ITMF Data: Global Textile Turnover Is Expected To Decline By 33% In 2020.

It is estimated that the global textile turnover in 2020 will decrease by an average of 33% compared with 2019, and textile manufacturers will face more severe challenges in the future.

The impact of the outbreak of new crown pneumonia on the global textile value chain, the international textile manufacturers Union (ITMF) on April 2020 16-28, for its members, enterprises and associations conducted third surveys, the survey showed that the average global orders fell by 41%.

The order decline (-28%) in East Asia is better than that in other regions (-40% or above). On this assumption, the region was first hit by the new crown pneumonia crisis, but it is also the first area to recover.

In the past few weeks, most Chinese textile enterprises have greatly increased their production capacity. Similarly, the physical retail stores will be reopened, and the consumption power of East Asian countries will pick up again. The survey points out that once the shops are re opened, consumption behavior in China, Korea and elsewhere remains to be seen.

Compared with 2019, the global turnover in 2020 is expected to decline by an average of 33%. In Europe, business turnover is forecast to decline by only 22%, which is much better than the 33% pointed out in previous second ITMF reports.

At the same time, business turnover in East Asia is expected to decrease by 26%, compared with 24% in last survey.

The survey explained: on the other hand, business conditions in Southeast Asian and South Asian regions are expected to deteriorate significantly. These areas were later hit by the new crown pneumonia epidemic, and the overall impact of the outbreak was also delayed.

Compared with 2019, it is expected that the turnover in Southeast Asia will drop to -38% in 2020, and the turnover in South Asia will drop to -31%. Since the second survey, there has been no significant change in the turnover of Africa, South America and North America.

The main challenges of enterprise orientation are to ensure adequate liquidity, disruption and uncertainty in supply chain.

Opportunities include constantly thinking about multiple business opportunities, focusing on the research and development of medical textiles, streamlining the organization and production processes, speeding up the reassessment of existing supply chains, and accelerating the digitalization and investing in sustainable production.

According to ITMF, even though the government is well prepared for various aid policies, many enterprises are hardly getting help. These include loans with low interest rates and extended repayment periods, delayed tax payments, delaying social security payments, short-term work plans and reducing energy costs.