2022 Industry Economic Characteristics and 2023 Development Outlook

2022 Economic characteristics of the sewing machinery industry

In 2022, recurring epidemic, Russia-Ukraine war, high inflation, monetary tightening and other shocks and challenges intertwined, the world economic recovery is expected to turn weak, the development of China's sewing machinery industry encountered important challenges. China's erratic epidemic, the rapid shrinkage of downstream demand, sewing equipment domestic sales from positive growth into a precipitous decline.

1. Sewing machine industry export situation is not optimistic

According to the Customs, China has exported sewing machinery worth of 2,920m USD in the first 10 months, increasing 15.57% on a YoY basis, a lower growth rate compared with last month. Among the products, China has exported industrial sewing machines of 4.26m sets (9.59% higher on a YoY basis), worth of 1,525m USD (a YoY increase of 25.18%), delivering a high growth rate; embroidery machines of 49 thousand sets (increasing 57.18%), worth of 424m USD (growing 52.37%), a relatively high growth rate. However, the demands for household sewing machines in the United States and Japan drop sharply, in which case, China's export volume and value of the same has respectively declined 37.76% and 34.94% in the past 10 months.

          (Source: China Customs) China’s monthly export of sewing machinery

2. Sewing machine industry production total fell sharply

According to statistics from the China Sewing Machine Association, from January to September 2022, the total industrial output value of the industry's 100 complete machine enterprises dropped 21.66% year-on-year, and the total output of industrial sewing machines dropped 29.28% year-on-year. By the end of September, the industry's industrial machine inventory was around 800,000-900,000 units. Preliminary estimates show that the total output of industrial machines in the industry will be about 7 million units in 2022, down about 30% year-on-year, and the total output will fall back to about the 2017 level.

                                   (Source: China Sewing Machinery Association)2021-2022 Industry trends of industrial sewing machine production of the 100 key manufacturers

2023 Sewing Machinery Industry Development Outlook

In 2023, the negative impact of global inflation and interest rate hikes will continue to emerge, the game of great powers and geopolitical conflicts will continue to evolve, the new crown pneumonia epidemic is difficult to end soon, a variety of uncertainties and challenges remain complex and severe, the global economy continues to slow down or even fall into a phase recession trend more and more obvious. The first half of next year, China's sewing machinery industry is expected to encounter the dual pressure of low domestic demand and slowing external demand, the industry's economy will continue to hover at the bottom. The second half of the year, with the Russian-Ukrainian war, global inflation, the new crown epidemic, monetary tightening, and other challenges continue to ease, a variety of positive factors, China's sewing machinery industry is expected to usher in the gradual stabilization of domestic and foreign demand and rebound.

2023 Deko Corporation Company Development Outlook (Heavy Duty Industrial Sewing Machine Manufacturer - KINGMAX)

In 2023, the impact of the epidemic is expected to gradually weaken, economic growth will rebound significantly, our company will continue the gentle repair trend, the sewing equipment sales market is no longer stagnant, the global market demand is accumulating, the sewing machinery industry to replenish the warehouse and user demand space will gradually open. Our company's sewing machinery market is expected to remain generally sluggish in the first half of the year, and with the repair of consumer investment confidence in the second half of the year, global sewing machinery is expected to stabilize and show a small rebound in the phase, and is expected to achieve low to medium growth based on the low base of the previous year. In the meantime, I believe our company will no longer be as tough as it was in March, April and May of 2022. Now that the global New Crown Pneumonia epidemic is gradually calming down, supply chain and logistics issues will no longer be as overwhelming as last year. We believe that the logistics timeliness for all distributors and customers can be gradually improved this year.

All in all, the future global economic growth and the environment for business survival and development are facing a high degree of uncertainty. Each of our enterprises should have a good mindset to face the opportunities and challenges, adhere to the bottom line thinking of high quality and high service, accelerate innovation and change in sewing machinery products, strive to find opportunities in the crisis, further enhance risk awareness, and adhere to sound, high-quality development.

◆Source |  China Customs& China Sewing Machinery Association

◆Editor |  Deko Corporation(Heavy Duty Industrial Sewing Machine Manufacturer - KINGMAX