Relevant agency surveys show that as of February 25, the comprehensive spinning rate nationwide was 35%; among them, the resumption rate in Jiangsu was relatively good, reaching 50%, followed by Fujian and Shandong at 43% and 36% respectively. %; the operating rates in Hebei, Henan, and Zhejiang are lower than the national average. The resumption rate of spinning enterprises has gradually increased, but overall, the resumption process is slow, especially for small and medium-sized spinning enterprises, which is generally later. So, what are the reasons for the delay in the resumption of work of small and medium-sized textile enterprises? For textile companies that rely on production and processing to make a living, how much impact will delaying the resumption of work have on their profits?
Epidemic prevention and control is the top priority, and the shortage of workers makes it difficult to resume work
It is understood that epidemic prevention and control is still the reason for the shortage of workers and the low resumption rate of enterprises in various places. main reason. Some business owners said that non-local workers must go through corresponding procedures when returning to the factory, and completing all the procedures may not necessarily result in a smooth return to the factory. The person in charge of a spinning factory in Qingdao, Shandong Province, said that the factory has more than 190 employees, 30% of whom are employees from other provinces such as Henan and Gansu. Although the remaining employees are all laborers in the province, they also come from different districts and counties, which has caused great problems for employees to return to work. inconvenient. Other companies also said that although various control measures were in place, they had to postpone the resumption of production due to lack of employees.
The inability to obtain a resumption of work and driving permit is also the reason why some companies cannot resume work in time. At present, safety prevention and control is the first priority during the epidemic. Enterprises can only resume production if they obtain a resumption of work and driving permit. Despite this, the company fully understands the concerns and prevention and control measures taken by governments at all levels, and calmly accepts on-site and qualification review such as training on resumption of work during the epidemic period, epidemic prevention and control measures in place, personnel sorting and file management and control. The reporting companies reported that as long as the hardware controls and defenses are in place and the software procedures are complete, the processing of relevant licenses is very efficient. Not only that, many local governments are also trying to find ways to help companies in their jurisdictions resume work. They actively provide services and relieve worries for companies by adjusting employee surplus and vacancies between companies, holding online labor markets, and carrying out employee skills training.
Experts believe that the factors hindering the start of construction are mostly due to the impact of the epidemic. Although governments at all levels have taken strict control measures and tried their best to stop the epidemic, companies’ own prevention and control capabilities in responding to this sudden epidemic vary, so the difficulty of resuming work is highlighted.
In late February, cotton textile companies have started operations one after another, but the number of workers is not full. How can production be carried out when the number of employees is not full? In this regard, industry experts suggest: First, protect the line but not the factory. It is better to increase the occupancy rate of one line or a few production lines than to disperse people to N production lines in various places. The second is to arrange orders reasonably. Priority will be given to orders with larger batches without affecting the overall delivery time. The third is to maximize the optimization of labor force. At this stage, since manpower and production in each process are not completely balanced, in order not to waste precious manpower, production capacity must be appropriately stored in key processes to maximize labor utilization.
In addition, lack of raw materials is also one of the main problems faced by enterprises in resuming work. An owner of a spinning company said: “The stock of raw materials was low a year ago, and even if production resumes, it will soon become a ‘cook without rice’.” It is understood that due to concerns about post-holiday market risks, most small and medium-sized enterprises only have enough raw materials to last for 7 to 10 days. We dare not start work until logistics is fully restored. The incomplete industrial chain caused by poor logistics has become a major obstacle preventing textile companies from resuming work and production.
“The cost of production while preventing the epidemic has increased by at least 10% to 20%, which is tantamount to worsening the situation for companies that already lack cash flow.” Industry insiders said that in addition to rent, workers’ wages, and procurement Raw materials, etc., as well as essential protective equipment such as masks and disinfectants, as well as isolation rooms, temperature guns and daily employee temperature checks, will all cause large costs to enterprises. Therefore, some companies have expressed the hope that the government will further introduce relevant policies and measures to help companies resume work and production, such as rent reductions, timely provision of epidemic prevention materials, help with resumption of work protection, order and financial assistance, more stock discounts, etc., as well as help Supporting companies with technological advantages can effectively connect with qualified professional protective product companies.
