The “Gold, Three and Silver” period should have been the traditional peak season for textile printing and dyeing companies, but now the printing and dyeing factories are stuck in the quagmire of no-order processing. The recent “sadness” in the printing and dyeing industry comes from the heart! A dyeing factory owner said frankly that recently there have been fewer and fewer orders, and the processing fees have been getting lower and lower! Such a large printing and dyeing factory only operates a setting machine! Now we are making one tank and losing one tank! If you don’t do it, it will be even worse! How to break this?
The owner of the dyeing factory invites his employees to break up Rice
Due to the impact of the epidemic, garment sales of downstream garment companies have stagnated, and foreign trade orders have suddenly disappeared! This has affected the entire textile and clothing ecological supply chain, leading to a dramatic reduction in orders from printing and dyeing factories! As the situation becomes more severe, it has now affected the survival of the printing and dyeing industry! Printing and dyeing factories have issued notices, and all employees have entered vacation mode. Those who can go to work are lucky, but they also have to work one day and rest for five days in shifts! What a sad day! What’s more, the owner of the printing and dyeing factory took the initiative to invite the factory employees to a break-up meal. After this meal, it would be a chance to see each other again!
Foreign trade orders plummeted
According to China The textile industry federation’s weekly report survey results from March 25 to April 1 showed that among the 190 companies that had started operations that week, 33.7% had orders that reached 80% of the normal level, and 50% of the companies had orders that were less than the normal level. % of enterprises accounted for 23.2%. The shortage of export orders is even more prominent. Only 9% of companies have export orders that have reached 80% of normal levels, and the proportion of companies with export orders that are less than 50% of normal levels is as high as 61.2%.
The report pointed out that insufficient orders have become the primary difficulty faced by enterprises in production and operation. According to weekly reports and cluster survey data, from March 25 to April 1, 80% of Enterprises reported that there was a shortage of orders, and the proportion increased by 23 percentage points from a week ago; 85.7% of industrial clusters reported that there was a shortage of orders, and the proportion increased by 9.8 percentage points from a week ago.
It can be seen from this that the current competitive situation in the fabric industry is extremely severe. Some companies faced difficulties in recruiting workers in the early stage. After many setbacks to recruit employees back to work, they faced a sharp drop in orders and another shutdown for holidays.
At the end of March, there were orders but no workers at the Guangzhou Cloth Trading Market. Now, just in April, the workers are faced with “nothing to do”!
There were orders in March but no workers:
In April, workers had “nothing to do”:
In previous years, March was usually the season with the highest start-up of the whole year, but in March this year, the situation took a turn for the worse: first, the start-up was delayed due to the disaster, then the recovery was slow due to lack of work, and now we do not want to start due to poor orders.
After many twists and turns, many bosses are currently in this state of mind, but various costs such as equipment depreciation, rent, labor, water, electricity, taxes, etc. force them to start work. Only then can production value be achieved. Of course, a small number of bosses choose to maintain low operating hours or even not open operations at all.
Some factories have 20% of the machines. Now that raw materials have plummeted and there are not many orders, the inventory is easy to depreciate and takes up too much capital, limiting cash flow. In addition, I heard that a few textile bosses who have opened factories in Jiangxi have chosen not to start operations to avoid the pessimistic market situation in the first half of this year.
In addition, out-of-town production and local distribution are the way of survival for many factories building in the Midwest. During the epidemic, due to logistics obstruction, the inventory previously shipped to local warehouses has been successfully digested. Therefore, the inventory of these small factories is not high, and some even have no inventory. It is these bosses who have chosen not to start operations temporarily considering the risks of the current market. , in order to avoid the difficulties caused by this “black swan”.
So, for many factories now, whether they are open or not, they are basically losing money. It is just a question of how much they lose or how much they lose. Many export companies have no orders and have begun to switch from export to domestic sales.
However, it is difficult for foreign trade factories to transform and sell domestically based on standards. In order to meet the supplier standards of foreign customers, generally foreign trade factories have higher software and hardware standards than domestic ones, and the costs will be correspondingly higher. There is no price advantage when switching to domestic sales.
Moreover, competition in the domestic market is actually very fierce, and domestic and foreign markets have many different characteristics, such as business models, sales channels, settlement methods, etc. Moreover, products sold externally may not necessarily be suitable for the domestic market.
What’s more, even if many cities in China have lifted their lockdown, there are still not many people who dare to go shopping or go out to spend money. The domestic market has long been occupied by companies focusing on domestic sales, and now foreign trade companies are coming in to grab the market, which is easier said than done.
Therefore, it is difficult for many foreign trade companies to survive this disaster. Dongguan’s toy factory with more than 1,000 people and the headphone factory with more than 4,000 people have begun to choose to close their factories due to fewer orders. The ability of other small and medium-sized foreign trade companies to resist risks is even more dangerous, whether it is capital or rigid cost expenditures, it will be more difficult for them. It has been 3 months now.��They are very risky!
It is difficult for newly closed stores in Europe and the United States to open within 2 or 3 months. Currently, the unemployment rate in the United States has exceeded that of the period from 2008 to 2010, when the subprime mortgage crisis was the worst affected By then, the two cards Trump was proud of, the stock market and the unemployment rate, were basically in ruins. Those consumers who choose to stay behind closed doors due to city closures or severe disasters will have a huge impact on the global economy. After all, without consumption, there will be no production and no orders. Trading companies that rely heavily on the export market will bear the brunt.
The next three years
Fabric companies The number may be reduced by 30%
What is certain is that a quiet “shuffle” is underway.
Judging from the textile fabric companies recently interviewed by reporters, company leaders generally believe that the situation facing the industry may become more severe in the next period of 2020. This kind of The unoptimistic view is still based on the judgment of the epidemic.
A textile practitioner who did not want to be named believes that in the future, the situation of “big fish eating small fish” in the textile industry will be more severe. “Although the industry’s ‘cold winter’ in 2019 has arrived, everyone still has hope for the future market and will persevere. However, this year, affected by the global epidemic, it will be further difficult for small and medium-sized enterprises to maintain basic operations. .” He predicts that perhaps in the next three years, the number of fabric companies will decrease by at least 30%.
The editor reminds that the impact of reduced orders and order cancellations by foreign merchants is destined to cause the collapse of foreign trade companies! Please cherish the jobs you have in front of you, because many people will lose their jobs this year! </p
