Why is the Chinese furniture industry showing a gradient transfer

According to customs statistics, furniture and parts exported through Huangpu Port during the first three quarters of 2011 (hereinafter referred to as "furniture") were US $ 1.23 billion, an increase of 0.8% over the same period last year (the same below).

1. Main characteristics of furniture exports through Huangpu Port in the first three quarters of 2011

(1) In September, the export value increased year-on-year and decreased month-on-month. In January 2011, furniture exports through the Huangpu Port amounted to USD 170 million, setting a new monthly export value in recent years. In February, it fell rapidly, and the export value fluctuated greatly in the following months; in September, furniture exports in the month were US $ 140 million, up 7.3% year-on-year and down 7.2% month-on-month.

(2) Exports of general trade and processing trade are hot and cold. In the first three quarters of 2011, the furniture exported through Huangpu Port in the form of general trade was 790 million US dollars, an increase of 8.4%, accounting for 64.7% of the total value of Huangpu Port furniture exports during the same period (the same below); the export in processing trade was 430 million US dollars, down 10.7% %, Accounting for 34.8%.

(3) The main export markets are the European Union, the United States and ASEAN, and exports to ASEAN have increased substantially. In the first three quarters of 2011, furniture exports to the United States via Huangpu Port were US $ 330 million, down 15.4%; furniture exports to the EU were US $ 260 million, down 1.6%; exports to ASEAN were US $ 160 million, a substantial increase of 31.5%; and the three markets mentioned above Total exports accounted for 61.1%. In addition, exports to Hong Kong and Japan were US $ 83.93 million and US $ 72.24 million, up 30.6% and 12.5% ​​respectively.

(4) The export share of foreign-invested enterprises accounts for nearly 50%. In the first three quarters of 2011, foreign-invested enterprises exported furniture through the Huangpu Port of US $ 610 million, down 3.8% and accounting for 49.4%. In the same period, private companies exported furniture worth US $ 470 million, an increase of 6.2%, accounting for 38.3%; state-owned enterprises exported US $ 130 million, an increase of 5.4%, accounting for 10.8%.

2. The main reason for the slight decline in furniture exports through Huangpu Port in the first three quarters of 2011

(1) Demand in the main consumer market was sluggish, and furniture exports were suppressed. In September, the US ISM Manufacturing Purchasing Managers Index was 51.6, although it has improved from last month, but the growth is not obvious, and it is still hovering at a low level. In addition, the construction of new homes in the United States in August was 571,000 units, a decrease of 5% from 601,000 units in July, a decrease for two consecutive months; and the second-hand housing write-off index fell by 1.3% in July, and second-hand housing in August The contracted sales index continued to decline by 1.2% month-on-month; various data show that the US real estate market is still in the process of adjustment, restricting the demand for furniture and other products. At the same time, in September the Eurozone manufacturing purchasing managers ’index was at 48.4, the lowest since August 2009, of which the new orders index was 44.8, which fell for the fourth month; and affected by the European debt crisis, the Eurozone in September The economic prosperity index was 95.0, which had declined for seven consecutive months; the consumer confidence index also showed weakness, falling from -16.5 in August to -19.1. According to customs statistics, furniture exports to the United States and the European Union via the Huangpu Port in September decreased by 5.9% and 2.9% year-on-year respectively, of which exports to the United States have declined year-on-year for eight consecutive months.

(2) The cost of production factors has risen rapidly, and business operations have fallen into a low tide. Since 2011, China's manufacturing industry has been constrained by many unfavorable factors such as the rapid rise in labor costs, the continued appreciation of the renminbi, and the sharp rise in financing costs; at the same time, the expenditures on electricity, environmental protection and social welfare (such as employment security for disabled people) have also been very large To a certain extent, the production and operation costs of the enterprise have been increased; the excessively rapid increase in the cost of various production factors has caused the furniture enterprise to be overwhelmed and the production and operation have been difficult. The data shows that the labor cost in 2011 increased by at least 20% over last year; within three years, the wages of the Guangdong furniture industry rose from 1,600 yuan to more than 3,000 yuan, and the technicians climbed from 4,000 yuan to nearly 10,000 yuan. The rising exchange rate of the RMB has made the export-oriented furniture companies even more uneasy. On September 30, the central parity rate of the RMB against the US dollar was reported at 6.3549, a new high since the exchange rate reform. On the other hand, since the beginning of 2011, global timber resources have become scarce, and the price of imported timber has continued to rise. At the same time, due to rising factors such as national policies, exchange rates, and transportation costs, timber imports from North America rose by at least 30% in 2011 . Under the pressure of rising costs, the confidence of domestic furniture companies in transformation and upgrading and gradient transfer began to shake.

