Europe is the biggest manufacturer of machinery in the global textile industry. Its high quality machines are the most sought after in the global textile industry till date. India, one of the biggest producers of textiles and textile products, imported textile machinery worth around 1003 million dollars in the year 2011-2012. Majority of it was from Europe, though importing machinery from Europe was two times costlier than purchasing machineries made in the country. German textile machines are considered to be of the best quality in the world. Spanish textile machines are also seeing a continuous growth in its exports. The countrys textile machinery exports rose by 17 percent in the year 2012. In fact, all the countries in Europe export a good number of textile machines all the year round, currently.
Until a few decades, European countries were considered the undoubted kings of this industry. But Chinese textile machineries have remained successful in providing some competition to them. Around 1980s, China signed a number of agreements with machinery manufacturers and exporting countries which eventually helped it develop its own textile machinery industry. The main aim was to make the country self dependent in terms of machineries. But gradually, as the industry progressed, China also began exporting textile machineries. Its machines are modern and inexpensive in comparison to many others in the industry.
Chinese textile machinery industry
China, it seems, may contribute immensely in the near future to the global textile machineries industry. The country is rising to become the next hotspot for its importers. China exported textile machineries (that were used in textile fiber, spinning, twisting, and winding) worth US$ 258.242 million in the year 2012. Chinese weaving machines are popular in particular, with their exports rising from US$ 56 million to US$ 206 million in the last five years. The industry brings the country revenue of around US$ 2 billion every year. It is expected to expand further in the coming years.
The country can earn a better profit margin with the export of machines than textiles or textile products. Western countries are generally seen to be exporting textile machineries in the global textile industry and reaping huge profits. For this reason, China is trying hard to boost its textile machinery manufacturing industry. There is demand for Chinese textile machineries in the international market, but it cannot be denied that there is still a long way to go for this industry. It has its shortcomings like uncompetitive machines as compared to its European counterparts and lesser infrastructure. But the pace with which this industry is progressing is commendable.
Strengths of Chinese textile machinery
There has to be some advantages, if Chinese textile machinery is performing well in the market; and there are! Chinese have long mastered the skill of creating machines at a low cost. These machines perform well on an industrial platform, and cost around half of the expensive machines from Europe. They have almost all the technologies integrated onto them, and can produce textiles quickly and accurately. This is the reason they are sought after almost all around the world. The quality of these products was questioned to a certain extent in certain parts of the world, but the country has overcome such limitations to a large extent. They require very little time for delivery, as well.
China, unlike majority of its counterparts in Asia, does not lack infrastructure. Besides, the labor charges in this country are way cheaper. It can easily secure resources, as it is a land of abundant natural resources. With a little bit of expertise and education, China can excel in textile machinery production. The country has already proved itself in the production of textiles. Many economists believe that China is moving towards the next stage, wherein its concentration is on products that fetch a higher profit margin. With the production and export of textile machinery, China may be on its way to development. China is improving its quality further to be on par with the Europeans in this industry.
Asia: biggest consumer of Chinese textile machines
Today, many countries of the world use Chinese machines and machine parts in its textile production. Either they import the machinery in whole from China or import machinery parts for production. Chinese machineries can be easily found in the western countries, but its biggest consumer is Asia! Asian countries prefer Chinese textile machines owing to its lower cost and geographical proximity. Besides, Asian countries have better reviews concerning these machines as compared to the users in western countries. As the textile industry develops in Asian countries, they feel the need to import reliable textile machinery, and Chinese textile machines are something that they can count upon.
Pakistan is a major market for Chinese textile machinery manufacturers in Asia. The textile industry is the largest manufacturing sector in Pakistan, and machinery is required to keep it running. The country imported textile machinery worth Rs. 2,158 million approximately in the year 2011-2012. It majorly imports from China, and so does India! The demand for textile machinery increased in India from Rs. 4.5 billion (in 2009-10) to Rs. 12 billion (in 2011-12). The country realizes the need to have good quality machines in its textile industries, and promotes its import in the Technology Upgradation Fund Scheme (TUFS). China exported textile machinery worth $96,920,800 to India in the first quarter of 2013. India, Vietnam, Indonesia, Bangladesh, and Japan were the top five importers of Chinese textile machineries in the first quarter of 2013.
Chinas textile machinery exports to other countries
Other than Asia, China also exports textile machineries to Africa in large quantities. Africa has the best trade relation with China, and its exports and imports are mainly from China. More than 50 percent of the total exports from China to Africa consist of textile machinery. Similarly, China enjoys good trade relations with Russia. Out of its total exports to Russia, 33 percent comprised of textile machineries in 2012. The exports grew by 57 times in the last twelve years. Chinas total value of textile machinery exports in the first quarter of 2013 was US$ 540 million, which is an increase of 7.83 percent from the same period last year.
Despite a well-established textile machinery industry, China faces tough competition from European countries. It does not match up to the textile machinery sales and export revenue generated by Germany, Italy, and France. The Textile Machinery Association reported that its member companies (around 120 companies) recorded exports worth 3.1 billion in the year 2012. China, interestingly, remains its biggest export partner. Textile machinery orders in Italy in the fourth quarter of 2012 rose by 22 percent. But China is gradually developing to match up to their level, and may dominate the industry in the near future.
China has already proved its potentials in the global textile industry. It is a major exporter and producer of textiles and textile products. It is likely to prove itself again in the textile machinery industry in a short span of time. As the quality of products keep getting better, its demand is increasing in the global textile industry. In the near future, it may also think of exporting second-hand textile machinery to the developing Asian and African countries, like Europe. It has the infrastructure and technical expertise to do the same. Many economists predict China to be ruling this industry in the coming times.