Recently, the entire textile industry has been shocked by a number, 77 million! This number is not profit or output, but it is more touching than these data. It is the total number of water-jet looms in the country as of the end of 2022.
According to statistics from the China Filament Weaving Association, as of the end of 2022The scale of looms in my country’s filament weaving industry reached 83.6Ten thousand units, including water-jet looms77 units, a year-on-year increase of 5.48% . 2022 my country’s total output of chemical fiber filament fabrics will reach 595 billion meters, a year-on-year increase 6.82%.
According to a loose algorithm, the average annual cloth output of a single water-jet loom is 7.120,000 meters. If divided equally, it would reach 365 days, a single loom weaves nearly 200 meters of fabric per day on average.
When it comes to production capacity, we have to mention the transformation of water-jet looms from 2017. The plan at that time was, 2017From 2019, the total number of water-jet looms in Wujiang District increased from 34.210,000 units reduced to 23.810,000 units, Jiaxing and Huzhou near Wujiang have also introduced Similar planning.
But in the end, when we looked back at the data at the time, we found that the situation was different from what we expected. According to statistics from the China Filament Weaving Association, in 2017, my country’s filament fabric production capacity was 48.2 billion meters, a year-on-year increase7.59%. As of the end of 2018, the scale of looms in my country’s filament weaving industry reached 64 million units, including water-jet looms58 units, a year-on-year increase of 16%. In 2018 my country’s total output of chemical fiber filament fabrics reached 508 billion meters.
Fabric production not only did not decrease, but actually increased. You must know that in 18, many cloth bosses said that they had sold out their old inventory for several years, but the demand in the end market was stable. Looking back now, those inventories should have been transferred to traders.
From the data point of view, the editor also discovered a problem. From the end of 2018 to2022the end of the year,4In 4 years, the number of water-jet looms has increased from 64 to 77 span>Ten thousand units, and this huge production capacity will bring about a series of problems.
What to do about involution?
First of all, with high production capacity, homogeneous competition cannot be avoided. Especially for some newly emerging production capacities, we must start from the most basic and least difficult conventional products. It is also difficult to make high-level products from the beginning. There is this level. But there was too much production capacity all of a sudden, and everyone was making regular products, so things started to roll up.
What about the package?
The gray cloth has been made, but if you want to make it into fabric, the supporting links are indispensable. But unlike weaving, a factory can be basically formed by placing hundreds of looms in it. For links like a dyeing factory, technology, Problems such as investment and customer sources are not easy to solve. What’s more, environmental protection policies are getting tighter now, which will also affect the expansion of supporting facilities such as dyeing factories. In the short term, the production capacity of gray fabrics may be too high, but the supporting production capacity is insufficient.
How does the market digest it?
Producing so much cloth must be sold, but the fact is that the current market cannot absorb such a large production capacity. my country’s textiles have been exported through foreign trade for decades, and it was not until the past two years that the “dual cycle of domestic and foreign trade” began. Domestic trade is still growing, but foreign trade cannot sustain due to global economic factors. The market cannot absorb such a large production capacity, and a large number of weaving companies either pile up inventory or reduce operations.
What to do with the upstream raw materials?
As weaving production capacity has increased, the demand for raw materials has naturally increased. The polyester factory has also carried out a new round of production capacity expansion starting from 2019, but the expansion is just right. We encountered a once-in-a-century epidemic, and then the global economic crisis started this year. Downstream production has been reduced, and upstream raw materials have become surplus.
So many of the above questions actually point to one direction, demand. However, the current demand is obviously unable to match the production capacity of 77 million units. In the second half of 2023, the biggest crisis faced by textile companies may be inventory.
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