After undergoing the test of “ice” in 2010, most domestic textile machinery enterprises have ushered in the experience of “fire” since 2011: On the one hand, before and after the Spring Festival, the order-pressure companies cannot breathe; on the other hand, A meager profit makes the supply and demand sides more likely to be compared. Although the macroeconomic situation of the textile machinery industry in 2010 is improving, the enterprises are in a difficult position. In 2011, this situation continued, and the profitability of most textile machinery companies was only maintained at 3% to 5%.

At present, more than two-thirds of the enterprises in the textile machinery industry are affected by macro-control or under the constraints of their own conditions, resulting in low profits. Some industry insiders predict that in 2011 China's textile industry is a year in which the market demand is steadily rising. However, the industry's low gross profit and fierce competition will not change in the short term.

The person in charge of Wuxi Agglomeration Textile Machinery Co., Ltd. told reporters that there are no less than 8 companies that provide compact spinning devices in China. If there is demand from a cotton spinning company, at least five manufacturers of compact spinning devices are flocking. The fierce competition makes the profits of the company thin, and the profit of the products is only enough to maintain the cost.

In recent years, cotton spinning companies’ aspirations for technological transformation have continued to increase and capital investment has continued to increase. However, the price of textile products has been declining. In 2007, the price of a compact spinning device ranged from 155 yuan to 165 yuan, and it can only be sold for 135 yuan, or even lower. Such a low price will squeeze out the technical reforms of textile machinery companies, and companies will not be able to invest more funds in technological upgrading.

In addition, the profitability of textile machinery companies is also affected by factors such as rising raw material prices. The sales person in charge of a printing and dyeing machinery company in Yanjiao, Hebei, told reporters that the company's current cost and profit ratio are out of balance, and this situation does not know how long it will last. After the global financial crisis, raw materials, labor, and financial costs have risen sharply, while the prices of products have continued to fall. If this problem cannot be solved, the textile machinery manufacturing industry will face a life and death mark.

According to analysis by industry insiders, some enterprises with poor economies of scale in the textile machinery industry in 2011 will be eliminated. The degree of polarization of existing companies will also increase. The textile machinery industry will be macroscopically good and microscopically difficult, and the global optimism and partial imbalance will be More obvious. Only a dominant company can guarantee a rapid growth of profits and an effective expansion of production capacity, which will further promote the concentration of resources and market shares in the industry to dominant enterprises. After completing this round of industrial adjustment, the entire industry is expected to enter a stage of relatively stable development in the ratio of prices and profits.