How Long Will The Textile Industry Fully Recover?

Related agencies survey shows that as of February 25th, the national textile comprehensive boot rate was 35%, of which, the recovery rate in Jiangsu was relatively good, reaching 50%, followed by Fujian, Shandong region were 43% and 36%; Hebei, Henan and Zhejiang region, the lower than the national average. The recovery rate of spinning enterprises has gradually increased, but overall, the process of resuming work is slow, especially for small and medium textile enterprises. Then, why is the medium and small textile enterprises reworking late? What is the effect of postponing reemployment on the textile enterprises that rely on production and processing?

Epidemic prevention and control as the first place

Worker shortage is hard to resume

It is understood that epidemic prevention and control is still the main reason for the shortage of workers and the low rate of return to work. Some employers said that workers returning to the factory had to go through the formalities, and the whole procedure might not be able to return to the factory smoothly. A director of a spinning mill in Qingdao, Shandong, said that more than 190 employees were in the factory, of whom 30% were employees from other provinces such as Henan and Gansu. Although the rest of the employees were all labor force in the province, they also came from different districts and counties, which caused great inconvenience to employees. Other enterprises also indicated that although all the control measures were in place, they had to postpone the resumption of production only because of lack of staff.

Failing to get a re driving license is part of the reason why some enterprises fail to get back to work in time. The current situation is that safety and prevention are the first. Enterprises can only resume production if they get re employment permits. Nonetheless, enterprises also fully understand the concerns and preventive measures taken by governments at all levels, and accept on-site and qualification audits, such as epidemic rehabilitation training, epidemic prevention and control measures, personnel sorting, filing and control. The reporting enterprise reflects that as long as the hardware is equipped with adequate control, the software has complete procedures, and the license documents handling efficiency is very high. Not only that, many local governments are still helping enterprises in their enterprises to do their jobs by driving back and forth, so as to help enterprises recover service through measures such as adjusting staff surplus and deficiency, organizing online labor market, and developing staff skills training.

Experts believe that the obstacles to starting work are mostly due to the impact of the epidemic. Despite the fact that all levels of government control measures are loose and unblocked, efforts are being made to stop the outbreak. However, the ability of enterprises to cope with this sudden outbreak is different.

In late February, cotton textile enterprises have started construction, but the workers are not full. How can they produce when the workers are not full? In this regard, industry experts recommend: first, the line does not protect the factory. It is better to increase the percentage of seats on a line or a few production lines, and do not distract people from all parts of the N production line. The two is to arrange the order reasonably. Without affecting the total delivery time, we will prioritize large quantities of orders. The three is to maximize labour force. At this stage, the manpower and production of each process are not completely balanced. In order not to waste valuable manpower, we should appropriately store capacity in key processes, so as to maximize the utilization of labor force.

In addition, lack of raw materials is also one of the main problems faced by enterprises returning to work. There is a spinning enterprise owner, said: "the raw material was less stocked years ago, even if the production was resumed, it would soon become" rice without rice ". It is understood that, because of worries about market risk after the festival, most small and medium enterprises only support enough raw materials for 7~10 days. Before logistics is fully recovered, we dare not start. The incomplete industrial chain caused by poor logistics has become a major obstacle to the resumption of production and recovery of textile enterprises.

"The cost of border defense production is increased by at least 1~2 per cent, which is worse for businesses that lack cash flow." The industry said that in addition to the rent, wages, raw materials, and other essential masks, disinfectants and other protective equipment and isolation room, body gun and daily staff temperature detection costs, these will cause greater cost to the enterprise. Therefore, some enterprises have proposed that the government should further introduce relevant policies and measures to help enterprises resume work and re production, such as reducing rent, providing timely anti epidemic materials, helping to do well in reemployment protection, giving orders and funds to help, making more stock concessions, and effectively supporting enterprises with technical superiority and effective professional protection products enterprises.

