Machinery / Industrial Parts & Tools

According to the Huacheng Import and Export Data Observation Report, recently, on behalf of the Association, Wu Jiling, Vice Chairman of the China Sewing Machinery Association, analyzed and introduced the economic situation of China's sewing machinery industry in 2022 and looked forward to its development in 2023 at the second session of the 11th Council and the annual meeting of joint branches. He said that in the second half of the year, as the international situation tends to ease and various positive factors increase, China's sewing machinery industry is expected to usher in a gradual stabilization and recovery of domestic and foreign demand.

In 2022, various shocks and challenges at home and abroad are intertwined, the world economic recovery is expected to weaken, and the development of China's sewing machinery industry is facing important challenges. On the one hand, domestic production has declined significantly, and the pressure on reducing the stock has increased dramatically. Due to the frequent and sporadic outbreaks of the epidemic, the downstream demand has shrunk rapidly, and the domestic sales of sewing equipment has shifted from a positive growth to a precipice decline. Huacheng Import and Export Data Observation reported that from January to September 2022, the total industrial output value of 100 complete machine enterprises in the industry decreased by 21.66% year on year, and the total output of industrial sewing machines decreased by 29.28% year on year. By the end of September, there were about 800000-900000 sets of industrial machines in the industry. According to preliminary estimates, the total industrial machine output of the industry will be about 7 million units in 2022, a year-on-year decrease of about 30%, and the total output will fall back to the level of 2017. On the other hand, exports have increased steadily, with a promising development prospect. With the sharp rebound in consumer demand in Europe and the United States, the economic recovery and domestic demand release in Southeast Asia and other regions have provided important support for the industry's export. Huacheng Import and Export Data Observation reported that from January to October 2022, the export volume of China's sewing machinery industry was 2.92 billion US dollars, with a year-on-year growth of 15.57%. Among them, 4.26 million industrial sewing machines were exported, up 9.59% year on year. According to the estimation of the Association, the export volume of the industry in 2022 will be about 3.41 billion US dollars, with a year-on-year growth of about 8.5%. Among them, exports to the "the Belt and Road", ASEAN, South Asia and West Asia increased by 24.61%, 28.45%, 37.41% and 36.08% respectively.

In a word, the industry has witnessed a sharp decline in domestic demand and a steady increase in external demand. The overall economy has shifted from a high level last year to a quarter by quarter slowdown and decline, and production and sales have fallen back to a relatively low level five years ago. Enterprises generally bear the pressure and test of high inventory, low demand, high cost, low profit, etc. The industry is under pressure to move forward, actively adjust, innovate, maintain development toughness, and accumulate growth momentum.

Looking forward to 2023, all kinds of uncertain factors and challenges are still complex and severe, and the trend of the global economy continuing to slow down or even fall into a phased recession is becoming more and more obvious. In a comprehensive way, the industry still faces three challenges: the global economy continues to slow down, the impact of the epidemic is difficult to eliminate, and the recovery of consumer demand is weak. Among them, in terms of the weak recovery of consumer demand, from the domestic perspective, it is expected that the recovery of the domestic economy and consumption will be a relatively slow and long-term process under the general environment that the epidemic is still in the epidemic. In the fourth quarter of this year and the first half of next year, it is expected that the domestic consumption rate will remain low; From a foreign perspective, many economies are experiencing a wide range of challenges such as inflation and declining purchasing power. The world's major textile and clothing retail markets are showing a weakening and downward trend in demand, and external demand has ushered in a substantial decline.

According to the observation report of Huacheng import and export data, Wu Jiling predicted that in the first half of next year, China's sewing machinery industry may encounter double pressures of sluggish domestic demand and slowing foreign demand, and the industry economy will continue to hover at the bottom. In the second half of this year, with the international situation tending to ease and various positive factors increasing, China's sewing machinery industry is expected to usher in gradual stabilization and recovery of domestic and foreign demand. In the domestic market, as the domestic market demand for sewing equipment, which has stagnated for nearly a year, continues to accumulate, the space for industry replenishment and user demand will gradually open. It is expected that domestic sales will remain sluggish in the first half of the year. With the restoration of consumer investment confidence in the second half of the year, domestic sales are expected to stabilize and show a small rebound in stages. On the basis of the low base of the previous year, it is expected to achieve medium to low growth; In terms of overseas exports, the trend of demand slowdown and downtrend will continue from the fourth quarter of 2022 to the first half of 2023 at least. Under the influence of the downstream demand for footwear and clothing and the slowdown of international economic growth, the industry's export will enter a process of peak callback and phased slowdown. It is expected that the industry's export will continue to slow down in the first half of next year until the growth rate turns negative. In the second half of next year, as overseas footwear and clothing brands enter the replenishment cycle, Inflation has eased and purchasing power has been gradually released. The industry's exports are expected to reach the bottom in the third quarter and pick up significantly in the fourth quarter. On the basis of the high base of the previous year, the industry's export growth is expected to remain flat or show a small decline in single digits.

According to the Huacheng Import and Export Data Observation Report, Wu Jiling said, "In the future, the internal and external environment for global economic growth and the survival and development of enterprises will face a high degree of uncertainty. Enterprises should still face opportunities and challenges, stick to the bottom line thinking, accelerate innovation and change, try to find opportunities in danger, further improve the ability to resist risks, enhance risk awareness, and adhere to stable and high-quality development."