Since February 14, the China Cotton Textile Industry Association (hereinafter referred to as the “China Cotton Textile Association”), in accordance with the unified arrangements of the China Textile Industry Federation (referred to as the “China Textile Federation”), has implemented epidemic prevention and control measures for cotton textile enterprises. Conduct daily surveys on resumed production status. With the support of the vast number of cotton textile enterprises and related units, for more than half a month, the daily resumption of cotton textile production has been reported to the relevant departments of the National Development and Reform Commission and the Ministry of Industry and Information Technology in a timely manner, playing a positive role in the government’s macro guidance. China Cotton The Association would like to express its heartfelt thanks.
Through follow-up surveys, since the cotton textile industry has gradually resumed work and production, companies have started operations and personnel have arrived at work. The situation is gradually improving, and the problems faced are also changing. The production and operation situation of the cotton textile industry in the fight against the “epidemic” and the resumption of production are summarized as follows for industry reference.
1. Production recovery situation of cotton textile enterprises
1. Basic Situation
Between February 14th and March 2nd, a total of 1,880 companies in the cotton textile industry participated in filling out reports for resumption of work and production. Among all companies participating in the survey, the proportion of companies that have started operations has never been higher. The number of workers who have returned to work has increased from 50% to about 80%, and the proportion of workers who have returned to work has recovered more significantly, rising from less than 20% initially to more than 70%.
Figure 1 Cotton textile enterprise start-up and personnel arrival status (all samples)
Note 1: There are more large companies filling in the data. The estimated operating rate of enterprises is expected to be slightly higher than the actual situation. Since there is no guarantee that companies can continuously submit reports, the number of companies surveyed every day will be different, and the relevant results are for reference only.
In order to avoid fluctuations in statistical results due to daily sample changes, the China Cotton Association screened 938 enterprises that continuously reported data from February 18 to March 2 as fixed samples for analysis, such as As shown in Figure 2. The comparison results show that, judging from the resumption of work of these enterprises, the operating rate and staff arrival rate are basically consistent with the trends and ratios of the total reported enterprises. More than 95% of the large and medium-sized enterprises included in the fixed sample in Figure 2 are operating well. The proportion of enterprises operating is more than 85%. The staff on-the-job rate has increased steadily and is close to 80%. The start-up and staff arrivals of large enterprises are better than the industry average, driving the recovery of industrial vitality.
Figure 2 Cotton textile enterprises start-up and personnel arrival (fixed sample)
Note 2: Fill in the data for large enterprises Mainly, the operating rate is higher than the actual situation of the entire industry.
2. Problems faced Since February 14, the China Cotton Industry Association has established a coordination group for epidemic prevention and control and production resumption, and has opened an epidemic prevention and control and production resumption coordination group. The online service platform (referred to as “online information”) collects problems and suggestions encountered by enterprises in fighting the epidemic and resuming production. As of March 2, a total of more than 150 pieces of online information submitted by 110 companies have been received, as shown in Figure 3.
Figure 3 Main issues reflected through online information
As time develops, the problems faced by enterprises are also changing. . In mid-February, many companies were in the preparation stage for resumption of work, and prevention and control of material shortages was the biggest problem faced by companies; as companies gradually resumed work, the lack of personnel and poor material transportation became the top two difficulties faced by companies in resuming work and production; At the end of February, the problem of shortage of prevention and control materials has been gradually solved. Due to the unsynchronized resumption of work in the industrial chain, the shortage of upstream and downstream operations has increased rapidly. At the same time, as time goes by, the enterprises’ shortage of funds, loans, social security and other aspects have increased rapidly. Problems began to arise, and the problems faced became more diverse.
In response to companies reporting a large number of insufficient orders, the China Cotton Banking Association has learned about the recovery of orders in the industry chain. Entering March, the order recovery volume of large cotton textile companies was around 70%. The order situation of large enterprises in Shandong, Jiangsu and Zhejiang is good, with order volume reaching about 80% of the normal level. The recovery speed of export orders is slightly slower, basically returning to the range of 50%-80%; orders from small enterprises mainly focusing on conventional products It will take some time to return to normal levels. A small number of companies are producing at full capacity to complete pre-holiday orders on time, while others choose to partially operate to ensure continuous production.
2. Industrial chains and clusters
1. The progress of resumption of work among industrial chains is not synchronized
From the perspective of the industrial chain, it is obvious that the upstream and downstream production companies have started operations out of sync, and the resumption of work of upstream companies is better than that of the middle and downstream companies. Upstream companies generally have larger scales, stronger financial strength, higher levels of production automation and digitalization of equipment, fewer workers, and better resumption of work and production. Data from surveys of large companies show that about 90% of companies in the chemical fiber industry have resumed work, and about 70% of cotton spinning companies have resumed work. Downstream weaving, clothing and other links have a high labor density. At present, due to factors such as worker shortages and insufficient epidemic prevention management capabilities, coupled with the fact that terminal retail entities have not yet resumed normal operations and sales channels are not smooth, the resumption of work is relatively slow..
