Recently, the reporter learned from the investigation report released by the Henan Bureau of Statistics of the National Bureau of Statistics that since February 2011, the price of cotton as a raw material has continued to decline in shocks, but the textile industry is one of the four traditional industries in our province. Businesses are still struggling.

Cotton prices are still not optimistic about the benefits of textile companies

“When the cotton price rose in the early stage, companies worried about raw material shortages and rushed to buy cotton, which took up a large amount of capital. Now the high inventory has run into price slumps and weak demand.” Pony, who has been engaged in procurement for many years in the textile industry, told reporters As the price of cotton fell, their factory did not dare to acquire it easily and remained on the sidelines.

“The decline in cotton prices seems to be positive for textile companies. Actually, it is not true. The continuous increase in production costs in the textile industry has led to slower growth in corporate profits. Some companies have even lost money and stopped production, further increasing the difficulty and risk of operating,” said one industry source.

Survey data from the National Bureau of Statistics Henan Survey Corps shows that, in 2011, there were 43 loss-making enterprises in the textile industry above designated size in our province, an increase of 79.2% over the previous year; there were 6 loss-making enterprises in the textile, clothing, shoes, and hat manufacturing industries. In 2011, of the 11 companies surveyed, four companies suffered losses, and seven companies were profitable, of which four had their earnings reduced.

Traditional competitive industries face "bottleneck" in development

In fact, the province’s textile industry is facing a “bottleneck” in development.

As far as the industry is concerned, the development of the textile industry chain in our province is unbalanced, with the former being "large" and the latter being "small." The output of yarn and cloth in our province ranks in the forefront of the country. Most of the enterprises are concentrated in the upper and middle reaches of the industrial chain, producing primary and intermediate products. The added value of the products is low, and the homogenization competition is fierce. The textile companies are greatly affected by the fluctuation of raw material cotton prices. However, there are relatively few textile end products such as well-known brand clothing, and the industrial system is incomplete, which does not form a comprehensive advantage.

At the same time, the majority of textile enterprises in our province are small in scale, low in concentration, agglomerative, and lack of economies of scale. In addition, financing difficulties and expensive financing problems are widespread, and senior technical personnel and management personnel cannot be recruited. The production process, technology, and equipment of the enterprise are backward, the lack of scientific research input and innovation ability are not strong, resulting in low product quality and product structure is too single. The development of new products is relatively lagged and it is difficult to adapt to the changes in the short-cycle, small-batch, and multi-variety requirements of the international market. The brand effect and driving ability are not strong.

Many parties work together to solve the industry "breakthrough"

On the issue of how to improve the competitiveness of the textile industry, Ma Minghua, an associate professor at Henan University of Economics and Law, believes that in the current severe economic situation, multiple parties need to work together to form a joint effort to solve the "breakthrough" of the province's textile industry.

Ma Minghua believes that the large population of our province is a huge potential consumer market for textiles and clothing. The government should stimulate consumption to stimulate domestic demand, step up the adjustment of the textile industry structure, promote the overall advantages of end products, and transform traditional industries such as cotton textiles and chemical fiber. Strong front-end products; financial support and rewards for enterprise restructuring, technological transformation, energy-saving and emission-reduction projects, implementation of fiscal and taxation preferential policies for textile product export tax rebates and other countries; support for the real economy, especially the supply of special funds for small and micro enterprises, and accelerating financial The pace of reforms supports the development of special services for small and medium-sized enterprises, regional small-scale financial institutions, and expansion of corporate financing channels.

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