In view of the current severe situation of the new coronavirus epidemic, the country’s largest textile fabric gray cloth trading market, known as the National Cloth Market, has recently postponed the opening of the textile industry clusters Shengze and Keqiao in Jiangsu and Zhejiang. The “Big Mac” Zhongda Cloth Market issued a notice on the 5th that the start of the business will be postponed indefinitely. The notice showed that the Guangzhou Clothing and Textile Market was suspended and the start would be postponed indefinitely. The start time will be notified separately.
The Guangdong textile and garment market region issued a notice on postponement of resumption of work
Under the influence of the new coronavirus pneumonia epidemic In the textile industry, all factories are shutting down. Although textile markets across the country have issued notices of resumption of work, it is still unknown when production can actually resume. This made the weaving boss particularly uneasy, and the vacation turned out to be a terrible thing.
For weaving manufacturers, the most terrifying thing is not the lack of orders, but the inability to start work!
Only when I hear the rumble of the loom, I feel at ease.
In fact, all cloth bosses are restless. Those who received orders years ago are anxious to deliver goods; those who did not receive orders years ago are anxious to take orders to make money to support themselves. A group of people behind.
The goods that the owner of Guangzhou Shahe Stall prepared for several million years ago are now moldy in the warehouse!
The long holiday arrangements caused by the emergence of the “epidemic” will have an impact on the factories of various industrial companies. Textile enterprises, especially the intensive small and medium-sized diversified structure textile enterprises in northern Jiangsu and central Jiangsu that mainly focus on processing, mostly work for large textile, garment and bedding manufacturers in Shanghai, Zhejiang, Jiangsu, Fujian, Guangshen and other places. Supporting equipment is normally maintained by orders and supply time nodes, and they operate in tacit understanding with each other. Some have cooperated with each other for many years, and rarely “drop out of the chain”. Some operating models follow the “old routine” that is already the norm in most companies. “Unchanged over the years.”
As for the delay in the start of construction, which is unknown at this time, as soon as both parties get to work, they must first conduct production and demand supply and product supply and marketing run-ins before starting the operation. Of course, this requires that the entire upstream and downstream are fully connected and smooth. If there is a problem in a certain link of production or sales, the operating process may be re-arranged. As for the market situation and product production and sales flow, the company believes that it is still unclear and unclear for the time being, but there will definitely be changes. It is just that the market is unpredictable, and everyone is watching and looking forward to it.
After the suspension of production, the cost pressure on textile companies increased
The market last year was biased Weaving manufacturers have high inventories and are selling at a loss. Even under such circumstances, weaving bosses are unwilling to stop production. The important reason for this is that workers still need to pay wages and rent when production is suspended, both of which are huge sums. Even with the same expenses incurred, the cloth bosses still chose to stand their ground.
Now we are also facing such a problem. Cloth bosses are forced to stop production, but workers’ wages and rents in February should be from Where did it come from? Although governments at all levels have issued notices on partial rent reductions for business households that rent state-owned assets for business use, and have also proposed rent discounts for personal business use, it is still unknown whether individuals can implement it, so the rent is still for weaving manufacturers One cost to worry about. Workers’ wages must be paid in real terms. Especially in the past two years, the difficulty in recruiting workers has been magnified again and again. Boss Bu pays more attention to workers’ wages and benefits. In order for workers to return to work smoothly after resumption of work, wages for February must be paid normally.
Migrant workers stay in their hometowns and have not yet returned to work
Weaving The vast majority of employees in the factory are migrant workers. Most of them returned to their hometowns during the Spring Festival holiday, but only a few stayed. Currently, affected by the epidemic, the movement of people is under control, and few migrant workers have returned to their hometowns. The owner of a weaving company with 300 looms said: “Depending on the overall market situation, it may have to be postponed. Our company has no employees from Hubei, but there are many employees from other places, and none of them have come yet. I asked them to wait for my notification. ”
At the same time, textile companies use more workers in the textile industry from other places. They stay at home for a long time in other places and do not resume work. Employees will choose the same position with higher salary in the same company in a different place through various information exchanges. work, or find a new job near their hometown, so there is still a hidden risk of loss of employee resources. For example, Wang from Jinzhai, Anhui Province, used to work as a driver for a textile company in Shengze. Recently, she was chatting with a friend on her mobile phone at Xianfu’s home. She found a local private textile company with a type of work she was familiar with, even though her monthly salary was less than that at the Taizhou factory. Three to four hundred yuan, but because it was close to home, she returned to Shengze’s “old employer” and decided to work in a nearby textile factory.
The textile market during the epidemic is confusing!
Many market participants are not optimistic about this year’s market, believing that the epidemic will have a certain impact on the market.
1. During the interviews, most business leaders expressed concern that this epidemic willThe impact is not only reflected in issues such as how soon companies can resume work, how orders are fulfilled, etc., but more importantly, the impact of the epidemic trend on internal and external operations in various industries, especially foreign trade operations. The company said that if there is a shortage of people, it can offer preferential recruitment and the construction period can be caught up, but it will be more troublesome due to the picky trade caused by the epidemic. Although some small and medium-sized textile companies rarely have direct import and export trade operations, most of them are supporting some well-known, large-scale, and branded textile companies in Shanghai, Fujian, and Guangdong. The degree of epidemic control will inevitably affect the flow rate and quality of future international and domestic trade processes. The distribution of the intensity of trade control among companies in various countries is the most serious and serious issue currently considered by most processing and supporting companies for foreign trade and even domestic sales companies.
2. Export orders for textiles and clothing will definitely not be good. PHEIC is valid for three months, and will be re-evaluated after three months at the latest. No matter how much the WHO chairman (Ethiopian nationality) wants to help us Chinese, he must face reality, otherwise the WHO will not be impartial. I still hope that the “epidemic” will pass soon.
3. GDP fell by at least one point year-on-year in the first quarter of 2020, and some estimate it to be 2 points. I don’t know yet whether we can get it back in the next three quarters, but I hope. I hope the textile market will perform better in the second half of the year.
4. European and American buyers may unite to boycott Chinese textiles. Suppliers in Shanghai, Hong Kong and Guangdong have been asked by American importers to issue “letters of guarantee”. At present, “concerted action” is still at the stage of “issuing a letter of guarantee”. It remains to be seen whether it will reach the stage of requiring “third-party certification” in the future.
But there are also some fabric bosses who are optimistic about this year’s market. A weaving boss who specializes in home textile fabrics He said: “The market may be depressed in the first half of the year, but it may rebound in the second half of the year. The same was true during the SARS period in 2003, and the market was better in the second half of the year. People in the epidemic area changed their clothes and home textiles after the epidemic ended The possibility of supplies is high, so there will be a wave of market prices.”
No matter what the market situation is this year, the most important thing is to be able to do it in a timely manner. Return to work, so as to ensure that there are orders to fill. Therefore, the top priority now is for everyone to work together to fight the epidemic, defeat the virus as soon as possible, and get back on track with normal production as soon as possible!
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