Abstract: In 2021, the domestic textile machinery market will generally maintain a relatively strong development trend, the main economic indicators of the industry will rebound significantly, and the operating income and total profit of China's textile machinery enterprises above designated size will increase significantly in 2021. Since 2022, the mainland textile machinery industry has faced the pressure of weak global market demand and intensified competition in the industry, and the growth rate of major economic indicators has continued to weaken. According to the data of the National Bureau of Statistics, from January to September 2023, the operating income of textile machinery enterprises above designated size decreased by 1.12% year-on-year, a decrease of 0.38 percentage points from January to June. Since 2023, the growth of industry operating income has always been in the negative growth range, but the decline has narrowed. From January to September 2023, the total profit of textile machinery enterprises above designated size decreased by 2.18% year-on-year, down 8.61 percentage points from January to June.
1. Definitions and Classification
Textile machinery refers to all kinds of machinery and equipment required to process natural fibers and chemical fibers into textiles with use performance, and its industrial chain is long and there are many types of equipment, which can be divided into chemical fiber machinery, spinning machinery, weaving machinery, dyeing and finishing machinery and non-woven machinery and equipment according to the production process.
Second, the business model
1. Consultative sales
Textile machinery will be machinery manufacturing and textile technology deep integration, equipment models and technical characteristics are many, raw material types, production processes, production scales when the required equipment types and configurations are quite different. This requires industry sales personnel to have a certain technical and market judgment ability, can provide equipment procurement planning and suggestions according to the specific needs of customers, and respond to customer after-sales service needs in a timely manner, so the sales model of the textile machinery industry is mainly consultant-based sales.
2. Order-based production
There are many types of textile machinery products, and the differences in customer needs are large, and the same type of product will have different configurations in different modules under the condition that the main structure is roughly the same, so textile machinery machinery and equipment manufacturers usually carry out order-based production. Order-based production puts forward higher requirements for the manufacturer's production capacity, and only reasonable and refined production resource allocation and management can respond to customer needs in a timely manner.
3. Comprehensive use of a variety of procurement models
Textile machinery and equipment have complex structure and high precision. Taking the rotor spinning machine as an example, a rotor spinning machine needs more than 1,500 kinds of parts, and textile machinery and equipment manufacturers usually cannot maintain a leading position in all fields such as mechanical components, control systems, and complete machines, and the whole process of production requires large investment, high management costs and low marginal benefits. Therefore, some machine manufacturers mainly carry out product design, development and assembly, independently produce a small number of core components, purchase some general standard parts, and design the main textile machinery special parts by the machine manufacturer, and hand over to professional manufacturers for production through outsourcing or outsourcing processing. The comprehensive application of a variety of procurement models, equipment manufacturers and parts suppliers work closely together, which greatly improves the cost performance of textile equipment.
3. Industry policy
1. Competent authorities and regulatory system
The textile machinery industry in the mainland to implement the combination of government supervision and industry self-discipline management of the regulatory model, the government authorities for the National Development and Reform Commission and the Ministry of Industry and Information Technology. The National Development and Reform Commission (NDRC) is mainly responsible for monitoring the macroeconomic and social development trend, putting forward macroeconomic regulation and control policy recommendations, and coordinating and solving major problems in economic operation. In accordance with the overall strategy for national economic and social development and the medium- and long-term plan, the National Development and Reform Commission (NDRC) has provided macro guidance for the development of the national industry and service industry and organized the formulation of comprehensive industrial policies in accordance with the domestic and foreign economic situation. In accordance with the prescribed authority, review major foreign investment projects, and participate in the review of major overseas investment projects. It coordinates the development of the textile machinery industry, and puts forward major ideas and policy measures to promote the strategic adjustment of the industrial structure and promote the coordinated development of the industry.
