China Cotton Association: Status Quo Of Cotton Textile Enterprises

Since February 14th, the China Cotton Textile Industry Association (hereinafter referred to as "China Cotton Association") has carried out a daily investigation on the epidemic prevention and control and recovery of cotton textile enterprises according to the unified arrangement of the China Textile Industry Federation (hereinafter referred to as "China Textile union"). With the support of the majority of cotton textile enterprises and related units, the situation of the resumption of cotton textile production every day for more than half a month has been sent to the relevant departments of the NDRC and the Ministry of industry and commerce, and has played a positive role in the government's macro guidance.

Through the follow-up investigation, since the cotton textile industry has gradually resumed and resumed production, the situation of enterprise start up and personnel arrival has gradually improved, and the problems are changing.

1. The recovery of cotton textile enterprises

1, the basic situation

During the 2 months of February 14th -3, 1880 enterprises in the cotton textile industry participated in the work of reopening and resuming production, and the proportion of the enterprises who started the survey had increased from 80% to 50%. The number of workers who had resumed work accounted for a more significant recovery in the proportion of workers in normal production, from less than 20% to 70% above.

Fig. 1 start up and personnel arrival of cotton textile enterprises (all samples)

　　 Note 1: large numbers of data are reported, and the business starting rate of the statistics is expected to be slightly higher than the actual situation. Because there is no guarantee that enterprises will continue to submit, the number of enterprises surveyed will be different every day, and the results are for reference only.

In order to avoid fluctuations in the statistics caused by the daily sample changes, the China Cotton Association has screened 938 enterprises that continuously reported data from February 18th to March 2nd as a fixed sample, as shown in Figure 2. The comparison results show that from the re employment situation of these enterprises, the rate of start up and the rate of staff arrival rate are basically consistent with the trend and ratio of the total number of enterprises. Figure 2. Large and medium enterprises accounted for more than 95% of the fixed samples. The start-up situation of the enterprises is relatively good, the proportion of the start-up enterprises is over 85%, and the rate of personnel arrival is steadily rising, which is close to 80%. The situation of large enterprises starting and staff arriving is better than the average level of the industry.

Fig. 2 start up and personnel arrival of cotton textile enterprises (fixed sample)

　　 Note 2: the data are mainly of large enterprises, and the operating rate is higher than the actual situation of the whole industry.

2, problems facing

Since February 14th, the China Cotton Association has established a coordination group for the prevention and control of epidemic and rehabilitation, and has launched an epidemic prevention and rehabilitation service platform (online information), which collects problems and suggestions encountered by enterprises in combating epidemic situation and resuming production. As of March 2nd, more than 150 online information submitted by 110 enterprises has been received, as shown in Figure 3.

Figure 3: main problems reflected by online information

　　 With the development of time, the problems faced by enterprises are also changing. In mid February, many enterprises were in the preparatory stage of reemployment, and the shortage of material control is the biggest problem facing enterprises. With the gradual resumption of enterprises, personnel can not be in place and transportation of goods and materials is not smooth enough to become the top two difficulties faced by enterprises in the resumption of production and recovery. Near the end of February, the problem of shortage of materials for prevention and control has been gradually solved. The situation is growing rapidly. At the same time, with the passage of time, enterprises have begun to emerge in funds, loans, social security and other aspects, and the problems they face are more diversified.

In view of the lack of orders reflected by enterprises, China Cotton Association has learned about the order recovery situation in the industry chain. In March, the order recovery amount of cotton textile enterprises was around 70%. Large enterprises in Shandong and Jiangsu and Zhejiang provinces have better orders, with orders reaching more than 80% of normal level, export orders recovering slightly slower, basically returning to the 50%-80% interval, and it takes a certain time to restore orders to small businesses with normal products. A small number of enterprises are producing at full capacity to complete the order before the festival, and some enterprises choose to start part of the production to ensure continuous production.

Two, industrial chain and cluster situation

1, the progress of industrial chain recovery is not synchronized.

Judging from the industrial chain, the upstream and downstream production enterprises are not working synchronously, and the upstream enterprises return to work better than the middle and lower reaches. Upstream enterprises generally have larger scale and stronger financial strength, and the production automation and digitalization level of equipment are relatively high. According to the survey data of large enterprises, about 90% of the enterprises in the chemical fiber industry have already resumed their work, and the proportion of cotton textile enterprises has reached 70%. The labor density of downstream weaving and clothing is relatively high. Due to factors such as shortage of workers, inadequate management of epidemic prevention and other factors, and the fact that terminal retail entities have not yet resumed normal operation and sales channels are not smooth, the progress of resuming work is relatively slow.

