From January to October 2020, China’s exports of textiles, including masks, increased by 34.8%. Behind this, the transfer of textile orders, including India, to the country is one of the important factors. However, SUNTECH beam truck, no matter it is motorized or hydraulic, is a kind of textile material handling equipment(Equipos para el manejo y almacenamiento de materiales) that significantly reduce the soaring labor cost in the textile industry.
Overview of Textile Labor Cost
In 2021, the epidemic in India has intensified, and the return of Indian orders has indeed brought a wave of warmth to China's textile industry. Behind this wave of warming, some companies have made a fortune, while others have even worsened the situation.
Many textile company bosses complained that due to lack of workers, the production capacity could not reach full capacity, which affected the delivery of orders. The person in charge of a manufacturer said that the factory's machinery was fully operational, but last month due to worker problems, a factory only maintained 80% of the operation. The main reason was the lack of skilled workers. After the order skyrocketed, the problem of grabbing fabrics disappeared, but the labor shortage problem came again.
Rising Labor Cost
The textile industry is a typical labor-intensive industry. The labor advantage has made China the world's largest textile exporter. However, starting in 2012, as China's demographic dividend has gradually disappeared, labor costs have increased year by year. The survey shows that the wages of textile factory workers in the southeast coastal areas are concentrated in the range of 5,000-10,000 yuan, and the wages of workers in the central and western regions are roughly 3,000-6,000 yuan.
Five years ago, the company's labor costs accounted for only 20%, and now it has reached 60%. In addition, the instability of employees and the additional costs caused by accelerated turnover are also problems facing the company.
The reason why labor costs will rise is due to the increase in living costs brought about by inflation on the one hand, and the decline in the labor force on the other. Even after 00, I don’t want to do it. The survey found that although the employers believe that the overall salary of the textile and apparel industry is not low, the employees are not very satisfied with it.
The textile industry has fallen into a two-sided unthankful situation. The boss feels that labor costs are getting higher and higher, while the workers feel that the price is too high, the work is hard, and the cost of wages in the textile industry is not high. SUNTECH beam truck may solve the highly labor cost problem.
Pain Points of Textile Industry Upgrading and Transformation
1. The contradiction between talents and enterprises. Constrained by capital and cost pressures, many small and medium-sized enterprises find it difficult to recruit workers, especially high-level technical talents and experienced masters. At the same time, skilled workers believe that the textile and garment industry is tired and wages are low, and they do not plan to keep working.
2. Rising raw materials. In the past, the labor cost of textile companies was about 30%, and the material cost was 30%. Now the labor cost exceeds 50%, even up to 60%, and the material cost is also 40%, so it is difficult for the current profit point to reach 5%. Larger quantities can still make money, and price increases are unavoidable.
3. The maturity of the high-end product market in the textile and apparel industry is not high. Generally, it is difficult for small and medium-sized enterprises to produce high-precision automated manufacturing products, and the domestic high-end product market is not yet mature and the market is not large.