【Industry Watch】A Steady Start: Component Manufacturers Lay a Strong Foundation for the “15th Five-Year Plan”

2026 marks the opening year of the 15th Five-Year Plan, as China enters a critical stage in its efforts to build a modern socialist country in all respects. The sewing machinery industry is also entering a strategic period of opportunity for greater self-reliance, industrial upgrading and transformation. The China Sewing Machinery Association (CSMA) has officially released a series of documents, including the Guiding Opinions on High-Quality Development of China’s Sewing Machinery Industry during the 15th Five-Year Plan Period, with the aim of guiding the industry in accelerating transformation and upgrading and building a modern industrial system featuring stronger innovation capabilities, higher added value and more sustainable development. As the foundation of the industry, the components sector is also embracing new development opportunities.

To gain an objective understanding of the development of the components sector, the CSMA’s integrated media platform visited major industrial clusters in Taizhou and Ningbo, Zhejiang, and conducted field research at dozens of leading component manufacturers. The visits provided an in-depth look at companies’ actual production, sales and R&D performance in the first half of 2026, while also gathering extensive feedback from company executives on their approaches and initiatives for implementing the 15th Five-Year Plan.

Diverging Demand: Small-Volume, Multi-Variety Orders Challenge Traditional Production Models

Based on the actual production and sales performance of dozens of component manufacturers, most companies had sufficient orders, tightly scheduled production and busy shipments in the first half of 2026, with significant year-on-year growth in both output and sales. Overtime work, extended shifts and working with only two days off per month have become commonplace, with some companies operating continuously from the beginning of the year through the end of June without a single day off.

By product category, components for lockstitch and overlock machines maintained steady growth in both production and sales. Single direct-drive lockstitch machines, basic computerized lockstitch machines, 747 overlock machines and high-speed overlock machines remained the mainstream products, with demand continuing into the third quarter. Overall supply of components for coverstitch machines, however, has yet to pick up. Components for special-purpose machines, pattern sewing machines and template machines showed a trend of high demand followed by a decline, although overall supply fluctuations remained limited.

From the perspective of the supply system, component manufacturers primarily serving domestic Chinese brands generally recorded significantly higher production and sales volumes than those supplying Japanese and Taiwanese brands. Among industrial clusters, Taizhou component manufacturers generally remained confident and showed a proactive attitude toward strategic positioning, development planning and investment. Ningbo companies, meanwhile, underwent deeper adjustments and greater differentiation, with a very small number experiencing shrinking production and sales and encountering development difficulties, resulting in accelerated loss of market share.

The most prominent common challenges facing the components sector in the first half of the year included, first, the contradiction between standardized mass production and the demand for “many varieties, small quantities and urgent delivery”: “One complete-machine manufacturer places monthly orders covering more than 100 product varieties, and four-fifths of the orders involve fewer than 300 units, yet they must still be delivered within a specified timeframe. Even subtle differences in tolerances, dimensions, processes and materials required for the same component by different machine brands can affect production scheduling.”

The second challenge was higher volumes but lower profits. A surge in demand for low-priced components squeezed demand for other products, while continued increases in labor costs and significant fluctuations in raw material prices further narrowed profit margins.

Entering the third quarter, particularly from August onward, overall component orders experienced a certain degree of decline. “This is a normal cyclical adjustment and will not have a major impact on capacity planning. Production will remain stable and controllable throughout the year.” According to the heads of several companies, “Everyone has become more rational in understanding and responding to the short-term impact of cyclical market fluctuations. Strong fundamentals remain essential. By making good use of market fluctuations as a window of opportunity, companies can strengthen their internal capabilities and improve their market responsiveness, while making their implementation measures more practical and effective.”

Specifically, on the one hand, the high-intensity production pace of the first half of the year can gradually be eased, allowing workers some time to rest. On the other hand, companies can adjust capacity allocation according to actual conditions and accelerate inventory replenishment through additional labor. At the same time, in order to prepare for and meet “small-volume, multi-variety” orders, companies can concentrate R&D resources on strengthening research into basic theories and common technologies, thereby improving their ability to support future production. In addition, companies will carry out targeted optimization and integration of existing internal resources and capabilities, including quality control, processes, production lines, management, and hardware and software systems.