The textile and apparel professional market is an important part of the textile supply chain, connecting the upstream and downstream production enterprises, production enterprises and market demand end of the industrial chain. According to the survey data of the Circulation Branch of China Textile Federation on February 25, 69 of the 101 professional markets surveyed have already opened. The opening rate of the individual market is 68.3%, but the number of open shops in the open professional market The proportion is not high. Promoting the professional market to resume normal operation as soon as possible is of great practical significance for accelerating the resumption of work and production in the middle and lower reaches of the textile industry chain, small and medium-sized enterprises, and improving the operating efficiency of the entire industry chain.
2. The resumption progress of industrial clusters among regions is inconsistent
The China Cotton Textile Industry Association conducted a survey on the resumption of work of 19 cotton textile industry clusters. The clusters under investigation The total number of enterprises involved is about 4,650, mainly small and medium-sized enterprises. The proportion of enterprises under designated regulations is 74% of the total number of enterprises. The total scale of spinning and weaving is about 25 million spindles and 100,000 units respectively, and the total number of employees is nearly 300,000. Most clusters started construction one after another after February 15. Overall, the resumption of work varies greatly between clusters. The start-up rate of clusters in Shandong, Jiangsu and Zhejiang is relatively high, the start-up rate of clusters in Hebei, Hunan, and Jiangxi is low, and most clusters in Hubei, Henan, and Xinjiang have not started construction.
Compare the last week of February with the week before. The average resumption rate of cluster enterprises has increased by 11 percentage points compared with last week. Among them, 47% of cluster enterprises have a resumption rate of more than 60%, and 37% of cluster enterprises have a resumption rate of less than 40%. In terms of enterprise size, the average of enterprises above designated size The resumption rate is better than that of enterprises under designated regulations, which are 56% and 43% respectively, an increase of 5.6 and 11.4 percentage points from last week. Judging from the situation of workers arriving at work, clusters with employees mainly from local or surrounding areas have a higher employment resumption rate than Clusters with more foreign workers.
China Textile Federation collected data on the resumption of work and production of 29 key textile industry clusters located in 15 provinces across the country on February 28. The results show that the resumption of work varies greatly between clusters, and the downstream Nantong The resumption rate of key clothing and home textile industry clusters such as Dieshiqiao, Changshu and Yudu increased significantly by 11.7 percentage points from last week, indicating that the progress of resumption of work in the terminal industry has accelerated. However, this proportion is still 2 percentage points lower than the total proportion of enterprises in the 29 clusters that have resumed work.
3. The main characteristics of the resumption of work and production in the textile industry
From the perspective of the entire textile and garment industry, the resumption of work and production of enterprises is mainly progressing steadily. It shows the following characteristics:
(1) Large and medium-sized enterprises resume work quickly, but their operating load is low. Very few companies have resumed work with all employees. Enterprises’ export orders have been significantly reduced due to the epidemic, and the recovery of the domestic demand market is also needed. To a certain extent, it is expected that the capacity utilization rate of most enterprises will be lower than normal levels for a considerable period of time.
(2) The resumption of work of small enterprises is slow. With the domestic and foreign market demand significantly reduced, in addition to the shortage of workers, insufficient epidemic prevention management capabilities, and most professional markets have not yet opened normally, there is a lack of order sources. and sales channels have become the core reasons for the slow progress of small businesses in resuming work.
(3) The epidemic will further intensify the adjustment and reshuffle that is already underway in the textile industry. Pressures such as sluggish production and sales and difficulty in capital turnover caused by the epidemic are relatively prominent. Enterprises have fewer investment projects under construction and lack sufficient confidence in investment development.
3. Summary
Since the outbreak, in order to reduce the impact of the epidemic on enterprises, losses, while also protecting the legitimate rights and interests of employees. Relevant national and local departments listened to the voices of enterprises in a timely manner and understood their difficulties and needs. With the introduction of relevant support policies, the situation of enterprises resuming work has improved significantly. On the other hand, at the critical moment of fighting the epidemic, cotton textile enterprises, while sharing the difficulties with the country, also shouldered their own responsibilities and responsibilities. They not only adopted a variety of effective measures in the process of epidemic prevention and control, Many companies have used their own efforts to help employees return to work smoothly and help the industry return to normal. In the new stage, we need to continue to work together to open up circulation links, promote the coordinated resumption of work in the industrial chain as the main tasks, and inject new blood into the industry.
China Cotton Industry Association will continue to pay attention to the trend of epidemic prevention and control and the actual production and operation status of enterprises, timely summarize and feedback to China Textile Federation and relevant departments, and do a good job in early warning and analysis of industry information. During special periods, Strive to ensure the smooth operation of the industry. </p