3. The main problems and related suggestions in the development of China's furniture industry

(1) Lower production costs in Southeast Asian countries attract the transfer of international and domestic furniture industries. Since 2011, with the continuous increase in the prices of energy, raw materials, land and especially labor in the manufacturing industry in the domestic coastal areas, the domestic low-cost competitive advantage is gradually being lost, and some coastal furniture companies that mainly manufacture high-end products and export furniture have begun to shift. To overseas and the mainland, four places are looking for production bases with lower comprehensive costs. A shift from domestic coastal areas to the central and western regions and China to overseas industries is underway. However, with the frequent occurrence of “difficult recruitment” and “labor shortage” in the eastern coastal areas, the price of labor in the central and western regions has also increased. At present, the wages of Vietnamese workers are about US $ 100 per month, equivalent to more than RMB 600. At present, the salary of one of the most common workers in Dongguan is about 2,000 yuan. Inland provinces and cities such as Henan Province will implement the revised minimum wage starting from October 1st. At RMB 1080 per month, Vietnam ’s labor cost advantage is obvious. In addition, Southeast Asian countries have rich forest resources, and the prices of furniture raw materials are relatively low. This slowdown has led to international and domestic furniture companies switching to overseas developing countries, which has disrupted the gradient transfer of domestic furniture companies to the central and western regions.

(2) Increasing the entry threshold for forest products in Europe and America has become a new challenge for China's furniture export. The US Lacey Act stipulates that all wood products such as particleboard, fiberboard, plywood, wood pulp and paper, and wooden furniture that are exported to the United States must indicate the type and source of wood, otherwise the United States will refuse to enter these products; at the same time, the Act It is also required to indicate the Latin name, quantity and size and value of the plant species used. This bill has had a great impact on China's furniture exports to the United States since its implementation in September last year. With the continuous improvement of environmental awareness of international consumers, more and more countries have begun to put forward new environmental requirements for wood products; the recent "Law of Origin Country" issued by the European Union requires that wood products imported into the EU market must obtain FSC status Certificate, requiring companies to track the source of their timber harvesting, and strict requirements for the environmental performance of raw materials, the policy will take effect on March 3, 2013. It is worth noting that among the forest product supply countries, Indonesia has also begun to introduce corresponding policies to ensure the legality of the source of exported timber. With the implementation of the above laws, a large number of small and medium-sized enterprises in the domestic furniture industry will have to find qualified suppliers or increase the cost for certification of origin. The costs and operating risks of furniture production and export enterprises have greatly increased.

(3) The market competitiveness of domestic furniture products is insufficient, and brand building is seriously lagging behind. Most of China's furniture production is based on OEM production. Its advantage lies in the relatively low labor price. The disadvantage lies in the lack of independent quality standard system, original product design and competitive brand. Statistics show that there are currently tens of thousands of large and small furniture brands in China, but so far there is no leading brand that leads the industry. Many furniture manufacturing enterprises are heavy in manufacturing and light in design, with serious homogenization and low degree of differentiation. Therefore, there are problems such as low grade and low added value in exported furniture. The product quality has a huge gap compared with developed countries, which directly affects The international status of China's furniture companies. In the early stage, CCTV exposed the furniture manufacturer "Da Vinci" as a fake foreign brand and the quality of some products failed. It reflects the current status of many domestic furniture manufacturing SMEs, relatively weak independent innovation capacity in the industry, and strict implementation of furniture industry standards . The backwardness of Chinese furniture in core competitiveness such as brand building and product development is not conducive to promoting industrial transformation and upgrading, and will affect the long-term development of China's furniture exports.

Suggestions for this: First, encourage enterprises to strive to improve the quality of their own brand products, develop high value-added products, increase product technology content, and enhance the core competitiveness of furniture exports; second, implement a diversified market strategy and actively explore emerging and domestic markets, Reduce the reliance on developed markets such as the US and Europe, and at the same time adjust business strategies, develop both "exports" and "domestic demand", and actively explore domestic market demand; third, strengthen daily monitoring and early warning, paying attention to changes in European and American exports and related market policy changes By establishing trade protection policies and early warning mechanisms for technical barriers, it helps companies understand and respond to foreign trade barriers in a timely manner.

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