The Ministry of Industry and Information Technology is responsible for strengthening and improving the management of the industrial and communications industry, giving full play to the decisive role of the market mechanism in allocating resources, and strengthening the guiding and restraining role of strategic planning, policies and standards for the development of the industrial and communications industry. According to the division of responsibilities, formulate policies related to promoting the technological transformation of traditional industries and organize their implementation, and strengthen macro guidance and comprehensive coordination to promote the development of small and medium-sized enterprises. Over the years, the Ministry of Industry and Information Technology has promoted the formulation of a number of industry laws, regulations and technical standards, and actively guided the integrated development and technological innovation of the textile machinery industry.
The China National Textile and Apparel Council and the China Textile Machinery Association (formerly the China Textile Machinery and Equipment Industry Association) are the main self-regulatory organizations in the textile machinery industry. China National Textile and Apparel Council is a national textile industry organization, the main members are the legal personality of the textile industry association and other legal entities, China National Textile and Apparel Council in accordance with national laws and regulations, establish and improve the industry self-discipline mechanism, safeguard the legitimate rights and interests of members and enterprises, implement the national industrial policy, perform the functions authorized by the government, and actively guide and guide the development of the industry, promote the healthy development of the textile and garment industry in the mainland, and build a textile power.
Founded on May 19, 1990, China Textile Machinery Association is a voluntary social and economic group composed of enterprises and institutions in the textile machinery industry. China Textile Machinery Association is a member of the China National Textile and Apparel Council, mainly responsible for carrying out the investigation, collection and sorting of the basic situation of the whole industry, in the formulation of industry planning, economic and technological policies and industry technical standards, Suggestions to government departments on economic legislation and other aspects; carry out domestic and foreign market research, explore and solve problems in the textile machinery and equipment commodity market, constantly summarize and exchange the experience of textile machinery and equipment enterprises in transforming the operating mechanism and establishing a modern enterprise system, and promote the development of the industry; promote structural adjustment, coordinate the production and operation of enterprises, technical cooperation and other issues, organize exchanges, promote scientific research achievements and advanced management experience, and promote the technological progress and management level of the industry.
2. Industry-related policies
As an important part of the mainland's manufacturing industry, the textile machinery industry is an important fulcrum for the mainland to build a textile power, and its development has been concerned and supported by the mainland government. In the context of the current new round of scientific and technological revolution and the transformation and upgrading of the mainland's economic development mode, how to enhance the manufacturing level and international competitiveness of the mainland's textile equipment has become a key topic facing the textile machinery industry. The "Implementation Plan for Quality Improvement and Upgrading of the Textile Industry (2023-2025)" proposes to strengthen the R&D and promotion of complete sets of chemical fiber new materials, short-process spinning and weaving equipment, new nonwovens equipment, and green printing and dyeing equipment, develop textile special sensors, intelligent testing equipment, quality control and execution systems, and develop and apply automatic intelligent four-side sewing equipment, intelligent logistics packaging, textile special robots, and digital networked management information systems. In the textile industry, we will build a number of intelligent manufacturing demonstration factories with international advanced level.
Fourth, the development process
China's national textile machinery industry originated at the end of the 19th century. Until nearly half a century before liberation, the Chinese could not independently produce textile machinery equipment, and could only engage in simple assembly and maintenance of imported equipment. After the liberation, China's textile machinery people have established a complete modern textile equipment and equipment manufacturing industrial system with their own industrious hands. With China's accession to the WTO, the global textile industry capacity has shifted to Asia, and the center of the global textile machinery industry has begun to shift to China. Under the framework of global economic integration and trade liberalization, China's introduction of advanced textile technology combined with independent research and development has greatly improved the overall quality of domestic textile machinery, and the export of textile machinery has completed a leap from zero to 188 countries and regions. China accounts for one-third of the global textile machinery share and has become the world's largest textile machinery market.
Fifth, industry barriers
1. Technical barriers
The textile machinery industry is a technology-intensive industry, and the equipment production process involves many professional fields such as optical, mechanical, electrical, liquid, and gas, with high technical barriers. Due to the long textile industry chain, there are many kinds of supporting technologies in each link, and most of the major enterprises in the industry have patents or proprietary technologies, and it is difficult for new enterprises to fully grasp them in the short term. At the same time, textile machinery equipment from the design, research and development, prototype manufacturing, testing, product identification, trial production, promotion and identification to mass production requires a long cycle, the process needs to be in machinery manufacturing, process research, control technology and other aspects of long-term research and accumulation, and to follow the latest trends in the textile machinery industry technology and market requirements continue to update and improve, in order to continue to develop new textile machinery products to adapt to the market. This forms a potential technical barrier for new entrants.
