Everyone who does business will encounter being rushed by customers, especially in our textile industry. Due to the long production cycle of fabrics, clothing needs to be put on the counter in time, and a considerable part needs to be exported, so the production time is very tight. However, in recent times, calls and emails from customers urging delivery dates have become “rare”. Compared with the past when they had headaches when receiving calls from customers to urge goods, many people now feel even more panicked when they cannot receive calls from customers.
It is also reasonable to say that “customers are no longer pressing for shipments”. After all, due to the out-of-control overseas epidemic, many foreign trade orders have been canceled or are pending cancellation. “Our factory mainly produces denim fabrics, which are exported to European countries such as Spain, the United Kingdom, and Denmark. Now these countries are the hardest hit by the epidemic. Basically, all our orders are gone. According to current statistics, nearly 3 million yards have been canceled,” said a The fabric trader said helplessly.
The process of “order cancellation” has lasted for more than half a month, and this impact has begun to spread from traders to the entire textile industry chain.
Somedyeingfactorieshavesuspendedhalfoftheirproduction,andworkersaretakingturnstotaketurns.
Inrecenttimes,thestateofdyeingfactoriescanbesaidtobe”iceandfire.” At the beginning of the resumption of work, a large backlog of orders exploded from the year before, and the dyeing factory had no worries about orders for a while. Later, the overseas epidemic got out of control, and traders who were worried about order cancellations accelerated their production pace, and the days of the dyeing factory were still in the past. However, in recent days, orders that should be canceled have been cancelled, and orders that should be made have been completed. The order volume of some dyeing factories has dropped significantly.
According to the person in charge of a dyeing factory, the current amount of white blanks entering the factory is less than one-third of what it was when construction started, and a sense of panic has spread among the middle and senior levels of the factory. At present, the dye vat operating rate in the factory is less than 50%, and all workers have entered a state of rotation. This situation has never been encountered in their dyeing factory for more than 20 years.
Weavingmillsarerunningforonethirdofthetime,andtwoshiftshavebecomethreeshifts
Forweavingcompanies,thebeginningoftheyearhasbeenpainful.Itwasthoughtthatthereleaseofordersfromresumptionofworkwouldleadtoawaveofinventoryreductionlastyear.However,themarket’sdurabilitythistimeislimited,andweavingcompanieshaveonceagainenteredastageofaccumulatedinventory.Forgetitiftherearenoorders,internationaloilpriceshaveplummeted,textilerawmaterialpriceshavefallensharply,andallgrayfabricshavenochoicebuttopassivelyenterastateofdepreciation.Atpresent,themoreweavingcompaniesproduce,thehighertheirinventoriesareandthelowerthevalueoffabrics.Suspendingandreducingproductionseemstobetheonlyoption.
“Inordertocopewiththesharpdropinorders,aknittedfabricmanufacturerinZhejianghasreducedtheoperatingrateofitslooms.Currently,thenumberofloomsitproducesisonlyone-thirdofitsoriginalcapacity.”
“AweavingcompanyinnorthernJiangsuhasalsobeguntosignificantlyreduceitsoperatingrate.Currently,allworkershaveswitchedfromtheoriginaltwo-shiftsystemtoathree-shiftsystem,reducingworkers’wagesandsavingcorporatecosts.”
……
Weavingenterpriseshavesuspendedandreducedproductiontoagreatextent.Itisnormaltoreducetheoperatingcapacitybymorethanhalf,andsomehaveevenstoppedproduction.AfactoryinthepicturebelowhasdecidedtosuspendproductionfromApril1stto6th.
Reduced sample-making and proofing, greater pressure in the future
Customers send samples to traders, traders provide sample fabrics and quotations based on samples, and wait for final confirmation from customers. Place your order. In other words, finding samples and quotations for customers is the first step in textile orders. Only if this step is completed well will there be a steady stream of orders later. However, the “sample-seeking” customers who used to shuttle around various textile business districts have been hard to find recently. Especially in Jiangsu and Zhejiang areas, it has been rainy recently, making the textile markets even more deserted.
Not only is the market sparse, but the proofing workshops of many dyeing and finishing plants are also a bit mediocre. The reduction in the number of proofs directly indicates that subsequent reductions in order volume are inevitable.
Orders began to decrease and be canceled from traders. This impact is difficult for all textile people to get rid of. It is inevitable that the operating rates of dyeing and weaving factories will fall off a cliff. At the same time, workers there can only take vacations, and their income will inevitably not be comparable to previous years. But what is even more disappointing may be the decrease in sample finding and proofing, because this basically indicates that the market industry will hardly improve in the next one or two months. </p
