New Situation Of Textile Enterprises After Resumption Of Production And Operation

In February 6th, Premier Li Keqiang chaired a meeting of the central leading group meeting on new coronavirus infection and pneumonia, which delivered important signals. At present, except for Hubei Province, the newly diagnosed cases in other parts of the country are generally stable and the mortality rate is low. Rational allocation of resources is needed to avoid unnecessary panic. It not only provides better protection for epidemic prevention and control, but also safeguards normal economic and social order. We should encourage enterprises to innovate ways, reduce the density of people in workplaces, and take shift work to ensure full load production. We should establish a liaison system for key enterprises, and urge enterprises to make full efforts to produce production, and timely coordinate and solve problems such as machine, employment and capital shortage. We should ensure the stable supply and support of raw materials, important parts and components, and ensure the normal operation of the whole industrial chain. It is clear that in addition to the key epidemic areas in Hubei and Wuhan, we must continue to take various measures to carry out the "new coronavirus infection pneumonia" epidemic and the blocking and eradication of the disease. Other provinces, enterprises and industries originally planned to work in the middle of this month, that is, the 8-9 day of February, will see the situation in place. Then, what kind of situation will the textile enterprises face in the production and operation? The author went to visit investigation and observation analysis.

Production factors such as staff return rate and enterprise driving rate will be uneven.

It is understood that most of the textile enterprises in the country do not start production before the beginning of February. In addition to the national prevention and control situation, all localities have formulated clear local regulations for stopping production. From the coastal, along the river and other central and eastern provinces, municipalities and regions, the composition of textile enterprises staff, in addition to the local workers, more than half of the workers from the Midwest. There are many workers in different places, and the distribution of epidemic areas is intricate. There are different prohibitions across the country. It is inevitable that enterprises will not be able to fully start their employees, and the rate of opening will be affected.

According to Jiangsu, Hebei and other places involved in more staff involved cotton enterprises understand that recently, the original labor enterprises are communicating with other local employees to understand the planned arrangement of work resumption, and the result is that most employees are not necessarily able to leave home to work in other provinces and cities in early February or early middle of the year. This situation is in the focus areas of Hubei and Wuhan. Employees are not allowed to travel.

It is reported that some local farms and small and micro enterprises have not been reworked in February, and the small textile mills also plan to transfer the production tasks that are badly needed for delivery, or to commission processing, hoping that the epidemic will be completely relieved. But the spinning enterprises are worried about the immediate delivery of orders. A chief executive of a 20 thousand color spinning company in Yancheng, Jiangsu, said that they will drive in February 9th, according to the principle that local staff are the most important and employees are different from other places, depending on the number of posts, how many cars can be driven. Several other companies whose employees are mainly in the field are still looking forward to the return information of the off-site employees. It is not optimistic that some workers are prohibited from entering or exporting within two weeks because of infection sources or confirmed patients in their residential areas or towns. Related people entangled, if the isolation period will be completed, then new infection and disease how to do? Moreover, people who come in from the quarantine area need to be isolated for a period of time before they can go to work. This cycle makes the enterprises return to work rather passively, and the textile enterprises which are mainly female migrant workers are rather anxious.

The overall analysis shows that the expected plan for resuming production and sales in February is expected to be achieved in the more than 20 provinces of the country, and the situation of large and medium-sized state-owned enterprises returning to work will be better than that of small and medium-sized private enterprises. The resumption of employees from enterprises with different locations is difficult to satisfy the expectations of the more than 20 provinces. It is estimated that by February 10th, it is still necessary to return to work at about 70% of the workers in the small and medium sized textile enterprises under normal conditions. In February, there is little hope for the full load of spinning enterprises. Therefore, the pressure formed will be concentrated in the first quarter. Enterprises should eliminate such negative pressure, in addition to their own strength, they also need support from government policies and the whole industry chain.

Product production and marketing will face new situations

At present, small and medium-sized textile enterprises basically rely on the orders placed in production and sales. The main body of the production contract in mid February came from the enterprise procurement at the end of last year, and some enterprises were doing routine work, and they were doing regular work with fixed supply, fixed specifications and fixed quantity of downstream supply enterprises, but these enterprises were mostly matched for some well-known enterprises for many years, and they did not represent the whole industrial situation and society. More textile enterprises still rely on the repeated business procurement arrangements for production and operation.

