If there is an order of 5 million meters in front of you, even if you can’t make any money, will you still try your best to seize it?
Since this year, although the order situation is not bad, they are basically small orders of tens of thousands to hundreds of thousands of meters, and large orders of millions of meters are very rare.
“There is an outsourcing order for 5 million meters of golden cotton on the market now. Many manufacturers are rushing to make it, but the profit is very low. The daily machine profit of an air-jet loom is less than 50 yuan.” A textile boss said .
Obviously, even if the profit is low, most textile bosses will still choose to take this order.
It doesn’t matter if the price is low, as long as you don’t lose money
“Apart from the lower profit, this order is not a problem.” said the textile boss.
It is understandable that the profit of water jet product machines is low, after all, the production costs and production capacity are there, but it is true that there are not many jet product machines with profits below 100. The success of this order is large quantity, small profits but quick turnover.
It is understood that the raw material cost of this fabric is 2.6 yuan/meter, and the water, electricity and labor costs are at least more than 3 yuan per meter. However, the current market price of gray fabric is only 3.5 yuan/meter, plus some loss costs, per meter of cloth It may only be a profit of 0.1-0.2 yuan. Even if it is 5 million meters, the profit is really not much, but at least it will not lose money.
As long as it’s not in stock
Textile bosses all know that the current market environment is no longer the era where orders could be picked and picked. As long as there are orders, there is capital to continue. Not losing money is a prerequisite. What is produced now is not inventory, which is the key.
I believe everyone knows the dangers of inventory. The longer the delay, the heavier the burden will be on the gray cloth factory, especially now that the price of raw materials has dropped a lot compared to the previous period. Now customers will take advantage of the drop in raw material prices to counter-offer, but in fact, the gray cloth factory woven the goods in the previous period. The price of raw materials used in cloth is still high. It is neither a matter of selling nor a matter of not selling. The gray cloth factory is in a dilemma. Depleting inventory quickly and ensuring profitability may be what every factory dreams of.
Therefore, this year’s weaving manufacturers would rather reduce the startup than blindly follow the trend. Naturally, they also want to take some orders that can maintain the startup without losing money to stabilize the troubles caused by the following off-season.
As the off-season deepens, keep the power on
As soon as June arrives, the textile market enters the off-season. It may not be obvious yet, but as the weather slowly gets hotter, the atmosphere of the off-season will become more intense.
“Of course I want to take over the 5 million meters. If one unit has an output of 300 meters, it will take nearly 6 months of continuous production for all 100 units to be completed. In the past six months, I will not have to worry about running out of work. Of course, the delivery deadline cannot be so long. , so there will be many factories working together, but at least we can survive this off-season safely.” said the textile boss.
According to the startup rate of sample companies monitored by Silkdu.com, the current startup rate remains stable at around 75%, and the startup rate this year has been in a relatively stable state. Entering June, the performance of the textile and apparel market is mediocre. For manufacturers who sell market goods, the orders on hand are simply “not enough”, production and sales are difficult to balance, and inventories are still rising. However, for most manufacturers integrating industry and trade, , the orders on hand can still be maintained, but the follow-up of new orders is insufficient. The startup rate will definitely still decline in the later period.
If at this time, the company suddenly stops production, and the bank thinks that your stoppage of production is due to poor production and management, and therefore calls for the loan, it will definitely make the already fragile capital chain worse.
Under the current market environment, the phenomenon of direct production suspension should not occur. Textile bosses have to work hard to accept orders in order to stabilize production.
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