Recently, most textile companies have received orders. Some said they can last until the end of the year, and some said they can last at least a month. However, some companies have not received many orders because their products are not suitable.
“I heard that the business of other manufacturers is very good, but we don’t feel it clearly. Maybe because the varieties we make are relatively single and the sales are not good. What we make now is a twisted four-sided elastic, and other products are still No one cares about it, it’s still a headache.” The person in charge of a weaving factory workshop said helplessly.
The products are not suitable, and the inventory of some companies has exceeded 3 months!
The above-mentioned weaving factory has 200 machines and an inventory of more than 4 million meters, with a supply of more than 3 months. In October, it was under the influence of the “Double Eleven” effect. Under the stimulation, they sold some goods, but still could not save their high inventory.
According to statistics from China Silk Capital Network, the current gray fabric weaving inventory in Jiangsu and Zhejiang is 40-41 days, which has dropped by 4-5 days compared with the previous period. However, due to the recent “Double Eleven” orders have been basically placed, the inventories of some manufacturers have begun to rise slowly. The above-mentioned person in charge revealed: “Workers want to run more machines. After all, it is understandable that output is linked to their wages. However, our inventory is too high. Our daily output is 30,000 meters. When the machines are turned on, The faster the inventory increases, the more likely it is that the inventory will explode again. In August this year, we took a 20-day holiday because the inventory could not be piled up. In order to control the inventory, we can only operate half of the machines now. For this reason, There are many things that workers have come to report, but if we run more machines, it is very likely that we will have a holiday at the end of the year.”
Coincidentally, another one The manufacturer of polyester taffeta also said: “This year, the pressure on manufacturers is greater than in previous years, and profits are low. Now we can only earn 10-20 yuan per loom, which may not be able to support the workers.”
Due to reduced orders and high inventory, some manufacturers began to transform into spot supermarkets. According to the person in charge of a jacket and windbreaker fabric manufacturer, “Affected by the epidemic this year, orders have dropped sharply, and it is no longer possible to rely on volume. We have been able to maintain normal expenses, so we switched to spot goods. We are now in the testing stage and only stock one or two products. Since our fabrics have a price advantage, there are still many garment factories that buy fabrics from us.”
The next thing that textile people worry about most – it is difficult to get payment!
In addition to the sharp drop in order volume and profits, what everyone is more concerned about in the coming time is the issue of payment. In recent surveys and some news events, it is not difficult to find that regardless of trade this year The payment period for both merchants and weaving factories has been extended. In previous years, the payment cycle was generally 1-3 months.
This year, the payment cycle of many companies is three months or even half a year, especially the payment cycle of overseas customers has also been extended. Last year, many companies said that overseas customers received payment in a more timely manner than domestic customers. Nowadays, some overseas customers have gone bankrupt because they are unable to pay the balance. Moreover, the epidemic has recently hit hard in Europe and the United States, and many countries have announced the cancellation of the Christmas season. Many foreign trade orders are at risk of being suspended, and suspension means that the balance will not be paid. It may lead to serious inventory backlogs in enterprises and problems with capital flow.
A person in charge of a weaving factory said: “The orders we are making now are basically three-month accounts, which means they will be paid almost by the end of the year. But at the end of the year, the company needs a lot of money to pay employees’ wages. , buy raw materials in advance, etc. The market this year is poor and the profit is not much. I am afraid it will be difficult to get the payment at the end of the year.”
Accounts receivable is a long-standing problem, and the payment for goods is concentrated at the end of the year. At this time, debt collection dramas are staged every year. However, compared with previous years, the repayment cycle of receivables this year is longer and it is more difficult to collect. Some traders said that they owed money to their upstream suppliers, and downstream garment companies also owed them money. If the downstream money could not be collected, they did not have the money to pay back to the upstream suppliers. In this way, the entire industry would be in trouble. A “sales and credit chain” was formed. However, there are very few manufacturers that can actually deliver goods on time this year. What companies can do at present is to communicate more with their suppliers, hoping that everyone can understand each other and settle the payment as soon as possible.
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