After the restoration of production and operation, enterprises will face these problems. First, organize production according to the order of the hand and the demand of the downstream enterprises, and implement the effective docking between the products and the demand side as soon as possible, and enter the "closed cycle" of the normal supply and demand of quality and quantity. The two is to actively seek new business. The new situation is that the real trend of the textile market after the epidemic is not yet clear. The development of the epidemic will be better and worse. It will be directly reflected in the one or two and three production. As a cotton textile market, if the international and domestic markets of Chinese textiles are blocked due to epidemics, the upstream and downstream operations will quickly become sluggish, the raw cotton will not be sold, the spinning wheel will not be enough, and the yarn will have no source. According to industry analysis, the epidemic has already had an impact on GDP and economic growth in the short term, and the impact on manufacturing and economic trade is not particularly severe because of the Spring Festival holiday. But the impact from mid February to March is very significant. Investment and consumption and exports are all significantly affected by the sudden drop in demand and production. Further rational analysis in the industry suggests that before the World Health Organization announces the lifting of the emergency situation for China's "new crown pneumonia" epidemic, all goods from China will be treated differently, especially in the processing and production of food and agricultural products. From a microcosmic perspective, influenced by macro factors, enterprises will face challenges and expectations in the following aspects: incoming goods delivery, orderly supply chain operation, cash flow restraint and so on. It is expected that some enterprises that are already "small and small deficit" will be "shuffled" out. In the interview, there are enterprise statements, and how do you deal with the production and marketing business of the epidemic areas (such as cotton producing cotton province and Hubei surrounding cotton main production and marketing area) in the future? Will the raw materials and textiles from these places be looked upon by the industry or consumers? Is the business going on in the epidemic area broken or continued? And so on, enterprises are solving or resolving them.

Market supply is uncertain.

The price of cotton and its textiles has experienced an extraordinary turbulence since the second half of last year. Because of the Sino US trade issue, the cotton price of cotton city once fell to an incredible "super low trough". Until November 2019, with the easing of Sino US trade relations, cotton prices rebounded upward. By the end of 2019, there were frequent analyses. There was a new "turning point" for cotton prices after the Spring Festival. Some people said that the purchase and storage of cotton were the trend vane of cotton market. Who knows that the "new crown pneumonia" epidemic situation during the Spring Festival has been clouding all the assessments. With the depth of the blocking action, all the myths about the market can not be mentioned. From the beginning of the month, seven cotton prices, cotton and cotton products collected by some cotton web sites have been quoted, and all of them have been hit by "blocking the epidemic situation and having no market price". The so-called quotations also follow the price before the festival. No one can quote the quotations for cotton related products after the official resumption of production. If the overall situation is analyzed by the "double" conference of the State Council, the enterprises from all over the country except Wuhan will recover from less to more, and the market supply chain will start soon, and the new market trend will appear. The current situation is that the resumed enterprises will make orderly production and supply of effective orders in hand, and whether the new orders, new quotations, new batch and transaction requirements will be changed will naturally change and look forward to, because more changes in the trend depend on the progress of the epidemic, the epidemic will not slow down, and the blocking will continue. Because the central authorities should clearly strengthen the responsibility of the territorial Government and enterprises, and do a good job in preventing and controlling the epidemic after resuming normal production. In accordance with the principle of reasonable, moderate and effective management, we should formulate targeted preventive measures, and improve and implement personnel protection system in the workplace. We need to coordinate and solve outstanding problems in the prevention and control of epidemic situation, organize efforts to strengthen the study on the changes of epidemic situation, and carry out targeted research on follow-up work. Thus, at present and in the near future, the defense against the epidemic is still the main line of politics, economy, livelihood and stability of the whole country. All the actions to restore production will also be subordinated to the major policies and guidelines. Therefore, the potential problems of enterprises are still developing and changing. There is a saying that "confidence is more precious than gold". In the predicament, we must try our best to make the enterprise survive, because only by "living" can we live well. We are pleased to see that many experts and scholars have made recommendations on the survival and development of small and medium-sized enterprises in terms of Taxation, subsidies, finance, employment and other large policies. Enterprises are also trying to find ways and means to reduce costs and defuse risks. It is believed that the country will win the war without smoke and smoke with the greatest determination to solve the problem of steady economic development.