Outlook For The Sewing Machine Industry in 2024

In 2024, the sewing machine industry faces an uncertain internal and external environment. However, overall, the opportunities outweigh the challenges.

1. The overall foreign and domestic economic and trade situation tends to improve:
The global economy continues to recover.
Major economies demonstrate resilience.
International trade shows a rebound.
2. Gradual release of restocking demand in the downstream shoe and garment industries:
Major overseas shoe and garment manufacturing companies are gradually entering the recruitment, line expansion, and production increase stage. It is expected that orders in the downstream industry will see a significant rebound starting from the second quarter.
3. Transformation of the industry and the driving effect of policies:
Downstream industries are accelerating their digital and intelligent transformation, bringing opportunities for industry restructuring and upgrading.
The implementation of large-scale equipment renewal policies by the government is expected to drive the upgrading of sewing equipment and the stabilization of domestic demand through the downstream industries.

1. Uncertainty in the external environment:
- Increased geopolitical conflicts and potential risks.
- Continuous intensification of "de-globalization" and fragmentation of global trade.
2. Lingering impact of interest rate hikes and inflation:
- The relatively high interest rates and inflation levels in the first half of 2024 will continue to have a significant inhibitory effect on the economy and consumption.

3. Relatively weak short-term downstream demand:
- Consumer demand in major countries, although showing marginal improvement, lacks strong growth momentum.
- Downstream industry investment has declined and has not yet reversed, resulting in some idle capacity.
- While there are signs of recovery in downstream production in Southeast Asia, South America, and other regions, a widespread recovery and order release has not yet formed.

In 2024, the industry is expected to experience a "front low, middle stable, back high" gradual recovery process:
- Domestic sales will bottom out and rebound, achieving low-to-medium speed growth.
- Foreign trade will stabilize and maintain flat or slight growth.
It is expected that the industry's development will accelerate significantly starting from the fourth quarter of 2024, and the upward trend will continue in 2025, with the potential to transition from low-speed to medium-speed growth. Intelligent and digital upgrades are expected to become important drivers of industry growth.