Industrial Cluster: Focus On The Production And Operation Of Printing And Dyeing Enterprises In The First Five Months

From January to may 2022, the investigation report on production and operation of printing and dyeing enterprises shows that the international environment is complex and severe, the domestic epidemic situation continues to occur frequently, the downward pressure on China's economy increases, and the growth rate of some economic indicators slows down. In April, the added value of industries above designated size decreased by 2.9% year-on-year, 7.08% month on month, the production index of service industry decreased by 6.1% year-on-year, and the total retail sales of consumer goods decreased by 11.1%. The economic operation of printing and dyeing industry is gradually under pressure, and enterprises are faced with many difficulties and problems in the process of production and operation.

From May 16 to 20, China printing and Dyeing Industry Association conducted a survey on member enterprises and key industrial clusters to understand the actual operation of enterprises from the aspects of resumption of work and production, production and operation status, existing difficulties and policy appeals, etc., and analyzed and found problems in the industry development, and timely passed the information to relevant departments of China Textile Federation, To the national development and Reform Commission and other government departments, in order to seek more policy support for the industry, to help enterprises restore normal production order as soon as possible.

This survey has received feedback from 6 key printing and dyeing industrial clusters and 72 printing and dyeing and upstream and downstream related enterprises. After summary and analysis, this report is formed.

　　 1. Regional distribution of sample enterprises

Through the investigation of the industry associations in the key printing and dyeing industry clusters, the overall situation of the enterprises in each cluster is understood. The local industry associations participating in the survey include Guangdong Textile Association, Hubei Textile Association and Jingzhou textile printing and dyeing industry association, Shaoxing Keqiao printing and dyeing industry association, Ningbo Textile Industry Association, Jinjiang dyeing and finishing industry association and Shishi dyeing and finishing trade association.

The enterprises participating in the survey are widely distributed, covering the areas where printing and dyeing capacity is concentrated, and the industry is highly representative. The research enterprises are mainly distributed in Hangzhou, Huzhou, Ningbo, Shaoxing, Tongxiang and Zhuji in Zhejiang Province; Suzhou, Jiangyin, Nantong, Yancheng and Yixing in Jiangsu Province; Quanzhou, Fujian Province; Binzhou, Qingdao, Zibo, Weifang and Yantai in Shandong Province; Guangzhou, Shantou and Foshan in Guangdong Province. The number of enterprises participating in the survey in the above five eastern coastal provinces accounted for 87.5% of the enterprises surveyed. In addition, some enterprises from Shanghai, Xuancheng and Wuhu in Anhui Province, Nanchong, Suining and Mianyang in Sichuan Province, Yongji City in Shanxi Province and Ningjin County in Hebei Province also participated in the survey. The regional distribution of the surveyed enterprises is shown in Table 1.

　 2. Production and operation status of the enterprise

(1) resumption of work and production

Since this year, affected by the epidemic situation, some printing and dyeing enterprises in Shandong, Zhejiang, Jiangsu, Shanghai, Fujian and other provinces and cities have experienced periodic shutdown and production. After the local epidemic situation eased, enterprises have resumed normal production. According to the survey, there is no large-scale shutdown in the industry at present. Except for a few enterprises which stop production due to relocation or change of main business, other enterprises maintain normal production and operation activities.

(II) capacity utilization

At present, although the interviewed enterprises have gradually returned to work and production under the situation that the domestic epidemic situation has been basically controlled, the overall level of enterprise capacity utilization is low. According to the local industry association, the current operating rate of Keqiao district is only 50% - 60%, and the average operating rate of 72 printing and dyeing enterprises in Ningbo is about 60%. The overall capacity utilization rate of printing and dyeing enterprises in Jinjiang City has decreased by 20% compared with the normal level. The recent operating rate of printing and dyeing enterprises in Shishi City is about 75%, and the capacity utilization rate of Jingzhou textile printing and dyeing enterprises is relatively high, maintained at about 80%. Among the 72 enterprises interviewed, 38 enterprises reflected their capacity utilization rate. Among them, about 1 / 4 of them are in good production condition, with capacity utilization rate over 90%. About 1 / 10 enterprises are affected by insufficient orders and other factors, and the capacity utilization rate is less than 60%. See Table 2 for the capacity utilization rate of 38 enterprises interviewed.

(3) production and operation status

Most enterprises said that the international turbulence situation and the national epidemic prevention and control policy had a negative impact on the production and operation of enterprises, the business income of enterprises decreased significantly, the operating costs increased significantly, and the profit level declined to varying degrees. Especially since entering the second quarter, the orders of printing and dyeing enterprises in the traditional peak season have declined significantly, and the domestic and foreign market has been in a downturn. Only a few enterprises benefited from the increase of orders and processing fees accumulated in the third and fourth quarters of last year, and their operating income and profit increased slightly year on year in the first quarter of this year. However, these enterprises are pessimistic about the production and financial data of the second and third quarters of this year. 37.7% of the surveyed enterprises mentioned the problems of insufficient orders and order transfer, and expressed concern about the uncertainty of subsequent orders. Most of the enterprises participating in this survey are the advantageous enterprises in the industry. The current production and operation situation of these enterprises is still the same, and the production and operation situation of many other enterprises may be even worse.

More than 95% of the surveyed enterprises are processing-oriented enterprises. The butterfly effect caused by the epidemic situation has different degrees of impact on the processing and self-supporting enterprises. Since January to may, the orders of some garment manufacturers in Fujian Province have been reduced. For example, the orders of some downstream enterprises have been reduced due to the decrease of orders from January to May. If this situation continues to happen, it is expected that the capacity utilization rate of the enterprise will only reach 70% from June to July.

