According to a summary analysis by the China Textile and Apparel Industry Federation, from March 18 to March 25, the situation of textile enterprises resuming work and production was generally stable, and the situation of small and micro enterprises resuming work further improved.
According to the survey results of the resumption of work weekly report, from 12:00 on March 18 to 12:00 on March 25, A total of 245 companies submitted valid resumption data through the online questionnaire, and the proportion of companies that have resumed work reached 97.1%, a slight increase of 0.2 percentage points from the previous week’s survey results; the number of returning workers in 238 companies that have resumed work reached 301,000, accounting for 301,000 workers under normal circumstances. The proportion of the total number of people was 91.4%, an increase of 4.1 percentage points from the previous week’s survey results. Companies in Hubei, Xinjiang and other regions that had previously been delayed in resuming work due to the epidemic have begun to resume work and production.
The Cluster Office and Park Office of China Textile Federation conducted a survey on 28 key textile industry clusters in 13 provinces across the country. As of 15:00 on March 19 , a total of 66,000 textile enterprises in the above-mentioned clusters have resumed production, accounting for 86.2% of the total number of cluster enterprises, an increase of 11.2 percentage points from the survey data a week ago; the number of workers who have resumed work has reached 1.561 million, accounting for 71.5% of the normal number of workers, an increase from the survey a week ago The data increased by 12.5 percentage points. Among them, among the 3,942 enterprises above designated size in the cluster, the proportion of enterprises that have resumed work reached 98.6%, and the proportion of employees who have resumed work reached 81.6%, which were 3.2 and 10 percentage points higher than last week’s survey data respectively.
The situation of small and micro enterprises resuming work and production continues to improve. In 28 key industrial clusters, a total of 62,000 enterprises below designated size have resumed work, accounting for 85.6% of the total number of enterprises under cluster regulations, an increase of 10.9 percentage points from the survey data a week ago; the number of enterprises under designated scale has resumed work to 932,000. Accounting for 66% of the normal number of employees, an increase of 14.7 percentage points from the survey data a week ago.
The collaborative efficiency of the industrial chain has steadily improved, and the operating load of enterprises has remained stable.
At this stage, the resumption of work and production in the upstream and downstream of the textile industry chain has basically been synchronized, and the coordinated operation efficiency of the entire industry chain is generally improving. According to the weekly survey data, the proportion of surveyed enterprises in the upstream cotton spinning and chemical fiber industries, as well as the mid-stream and downstream filament weaving, printing and dyeing, and knitting industries, all reached more than 95%, and the proportion of workers returning to work increased to more than 90%. According to China Textile Federation’s survey data on key industrial clusters, among the 40,000 enterprises in 10 clothing and home textile industry clusters with complete information, including Dongguan, Nantong, Changshu, and Haining, the proportion of enterprises that have resumed work has reached 84.4%, which is higher than the previous week’s survey An increase of 9.5 percentage points; among them, the proportion of enterprises above designated size resuming work reached 98.8%.
The operating load of enterprises remains stable. According to the China Textile Federation Weekly Report survey data, among the 242 companies that have effectively filled in their production capacity and resumed work, 60.3% of the companies have a capacity utilization rate of 80%, which is basically the same as in the survey a week ago. The proportion of surveyed companies with a capacity utilization rate of less than 50% was 10.3%, a decrease of 3.7 percentage points from the survey a week ago.
Affected by the global spread of the epidemic, corporate order levels have dropped, and export companies have been increasingly asked to postpone delivery or cancel orders.
Last week, the order situation of textile companies showed signs of improvement, but this trend has changed this week. Affected by the global spread of the COVID-19 epidemic, businesses in developed countries such as the United States and Europe have been shut down on a large scale. Many export companies have suffered from overseas customers canceling orders and abandoning goods. The export situation in the textile industry has become more severe. According to a survey by the China Home Textile Industry Association, starting from March 18, many export companies received notices of delayed shipments from European and American customers, and some overseas customers canceled orders for the past two months. Downstream export companies have had a large number of orders withdrawn, causing domestic suppliers upstream of the industrial chain to also face pressure from reduced orders. According to a survey conducted by the China Cotton Textile Industry Association on more than 120 key enterprises from March 16 to 20, 35% of the surveyed enterprises reported insufficient orders, an increase of 12.1 percentage points from the survey a week ago.
According to the China Textile Federation Weekly Report survey data, among the 242 companies that have returned to work this week and have effectively filled in their orders, the proportion of companies with order volume reaching 80% of normal levels is 31.8% , a decrease of 12.8 percentage points from the survey a week ago; the proportion of surveyed companies with orders less than 50% of the usual volume increased to 26.4%, an increase of 11.4 percentage points from the survey a week ago. At 12:00 noon on March 22, the weekly report added a survey on order cancellations. As of 12:00 on the 25th, 37% of the companies surveyed reported that they had encountered customer cancellations.
Insufficient orders and poor sales are the outstanding difficulties currently faced by enterprises. In the face of the severe situation of global epidemic prevention and control, it is recommended that enterprises carefully arrange production and actively prevent and control capital chain risks.
As the domestic epidemic prevention and control situation improves, the most prominent problems in the early stage of resumption of work, such as difficulty in workers returning to work and poor logistics, have been greatly alleviated. Insufficient orders have become the primary difficulty faced by enterprises in production and operations. According to the weekly resumption of work report and cluster survey results, 57% of enterprises and 75.9% of…�Industrial clusters report that there is a problem of insufficient orders. In addition, since the epidemic has not yet ended, commercial entities have not yet fully resumed normal operations, and passenger flow is significantly lower than normal. Sluggish sales channels are an important problem faced by domestic sales companies at this stage. In addition to the decline in orders for export companies, there are also cases where goods are delayed or rejected at overseas ports, increasing the cost burden.
China Textile Federation carefully sorted out the policy demands put forward by enterprises, and proposed to relevant government departments to vigorously strengthen financial support, effectively reduce the burden on enterprises, start domestic consumption as soon as possible, and support export enterprises to transition. Suggestions on policy measures to overcome difficulties.
At present, although the domestic epidemic prevention and control situation is steadily improving, the global epidemic prevention and control situation is extremely severe and is expected to last for a long time. The international market has declined significantly, which has a negative impact on the domestic textile industry. There is high uncertainty about the impact on supply chains. Recently, due to canceled orders, many textile companies have experienced a sudden increase in inventory and tight capital chains. It is recommended that enterprises make predictions based on the overall tight market situation in the first half of the year, reasonably plan production and operation strategies, prudently arrange production loads, raw material inventories and investment projects, vigorously prevent and control capital chain risks, and strive to maintain low-speed and stable operations. </p