The specialized market of textile and garment is an important part of textile supply chain, which connects the upstream and downstream industry chain, production enterprises and market demand side. According to the February 25th survey data of the China Textile Federation circulation branch, 69 of the 101 professional markets surveyed were already open, the market opening rate of the monomer market was 68.3%, but the proportion of the open market shops in the open professional market was not high. It is of great practical significance to speed up the resumption of the normal operation of the specialized market as soon as possible, to speed up the middle and lower reaches of the textile industry chain, to resume the production of small and medium-sized enterprises, and to improve the operation efficiency of the whole industrial chain.

2, the progress of regional industrial clusters is not consistent.

China Cotton Association has conducted a survey on the resumption of 19 cotton textile industrial clusters. The total number of enterprises involved in the survey is about 4650, with the proportion of small and medium enterprises as the main proportion. The proportion of enterprises under the regulation is 74%, the total scale of spinning and weaving is about 25 million spindles and 100 thousand sets respectively, and the total number of employed workers is nearly 300 thousand. Most clusters started after February 15th. Generally speaking, there is a great difference in the reemployment between clusters. In Shandong, Jiangsu and Zhejiang, the commencement rate of cluster is relatively high, and the commencement rate of clusters in Hebei, Hunan and Jiangxi is relatively low. Most of the clusters in Hubei, Henan and Xinjiang do not start.

Compare the last week of February with the previous week. The average recovery rate of clustered enterprises was 11 percentage points higher than that of last week, of which 47% of the cluster enterprises returned more than 60%, and 37% of the cluster enterprises resumed less than 40%. From the scale of enterprises, the average rate of resumption of enterprises was better than that of the regulated enterprises, which were 56% and 43% respectively, up 5.6 and 11.4 percentage points from last week. The main group has a higher rate of labor recovery than those with more foreign labor.

In February 28th, China Textile Federation collected data on the resumption and recovery of 29 key textile industrial clusters located in 15 provinces of the country. The results showed that there was a great difference in the reemployment between the clusters. The proportion of reintegration of key clothing and home textile industry clusters in downstream Nantong, such as peri Bridge, Changshu and Yudu, increased by 11.7 percentage points over the previous week, indicating that the resumption of the terminal industry has accelerated. But this proportion is still 2 percentage points lower than that of the 29 clusters.

3, the main characteristics of textile industry's resumption and resumption of production.

From the perspective of the entire textile and garment industry, the resumption of production and production of enterprises in steady progress mainly presents the following characteristics:

(1) large and medium-sized enterprises have returned to work faster, but the load is low. Few enterprises have realized full staff reemployment. The export orders of enterprises have been greatly reduced by the epidemic situation. The recovery of domestic demand also needs a certain process. It is expected that in a considerable period of time, the utilization of most enterprises will be below the normal level.

(2) the slow progress of the resumption of small businesses, and the sharp reduction of demand in the domestic and foreign markets, in addition to the shortage of workers, the lack of epidemic prevention management capacity and the lack of normal market for most professional markets, the lack of order sources and sales channels has become the core reason for the slow progress of small enterprises' resumption of work.

(3) the epidemic will further exacerbate the adjustment in the textile industry. The pressure of production and marketing, capital turnover and other problems caused by the epidemic are more prominent. There are few investment projects under construction, and there is not enough confidence in investment development.

Three, summary

Since the outbreak of the epidemic, in order to reduce the losses suffered by the enterprises in the epidemic, and protect the legitimate rights and interests of employees, the relevant departments of the state and local authorities have heard the voices of enterprises and understand the difficulties and needs of enterprises in a timely manner. On the other hand, in the critical moment of fighting the epidemic, cotton textile enterprises share their responsibilities and responsibilities with the state at the same time. They have taken various effective measures not only in the process of epidemic prevention and control, but also in many enterprises helping their employees return to their jobs smoothly through their own strength and promoting the return of the industry to the right track. In the new stage, we need to continue to work hand in hand, to link up the circulation links, and to promote the pace of industrial chain reunification.

China Cotton Association will continue to pay attention to the trend of epidemic prevention and control and the actual production and operation of enterprises, timely summarize and feedback to the relevant departments of China Textile Corporation, do well in the industry information early-warning and analysis work, and ensure the smooth operation of the industry in a special period.