　 3. Main problems faced by enterprises in production and operation

(1) the production cost has increased substantially, and the profit of the enterprise has been squeezed

First, the prices of natural gas, steam, electricity and other energy sources have increased significantly. According to the data of the National Bureau of statistics, the domestic energy prices in the first quarter of 2022 increased by 12.2% year-on-year. According to the survey results, the steam prices of textile printing and dyeing enterprises in Keqiao District of Shaoxing City rose by more than 20% month on month in April, and the electricity charges increased by 14% on average; The steam price of printing and dyeing enterprises in Wujiang District of Suzhou increased by 5% month on month in March, flat in April and increased by 10% in May; The price of steam and electricity of Ningbo Textile printing and dyeing enterprises increased by more than 20%; Compared with November 2021, the actual electricity charges of Hanchuan textile enterprises have increased by nearly 35%. Energy is an important production factor of printing and dyeing enterprises, which has a great impact on the comprehensive cost of printing and dyeing enterprises. The sharp rise of energy prices makes the printing and dyeing enterprises bear greater pressure at the cost side.

Second, the prices of raw materials have risen significantly. Since the beginning of this year, due to the international turmoil and the United States' sanctions on Xinjiang cotton, the prices of upstream raw materials have increased significantly. The prices of cotton yarn, dyes and some basic chemical raw materials have increased by nearly 30%. Among them, the price of liquid alkali has increased by 70%, and the price of American cotton has increased by 20%.

Third, logistics costs have increased significantly. Since the beginning of this year, epidemic outbreaks have occurred in the concentrated areas of printing and dyeing enterprises, such as Hangzhou and Shaoxing in Zhejiang, Suzhou in Jiangsu, Binzhou in Shandong, Jinjiang in Fujian, Foshan in Guangdong and Dongguan in Guangdong. The local government has strengthened epidemic prevention measures, which has hindered the transportation and logistics and prolonged the delivery cycle of enterprises. The epidemic in Shanghai, which began in March, has affected the logistics and cargo departure of enterprises in many places. The poor logistics and the increase of logistics cost cause trouble to the normal operation of enterprises.

The sharp rise of comprehensive production costs forced printing and dyeing enterprises to increase processing fees. However, considering the affordability of downstream customers, the increase of processing costs was less than the cost increase, and the profit space of enterprises was squeezed.

(2) the order volume declined in the second quarter

According to the survey, the surveyed enterprises generally reported that the orders in the first quarter were relatively sufficient, the production situation was basically good, and the revenue and profit were improved. The economic operation of the printing and dyeing industry in the first quarter also reflected this situation. According to the data of the National Bureau of statistics, the business income of printing and dyeing enterprises above designated size increased by 16.86% year-on-year, and the total profit increased by 43.28% year-on-year. However, after entering April, most enterprises are facing the plight of insufficient orders. The current capacity utilization rate is generally maintained at 60% to 70%, while some enterprises only have about 50%. The operating efficiency of enterprises has declined, and some enterprises have even suffered losses. Since April, the domestic epidemic situation is grim, many foreign trade orders can not be shipped smoothly, it is difficult to guarantee the delivery period, which greatly affects the customers' willingness to place orders, and domestic orders tend to transfer to Southeast Asia. At the same time, the consumption volume of textiles and hats decreased for more than 4 months, which was also the main reason for the weak consumption of textile products and clothing.

(3) it is difficult to recruit and employ, and there is a lack of high-quality talents

In recent years, with the gradual decline of demographic dividend in China, the employment cost of enterprises has increased significantly, and the pressure on recruitment and retention has also increased. On the one hand, as a traditional manufacturing industry, the printing and dyeing industry is not attractive to the younger generation. Many post-80s and post-90s are unwilling to work in printing and dyeing enterprises, especially in the county enterprises in Central China. The aging trend of front-line employees in printing and dyeing enterprises is gradually emerging. On the other hand, it is difficult for the textile printing and dyeing enterprises to stay in the enterprise for a long time. The shortage of technical talents is a common problem faced by printing and dyeing enterprises.

　　 4. Enterprise policy demands and suggestions

(1) local government departments have further refined the epidemic prevention and control policies, ensuring smooth logistics and ensuring the safety and stability of the industrial chain and supply chain while doing a good job in epidemic prevention and control.

(2) relevant government departments should establish a mechanism to guarantee the supply and price of large quantities of raw materials; Establish coal supply guarantee mechanism and plan, stabilize coal price, ensure stable supply and reasonable price of steam, natural gas and other energy, prevent monopoly, and provide good production basis for industrial enterprises.

(3) the government should increase its support to the real economy, relax the financial credit conditions for traditional industries, and effectively reduce the financing costs of enterprises; We will implement the tax reduction and exemption policy, and continue to implement the policy of delaying payment of social security for enterprises in difficulty.

(4) according to the actual situation, local governments have issued relevant policies to promote consumption, expand domestic demand and stabilize growth, so as to effectively activate the market vitality of domestic demand and give full play to the pulling role of consumption on economic growth.

(5) the government shall set up special funds to support technological research and development, transformation and upgrading of enterprises; Strengthen the construction of human resources, the government, society, schools and enterprises to jointly carry out the cultivation of textile composite talents, and promote the sustained and high-quality development of the industry.