On August 13, the US Trade Representative Office said that the Trump administration will postpone the start of next month to impose a 10% tariff on certain Chinese products, including laptops and mobile phones. The US Trade Representative Office said in a statement that tariffs on other products will be postponed until December 15, including "computers, video game consoles, certain toys, computer monitors, and certain footwear and apparel products." After that, the Office of the US Trade Representative will publish more details and a list of specific product types affected by this statement.

As early as August 1, Trump had stated that it would impose a 10% tariff on Chinese goods worth $300 billion from September 1, accusing China of failing to honor its commitment to buy more American produce. Since President Trump announced a new round of tariffs, the global economic slowdown caused by trade friction has dominated the two weeks of turbulent transactions on Wall Street, and the various macroeconomic situations facing China's textile industry have become more complex and severe. Under the interweaving of unstable and uncertain factors, the textile and textile machinery industry has encountered unprecedented challenges.

Despite this information disclosure, the tax on clothing will be suspended for three months, but this rapid change in the international environment has made many corporate leaders even more unaware of the market trends in the second half or even next year. They are very worried. The industry winter is coming very fast.

In response to the current development of the industry, the reporter recently visited more than a dozen textile machinery manufacturers. These companies cover the fields of spinning, weaving, knitting, printing and dyeing, and non-woven machinery. Through the visit, we really felt the market's lack of optimism. Many business executives report that, overall, the production and sales situation of enterprises in the first half of this year is not too big compared with last year, but orders have obviously begun to decrease since the second half of the year, if such momentum and trends cannot be fundamentally changed. If it is expected, the situation next year may be even worse.

So, what is the cause of the current market? Although the reasons for this situation are complicated, each company has its own special reasons, but the general common factors can be reflected in the following aspects.

User market sales are not smooth

Trade friction affects confidence

The quality of the market depends mainly on the needs of customers and potential customers. This is what everyone understands. Compared with the user market, the textile machine market has a certain lag, and the production and sales of user companies are not good. Generally, the textile machine market will appear after half a year.

The reporter learned that due to the lack of market demand, the current survival situation of spinning companies is far from being as good as expected. It is understood that at present, the yarns spun by many large enterprises cannot be sold, resulting in a large inventory of yarn. However, due to factors such as single product, low product quality, and small profit margin, some small enterprises have experienced some losses and then closed down. In comparison, medium-sized enterprises are the best in the days because of moderate production, diversified varieties, and small inventory. Of course, the huge variables in the Sino-US trade friction negotiations have directly affected the confidence of the market and corporate investment. Some companies are not without funds, but because of the rapid changes in trade policies and the risk of huge fluctuations in the exchange rate in a short period of time, they dare not act easily and have been waiting for the final landing of the negotiating boots.

Domestic equipment cost advantage weakened

The gap in technological innovation is gradually widening

In addition to the lack of demand from downstream users, the advantages of domestic textile machinery are gradually becoming lower. As foreign equipment manufacturers set up factories in China and improved their raw materials, their equipment sales prices have dropped significantly. At the same time, domestic equipment manufacturers have experienced a rapid increase in production costs due to factors such as labor prices and rising raw material prices. This makes the biggest advantage of the domestic textile machinery - the cost-effective advantage is becoming a chicken rib, the current domestic and domestic equipment prices from the original 1:3 to 1:2, 2:3, or even only a few tens of thousands of yuan.

In the special period of poor living environment and the transformation and upgrading of the industry, some small and medium-sized enterprises and even some township and village enterprises have begun to purchase imported equipment when they purchase equipment. Some enterprises even purchase domestically produced equipment. The order is also replaced with an imported device.

At the same time that the cost-effective advantages of domestically produced equipment are gradually decreasing, our technical level has not narrowed the gap with foreign countries. On the contrary, due to the influence of the volume thinking in the past few years, the original industry's original ability is lacking, and the original technology is even less pitiful. On ITMA 2019, domestic equipment manufacturers have shown unprecedented shock: whether it is spinning theory or spinning speed, we have at least a 20-year gap with foreign advanced technology, not the speed of weaving, weaving and other equipment. The same problem exists.

Southeast Asian textile market changes rapidly

Domestic companies face greater competition

With the transfer of some electronic information and Internet companies to Southeast Asia, the current situation of surplus labor and low wages in Southeast Asia is also changing. These high-tech industries are also labor-clear enterprises, which require a large number of labors. Compared with these industries, textile enterprises are even more difficult to recruit workers, and workers' wages have also achieved rapid growth. At present, the equipment level of many Southeast Asian textile enterprises has approached or even exceeded the level of equipment application of domestic textile enterprises. This has also caused domestic textile companies to face unprecedented competitive pressures.

Many companies admit that this year the industry is not very optimistic, not only textiles, but many industrial enterprises are not very good. So at this stage, how can we move forward?

There are two aspects to this move. One voice is to concentrate on products that truly have their own technical characteristics. They believe that as long as the product can be closely linked to the actual production of the user's enterprise, there must be room for survival. In this regard, the reporter was also confirmed in this visit. For example, some technicians who have been involved in process management for a few decades in a certain field and are interested in equipment have found new uses. They can transform the original equipment according to the actual use requirements of customers, making it more in line with the requirements of domestic enterprise operators, and has won the recognition and favor of many well-known domestic enterprises. Another voice is to practice internal strength first, start with lean management, open source and reduce expenditure, and tide over the difficulties. This is also the current initiative of most domestic enterprises.

After a short week of business visits, the reporter found that the actual market situation is not as good as the statistics, but it is not the kind of difference that can't be dealt with. In the current cycle of the industry cycle, the textile machinery enterprises want to To firmly grasp the initiative in the international arena, it is necessary to make some efforts in the original innovation, because only good products are the foundation of their undefeated market.

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