Environmental protection is forcing the textile industry to find “opportunities” amid “danger”

On August 2, the State Council Safety Committee issued a notice numbered “Safety Committee Office Mingdian [2017] No. 13” to carry out safety production inspection and supervision. In accordance with the deployment of the Work Safety Committee of the State Council, in order to promote the solid and in-depth implementation of the national work safety inspections, the Office of the State Council Work Safety Committee is scheduled to supervise the implementation of work safety inspections in various regions in August 2017.

The scope of this supervision and inspection covers 31 provinces (autonomous regions and municipalities) across the country and the Xinjiang Production and Construction Corps, with focus on local people’s governments at all levels and relevant departments, and random inspections of some enterprises.

The rectification actions are not a sudden trend, the wave of environmental protection shutdowns is intensifying!

In August, not only did the safety supervision storm sweep across 31 provinces (autonomous regions and municipalities) across the country and the Xinjiang Production and Construction Corps, but the fourth round of central environmental protection inspections will also focus on inspecting 8 provinces including Jilin, Zhejiang, and Shandong. province. You must understand that in previous batches of inspections, tens of thousands of people have been held accountable.

As Jiangsu and Zhejiang are important gathering places for China’s fabric industry, the wave of environmental protection shutdowns is intensifying! But this time in the face of the environmental protection storm, the fabric circle of friends is “exploding” again! Recently, a piece of news like this hit the circle of friends: Zhejiang dyeing and fabric factories: 377 were closed, 140 were relocated, 54 signed relocation agreements, and 1,631 were cut off. All 2,577 “Three No’s” companies will be closed next month. Guangdong closed 623 homes, relocated 265 homes, and cut off power to 4,263 homes. All “Three No’s” enterprises will be closed in October.

Some people in the industry lamented: The environmental protection crisis has not subsided, and the safety supervision crisis has arisen again. This round of inspections will force a major reshuffle in the industry. It seems that fabric companies that do not do a good job in environmental protection and safety production will definitely die in the future!

The tightening of production capacity is far more than just a sharp increase in the price of products for the weaving end!

Clothing, food, housing and transportation come first. However, the fabric industry, a traditional industry, is in the midst of internal and external troubles. The industry is full of misery and “rising voices” are everywhere. Seeing this situation, many companies can only stare blankly and choose to reduce production and stop accepting orders. However, putting aside the short-term market impact, in the author’s opinion, the impact of environmental protection regulations on the industry is far more than just a sharp increase in the price of products for the weaving end.

　1. Recasting of industry and market order

China’s fabric market has grown rapidly over the past 30 years, but it has also paid a high price. A large number of small and medium-sized weaving companies have poured in in the past few years. On the one hand, overcapacity is getting worse, and on the other hand, competition in the industry continues to be chaotic and disorderly. Companies are desperately trying to lower prices and reduce costs in order to survive. In the early years, the prices of a large number of fabric products fell again and again, and most companies produced at a loss. . At the same time, there are even more new products in terms of raw materials. Some people say that the market technology has progressed? In fact, people who have been in the industry for many years understand that it is caused by too much competition and too much production capacity.

And the consequences of this have become more acute now:

(1) Disordered competition actually harms the big companies themselves. Basically 100% of weaving companies are facing credit problems. Similarly, everyone cannot calm down to engage in management, technology, and development. Innovation.

　 (2) Other negative effects resulting from this have led to the market not following rules and rushing to take shortcuts. Many small businesses hold the idea of ​​”shooting a gun and changing places” to do The idea of ​​​​doing it if you can, and running away if you can’t do it destroys the basic order of the industry and the market, and loses the due business ethics and rules.

Now this “barbaric production method” has also encountered a bottleneck. Some national policy trends are also trying toTurn the tide. For example, this time we are focusing on environmental protection and reducing overcapacity, the purpose is to eliminate companies that do not follow the rules, respect the market, and act according to the rules.

　2. A new wave of bankruptcies may occur within 2-3 years

In recent years, the influx of a large number of low-end market products has caused China’s fabric products to lag behind in international competitiveness. Overcapacity is still expanding step by step, and the fabric industry needs a major reshuffle. Therefore, the purpose of this wave of environmental protection rectification caused by the water spray industry is to adjust the structure and reduce production capacity. Only in this way can the fabrics we produce go further. As mentioned in the above article, some small and medium-sized enterprises find it difficult to survive under the high pressure of environmental protection, because it costs nearly one million yuan to update equipment to meet the rectification requirements, and its maintenance costs will also cause the company to lose money every day. The cost has increased by nearly 10,000 yuan. Not all small and medium-sized enterprises can afford this burden. Therefore, the author estimates that there will be another wave of bankruptcies in the industry in the next 2-3 years.

Environmental protection is pressing, and the fabric industry is looking for “opportunities” amid “danger”

In fact, this is not the first time that environmental protection inspections have forced enterprises to transform. Since the central environmental inspections were approved in July 2016, there have been five batches of them, and the intervals between each inspection are also constant. shorten. It is foreseeable that environmental protection regulations will only become more stringent in the future.

Environmental protection may be accompanied by painful choices and even the loss of arms, but it is by no means a one-and-done matter. Today, with limited environmental capacity, how to achieve quality, efficient, and sustainable progress has become an issue that fabric companies urgently need to research and solve. Therefore, the author believes that fabric companies should regard the transformation and upgrading forced by environmental protection as new opportunities for progress, proactively adapt and adjust, and the refined industrial chain has also provided new opportunities for many companies. Of course, environmental protection costs cannot only be borne by fabric operators. The government must increase policy support, provide guidance and standardize work, and cannot stop at restricting, shutting down, or imposing penalties.

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