally engaged in this industry started to raise money to purchase textile equipment and join the army of the textile industry.
“Because of the dramatic rise in textiles, the number of textile mills has increased by about three times compared to the beginning of 2010. In some townships, there has been almost a national textile boom,†said Mr. Yu.
However, the crazy price increase did not last long. On October 11, 2010, there was a sudden and dramatic turnaround. “I remember this day in my life. On October 10, 2010, I sold some finished yarn at a price of RMB 35,000 a ton. Then on the second day, suddenly all the middlemen did not want to.â€
Since then, textiles have been declining all the way. Although there have been brief fluctuations during the period, the overall downward trend has not changed. By December this year, "the price of finished yarn fell to 13,000 yuan per ton."
Mr. Yu introduced that more than half of the textile mills are currently in shutdown. "Now a lot of products are piled up in many textile mills' warehouses. Looking at the current sluggish market, many textile mills want to handle the backlog of products, at least until after the Spring Festival. This is also the time for many textile mills to take early leave. s reason."
In a textile mill in the development zone of Yinma Town, Changyi City, the reporter saw that the machinery and equipment at the entire plant had ceased to operate, and there was no one in the large textile factory workshop. “In the past, the plant’s workshop had heard the roar of the machine working 24 hours a day. Now, our factory has been shut down for more than half a month.†Mr. Sun, owner of the textile mill, told reporters, “A factory like me that has stopped work is What's more is that the factories that are in operation are also losing money."
3. The three main reasons for being trapped So, why is there a crisis in the textile industry this year? What caused the collapse of old companies for decades? When reporters interviewed more than a dozen textile companies, they learned from them that there were some reasons.
The first reason is that the current export volume of textiles has shrunk dramatically. In an interview, the reporter learned that Chinese textiles are highly valued by some European and American countries because of their low prices and high quality. However, since the European debt crisis erupted, China’s textile exports to Europe have been blocked. “Qingdao’s foreign orders for textiles are estimated to have shrunk by 40%. In addition, countries such as Pakistan, Bangladesh, and Turkey are competing with Chinese textiles with far lower cost advantages than China. These countries’ offers are some 10% lower than China’s. Our net profit is less than 10%. We can only give up such orders.†Mr. Liu, a foreign trade company manager who mainly exports textiles, told reporters that “mainly export-oriented textile processing companies are now difficult to survive, and they have to export. A large number of foreign trade textiles have been turned into domestic sales, which has increased the pressure on the domestic textile market."
"The export is not going out. The domestic market can't digest it. Nowadays, textile products are in an impassable state. Many processing companies attached to this industry can imagine the current situation." Liu told reporters.
The second reason is the oversaturation of the number of textile companies. In less than two years, the number of textile companies in Changyi City has tripled. "There are so many cakes. It was originally eaten by one person. Now three people suddenly come to us. Then, these three people will be hungry." Mr. Yu told reporters in the textile company. "Because of the temptation of crazy prices for textiles last year, many People have played textiles, which has caused the textile companies to become oversaturated."
"However, this situation will not persist for too long. Now that some textile companies have begun to suspend operations, the next step may be to close down and change jobs." Mr. Yu told reporters.
The third reason is that the increase in labor costs drags down companies. “At the beginning of last year, the wages of workers were 1,400 yuan a month, and this year, the maximum wage has risen to 2,600 yuan a month. Workers’ wages have increased by half.†said Mr. Yu, the boss of the textile company. “Now the wages of workers in various industries such as construction, processing, and catering, etc. Both are rising. If the wages of workers in the textile industry do not rise, then they face the embarrassment of being unavailable."
4. The high-margin days were gone. "The wages of workers have risen, but the prices of products have fallen, even lower than last year." Mr. Yu said, "The rising wages of workers make companies less profitable, and they can say that they have lost more. This is also a major issue facing the textile industry."
At one time, the textile industry made many people rich overnight, and the bosses who cost more than 10 million were emerging in township enterprises. “As long as tens of thousands of people get a few machines and hire a few workers to work, they will be able to make a steady profit. This is a textile industry a few years ago, and therefore it has created a lot of valuable corporate owners. But this kind of In the highly profitable industry, after the fluctuations of last year and this year, high profits are gone forever."
Mr. Yu said, "After one ton could earn a few thousand yuan of profit, after this disturbance, it would be very good to have several hundred yuan or even a few tens of yuan in profits."
The downturn in the textile industry has caused some people who blindly entered the industry to suffer, but after this disturbance, the textile industry will usher in new adjustments. "Perhaps, after this adjustment, the profit distribution of the textile industry will be more reasonable." Mr. Yu said.
The price of raw materials and finished products with money-losing prices are upside down. "Some textile mills that have not stopped production during the financial crisis have now stopped production for more than a month. They have not been able to start work and have lost money as soon as they started. Now, many factories have a backlog of hundreds of tons of stock. Some of the inventory needs to be consumed, at least until after the Spring Festival next year. In fact, as long as there is a ray of life, the factory will not stop work. But now it has come to a halt. As long as the machine is in operation, it will always be in a state of losing money." The owner of the mill, Mr. Yu told the reporter, “The reason for losing money is because the cost of processing is far higher than the profit generated by product sales.â€
"In addition to the workers' wages and the cost of electricity, the processed raw material I processed was a ton of 14,000 yuan, and after processing, I sold the product, which is also the money, even lower than this. That is, live. White dry, but also lose money.†Mr. Yu told reporters, “The raw materials of some factories were purchased last year. At that time, 20,000 yuan a ton, and now let them process, they will lose more money.â€
Everyone is reluctant to do the business of losing money, so now more than half of the factories have stopped working. "No downtime does not mean that you don't lose money. It's just because they don't want to lose their long-standing customers, so they have to lose money if they have to lose money."
Mr. Yu introduced that because the ups and downs of the textile industry, textile mills have closed down in a large area. "After this crisis, a large part of the textile industry will withdraw from the industry and choose to change course."
In an interview, the reporter also learned that in this big wave, a textile company owner surnamed Tian, ​​who could not afford the pressure of a huge loss, chose to hang himself and forever leave his company and his family.
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