Pneumonia Sealed The City, Postponed The Start... The Textile Market In 2020 May Make You Miss The Business In 2019.

The recent outbreak of new coronavirus pneumonia has swept across the country. The updated confirmed cases every day remind us of the danger of the outbreak. At present, the most responsible way for society, family and individuals is to stay at home, reduce outings, parties and so on. From central to local governments, the policy of delaying the Spring Festival holiday has been introduced accordingly, in order to postpone the peak of returning after the festival and reduce the flow of personnel so as to control the spread of the epidemic.

In response to the call of the state, many enterprises have begun to implement the policy of postponing the start up, including our textile industry. Because the textile industry has a large demand for labor force, and workers are from all over the country, it is urgent to postpone construction and reduce the risk of transmission. But for textile workers who have not yet come out of the textile off-season market in 2019, the entire industrial chain in early 2020 will be postponed to some extent, which may continue the textile off-season to some extent, that is to say, textile cold winter may be longer and harder than expected.

Factory capacity decline and cost rise

In past years, textile workers generally reported about eight of the time at the beginning of the year, and after a week's preparation, the production capacity will basically recover at around fifteen in the first month. This year, the vast majority of areas require the resumption of work and the resumption of business is about fifteen in the first month. With the necessary preparations, the recovery of factory capacity will last a week or so than in previous years. This is based on the current time of the epidemic, and the latter may also be adjusted according to the epidemic situation.

A total of 52 weeks a year, a week late is equivalent to a reduction of nearly 2% of the production time. For most factories, rent, equipment depreciation and so on will not save you a week's cost. The cost of production is virtually rising. In addition, early inventory and raw material stocking also need to be stored in warehouse for at least one week, and the speed of capital withdrawal is also decreasing.

Customer order transfer, demand decline

As the largest textile producer in the world, the impact of the textile industry on postponing production is absolutely enormous. In the textile factories, due to various reasons for limiting production and shutting down production, there is usually a phenomenon of explosion of orders and overproduction in factories. But many textile orders this year may not have time to wait for the textile industry to resume production. Some customers will definitely find alternative production sites in the world, especially foreign trade customers.

Over the past year, due to the overall downturn in the global economic situation and the trade frictions between China and the United States, our foreign trade orders are generally lacking. The delay in starting factories in early 2020 caused by the outbreak of pneumonia is undoubtedly exacerbated. The production time of traditional textile peak season in March and April is squeezed, and some orders will not be completed in time. Foreign trade orders will appear to transfer to countries such as Southeast Asia that have the ability to produce textiles. Textile enterprises may reduce the order and start up rate after the commencement of construction.

And once some customers adapt to foreign textile products, even if the epidemic is over, they may not place orders again. This effect is not a short-term reduction in orders, but a real loss of customers.

Workers are hard to find jobs, and their incomes fall.

The delayed start of textile factories has a direct impact on the workers' group. Normally, it is good to postpone working hours and extend the rest time, but not for ordinary textile workers. Because they basically do not have paid breaks, especially during the Spring Festival, there is no income for more than a month's holiday.

Moreover, even if the factory starts this year, the approximate rate will continue in the off-season of 2019. The shortage of orders and the decline in operating rate will inevitably bring about a decrease in the number of employed workers. The difficulty of finding jobs for ordinary workers may increase. Workers will return to their homes or change their jobs when their income is reduced and their jobs are hard to find. In the long run, they will lead to labor shortage. Until the textile market returns and orders increase, it may affect textile development.

The delay in the start up time of textile factories directly affects the order of customers. The reduction of orders and the shorting of production time also affect the income of workers. The change of employment situation will react on factory production.

The impact of the epidemic on our textile industry can be seen, but until the end of the epidemic market, after all, there will be a wave of demand rebound, a large number of orders will revitalize the entire textile industry chain. Of course, no matter where we are and what industries we need to do now, we need to reduce mobility and fight the epidemic together.