In early 2009, the textile industry was hit hard by a wave of uncertainty. Words like "crisis" and "wintry" were frequently used to describe the bleak situation. The export market was in a state of hesitation, causing a sharp decline in orders for domestic fabric companies. This lack of demand became a major issue that plagued the entire industry. However, by the second half of the year, things started to slowly improve. Orders gradually increased, helping enterprises meet their urgent needs. But even as this recovery took shape, old problems such as rising raw material costs, labor shortages, and shrinking profit margins continued to haunt the sector.
At the time, many companies found themselves caught between pain and progress, desperately seeking real solutions to eliminate these long-standing issues. One of the most pressing challenges was the unavoidable rise in raw material prices. Despite the initial drop in orders during the first half of 2009, Japan-China spinning managed to achieve a 10% annual growth overall. By September, order volumes had surged by 30% to 50%. Now, the problem wasn’t a lack of orders—it was having too many orders to fulfill.
Ningbo Youngor Japan Textile Printing and Dyeing Co., Ltd.’s Deputy General Manager Yu Lida pointed out that the biggest challenge facing the industry today is the sharp increase in raw material prices. While many fabric companies reported improved order situations, when asked about the outlook for 2010, most gave cautious responses. The main concern was the rising cost of materials, which seemed unavoidable.
Yang Bin, manager of Guangdong Xintang Zhicheng Weaving Factory, echoed this sentiment: “Inflation and rising cotton prices are issues all fabric companies will have to face in early 2010.†To tackle these challenges, Yang Bin invested 350 million yuan in February 2009 to build a new plant equipped with advanced international technology. By October, the facility was operating at full capacity, producing 3.2 million meters of fabric per month.
He emphasized the importance of collaboration with upstream and downstream partners, leveraging the strengths of fiber companies like Lan Jing and Dow to develop eco-friendly products. By offering “one-stop†services, including denim fabric washing, the company aimed to support garment manufacturers more effectively. Looking ahead, Yang Bin believed that while short-term strategies like sharing some costs with customers could help, the long-term solution required a stronger upstream-downstream cooperation model to offset the impact of rising material costs.
Meanwhile, the employment situation also reflected the industry’s challenges. With tight orders, labor costs were low, but as demand increased, recruitment difficulties emerged. In early 2009, many skilled workers were lost due to downsizing. As the market improved, however, finding the right workers became a growing problem.
Yu Lida noted that the average monthly wage for front-line workers had risen to 1,800 yuan, with skilled workers earning over 3,000 yuan. Companies also adhered to labor laws, providing insurance and benefits. Yet, it was still difficult to attract enough workers. Wei Xiaobo, general manager of Hebei Chengde Great Wool Textile Co., Ltd., described recruitment as a “grand strategy†for the company. “Our main task now is to find technical personnel,†he said.
He pointed out that the textile industry is labor-intensive, with poor working conditions deterring younger generations from entering the field. To address this, companies have implemented measures such as improving productivity, adjusting wages, enhancing working conditions, and reducing working hours. Today, the average monthly wage for frontline workers exceeds 1,500 yuan, and a six-hour workday with four shifts ensures better protection for employees’ rights.
Both Yu Lida and Wei Xiaobo referred to workers as “scarce resources.†They agreed that focusing on people and improving worker welfare should be a priority in 2010. Through years of development, companies have built stable operational frameworks, ensuring a steady workforce. This, in turn, paves the way for a sustainable and positive cycle of growth.
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