Sewing machinery industry will enter a period of low growth

Sustained by excess capacity, the sewing machine industry in 2013 will achieve a low growth rate of about 5%. Industry insiders believe that with the overcapacity environment, leading companies with technological advantages are expected to achieve higher growth rates.

Industry insiders said that 2012 is a year of “unusual” and “complex” in the Chinese sewing machinery industry. Affected by a series of factors such as shrinking market demand and rising cost of production factors, the overall development of the industry showed a downward trend. According to the data, in 2012, the total industrial output value of 280 large-scale enterprises in the industry fell 5.66% year-on-year, and the sales value decreased by 6.01% year-on-year; the export volume was 1.81 billion US dollars, down 9.87% year-on-year.

According to industry insiders, in general, the development of the industry in 2012 was concentrated on two issues. First, the decline in domestic and foreign demand due to the deterioration of the macroeconomic situation, excess production capacity, and deterioration of competition. Second, the various costs, especially the increase in labor costs, have exacerbated the company's profitability. The situation in 2012 is due to the combination of short-term demand contraction and the drop of potential growth rate in the medium and long term, and the future competition will be more intense.

The industry expects that in 2013, the industry will gradually stabilize and stabilize on the basis of this year, and achieve a low growth rate of around 5%. Exports will gradually stabilize but will hardly increase. At the same time, the contradiction of rising costs, overcapacity, and vicious competition will exist for a long time, and the meager profits of business operations will become the norm. In the future, competition will shift from single-price competition to comprehensive competition with brands, varieties, and quality as a whole.