As the off-season atmosphere deepens, orders on the market begin to gradually decrease. How to safely survive the off-season has become the biggest worry for textile owners.
We dare not produce promising fabrics
Usually in the off-season, weaving bosses will not completely stop production even if there are no orders. Choosing to produce some promising products as inventory has become one of the ways to survive the off-season.
“Recently, everyone is optimistic about a bamboo-like linen fabric, but everyone’s desire for production is not very high.” A person in the textile circle said.
High production difficulty
According to the textile boss, the production process of this fabric is very difficult. There is wool in the bamboo joints, and the loom has a high shutdown rate during production. Not only does it reduce the efficiency of gray fabric production, the produced gray fabric will also be broken. The quality problems caused by frequent and parking stalls also cause huge losses.
Loom efficiency is low
“The average daily loom efficiency of this fabric is theoretically 200 yuan/day, but in reality it is less than 100 yuan.” said the textile boss.
The current market price of bamboo imitation linen is around 7.5 yuan, and its cost is more than 6 yuan/meter. Generally speaking, fabrics with higher costs and low production efficiency can be priced at a high price. At the current price, textile bosses have to consider whether to produce them. After all, it is just customers who are optimistic about it, not real demand.
If there are no orders, then production will be discontinued?
Since there are no orders and it is not cost-effective to produce inventory, then we can simply stop production…
“It is impossible to stop production. Once production is stopped, won’t the losses be greater?”
For an enterprise, setting up a factory is a big investment, ranging from hundreds of thousands to millions or tens of millions. Rent, water and electricity, quotas, workers’ wages, and even every item in the factory all require money. All of these are a big mountain that weighs on Boss Bu. Basically, companies need loans or financing to set up factories.
Nowadays, the financial pressure is so great that the original inventory of cloth cannot be sold, resulting in capital turnover difficulties. If the company suddenly stops production at this time, once the bank thinks that your stoppage of production is due to poor production and management, and therefore calls for the loan, it will definitely make the already fragile capital chain worse.
The market has just entered the off-season, but demand still exists. If demand recovers later, can work be resumed immediately in a short period of time?
No one knows when the market will hit. If we stop production now and pick up later, it will be difficult to recruit workers and we cannot produce immediately, we may have missed a good opportunity.
Everything is easy to say after surviving the off-season
No manufacturer will be willing to stop production while they can still support it, and they will use load reduction and rotational rest to alleviate cost pressure. Even though most manufacturers will reveal their willingness to stop production due to poor market conditions in the later period, perhaps not many will actually implement it.
According to the startup rate of sample enterprises monitored by Silkdu.com, the current startup rate of local enterprises is around 73%, which is slightly lower than the previous period and is basically in a relatively stable state. This year, the startup rate has been maintained at around 70%. In the early stage, most of the weaving manufacturers To maintain a balance between production and sales, there is not much hoarding of inventory in the early stage, and the number of days of local inventory remains stable and rising. At present, most textile companies still have some orders on hand. If there are no orders in the future, then production reductions must also be arranged.
Blind production no longer exists in the current market, and everyone is very cautious about inventory. As long as July and August are passed safely, the autumn and winter fabrics in the second half of the year will always bring unexpected surprises to everyone.
It’s okay to take rotational rest, reduce production, or stop production? Never do it!
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