At present, China's sewing machinery industry has achieved a strong recovery and achieved unprecedented good results. However, through the most concentrated hot issues, we should also see some deep-seated problems that may affect the long-term development of enterprises and industries.

Since March 2010, the demand for sewing machinery in our country has only increased. The pace of recovery in the sewing machine industry has been getting faster and faster, and even some companies have set a new historical high. At the same time, labor shortages, recruitment difficulties, rising labor costs, and rising raw material prices have caused component companies to slow their capacity recovery due to shrinking profits. These have become a constraint and impediment to the recovery of China's sewing machinery industry in the recent period. The main factor for the speed of development.

Although from the beginning of 2010 to the first quarter of this year, China's sewing machinery industry achieved a strong recovery and achieved unprecedented good results. However, through the most concentrated hot issues, we should also see that some enterprises are likely to affect the long-term development of the industry. Deep-seated problems.

Concern factor 1 - Decline in profitability of enterprises In 2010, due to the combination of multiple factors such as shortage of resources, lack of work, and power cuts, the production capacity of blanks, parts, and casings for sewing machine parts could not be raised quickly, resulting in insufficient supply. The status of the company has led to a widespread phenomenon of phased shutdown due to missing parts.

At the same time, due to the overall rise in the prices of social labor and production materials, the profit margins of complete machines and parts companies have been greatly reduced. According to statistics from the China Sewing Machinery Association on some complete machines and parts and components companies, compared with 2009, the cost of labor in sewing machinery enterprises in China increased by an average of 20%-25%, and raw material costs increased by an average of 25%-30. %, other costs increased by about 15%, but most parts of the industry maintained their original prices. The price of some key parts was only fine-tuned by 3%-5% on average, and the overall price increase rate was only about 2%-3%. Effectively digest the rapid rise in the cost of various factors of production.

At present, the overall profitability of the sewing machinery industry in China has generally declined. The average net profit of key enterprises is only about 6%, and the sustainability of the industry has been seriously affected.

Concerns 2—Parts and components are in urgent need of transformation and upgrading In 2010, the gap in the employment of parts and components companies in the sewing machinery industry in China was further expanded, and the average gap between the technicians of the enterprises was 15% to 30%. Affected by this, the production capacity of parts and components companies was difficult to achieve rapid Recovery and promotion. According to incomplete statistics, the average order completion rate for industrial parts and components companies in 2010 was 70%-75%, and companies urgently needed effective technological transformation.

On the other hand, due to the sharp rise in production costs, difficulties in product price increase, long cycle of loan withdrawals, and the decline in the profits of parts and components companies, confidence in the redevelopment and reinvestment of enterprises has been greatly affected, and the wait-and-see atmosphere in the market is strong. According to the analysis and analysis of 20 parts and components enterprises by China Furnace Association, the average amount of spare parts enterprises used for equipment renewal and transformation in 2010 only accounted for 3% of the total output value of the company. The average amount of investment was 900,000. The average purchase of new CNC equipment was 4 From Taiwan to Taiwan, it is difficult to meet the urgent need for equipment automation upgrades and rapid increase in labor productivity in the current sewing machinery industry in China.

Controversy 3—The hidden danger of product quality Due to the shortage of products in the industry, “grabbing speed”, “upload” and “satisfaction with the market” have become the main theme of the recent development of the sewing machinery industry in China. The whole machine and parts and components companies have been working overtime. Adding to the busy production status has not been alleviated, and the "heavy output-quality" dysentery has risen.

According to the survey conducted by China Furong Association on nearly 20 key spare parts enterprises in China's sewing machinery industry, about 45% of the parts and components companies clearly stated that the whole machine company has relaxed its control over the quality procurement of parts and components. According to some machine and component companies, the phenomenon of neglecting product quality among small and medium-sized complete machine companies is even more serious. For example, parts that have not yet completed the final machining process or have not undergone heat treatment are even the same as quality defective products. Being “shopper” and flowing into the market has buried great hidden dangers in the quality of the sewing machinery industry in China, and will have a significant impact on the national image of the domestic sewing machinery brand.

According to many dealers, complaints about product quality in the sewing machinery market in China suddenly increased in 2010.

Controversy 4 - Strengthen the intensity of intellectual property disputes In the past two years, with the increasingly fierce market competition and the acceleration of the localization of the industry in the field of special machines and electronic control systems, the intensity of intellectual property disputes at home and abroad has escalated. According to incomplete statistics, from 2008 to 2010, only well-known Japanese companies used sewing machines such as computer-stitched sewing machines, computer zigzag sewing machines, computer double needle machines, cylinder-type flat seam sewing machines, and buttoning machines, etc., to the sewing machinery industry in China. Some companies have initiated 6 patent dispute indictments, and in 2010, 3 cases of new patent dispute lawsuits have been filed, and the industry should attach great importance to it.

Patent litigation-based intellectual property litigation will delay the adjustment of the product structure of the sewing machinery industry in China. It will have a negative impact on the production and operation of the industry, the speed of development, and brand awareness. The industry enterprises urgently need to strengthen independent innovation and breakthroughs. Patented technical barriers to quickly get rid of passive development.

The decline in profitability of postscript companies has caused labor-intensive sewing machine companies to feel a great deal of operating pressure. In particular, the lack of confidence in the development of parts and components companies has prevented them from investing in production expansion and has increasingly opted for diversified production. As the basis of the sewing machinery industry chain, the stability of the parts and components company is related to the development of the entire industry. The number of patent lawsuits filed by domestic companies has increased, and companies have also increased their mutual protection.

The decline in product quality is fundamentally due to the fact that the market is in short supply, which has caused customers and dealers to loosen their quality requirements to a certain extent, and overall machine manufacturing companies have also been more or less relaxed. We cannot help but worry that this short-term interest will result in the loss of corporate and brand reputation, and even the image of the industry.

The above four points are of course the most prominent issue in China's sewing machinery industry, but from another perspective, there is no shortage of opportunities. In the market, the sudden exit of a company often means another company's appearance, and the reduction of one's strength may have other people coming to the top to see who has the strength to persist at the crucial moment of the current industry transformation and upgrading. Win. To have the power—to increase the scientific and technological content, quality, and added value of products, and to rely on independent innovation to transform the model is the way out.