Machinery / Industrial Parts & Tools

The latest data from China Sewing Machinery Association show that from January to June, the economic recovery of my country's sewing machinery industry is strong, with a growth rate of 34.4% in industrial value added, which is higher than the average of 15.9% of enterprises listed in the national industrial regulations during the same period, and exports are running at a high level. , Profits continued to rebound, and the industry as a whole improved.

Yang Xiaojing, vice chairman of the China Sewing Machinery Association, introduced that from the perspective of industry production, since the industry began to resume and rebound in the third quarter of last year, the current production capacity of the company has gradually recovered to close to the highest level in 2018. As the company still has some room for replenishment, the current production of the company is still at a high level. However, as domestic and foreign demand declines, the company's production has begun to show signs of slowing down.

From the perspective of the domestic market, the high growth rate continued in the first half of this year. It has slowed since May, and has now fallen significantly. The domestic market has reached phased saturation. It is expected that the domestic market will continue to slow down or even decline in the second half of the year. The main reason is that the downstream market replenishment is basically completed, the impact of the epidemic is still there, the downstream investment is recovering slowly, there is still a wait-and-see sentiment, and the market lacks the basis for sustained high growth. It is expected that by the end of the year and even next year, as the global economy continues to recover and domestic demand gradually picks up, the domestic market is expected to bottom out again and enter a new round of stable recovery, but the rate of recovery will be weaker than in the first half of the year.

Since the beginning of this year, the production and sales of parts, commerce, and complete machine companies have all doubled. Many complete machine and component companies have put into production equipment, workshops, recruited employees, and their production capacity has continued to grow, and it is expected to reach a peak in October. Take Jack as an example. Since the fourth quarter of last year, the company has built an agglomeration area with nearly 280 acres of land, more than 2,000 employees, and a monthly output of 70,000 units in accordance with the incremental plan. Currently, the monthly production capacity of Jack industrial sewing machines has reached more than 300,000 units. At the same time, Jack continued to increase R&D investment, further strengthened technological innovation and product innovation, recruited more than 200 R&D personnel, and focused on the development of sewing machines, cutting beds, and hanging hardware and software technologies, and promoted the rise of Chinese clothing and sewing machine national brands.

In overseas markets, growth has slowed due to a new round of the epidemic. Since the European and American economies were unblocked in the third quarter of last year, exports have continued to recover and grow. They maintained high growth in the first half of this year, and the export situation has basically returned to the level of the industry's peak period. However, the current export and domestic markets have seen a significant slowdown and decline in orders. The inventory gap in the export market due to the impact of the epidemic has basically been filled. Coupled with the exchange rate appreciation, the increase in freight costs, and the impact of the new round of the epidemic, the export market is expected to slow down to the beginning of the fourth quarter.

Zhu Miaohai, Director of Overseas Marketing of Zhongjie Company, said that the current international epidemic is still serious, and many countries and regions such as Vietnam, Indonesia, Japan, India, Brazil are still under lockdown, and the real arrival of the post-epidemic era may have to wait until the second half of next year. If the epidemic is gradually contained in the second half of the year, Europe and the United States will take the lead out of economic troughs to release demand. Southeast Asian countries will accelerate their economic revitalization next year. It is expected that overseas markets will lag behind for a period of time and will still usher in a new round of growth. The development potential is significantly greater than that of the domestic market. . Qiu Yangyou, deputy general manager of Jack Company, said that the more severe the epidemic, the higher the increase in sewing equipment sales. Because no matter how troubled the epidemic is, there is still a large amount of domestic rigid demand in every country. Since the outbreak of the epidemic, manufacturing companies in export-oriented countries have basically turned to the domestic market, and they are likely to return to foreign markets next year.

On the whole, 2021 is a year of high growth for the sewing machinery industry and the first year of recovery for the industry. After several years of cyclical adjustments, especially since the fourth quarter of last year, the industry has entered a state of high growth. The epidemic period may bring more business opportunities, and the peak period of industry production and sales will further advance. In the coming year, the market of my country's sewing machinery industry will continue to improve overall, the domestic market is expected to maintain relatively stable development, and the foreign market will grow at a medium speed. , The industry will not see a significant decline in 2022, but companies need to adjust appropriately, control production capacity, lower expectations, and adopt a steady development strategy.