Incomplete industrial chain

The textile mill "only one tree is hard to become a forest".

Unlike a large number of textile enterprises with a complete industrial chain, a major problem facing most domestic spinning enterprises after reopening is the incomplete industrial chain.

Spinning enterprises said that at the beginning of February, even if the enterprises could resume their work, only a small number of downstream printing and dyeing factories and garment factories were resumed. Moreover, under the condition of stock, the downstream did not rush to order new goods, so spinning mills would not be easy to pick up new orders at the moment. At present, yarn sales have occasionally taken delivery, but transportation has not been resumed everywhere, and the delivery channels have not been smooth. There are hardly any single orders. Occasionally, some bulk goods are issued. The price of the yarn is mainly before the Spring Festival, and there are downstream customers asking for prices, but no new orders are made. It is understood that enterprises also try to strengthen communication with customers through online office and online transactions, stabilize old customers and expand new customers. However, enterprises are also worried 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 textile enterprises re production in a sense is actually a big concept, the number of employees in place and the driving rate is a fundamental issue. The status of enterprise order holding, raw material and product inventory, auxiliary operation of equipment operation, continuity of production and operation, etc., under the current situation of the epidemic, will restrict the normal operation of enterprises.

Orders, the current enterprise orders are mostly orders before the Spring Festival, some enterprises are rich in orders, can be done to the end of the first quarter or even longer, some ten days and a half months, so now these orders will not have real-time changes? Whether the downstream information is adjusted is still in the dynamic state. With the development of the epidemic, the market is likely to change.

In terms of raw materials inventory, cotton textile enterprises usually do not worry about raw material supply because of the supply of cotton resources, but it is not yet clear whether they can maintain orderly sales after returning to work. Some enterprises worry that the price difference between cotton after the epidemic and the price of hand processing orders is too large. There are also enterprises worried that after the machine is turned up, the key and commonly consumed parts of normal purchase can be bought normally. Textile machinery manufacturing enterprises are also facing the epidemic. If the enterprises fail to return to work for a while, the supply of the original products will fall off.

Follow up orders are not sure.

After the market, we still need to wait and see.

Today, the outbreak of sniping is not over yet. With the resumption of textile enterprises, the production and marketing of textile market will face new changes.

On the market, some yarn producing enterprises produce regular products, and have fixed supply and marketing relations with downstream enterprises, including fixed varieties, fixed specifications and quantity, but these enterprises do not represent the whole industry situation. More spinning enterprises still rely on orders received to arrange production and operation. At present, the small and medium sized spinning enterprises basically rely on their orders to arrange production and marketing. The main body of the production contract in mid February came from the end of last year.

At the same time, enterprises are faced with several problems after their production and operation resumed. First, organize production according to the order of the hand and the demand of the downstream enterprises, implement the effective docking between the products and the buyers as soon as possible, and enter the closed cycle of normal supply and demand. The two is to actively seek new business. The new situation is that the real trend of post infectious textile market is not yet clear. Almost all the enterprises surveyed believe that the market changes after epidemics are unavoidable, and the international market may lay a foundation for China's textile exports. Textile consumption will be reflected by the economic pressure after the epidemic.

At present, some enterprises are not sure about the subsequent orders. The result of their communication with downstream customers is that enterprises in the industry are waiting to see and wait. Because these enterprises are in different areas, the severity of the epidemic is different, the industry policy is different, and the time to rework is different.

As a big textile country, if the international and domestic market of Chinese textiles is obstructed by disease, then the upstream business will rapidly slump, the raw cotton will not be sold, the spinning wheel will not be enough, and the yarn will have no source. Many enterprises are worried about more problems. For example, how to do the production and marketing of the epidemic areas, such as the cotton producing cotton province and the main production and marketing areas around Hubei? 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? These problems are contradictory, and enterprises are solving or resolving them. I believe that with the passing of the epidemic, everything will become clearer.