In recent days, another printing and dyeing factory has closed down and laid off its employees!
According to netizens, a printing and dyeing factory in Shaoxing was officially shut down on August 23 due to poor management. But this printing and dyeing factory’s approach is heart-warming. It not only settled August wages as usual, but also arranged work for its employees. The market was deserted and people’s hearts were warm.
Since the beginning of this year, printing and dyeing companies have closed down and gone bankrupt in Zhejiang, Guangzhou and other places. This year, the impact of the epidemic has been the biggest on the textile market. Not only did companies reduce production and suspend production, it also made many textile companies overwhelmed and had no choice but to declare bankruptcy. July to August has always been the traditional off-season for the textile market, but this year’s market has become even weaker due to the impact of the epidemic. Coupled with the persistence of hot weather this year and the expansion of orderly electricity consumption in various places, companies in the off-season have reduced production and suspended production for a long time, increasing operating pressure and making it unsustainable.
01
The operating rate of printing and dyeing plants fell 17.3% year-on-year
Next, let’s take a closer look at the current basic situation of printing and dyeing factories. Traders’ orders are still insufficient, and printing and dyeing factories’ order-taking atmosphere has also declined, and the number of gray fabrics entering warehouses has gradually decreased. In the past month, due to high temperatures and orderly use of electricity, the start-up of printing and dyeing plants has declined significantly. According to research, the operation rate of some relatively good manufacturers can reach 70%-80%, and most of them are below 60%. According to data monitoring from Silkdu.com, the current operating rate of printing and dyeing factories in Shengze is only 49.7%, down 2.3% from the previous month and 17.3% year-on-year.
Affected by the local epidemic, the speed of placing terminal orders has slowed down. The domestic and foreign trade textile market demand performance is poor, new orders are sporadic, and the seasonal differentiation of orders is not clear enough. At present, most of the orders made by dyeing factories are still mainly spring and summer orders, mainly conventional polyester taffeta, nylon, four-way elastic, imitation memory, and imitation silk, with mixed varieties. In terms of delivery time, the quantity of gray fabrics entering the warehouse is average, and the general delivery time is about 5-7 days. Some busier manufacturers require more than 10 days.
02
Business operating pressure continues to increase
According to feedback from a dyeing factory salesperson: “The current order volume has shrunk by about 30% compared with previous years. There are very few market orders this year, and domestic sales have dropped a lot. Recently, it has been entirely supported by foreign trade orders.”
In recent years, textile companies have been in extremely difficult situations. Labor wages, benefits, and raw material prices continue to rise, various taxes and fees increase, etc., and costs continue to increase, but profits are thin, and many companies are even losing money, which has led to the bankruptcy of individual companies. But for most companies, shrinking orders and declining profits are normal, especially during the off-season. This situation is particularly obvious.
Whether the current textile market is good or bad, dyeing factories have given different answers. In the final analysis, it is the difference between orders and market orders, the difference between foreign trade and domestic sales, and the difference between regular products and special products. All clothing companies are not in good shape this year, and customers who place various market orders are still greatly affected. Recently, autumn and winter fabrics have gradually increased in volume, such as T400, four-way stretch, Taslan, peach skin and other products. Sales of products such as T400, four-way stretch, Taslon, peach skin and other products have increased. Printing and dyeing factories that produce such fabrics have also been affected by the increase in sales and increased the number of warehouses.
The optimistic forecast of the overseas market in the second half of the year has already caused many autumn and winter orders to start stocking up in advance. Foreign trade orders have quietly recovered, but relatively speaking, the domestic trade market is still difficult to let people relax. Although the current volume of orders is still difficult to promote the improvement of the entire market, only the stability of orders can truly drive the market recovery. Industry insiders have certain demand expectations for September, but they still need to pay attention to the subsequent issuance of new orders.
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