Troubled times for Chinese footwear machinery sector
27/03/2012
Encumbered by excess inventory, machinery manufacturers discounted heavily during the fourth quarter of 2011, sometimes selling machinery to shoe manufacturers at zero margin to make way for new stock in 2012, the CLIA report says.
The association said that new footwear factories springing up in inland locations offer a degree of hope to domestic machinery manufacturers. Although the move of footwear factories to China’s interior from the more developed coastal and southern areas is mostly driven by the availability and affordability of labour, the new factories still need kitting out with machines. It also said Chinese producers were stepping up their efforts to sell machinery to footwear manufacturers in other emerging economies.
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