Yesterday, the owner of a weaving factory in Nantong told the editor that he plans to have a holiday in December. The specific date has not yet been determined and will be determined based on the market situation. But no matter what day it is, the editor can’t help but sigh, it’s so early to have a holiday!
Although there is currently no talk of a holiday in the market, many cloth bosses have privately talked to the editor, and many of them plan to have a holiday in December. To this end, China Silk City Network conducted a small questionnaire survey. The results showed that more companies have holidays in early January, but there are also many companies that have holidays in December. In addition, compared with last year, most manufacturers took a holiday about 15 days before the Spring Festival, but this year some companies have already advanced their holiday plans to about 30 days.
It is said that the textile industry is in a slump this year, the number of orders has dropped by half, and the inventory of weaving manufacturers is the highest It has reached 43-44 days, and the market is full of information about selling goods, and manufacturers’ profits are generally less than 10%… And now, there is news that the Spring Festival holiday is earlier than in previous years. Does this mean that the textile market is really so sluggish? In fact, there is no need to worry, Boss Bu. Taking an early holiday may not be a bad thing, or it may be a strategy used by some companies to deal with this market.
01Some weaving manufacturers have put the Spring Festival holiday on the agenda
01Relieving financial pressure
The overall performance of the textile market this year is indeed average. Especially for some small weaving factories that produce conventional products, this year is particularly difficult! The price of gray fabrics is falling, and a large amount of money is invested, but what is obtained is meager profits or even losses. Boss Bu was worried about the high wages for workers and the high rent and water and electricity bills. At the end of the year, the financial situation did not improve, so some manufacturers came up with the idea of suspending production again.
02GoingtoGrayFabricInventoryInadditiontofinancialconstraints,themountainofinventoryisalsoareasonforclothbossestotakeholidaysearly.Duringtheoff-seasonperiodofJulyandAugust,manymanufacturerscouldnotwithstandthepressureandchosetoreduceorsuspendproduction.Theroadtodestockingislong,soBossBuchosetorenovatehiscompanyandclearhisinventoryduringtheSpringFestivalholiday,whichwasawisemove.Takingaholidaydoesnotmeanlosingconfidenceinthisindustry,butitmeansappropriatelyeasingone’s own pressure according to the actual situation so as to prepare for a better state to “challenge” next year!
03Manufacturers recuperate
As for holidays during the off-season, some cloth bosses do not dare to take long holidays for fear of workers resigning. The Spring Festival holiday is a traditional holiday, especially workers who need to return home, and they are looking forward to having a few more days off. During such a long holiday, Boss Bu doesn’t have to pay wages, and he doesn’t have to worry about widespread resignations. He can also clear inventory and reduce load, and everyone is happy. Therefore, it is also a wise move for Boss Bu to choose to repair the company and clear inventory during the Spring Festival holiday.
02Some weaving manufacturers rushed to order and fought to the end
01Seize the last wave of market trends
For other companies, even if they have high inventory, suspending production and taking holidays is not a temporary measure. Recently, the goods in the weaving market have been slightly loose, and the conventional varieties of polyester taffeta, imitation silk, taslan, and peach skin have all improved. According to the monitoring of sample companies by China Silk City Network, the inventory of weaving manufacturers is about 38 days, 1-2 days lower than the previous period. Therefore, the market still has a certain amount of room for expectation, and some distribution bosses hope to seize the last small wave of market prices this year.
02Catch next year’s orders
In addition, manufacturers currently have some orders that are being produced and need to be completed before the end of the year. Some manufacturers can mostly execute orders on hand until early January. The owner of a weaving factory specializing in the production of Oxford cloth revealed: “The current order has been received for March next year. In order to meet the delivery date, we will produce at least until mid-January. There is no way to take an early holiday.”
03High costs force non-stop production
The owner of a weaving factory in Shengze area sighed: “Life is a bit difficult this year. Manufacturers’ inventories are generally high, sales have dropped more than a little, and funds are even more difficult. I’m very nervous. I can’t even pay the rent this year. It has increased from 280 yuan/square meter per year last year to 325 yuan/square meter per year. Adding in environmental protection, labor costs, water and electricity bills, etc., it is really difficult to turn over funds. I worry about these every day In calculation, if we shut down during the holiday early, we will lose money, so we can only stick to it until the end.”
The above two views of weaving manufacturers on holiday plans, the editor believes that they are both worthy of reference by the industry , after all, the actual situation of each enterprise is different. However, it is actually a bit early to say a holiday at this point, and it is still in the planning period. The boss will make adjustments in the future based on market conditions and orders on hand.�. In the future, the editor will continue to follow up and report.
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