China Sewing Machinery Association: The Sewing Machine Industry Is Backward In Capacity.

"Enterprises should get some inspiration from this round of economic fluctuations. No matter when the market is good or bad, there must be a plan which is relatively long and far away, and we should not only focus on immediate interests."

The signs of the market seem to have shown that the sewing equipment industry is in a state of full recovery, and even in the forefront of the industry - "mechanical and electrical integration" products blowout phenomenon.

But some people wonder whether such a blowout is a case or a microcosm of the industry. Is this warming sustainable? What kind of truth is there behind it? Reporters recently interviewed Nagata Mihiro, the director of China Sewing Machinery Association, trying to sort out and interpret the current situation.

Reporter: is Bo Max's recovery warmer than you expected? Is it a true reflection of the whole sewing machine industry?

Da Mihiro: your interview is just a typical representative of our industry. However, its rebound rate has not exceeded my expectations.

When I saw Qin Chai fa (President Bo Max) last year, he looked at me with a worried face. This year he saw him. He was still worried, but his meaning was different. Last year, he was worried about no order, but this year he had too many worried orders.

From Bo Max, you can clearly see that the sewing machine industry is really getting warmer.

In fact, from last November to April this year, the sewing machine industry has been rebounding, the industry as a whole has increased by 50% over the same period last year, and the big business has increased by 70%. The fastest rebound is the electrical equipment and mechatronics products of Bo Max, almost all of which are growing exponentially.

Reporter: what is the situation before the rebound?

Tian min Yu: I can only tell you two words: miserable.

To what extent is it bad? According to the statistics of the January 2009 Association, the overall production and sales volume dropped by 80% over the same period in 2007, and almost all of the domestic sales of foreign trade were negative growth, which began in November 2008 and lasted for nearly a year in August 2009, and it can be said that it has been running hard at the bottom of the valley.

At that time, the whole industry's mood was very low. I also heard the negative reaction of some business owners, and some even said that the industry could not work.

It is also true that enterprises have suffered serious economic difficulties in this round of crisis, including the leap of leading enterprises in the industry. This is also normal. There is always a high tide and a low level in the economy. I expected that there would be a round of adjustment at the end of 11th Five-Year, because we had been growing at a high speed for 8 years, but we did not expect such a big adjustment.

Reporter: rebound so fast, which factors do you think are supported?

Tian min Yu: we have been looking for reasons.

Indeed, in the full recovery, clothing enterprises need to be restored after two years of adjustment, and their inventory has also been short after the economic recovery. As a matter of fact, they also need to fill the stock at that time, that is to say, to increase production will inevitably add equipment; two, the equipment of garment enterprises has just entered the cycle of renewal, and they need equipment; three, there is a very important situation. Clothing enterprises are facing difficulties in recruiting workers from the beginning of this year. Although the shortage of labor in the financial crisis has been alleviated to some extent, the situation facing the economic recovery is even more serious. Employers have used many ways to solve this problem, such as increasing wages and increasing welfare, but this can not solve the fundamental problem. This year, the Association conducted research on sewing machine enterprises and garment enterprises. I summed up four reasons: one is the world economy.

The boss has begun to realize that improving labour productivity is more meaningful than increasing manpower, and the main way to increase labour productivity is to use mechanical and electrical integration equipment. This is also the main reason for the blowout of this kind of products this year. The last reason is, unfortunately, domestic large garment enterprises do not buy many domestic sewing machines. They are more inclined to the products of Germany and Japan. But because of the rapid rise in the cost of large garment enterprises, many enterprises have begun to "thin" and have lost their processing to small enterprises. We can also see from media reports that orders for processing enterprises have been growing this year, and they need to expand their equipment, which are precisely the mainstay customers of domestic sewing machines.

Reporter: the capacity of sewing machine enterprises can not keep up with them. Besides the improvement of downstream market, are there any reasons for it?

Tian min Yu: at present, the capacity of enterprises has only recovered about 70%. This is definitely a distance from the market demand. I also feel very sorry.

The internal factor is the lack of workers in sewing machine enterprises. Labor shortage has been plaguing the industry. The capacity of mechatronics products cannot keep up with the others. Another special reason is that its core part DSP is out of stock. This product can not be produced by our country itself. It is bought from a company in the United States. This company is just like us, and the market is getting warmer, it is also at a loss, and its capacity is not up to date.

Reporter: this year's 1 to April warmer situation, do you think there is sustainability?

Da Mihiro: indeed, some people suspect that the first quarter of the rebound is too fast, is there a bubble in it, like real estate, like a two years of rigid demand released at once, and does not exclude this factor.

My view is that, as long as the real demand of the market, the trend of recovery is established, and it is believed that this year will continue, but the rebound rate in the second half of the year can still be as fast as the first four months.

Reporter: judging from the performance of some enterprises, the contradiction between production capacity and market demand is still prominent. What kind of lessons do you think enterprises should learn from this "grimace"?

Tian min Yu: I agree with you very much.

In the financial crisis, too conservative, and so on, the product is too late to produce, this is a very common phenomenon this year.

Enterprises should get some inspiration from this round of economic fluctuations. No matter when the market is good or bad, they must have a plan which is relatively long and far away. They should not only focus on the immediate interests, so I now remind enterprises to lose sight of profits and lose their head in the market.