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    The Situation Of Resumption Of Industry Is Generally Stable, And The Pressure Of Business Operation Continues To Increase.

    2020/4/13 13:34:00 0

    IndustryRecoverySituationOverallBusinessOperationPressureSustainability

    In order to better understand the direct impact of the new coronavirus pneumonia on the production and operation of the textile industry, China Textile Federation launched a weekly survey of textile enterprises' resumption of production and resumption in March 3rd. A total of 522 enterprises responded to the start of the business online by 12 at the end of April 8th. The China Textile Federation (CSPC) carried out a summary analysis of the weekly information, and submitted the latest progress of the industry's resumption of work and recovery to the relevant departments of the national development and Reform Commission and the Ministry of industry and information, and feedback on the difficulties and policy demands faced by the enterprises, and put forward policy and measures suggestions. The report on the resumption of production and recovery of textile enterprises within 8 weeks of April 1st ~4 is reported below for industry reference.

    The resumption of production and recovery of textile enterprises is generally stable, but it is more difficult to keep the situation stable.

    According to the weekly survey data, 12 enterprises in April 1st, 8 ~4, 12 hours, 166 enterprises submitted effective rework data through the online questionnaire. The proportion of the returned enterprises reached 98.8%, a slight increase of 0.4 percentage points compared with the previous week's survey results. There was a slight fluctuation in the proportion of reemployment workers this week, and the number of returning workers in 164 reemployment enterprises reached 278 thousand, accounting for 90.9% of the total number of employed workers under normal conditions, which was 3.7 percentage points lower than the previous week's survey results.

    A total of 28 textile industrial clusters in 13 provinces of China were investigated by the Sino Textile Group Office and the park office. As at 12 o'clock in April 3rd, a total of 68 thousand textile enterprises returned to work, accounting for 89% of the total number of cluster enterprises, up 2.6 percentage points from the survey data a week ago. The number of reemployment has reached 2 million 184 thousand, accounting for 86% of the normal number of workers employed, up 10 percentage points from the survey data a week ago. Among them, 3939 of the above scale enterprises in the cluster, the proportion of the returned enterprises is 98.8%, and the proportion of the reemployment staff has reached 90.2%.

    The situation of small and micro enterprises resumed and resumed production remained stable. A total of 64 thousand enterprises under the 28 key industrial clusters resumed their work, accounting for 88.1% of the total number of enterprises under the cluster rules, 2.4 percentage points higher than the survey data a week ago, and the number of workers returning to work under the regulation reached 1 million 179 thousand, accounting for 82.5% of the normal number of workers, up 11.3 percentage points from the survey data a week ago.

    Although the survey data show that the situation of textile enterprises resumption and resumption of production has remained stable throughout the week, the recent export orders have suffered a serious decline due to the global spread of the new crown pneumonia epidemic, which has a great impact on the production and operation of the textile industry. The proportion of enterprises that have been started remains at a high level, mainly because a large number of textile enterprises are still trying to maintain production under the condition of insufficient orders because of the consideration of stabilizing employees and fulfilling their social responsibilities. It is understood that parts of the region has begun to appear small and micro enterprises downtime situation, the next two weeks, the textile industry will continue to maintain the current stability of the starting situation will be significantly increased the difficulty, the proportion of start-up enterprises or will decline.

    The shortage of orders aggravated and the load began to decline.

    As the global epidemic situation is becoming increasingly grim and the business stopping time in the developed countries is prolonged, the pressure on the order of our textile enterprises, especially the export orders, has continued to intensify. According to weekly and cluster survey data, 85.7% of the enterprises and 89.3% of the industrial clusters feedback this week. Weekly data show that 57.1% of the surveyed enterprises this week reflected the cancellation of orders from customers, up 6.3 percentage points from the survey a week ago.

    This week, the proportion of enterprises with 166 orders placed in the start-up enterprises reached 80% of the normal level was 31.3%, which was 2.4 percentage points lower than that of the survey a week ago, and the proportion of enterprises whose orders were below normal 50% was 27.7%, up 4.5 percentage points from a week ago. The shortage of export orders is even more prominent. The proportion of enterprises whose export orders are less than 50% of normal situation is as high as 70.2%, up 9 percentage points from a week ago.

    The shortage of terminal market demand and the decline of export orders have now been transmitted to the whole industrial chain. Textile enterprises are generally faced with greater operating pressure, and the utilization rate of capacity has steadily declined since the resumption of production and resumption of production. According to the weekly survey data, 55.4% of the 166 enterprises who had effectively filled in production capacity had reused 80% of their capacity utilization, which was 2 percentage points lower than that of the survey a week ago. The proportion of the surveyed enterprises with less than 50% of the capacity utilization rate was 9%, which is equivalent to that of the survey results a week ago. According to the industry cluster survey data, 42.8% of this week's cluster capacity utilization is below 80% before the epidemic.

    It is understood that, due to the sharp decline in market demand caused by the epidemic, many enterprises can only maintain short-term start operation in hand orders. It is estimated that in the next two months, the level of capacity utilization of textile industry will face further downward pressure.

    The impact of the epidemic will continue for a long time. Insufficient demand is the main contradiction. It is suggested that enterprises should actively explore market opportunities while maintaining low speed and smooth through difficult times.

    Under the influence of insufficient demand and declining production and sales, many enterprises have been overstock in recent years, and the pressure of capital turnover is prominent. Due to the lack of confidence in the demand for recycling funds or the lack of confidence in the market, many enterprises are selling at a low price, and the market prices of textile raw materials and products continue to decline, further squeezing profits. Shortage of orders and shortage of funds are the most realistic problems that enterprises reflect.

    The China Textile Federation has submitted to the relevant government departments the dynamic information on the production and operation of textile enterprises, and has responded to the outstanding difficulties faced by the enterprises. It once again stressed the policy appeals of strengthening financial support, lightening the burden of enterprises, launching domestic consumption as soon as possible, and supporting export enterprises to tide over difficulties.

    At present, the situation of overseas epidemic prevention and control is still grim. The shortage of external demand caused by the epidemic and the lack of orders will continue for a long time. Although the situation of epidemic prevention and control in China has been steadily improving, the domestic demand market has not rebounded. On the one hand, the main reason is the need for epidemic prevention, and domestic business activities have not been fully restored to normal. On the other hand, the demand elasticity of clothing commodities is higher than that of food and daily necessities. Under the pressure of current economic and employment situation, textile and garment products become consumers' targets of reducing expenditure. China's export industry chain has a large scale, and there are obvious differences between the domestic and external industrial chain itself, and the domestic demand market growth momentum is insufficient, which further increases the difficulty of export enterprises to sell domestic demand market. It is suggested that while actively exploring market opportunities, enterprises should take a smooth ride through difficult times, make prudent business decisions, strengthen internal control, and prevent and control capital chain risks. At the same time, it is suggested that we should pay close attention to the supporting measures promulgated by local governments and financial institutions at all levels, and actively strive for policy support.

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