“This year’s Dragon Boat Festival has two days of holiday.” Whether it is printing and dyeing factories in Guangdong or Jiangsu and Zhejiang, Wang Feng, editor-in-chief of Printing and Dyeing People, learned from many friends today that the Dragon Boat Festival in 2020 will mostly be a two-day holiday. According to the practice in previous years, Even if the production is not busy enough, printing and dyeing factories will have at most one day off during the Dragon Boat Festival.
Not just for printing and dyeing factories, the recent raw material prices are sometimes like a helicopter, sometimes like a roller coaster, sometimes like a cliff jump, with ups and downs, and it is difficult to prevent it. News of “collapse”, “shutdown”, “bankruptcy”, “wage arrears”, “decline in performance”, “loss”, “rotational leave”, “holiday”, “production restriction” and other news about manufacturers in various industries have shaken people’s hearts. In-demand goods that were previously hard to find at high prices have become surplus, so many manufacturers either have no business or rely on low-profit volume to survive. The current raw material market is sluggish, downstream demand is very weak, and prices are falling every day. When prices fall, profit margins also fall.
At this stage, raw material prices continue to decline, and many people in the industry now say that it is difficult to sell goods at low prices. Everyone wants to sell their own products and want to sell more, so they are trying their best to keep prices down. The consequence of this is that profits get lower and lower. Large companies can survive on prices due to their abundant funds, but small companies cannot avoid it. The capital chain was broken, and eventually the factory closed down.
Data show that from January to February 2020, the profit growth rate of industrial enterprises dropped sharply year-on-year, reaching the lowest level since 1999. A total of 247,000 companies closed down across the country from January to February this year. It is understood that some varieties and specifications of chemical fibers and textile raw materials are now falling by varying degrees every day.
As we enter mid-to-late June, the atmosphere of the traditional off-season is getting stronger and stronger. Originally, we received some orders at the end of May and thought they would last until the end of June. However, in the past half month or so, we have not received a single order. I thought we were going to recover. Now that the off-season is approaching, it seems that we will have to continue for a while. time. A textile boss shook his head and said helplessly.
The recent recurrence of the epidemic in Beijing has not only tightened the nerves of domestic epidemic prevention work, but also cast a shadow on the textile and garment industry, which is still in the off-season. With foreign trade showing no improvement and domestic trade yet to recover, the textile industry is destined to experience the weakest off-season in history this summer.
The factory’s current operating rate is 80%, and the inventory is about 1 million meters. Orders have decreased by 60-70% compared to previous years.
Our factory now has only 4 looms in operation, and orders have dropped sharply. We have not received any orders since the second half of May.
The factory’s current operating rate is about 50%, and the inventory is about 3 million meters. This year’s orders have dropped by 60% compared to last year.
At present, it is the consensus of all textile people that orders have been reduced by more than 50%. Of course, the most direct impact of the loss of orders is the endless growth of inventory. In order to prevent all working capital from being turned into raw materials, gray fabrics, and workers’ wages, most weaving companies have changed their early high operating rates and began to significantly reduce their operating rates, ranging from 80% to 50% or even less than 20% in some cases.
Instead of taking regular holidays, just take the Dragon Boat Festival holiday
With the decline in operating rates, I thought that many companies would have a concentrated holiday during the upcoming Dragon Boat Festival. phenomenon, but in fact not many companies plan to take a holiday, except for a few companies that plan to take a holiday for about 3 days.
The absence of a holiday during the Dragon Boat Festival does not mean that workers will not have a holiday. The real situation is that many workers in factories have already entered a state of rotation. Three shifts, two weekends off, 10 and 20 days of vacation… Various different vacation methods are performed in various factories. Factories that usually have rotating holidays basically have no plans to take a Dragon Boat Festival holiday, and most factories that don’t usually take rotating holidays will have a holiday during the Dragon Boat Festival. Whether it is a regular holiday or a holiday, it is an intuitive manifestation of the current weakening of the textile market.
Of course, the purpose of factory holidays is very simple, which is to reduce inventory growth and reduce workers’ salary expenses. Whether it is hourly wages or piece-rate wages, in the face of a significant reduction in working hours, a reduction in income is inevitable. A drop of 10-20% is considered small, and a plunge of more than 30% is common.
The arrival of the traditional off-season is accompanied by a gradual decrease in order volume. According to monitoring data, it can be seen that as of June 19, the company’s looms have been turned on The rate has dropped to 68%, which is a drop compared with the previous period. Many textile bosses said that the recovery at home and abroad is obviously lower than expected, and the inventory has been piled up in the warehouse, so the start of work can only be reduced. It can be seen that the current market is still in a state of “not having enough to eat” and the market is going downhill, which has prompted textile bosses to start “self-rescue”.
What is surprising is that despite the significant reduction in wages and benefits, there has been little loss of workers. This situation occurs mainly because the textile environment is like this. Other factories and companies are also taking holidays and reducing wages. In other words, many companies have no recruitment plans this year, and ordinary workers lack mobility.�Positivity and destination.
The current situation of weaving enterprises is not optimistic. How is the performance of dyeing factories?
The dyeing fee is negotiable and negotiable, and the delivery time is within one week
Dyeing factory as weaving Downstream of the enterprise, when the weaving mills encounter a decrease in orders, they will inevitably have no work to do, stop production and take holidays. The number of holidays has increased significantly. The dyeing factories, which have been in a relationship of “supply exceeds demand” for a long time, have been struggling with dyeing costs. It is true that prices are strong, but this year they have to lower their heads in the face of the epidemic. The increase in dyeing fees that occurred several times a year in the past has disappeared. Instead, the price of dyeing fees is negotiable and negotiable, and there is still room for price reduction.
“There is no discount on the price on the surface, but if the quantity is large, you can negotiate the price privately and get a discount.”
“The dyeing fee will be cheaper by two or three if the quantity is large. Hair.”
“There must be a discount on the dyeing fee. It mainly depends on the size of the order. If the quantity is large, it is normal to give a hair or two.”
……
Many traders have reported that dyeing fee prices have loosened. Not only are dyeing costs giving way, but today’s dyeing factory delivery times are also surprising. As long as there is an order being made, the delivery can basically be controlled within a week or so. The faster ones can be delivered in about 5 days, and some can even be shipped in 2-3 days. The dyeing fee and delivery time of the dyeing factory at this time can be said to be very attractive. It would be a blessing if there are orders at this time. But in fact, not everyone has the courage to take orders at this time.
Sold goods at low prices, but no one cared about them
A textile boss complained: There is so much inventory that cannot be sold, and the warehouse is full. It can’t be stuffed anymore.
According to data monitoring, as of June 19, the inventory days of enterprises in Shengze area remained at about 43 days, which has begun to gradually rise compared with the previous period, indicating that both orders and shipments have been declining recently. Not very impressive.
No one cares about the current low-price selling in the textile market. Your price is low, but my price is lower than yours. Textile bosses complain: I I’ve already lost money and you still don’t buy it, what can I do?
With so much selling information, it is really But very few went out! A textile boss who specializes in imitation silk said: “Every day, news of selling goods are posted in WeChat Moments, but very few people come to ask, and some of those who ask think the price is too high. Although it is selling goods, it is still We can’t make no profit at all. We still have a lot of inventory at home, and we don’t know what to do now.”
Since June, most textile bosses have said that orders have begun to gradually decline, and inventory is also increasing. high. June is only a “small off-season”, and the arrival of July and August will be the arrival of the real off-season. Under the current situation, there will definitely be more and more production suspensions and reductions. Some textile bosses even said: The market will be difficult this year. Get better! </p
