Cotton Textile Industry Problems And Solutions

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Cotton textile industry is the backbone of China’s traditional industries and an important livelihood sector, but also the more obvious advantages of international competitive industry, the expansion of exports and jobs, protect the farmers income has played an important role. However, since the second half of 2008 by the international financial crisis, China’s cotton textile industry, are subject to certain shocks, cotton textile industry was severely affected. In this paper, Heze, Shandong Province as an example, analysis of the textile industry’s present situation and problem-solving approach.

Reduction in international demand for textile exports declined. By the international financial crisis, world economic slowdown, foreign demand significant drop in textile exports blocked. Since the second half of 2008, China’s textile exports fell sharply. In January 2009 to June, textile exports 72.79 billion U.S. dollars, down 13.18%. Affected by this, in January 2009 to June, Heze City, textile exports 13.85 million U.S. dollars, down 15.8%.

Cotton prices rose, raw material costs. Since 2006, cotton spinning enterprises rising raw material prices, an increase of the textile industry’s production costs, squeezing the textile industry profitability. In 2009, cotton prices continued to rise, but the cotton prices have remained in the doldrums. 6 the end of the price of cotton yarn 16.2 thousand yuan / ton, three cotton price of 13,000 yuan / ton, and the market supply of raw materials, some raw materials to raise difficulties in cotton spinning enterprises.

Growth of the wages and labor costs. Textile enterprises are labor-intensive industries, and greater demand for skilled young adults, the textile industry employment also affected by seasonal effects. In recent years, due to factors such as rising prices lead to increased cost of labor and employment. While India, Pakistan, Bangladesh and other countries, because of lower labor costs, to a certain extent, driving down the international market price of cotton textiles, the relative weakening of China’s cotton textile industry in low-cost comparative advantage.

Corporate financing difficulties, there is a bottleneck of funds. By the financial crisis, since the second half of 2008, cotton textile industry in the market met the cold, many companies recouping of funds slowed down-flow problem, and can only barely maintain production. The textile industry in general through a mortgage, guarantee, etc. for financing. However, most small-scale enterprise assets, less collateral, guarantees the lack of resources, lending capacity of severely restricted access to the shortage of funds into a bottleneck restricting the development of new textile industry. At the same time, the private sector “family workshop” type of low-level management has led to extensive corporate financial chaos, resulting in bank-enterprise information asymmetry affect the bank-enterprise cooperation, constraints corporate finance. Financial constraints as a result of enterprise with the purchase with the procurement of cotton, but also some companies do not take up liquidity in order to stop a number of technology projects. In addition, energy supply, small-scale enterprises, etc. are also factors that affect the development of the textile industry.

Increased industrial restructuring, elongated textile industrial chain. Recommended that local governments do a good job textile industry long-term development plan, according to the textile industry development area, adjusting the industrial structure, stabilize the market of raw materials, energy supply, promote the healthy development of textile industry. First, from a policy to protect the interests of farmers to expand cotton cultivation, to promote science cotton, improve cotton production, stable supply of cotton; 2 is compressed a small spinning enterprise scale, the introduction of advanced technology and equipment to speed up weaving, dyeing, clothing, and Textiles and other deep-processing industry, textile industry chain elongation; 3 is the introduction of high technology content, low resource consumption, little environmental pollution, textile project settled, with advanced technology, equipment, techniques to reduce resource consumption of raw materials, changing the mode of growth, to upgrade the industry competitiveness; 4 is to guide the adjustment of product structure of existing enterprises, elimination of outdated equipment and technology, the introduction of advanced technology, speed up industrial upgrading, develop high value-added, high-tech, high-margin products.

Guide enterprises in technological innovation, and improve enterprise innovation capability. Government departments should promote the cotton textile industry cluster innovation service platform for new product R & D capability is weak, low level of technical management for small and medium textile enterprises to provide comprehensive range of innovative services to small and medium textile enterprises to enhance innovation capability and technology, operation and management level speed up the cotton textile industry cluster structural upgrading of export products.

The introduction of advanced equipment and technology to accelerate the pace of industrial upgrading. Small and medium enterprises should grasp the cotton textile industry, the development trend of the core technology, strengthening and scientific research institutions, institutions of higher learning cooperate in the timely introduction of advanced textile production equipment and techniques to enhance the competitiveness of textile products.

Changes in enterprise management, improve enterprise management level. Small and medium textile enterprises should deepen the internal reform of enterprises, improve the management level, in the corporate culture, talent strategy, management mechanism, make great effort, focusing on management to enhance and give full play to the role of personnel and equipment capabilities, so that “poor management quality” , “Management out of benefits” will be better technology, equipment, technology applied to production in order to promote the industry’s rapid development.

Banks to optimize credit structure, increase financial support to. Banking financial institutions should actively adopt effective measures to strengthen and improve the cotton textile industry, financial support in resolving the textile enterprises in technological innovation, production and management areas such as funding needs, promote the business industry, product upgrades and healthy development. To support the cotton textile industry in response to the adverse effects of changes in the market to overcome the practical difficulties in production and operation, for the textile industry to open up new financing channels, the chain of continuity and stability of funds to meet the effective demand for funds.

Strengthen joint between enterprises play an industry cluster advantages. Heze city government should play a national high-quality cotton production base and export base in Shandong Province, the resource advantages of cotton, cultivate leading enterprises in the development of clusters of economic, cotton textile industry was able to come a long way.

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