Multiple Measures, Innovation and Transformation Build a New System of Industrial Collaboration

In 2026, component manufacturers are responding to macroeconomic policy directions and the guidance of documents such as the Guiding Opinions on High-Quality Development of China’s Sewing Machinery Industry during the 15th Five-Year Plan Period. Based on their individual circumstances, they are making targeted strategic moves and adopting multiple measures to strengthen internal capabilities, deepen adjustments and expand market services. These efforts have enabled the components sector to make a steady start to its new development journey under the 15th Five-Year Plan, while accelerating the development of a modern sewing machinery industry system characterized by specialization, sophistication, distinctiveness and innovation.

As one of the first batch of national and the first in the industry of manufacturing single-product champion demonstration enterprises, Deying has invested hundreds of millions of yuan to establish a modern production model covering comprehensive upgrades of five-axis machining centers, large-scale deployment of robotic arms, implementation of ERP-based digital management, and warehouse location management. Its first-mover advantages continue to strengthen.

Zhensheng has not only maintained sustained high-intensity investment in production, but has also accelerated the introduction of new technologies and equipment in upstream and downstream areas such as testing and inspection and materials R&D.

Hongdu has recently added multiple customized machining centers, some of which have already been installed and put into production. Once all equipment is in place by the end of the year, a production process that originally required dozens of workers will be optimized to require only a few.

In addition, numerous companies, including Yongyao, Mingpeng, Oufeng, Junma and Yuqing, have also invested in purchasing and upgrading equipment, while Ningdi plans to complete its investment in a new factory building within the year.

The long-standing labor challenges faced by component manufacturers—an aging workforce and difficulties in recruiting and retaining young workers—are gradually being addressed. Among the more than 300 frontline employees at Junma, young workers are highly visible throughout the production floor. “Young workers, including female workers, account for a relatively high proportion. Many have already worked at Junma for more than four or five years,” said Junma Chairman Ruan Jiming.

For young industrial workers, he believes that income is no longer the only decisive factor. The workshop environment, management practices, workload, job content, catering, accommodation and recreational facilities all directly affect a company’s ability to recruit, retain and effectively employ workers. “The key to addressing labor shortages is for decision-makers to change their thinking, move beyond traditional concepts, and create an environment that is better suited to and more attractive to young people. This requires not only substantial and sustained investment and change, but also a shared understanding of these principles throughout the organization.”

To respond to the changing demand for “many varieties, small quantities and urgent delivery,” Huayi has, on the one hand, increased the large-scale application of robotic arms in production, significantly reducing the time lost to tooling and fixture changes during production changeovers while ensuring stable quality. On the other hand, it has introduced an intelligent warehouse logistics system and incorporated more than 10,000 product varieties into digital management. Deputy General Manager Zhou Bin said, “The introduction of digital and intelligent equipment and systems has completely resolved the production, management, inventory and order-dispatching challenges associated with ‘small, scattered, numerous and complex’ orders under the traditional model.”

Rongchang has taken a different approach by upgrading conventional individual components into assemblies. Chairman Cai Xianfeng said, “This not only allows us to leverage our familiarity with and expertise in our products, reduce users’ assembly time and difficulty, and ensure equipment stability and functionality, but also improves the adaptability of our products to different users.”

Some component manufacturers are accelerating their efforts to diversify through related businesses and adjacent industries. Yu Ning General Manager Zhang Weibing explained, “We have been exploring new areas for expansion and new market opportunities around the sewing machinery industry and the processes of our core business. At present, Yu Ning’s product portfolio has expanded from traditional copper and aluminum components for sewing machines to special-purpose machine tables and then to cutting-machine components. At the same time, we have also established stable applications and business in other industries. Establishing multiple growth curves will help companies cope with short-term market fluctuations, ease risk pressures and achieve healthy, sustainable development.”

Zhongdi is leveraging its existing strengths around its core business and has begun to take on shaft-component orders from multiple industries, with initial results already emerging. The company plans to continue expanding production capacity and purchasing equipment.

As the industry enters a new stage of development under the 15th Five-Year Plan, leading component manufacturers are taking active steps to adjust their strategies, accelerate transformation and innovate their business models. They are seeking to move beyond a simple supply-and-demand relationship between component manufacturers and complete-machine manufacturers and establish a new form of strategic collaboration covering the entire product lifecycle—from design → R&D → production → optimization → services.

Through this process, the industry is working to build communities of shared interests and strategic partnerships, further supporting the upgrading of China’s sewing machinery industry toward the mid-to-high-end market and gradually moving toward global leadership in technological innovation.