Looking back on 2019, it was also judged by the textile market as one of the worst years in recent years. At this time last year, weaving manufacturers had issued a clear holiday notice. The holiday would start on December 1st and start work on March 1st, which would last for three months. Then many manufacturers began to take holidays one after another and moved forward the entire Spring Festival holiday. It can be seen that the market was bleak at this time last year.
(2019 Spring Festival holiday notice of a factory)
Looking at today, there are no No manufacturer has issued a holiday notice, but everyone still sticks to their posts. However, the days of weaving manufacturers have been really difficult recently. The market has been as light as water, and the delivery of gray fabrics has been slow… In late November, the off-season trend of the weaving market began to appear. In October, it was boosted by the e-commerce season and the Christmas season. Whether it was market goods or Orders have performed well, and autumn and winter clothing fabrics have been shipped relatively smoothly, which has boosted the shipment of gray fabrics. The high inventory of gray fabrics has also fallen slightly. But the good times did not last long. This wave of market conditions “came and went in a hurry” and lasted only about a month. In late November, inventories of gray fabric manufacturers rebounded again, making it difficult for manufacturers to balance production and sales.
Suspension of production during holidays is not a good way to solve the accumulated accumulation
Although the recent situation in the weaving market is not good, But it has not reached the point where production needs to be discontinued. Although continuing production will generate more inventory, there is still hope to digest it next year, but if production is stopped, it will directly cause a loss of profits. This year’s Spring Festival holiday is later than last year, with a difference of more than half a month. It is indeed too early to take a holiday. According to the normal Spring Festival holiday practice over the years, most weaving manufacturers will have a holiday 15 days before the Spring Festival. Although this year is also a very special year compared to the past, the market may not follow the trend of previous years. If the market gradually declines later, there is also the possibility of an early holiday. However, the editor believes that the holidays will not start until mid-January at the earliest, and the wave of holidays will be concentrated in late January. 01 Weaving manufacturers still have executable orders on hand
On the other hand, although the current market is relatively calm, most weaving manufacturers still have executable orders on hand, and they are not unsustainable. According to research, most weaving manufacturers can currently have orders on hand until the end of December, and some manufacturers with large orders can fulfill orders from March to April next year. That is to say, the manufacturer currently has executable orders on hand, but is not completely producing inventory, so there may still be some distance before the holiday shutdown.
02Earlyholidaysmayleadtothelossofworkers
Undertheinfluenceoftheepidemicthisyear,thefirsthalfoftheyearwasalmostatastandstilluntilnextyearIttookhalfayeartoresumeproduction.Therefore,aslongastherearestillorderstobemade,themanufacturerwillnotgiveupeasily.Inaddition,thedifficultyinrecruitingworkershasbeenmagnifiedthisyear,andworkersarehardtofind.Therefore,consideringmanyfactors,manufacturersaremorewillingtopersistuntiltheend.Mr.Yao,whoowns200water-jetlooms,said:”Thefactory’soperatingrateisstillfullyoperationalnow.Therearenotmanyordersonhand,whichcanlastforabout10days.Mostofthemareforinventory.NowThesituationisveryembarrassing,withfewordersandhighinventory.Wemayhavetoreducethestartofworklater,butwecan’t reduce it too much, mainly because we are afraid that the workers will run away.”
Manufacturers have already reduced production and reduced burdens to cope with uneven production and sales
It is too early to suspend production and take holidays, but production and sales have begun to become uneven, and the problem of inventory accumulation again is a very real problem. From the monitoring of sample enterprises monitored by China Silk City Network, it was found that the operating rate of water-jet and air-jet looms in Shengze area has been above 80% recently. Although there has been a decrease compared with November, the decrease is not large and can be said to be a slight adjustment. This shows that the enthusiasm for market production is still there, and the market has not declined rapidly, which is slightly tepid.
As the market gradually declines, gray cloth inventory shows an upward trend, and the inventory days may return to high levels. In order to deal with this problem, weaving manufacturers have recently heard that some manufacturers have reduced production and reduced operating hours.
ManagerZhang,whoowns100looms,revealed:”Currently,theordersonhandcanonlybecompletedinearlyDecember,andthefactory’soperatingratehasalsodroppedfrom60%to30%.%,butiftherearenoorderslater,thestart-upwillbereducedagain.Ratherthanaccumulatingtoomuchinventory,investingtoomuchmoney,andstranglingyourself,itisbettertoreduceproduction.”
At present, the negative impact of the entire textile industry on the industrial chain has formed from the bottom up. According to the transmission, although the production enthusiasm of the weaving end is still good, the demand of the terminal clothing sector is at a low level, which has led to another weak market mentality. Therefore, these contradictions will still be concentrated in the later period. There may still be some time before the Spring Festival holiday. If the market destocking continues to be unsmooth and the pressure of overcapacity in the market does not decrease, weaving manufacturers may see a large-scale reduction in operations in the future. <br
