China's plastic knitting industry development prospects

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China's plastic knitting industry development prospects

Information sources:本站 | Release date: 2018-12-22 | Browse volume:465
Key word:China's plastic knitting industry development prospects
The end of the glory is the unchanging truth, and so is the industry. After the climax, it will inevitably go into a trough. But as long as companies can help each other and look far, they will be able to get out of the woods.

China's plastic weaving industry has been introduced to China since the late 1950s and early 1960s. After experiencing a period of rapid development in the 1980s and 1990s, it has occupied a certain position in China's trade share.

How is China's plastic weaving industry in trouble?

As a supporting industry for industry and agriculture, the plastic weaving industry is widely used in cement, agricultural and sideline products, feed, chemical products and other packaging. Among them, the cement industry has a large demand for it.

From the analysis of the status quo, the development of the plastic knitting industry is going through a long and harsh winter, focusing on the market situation of the entire packaging industry. After the plastic woven products have replaced the hemp products, the woven products based on plastics are irreplaceable. Even in difficult times, the plastic knitting industry has a good development prospect. As long as industry and agriculture develop, the plastic knitting industry has an orderly development space as a supporting industry. Here, Song Yunhe, a senior consultant of the China Plastics Association Plastics Weaving Products Committee, called on all enterprises to break the tradition and take a new path, reform according to the needs of the times, eliminate the ills of the past industry production development, and rely on themselves to get out of the predicament and improve the status quo.

In this regard, several leaders and business representatives discussed the difficulties faced by the plastics industry, and analyzed:

From the perspective of the international situation, since the 2008 economic crisis, the international financial situation has not been optimistic. In recent years, European and American countries have been in economic difficulties, resulting in a significant reduction in the export volume of plastic woven products in China. At the same time, due to the impact of the world economy, the devaluation of the renminbi in the international arena has also caused a major impact on the export of the woven fabric industry.

From the perspective of the domestic situation, due to the impact of the economic crisis on China's economy, the state government has introduced a series of macro-control measures to stabilize the economic situation and ensure employment. On July 24, the central government held an economic arrangement meeting to study the economic trend in the second half of the year. It clearly stated that the economic trend in the second half of the year should be stable, and at the same time, the export tax reduction and tax exemption policy was implemented. Due to the high tax rate of the entire plastic knitting industry, it remains to be seen whether the relevant regulatory policies will lead the plastics industry out of the predicament.

At the same time, the quality of China's labor force is increasing day by day, domestic enterprises are increasingly investing in laborers, and the advantages of cheap labor have disappeared. However, some countries in Southeast Asia and South Asia have cheaper labor and lower production costs, and their woven products are increasingly favored internationally, which has caused China's woven industry to face a new challenge.

The plastic knitting industry exists as a supporting additional industry. When the industrial and agricultural industries to which it depends are declining, the plastic knitting industry will inevitably be low. The development of leading industries is facing a test. As a sideline business, we must seek a path of reform and development in the predicament.

How to develop the problematic woven industry

The market demand for woven products is growing at a faster rate, the technology is limited, and the export quota has reached its peak. At present, the production capacity of the entire industry is 16 million tons - 17 million tons, while the demand is less than 13 million tons, and the overcapacity is nearly 30%. Therefore, the entire industry is facing the situation of overcapacity and oversupply, which is reflected in:

First, the threshold of the plastic knitting industry is low, and the bad competition is serious.

For example, Sun Dongquan, deputy secretary general of China Plastics Processing Industry Association, said that the threshold of the entire plastic knitting industry is not high, and the staffing and technical content are very low. Large enterprises can also produce small factories using high-end equipment. However, the mechanical production cost of large enterprises is much higher than that of small enterprises. From the internal perspective of the industry, there has been serious competition, resulting in a stalemate in the entire plastic knitting industry. Therefore, most of the representatives of the participating companies expressed that they hope that the woven association can formulate relevant industry standards, standardize the status quo of the entire woven market, and let the production of woven enterprises enter a healthy and orderly track.

Second, the advantages of labor-intensive industries are no longer

The technical content and added value of the plastic weaving industry itself are not high. With the improvement of the social security system, the state mandates that enterprises pay insurance premiums to workers, so the investment cost of enterprises for laborers also begins to increase, which makes labor The intensive woven industry is caught in a passive mud. Faced with inevitable real problems, woven companies have begun to find a way out, just as the general manager of a certain enterprise in Guangdong said: the quality of woven products depends on machinery, and the replacement of traditional labor production with large-scale machinery is the way out. The plastic knitting industry should increase the investment in science and technology and the introduction of high-quality technical talents. From the labor-intensive to the scientific and technological input, the mechanical production replaces the traditional human production, and the high-quality talent replaces the ordinary labor.

Third, the state's macroeconomic regulation and control efforts are not in place

Affected by the sluggish international financial crisis, the domestic economic situation is not optimistic. Loan difficulties and financing difficulties have become a major problem for woven companies. For example, the general manager of a woven plastics company in Jiangxi said that the tax on the plastic weaving industry is now Very high, as the recycling of waste plastics industry is in trouble, the state should introduce relevant policies to subsidize, hope that through the platform of the woven association and the government communication, support the plastics industry through this difficult period.

Fourth, the abuse of powder caused internal confusion in the industry

The whole industry has been in a low-lying period, and some enterprises have abused the powder for the sake of gaining private profits, and the quality is not qualified at the same time as the cost is reduced. This practice has disrupted the rhythm of the healthy development of the entire woven industry, and industry players should resolutely resist this behavior. The transformation of the plastic knitting industry is imminent. What enterprises need to do is to increase investment in science and technology rather than reduce the cost with powder. To get out of this dilemma, we must grasp the law of market demand and not only pursue cost and output.

Prospects for the future development of woven products by woven companies and woven fabrics associations

At present, most plastic woven products have low production costs, rough processes and flat quality. Even some enterprises use powder waste as raw materials for the extreme pursuit of high profits. Although this approach can alleviate the dilemma at one time, in the long run, this approach is not desirable. Plastic weaving companies should focus on the study of better quality and more functional plastic woven products, such as more transparent, more stable, corrosion-resistant, anti-fingerprint, anti-oxidation, anti-bacterial and non-toxic, some companies have begun to work on light Development of high quality transparent plastic woven bags.

As the national economic policy and social security policy become more and more perfect, the investment in the labor industry will become more and more large. As a labor-intensive industry, it will undoubtedly greatly increase production costs. Therefore, the plastic weaving industry is in urgent need of transformation, and enterprises should shift their investment in labor to mechanical and technological content.

In addition to relying on technology, the development of woven companies depends on management. Song Yunhe, a senior consultant of the China Plastics Association Plastic Weaving Products Committee, stressed that as long as there is no problem in management, the profit margin will double.

Establishing the entry criteria for the woven industry is the voice of the participating companies. The representatives of the company hope that the woven association can clearly define the mechanical standards for industry access in order to regulate the healthy development of the entire woven industry.
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