In Just One Month, Enterprises Began To Take Turns To Reduce Production, Reduce Wages And Reduce Wages. Weaving Started To Ride "Roller Coaster".

Following the textile hot search list on the word "foreign trade return sheet", the recent "down start", "stop production" and "holiday" have become the new words of textile thermal search.

1 weaving enterprises began to reduce production, reduce wages and reduce salaries.

A textile manufacturer in Jiangsu and Zhejiang Province has issued a circular: since the international list has been lifted, 36 looms have been cut down since March 28th, and the staff members have taken turns to rest, and the corresponding wages have been reduced.

"I have been working as a truck driver for more than 10 years, and I have resigned from my second child for more than 2 years. Now my child is old enough to go back to work, but I can't find a job at all. Many factories not only do not recruit people, but also dismiss some people. Many of my fellow friends have switched from three shifts to four shifts, but at least they have jobs, and I have no job. "

After listening to the complaining of the textile worker, Xiao Bian's heart could not be calm for a long time. A series of chain reactions have been transmitted downstream from terminal customers to fabric suppliers receiving orders cancellation notice, and then to weaving factories. The weaving enterprises have been unable to withstand the pressure of the downturn, and began to cut production and take turns. Xiao Bian has seen many similar notices in his circle of friends. There will be more weaving enterprises in the later stage.

2 the only way to get rid of the fabric list is the weaving enterprise.

Although the external repurchase bill is directly affected by the fabric enterprises, the weaving enterprises are the most influential ones. On the one hand, the flow of funds in weaving enterprises is becoming more and more difficult. As we all know, most of the sale of grey fabrics is due to arrears of goods, especially since 2019. The order on the fabric supplier has been cancelled. Some of them have been finished without delivery, and the fabric suppliers will not pay to the weaving enterprises. In short, the return period is extended indefinitely, and capital flow is a big problem.

On the other hand, under the influence of the global epidemic, not only the foreign trade orders have been returned, but also the domestic orders have been severely affected. The demand for grey cloth has declined, and the speed of freight transportation has been slow. The contradiction between oversupply and demand has been enlarged. High inventories and low prices forced the weaving enterprises to start cutting production. Therefore, some parts of the Jiangsu and Zhejiang market began to stop production and reduce production.

3 in just a few months, looms start up or ride the roller coaster again.

In the early March, good news came from friends circle, and weaving factories began to enter the state of lowering inventory. But in just a half month, the market voice began to turn around. Commercial land continued to receive notice from customers to cancel orders and suspend orders. Subsequently, many weaving manufacturers said that the speed of goods had slowed down recently, and the production and marketing began to be unbalanced.

According to the data monitoring of China's silk net, the loom start rate increased from 25% to 80% in early March, and began to decline in March 20th to 76%. Xiaobian learned that many weaving factories had the plan of reducing production in April. They could imagine that the trend of the loom's starting rate would be on a downward trend, such as roller coaster.

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As for the price of grey cloth, it also declined with the downturn. Recently, Xiaobian mentioned the word "price" to cloth boss and heard that it was "guaranteed capital". Upstream raw materials were affected by the epidemic, many times down, polyester prices continued to fall, gray cloth lost the cost of supporting power. Although the market atmosphere in the early March has improved once again, the conventional products have been loosened, but in the face of the accumulated grey cloth inventory, the weaving factory's inventory road is still "long and blocked". High inventory, low cost, low market three impact, gray fabric prices continue to decline. Even in the market, there was a situation of cheap selling.

4 reduce production to meet the market after the outbreak.

In a special period, special operations are necessary to alleviate the market. Now stop production, not the weaving enterprises lose confidence in the market, but to usher in a new market after the end of the epidemic. Too high inventory and blind production will only bring in funds and cause unnecessary trouble to the operation of enterprises.

The last production cut was only 3 months away, and it was staged again. At present, the outbreak of overseas outbreaks, clothing demand is not good, the upstream and downstream does not have a good environment, whether the actual effect of production reduction is still unknown. It is a helpless move for weaving enterprises to cut down their salaries and reduce wages and encourage their employees to seek their own way out.

Overall, terminal demand still exists after the end of the epidemic, but the market consumption structure may change. However, everything will gradually recover, but the process may be slow, so today cloth boss to maintain a relatively healthy level of cash flow is the top priority.