The recent recurrence of epidemics in Beijing has not only tightened the nerves of domestic epidemic prevention work, but also cast a shadow on the textile and garment industry, which is still in the off-season. With foreign trade showing no improvement and domestic trade yet to recover, the textile industry is destined to experience the weakest off-season in history this summer.
“The factory’s current operating rate is 80%, the inventory is about 1 million meters, and orders have decreased by 60-70% compared to previous years.”
“Our factory is now only open for 4 Weaving machines, orders have dropped sharply. We haven’t received any orders since the second half of May.”
“The factory’s operating rate is now about 50%, and the inventory is about 3 million meters. This year’s orders have decreased by 60% compared to last year.”
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The current order reduction of more than 50% is the consensus of all textile people. Of course, the most direct impact of the loss of orders is Inventory grows endlessly. In order to prevent all working capital from being turned into raw materials, gray fabrics, and workers’ wages, most weaving companies have changed their early high operating rates and began to significantly reduce their operating rates, ranging from 80% to 50% or even less than 20% in some cases.
Instead of taking regular holidays, just take the Dragon Boat Festival holiday
With the decline in the operating rate, I thought that the upcoming Dragon Boat Festival would There is a phenomenon that many companies take holidays together, but in fact not many companies plan to take holidays, except for a few companies that plan to take about 3 days of holidays.
The absence of a holiday during the Dragon Boat Festival does not mean that workers will not have a holiday. The real situation is that many workers in factories have already entered a state of rotation. Three shifts, two weekends off, 10 and 20 days of vacation… Various different vacation methods are performed in various factories. Factories that usually have rotating holidays basically have no plans to take a Dragon Boat Festival holiday, and most factories that don’t usually take rotating holidays will have a holiday during the Dragon Boat Festival. Whether it is a regular holiday or a holiday, it is an intuitive manifestation of the current weakening of the textile market.
Of course, the purpose of the factory holiday is very simple, which is to reduce the growth rate of inventory and reduce workers’ salary expenses. Whether it is hourly wages or piece-rate wages, in the face of a significant reduction in working hours, a reduction in income is inevitable. A drop of 10-20% is considered small, and a plunge of more than 30% is common.
What is surprising is that despite the significant reduction in wages and benefits, there has been little loss of workers. This situation occurs mainly because the textile environment is like this. Other factories and companies are also taking holidays and reducing wages. In other words, many companies have no recruitment plans this year. Ordinary workers lack the enthusiasm and destination to move.
The current situation of weaving enterprises is not optimistic. How is the performance of dyeing factories?
The dyeing fee is negotiable and negotiable, and the delivery time is within one week
The dyeing factory serves as a weaver Downstream of the enterprise, when weaving factories experience reduced orders, it is inevitable that there will be no work to do and production will be suspended for holidays. Dyeing factories, which have been in a relationship of “supply exceeds demand” for a long time, have been saying that prices for dyeing fees are strong, but this year they have to lower their heads in the face of the epidemic.
The increase in dyeing fees that occurred several times a year in the past has disappeared. Instead, the price of dyeing fees is negotiable and negotiable, and there is still room for price reduction.
“There is no discount on the price on the surface, but if the quantity is large, you can negotiate the price privately and get a discount.”
“The dyeing fee will be cheaper by two or three if the quantity is large. Hair.”
“There must be a discount on the dyeing fee. It mainly depends on the size of the order. If the quantity is large, it is normal to give a hair or two.”
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Many traders have reported that dyeing fee prices have loosened. Not only are dyeing costs giving way, but today’s dyeing factory delivery times are also surprising. As long as there is an order being made, the delivery can basically be controlled within a week or so. The faster ones can be delivered in about 5 days, and some can even be shipped in 2-3 days.
The dyeing fee and delivery time of the dyeing factory at this time can be said to be very attractive. It would be a blessing if there are orders at this time. But in fact, not everyone has the courage to take orders at this time.
Receipts will be extended by 2-3 months, and orders will pick up irregularly
What is more important than receiving orders is being able to Collect payment in time, but this year’s textile market makes this simple wish difficult to realize. Delay and extension of payment are almost the consensus of all textile workers, especially for foreign trade orders. An extension of one month is not considered a delay. An extension of two months is normal, and more than three months is also common. Some companies even have not received payment from customers after the year.
There is no guarantee of customer payment time, mainly due to the slowdown in downstream clothing sales and the sharp shrinkage of the clothing market in the spring and summer this year. A large amount of textile and clothing inventory is backlogged and difficult to flow. End customers lack financial resources and are naturally unable to pay suppliers.
Of course, suppliers also lack the confidence to actively accept orders without guaranteeing payment, and it is still unknown when the customer’s situation will improve. Even if the textile market can improve in the second half of the year and orders and funds can flow normally, it will inevitablyIt is also a situation of “more monks and less rice”. A large number of suppliers compete fiercely around a small number of orders, which will only lead to cruel price wars.
The textile market has become even more deserted in this year’s traditional off-season. Factories that had guaranteed operating rates in the early stage seem to have put the previous holidays on hold in the near future. Holidays and production suspensions can be seen everywhere in the entire market. However, the dyeing factory uses the dyeing fees and delivery time to tell traders that having orders at this time can not only reduce production costs, but also shorten the production cycle. It’s just that the customer’s payment problem has deterred many textile workers. Only when fabrics and funds can flow normally in the market can the entire textile market truly return to the busy peak season.
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