Textile Chemistry

As one of the four core businesses of Hongda Group, ......

Material Chemistry

Since 2001,Hongda Group has been a distinctive char ......

Biological Pharmacy

Companies in the bio pharmaceutical development alw ......

Resin & Additive

The company's business covers the development o ......

The crisis behind textile boom has came, and 99% of people are not aware of it

2017.05.31   13:59

Since 2016, in the raw materials soared under the impetus of the textile enterprises getting tight, and with the background to the production capacity, supply side reforms, many textile enterprises have become the object to the production capacity, many SMEs have been shut down across the board, as for the development of the industry. "The poor.

Soaring raw materials, SMEs are the biggest victims

Last year's surge in prices is not actually the demand pull up, but more like environmental protection and production capacity led to the sudden emergence of upstream raw material production capacity of enterprises and the price surge. This explosive price is difficult to carry out to the end of the enterprise, making many small and medium enterprises located in the middle of the capital chain breaks, order transfer and other reasons for the collapse of the tide.

In polyester industry, since the second half of last year, the international crude oil futures to commodity led have soared, driven by the textile products of the whole industry chain prices, while prices in the process, but a few happy tears!

Large polyester enterprises, in recent years, dragon Hongjian enterprises bankruptcy. The relationship between supply and demand has improved, the overall production capacity has become more concentrated, the basic pricing power in the hands of a few leading enterprises, centralized production maintenance and G20 period, polyester factory inventory is generally low, enterprises widespread expectation. After the tide of price increases, corporate profits do not fall or rise, large polyester enterprises ushered in a long lost business cycle.

For downstream small and bombs, weaving enterprises, raw materials skyrocketing is undoubtedly a bad news! Because of rising prices of raw materials and polyester enterprises sell attitude, one hand the small and medium-sized enterprise to the customer needs to substantially increase, on the other hand, can not guarantee the punctual delivery, the customer will look for new suppliers. Under difficult conditions, many companies in order to keep the customer can only further compression of the thin profits, so the end of the seemingly fiery market, bringing small and medium textile enterprises is false prosperity!

False to capacity, prosperity behind the crisis

In addition, the present stage of production of the industry is really effective? To the Far East, dragon, Hongjian have been small to purchase second-hand texturing and weaving equipment, the idle capacity exit seems to be only temporary, return to the market is only a matter of time, "production" is not the real backward production capacity from the market at this stage, once the stop device to return to the market early because of false prosperity brought to capacity will immediately burst?

Small and medium enterprises collapse: China's economy can not bear the weight

In the world, small and medium-sized enterprises are the main force of a country's economy, is the most important group.

In the EU, a total of more than 2 thousand SMEs, accounting for 99.8% of the total number of EU enterprises. In 2012, small and medium enterprises (SMEs) absorbed 87 million of the employed population, accounting for about 67.4% of the total employment in the EU, and the added value accounted for about 58.1% of the EU's gross domestic product (GDP).

In Japan, SMEs have reached 469, accounting for about 99.7% of the total number of enterprises, accounting for about 70.2% of the total number of jobs, small and medium manufacturing enterprises to create added value accounted for the total value of the manufacturing sector of 57.7%.

The view that the majority of SMEs are high energy consumption, high pollution, labor-intensive enterprises, their failure is the price of China's economic transformation, the inevitable price to pay". So we think about it, if SMEs are difficult to survive, transformation and upgrading will not become empty talk?

Small and medium-sized enterprises are vital to the growth of national income, employment and social stability. Without it, China's national enterprises stand in the forest of the world has become a mirage.

As China's well-known financial scholar Feng Liguo said: "a large number of small and medium-sized enterprise losses, bankruptcy or immigration, not the price of China's economic transformation is bound to pay, but the failure of economic policy".


                                        By Emily

Previous: Why do you want to wash and wear new clothes? How to wash?