At the end of December 2022, a trader complained to the editor that the delivery deadline of the dyeing factory was delayed again! With the arrival of the “rush to work” at the end of the year, orders from dyeing factories suddenly increased. However, due to the continued insufficient employee attendance rate, delivery deadlines could only be delayed repeatedly.
Entering January 2023, this “hot” scene has not continued. Although employees are gradually returning to work, concerns about the fabric market remain high and there is no strong willingness to stock up in advance, causing dyeing factory orders to begin to slump.
Now, as the countdown to the holiday begins, dyeing factories are already in a “flat” situation.
From “cash cow” to “abandoned son”, what happened to the printing and dyeing industry?
Since 2022, the printing and dyeing industry has faced a complex and severe market situation. The slow recovery of terminal demand, the significant increase in production costs, and the frequent occurrence of domestic and foreign uncertainties have resulted in the overall operating rate of printing and dyeing enterprises being at a low level, and many enterprises are in operational difficulties. As market competition continues to intensify, the losses of printing and dyeing enterprises continue to expand, and the printing and dyeing sector once fell from the altar.
As early as July 2022, a certain textile giant announced that it would no longer engage in the printing and dyeing business. According to the announcement, based on the company’s business development plan and actual production and operation conditions, to further optimize the industrial layout and concentrate resources on the development of new polyester material industry, the company decided to sell related assets of the printing and dyeing workshop.
In fact, in March of the same year, the textile giant decided to suspend production at its printing and dyeing production workshops.
Coincidentally, last month, a piece of news about “a printing and dyeing company with huge debts was acquired” came into the public eye.
According to the announcement, from January to September 2022, Butai Printing and Dyeing achieved operating income of 161 million yuan, and a net profit loss attributable to the parent company of 46.5588 million yuan; as of August 31, 2022, Butai Printing and Dyeing’s assets totaled 149 million yuan , with total liabilities of 162 million yuan.
Through this set of data, we can see how much pressure printing and dyeing companies are facing to make profits! From the perspective of supply and demand, printing and dyeing companies should have been the “hot cakes” in the industrial chain, but now the printing and dyeing sector has gradually become an “abandoned child”, which makes people sigh with emotion!
Steam suspension notices are coming one after another, and the dyeing factory’s year-end bonus may be reduced
According to common sense, the holiday time of most dyeing factories is determined based on the shutdown time of thermal power plants. Therefore, as major thermal power plants have clarified the shutdown time, the countdown to the holiday for dyeing plants has begun.
Printing and dyeing is at the downstream of the textile industry chain and is a necessary stage for the transmission of fabrics to clothing. Starting from December 2022, news such as “rotational holidays” and “holidays” in dyeing factories have become commonplace. In late December, as a large number of textile workers became infected and stayed home, the employee attendance rate in the entire industry was once less than 50%, production and delivery times were unstable, and some dyeing factories with insufficient orders had already gone on holiday in advance.
It can be seen from the monitoring data of Silkdu.com that starting from mid-December 2022, the printing and dyeing operation rate will begin a cliff-like decline. As of now, the operating rate of printing and dyeing companies in the sample is less than 40%. After thermal power plants shut down one after another, this data will fall to the freezing point in recent years.
A salesperson from a dyeing factory said that he has not received a holiday notice yet, and he will still follow the shutdown time of the thermal power plant. Recently, most traders are not very willing to prepare goods before the year, and the overall market is in a wait-and-see state. Affected by this, orders have shrunk a lot compared with the same period in previous years, resulting in poor order connection in the factory, and the dye vats are in a semi-shutdown stage. Some of them will be closed after finishing the orders in hand. Due to the current shortage of manpower in the dyeing factory, orders with clear delivery requirements are basically rejected.
According to financial disclosures, this year’s year-end bonus may be greatly reduced. There is no way, who keeps the factory idle in 2022…
Taken together, the past scenes of printing and dyeing companies working overtime to grab production before holidays did not happen, and it ended so unexpectedly! As the deserted year of 2022 comes to an end, we can see that the printing and dyeing industry still faces many uncertain factors. High operating costs and insufficient production orders are still the biggest difficulties facing the industry. The traditional operating model is no longer suitable for the development of the current market. demand, printing and dyeing companies need to seize the time to break operational bottlenecks and find a feasible way.
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