2. Brand barriers
The textile machinery industry has a strong brand effect, and the brand is a comprehensive embodiment of the strength of textile machinery manufacturers in terms of technology research and development, product quality, sales network and after-sales service. Textile machinery generally has a higher unit price, a longer use time, and needs uninterrupted and continuous operation in the process of use, so textile enterprises pay more attention to the reliability and stability of products when purchasing textile machinery, and generally buy well-known brands in the industry, and will not easily try the products of new enterprises. The creation of the brand and the accumulation of customer resources require long-term and large investment of comprehensive resources, and it is difficult for new entrants to compete with the original enterprises in the short term in terms of brand and customers. There are high brand barriers in the industry.
3. Talent barriers
The textile machinery industry is a comprehensive industry, which not only needs professional technical research and development personnel familiar with mechanical design, machinery manufacturing, textile technology, automation control, etc., but also needs high-quality compound management, research and development and sales personnel. Only after long-term screening and training, can the enterprise have a group of skilled production personnel, qualified technical research and development personnel and sales and after-sales service personnel who are proficient in business and well versed in market dynamics. New entrants need a long time to cultivate, accumulate and tap a high-quality and comprehensive professional team, and there are certain talent barriers in the industry.
4. Barriers to capital and scale
The R&D cycle of textile machinery is long, and it needs to go through a large number of R&D and trial production processes, and the investment in fixed assets is large, which requires enterprises to have considerable financial strength. First of all, the cost of a single textile machinery is higher, the cost of a single set ranges from tens of thousands to more than one million, enterprises need to have a certain financial strength to ensure the normal operation of large-scale production and the continuous development of new products; secondly, the creation of textile machinery brand, the accumulation of customer resources and the construction of pre-sales and after-sales service networks, all require long-term accumulation and a large amount of capital investment; Serial coverage, diversify risks and seize opportunities in market competition. To sum up, new entrants need to have strong financial strength and a certain scale to be able to gain a foothold in the textile machinery market, and there are high capital and scale barriers in the industry.
5. Barriers to industrial agglomeration channels
Jiangsu and Zhejiang regions are the gathering place of textile machinery enterprises, and for a long time, the surrounding area has formed a complete variety of products, long-term stable cooperation of supplier industry support. Due to the complexity of the textile machinery production process, the types and quantities of parts involved, a single enterprise can not complete the processing of a full set of products, and a large number of external purchases are required, and more suppliers are involved in the process. In order to ensure the continuity of production and the stability of product quality, enterprises must effectively manage suppliers and outsourced production enterprises. At the same time, due to the requirements for parts processing accuracy and technical confidentiality, enterprises need to establish long-term and stable cooperative relations with core component suppliers. Therefore, it is difficult for new entrants in the industry to establish stable and good cooperative relations with upstream suppliers in a short period of time, and there are certain barriers to industrial agglomeration channels in the industry.
Sixth, the industrial chain
1. Analysis of the industry chain
The upstream industries of the textile machinery industry include bulk raw materials such as steel, aluminum, and copper, as well as electronic control system components such as servo systems and motors, electronic components, non-standard parts, textile machinery parts, and standard general parts. The supply capacity and price fluctuations of the upstream industry have a certain impact on the textile machinery industry. After decades of development, the mainland textile machinery industry has formed a socialized cooperation system of specialized division of labor, which has realized the optimization of existing resources, formed a stable supply capacity, reduced production costs, promoted the processing level and technological progress of parts, and enhanced the comprehensive competitiveness of the entire textile machinery industry. The downstream of the textile machinery industry is the textile industry. The textile industry involves the production of raw materials, spinning, weaving, printing and dyeing, garments and other links, with a high degree of marketization, and is one of the pillar industries of the mainland's economic development.
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