Textile factories with incomplete industrial chains “cannot grow into a forest with a single tree”
Unlike a few large textile companies with complete industrial chains, domestic A major problem that most spinning companies face after resuming work is the incomplete industrial chain.
Spinning companies said that in early February, even if companies could resume work, only a handful of downstream printing and dyeing and garment factories could resume work, and when there was inventory, downstream companies were not in a hurry to order new ones. goods, so it is not easy for spinning mills to receive new orders at the moment. At present, yarn sales are occasionally sold out, but transportation in various places has not resumed, and shipping channels are not smooth. There are almost no large orders, and some bulk goods are occasionally shipped. The yarn price is mainly based on the price before the Spring Festival, and there are also downstream prices. Customers inquired about prices, but no new orders were completed. It is understood that companies are also trying to strengthen communication with customers through online offices and online transactions, stabilize old customers and expand new customers. However, companies also express concerns about the future market. For example, the Guangdong market is dominated by spring and summer orders. Once the season is over, the order volume will be greatly affected.
Industry experts believe that the current resumption of production by textile enterprises is actually a big concept in a sense. How many employees are in place and the operating rate are basic issues., the company’s order holding status, raw material and product inventory, auxiliary guarantee for equipment operation, continuity of production and operations, etc., under the current epidemic situation, will form constraints on the normal operation of the company.
In terms of orders, most of the orders currently held by companies are orders before the Spring Festival. Some companies have abundant orders, which can last until the end of the first quarter or even longer, and some can last for ten and a half months. Will these orders now be available? Real-time changes? Whether there is any adjustment information downstream is still in progress. As the epidemic develops, the market is likely to change.
In terms of raw material inventory, usually, because the supply of cotton resources is guaranteed, cotton textile companies do not worry about the supply of raw materials, but it is still uncertain whether they can maintain orderly purchase and sales after resuming work. A company is worried that the price difference between the cotton quotation after the epidemic and the price of on-hand processing orders is too big. What should I do? Some companies are worried about whether the key and commonly consumed parts for normal procurement can be purchased normally after the machine is turned on. Textile machinery equipment manufacturing companies are also facing the fight against the epidemic. If the companies are unable to resume work for a while, the original product supply will be disrupted.
Follow-up orders are not certain, and the market outlook still needs to be waited and seen
Today, the epidemic sniper war is not over yet. As textile companies continue to As work resumes, product production and sales in the textile market will face new changes.
In the market, some yarn manufacturing companies produce conventional products and form fixed supply and marketing relationships with downstream companies to provide certain varieties, specifications and quantities. However, these companies do not represent the status of the entire industry. More spinning companies still rely on received orders to arrange production and operations. At present, small and medium-sized spinning enterprises basically rely on the orders they hold to arrange production and sales. The main body of production orders in mid-February came from the end of the previous year. At the same time, enterprises are also facing several problems after resuming production and operations. The first is to organize production as quickly as possible based on the orders in hand and the demand of downstream enterprises, implement effective docking of products and demand parties as soon as possible and enter a normal closed-circuit cycle of supply and demand. The second is to actively seek new business operations. The new situation is that the real trend of the textile market after the epidemic has not yet been clearly established. Almost all interviewed companies believe that post-epidemic market changes are inevitable, and the international market may set up barriers to China’s textile exports; textile consumption will be affected by post-epidemic economic pressure.
At present, some companies are not sure about follow-up orders. The result of their communication with downstream customers is that companies in the industry are waiting and watching. Because these companies are in different regions, the severity of the epidemic is different, and the industry Different policies, different resumption times, etc. make it really difficult for industries to match each other.
As a major textile country, if the international and domestic markets of China’s textiles are blocked due to the epidemic, the operations of upstream companies will quickly slump, raw cotton will not be sold, spinning wheels will not be running enough, and yarn will have no source. Many companies are worried about more issues. For example, what should they do in the future when production and marketing operations involve epidemic areas (such as Hubei, a major cotton-producing province and surrounding main cotton production and marketing areas)? Will raw and auxiliary materials and textiles from these places be viewed differently by the industry or consumers? Will the ongoing business with the epidemic area be interrupted or continued? Enterprises are seeking solutions or resolving these contradictions. I believe that as the epidemic passes, everything will gradually become clearer. </p
