“We make pongee, and the orders we receive now are basically sold at a loss. According to the current cloth price, we lose about 2 cents per meter of cloth. We can barely sustain it with a loss of 2 cents. If we lose more, we will be ready to stop production and we will not be able to sustain it anymore.” said a self-produced and self-sold cloth boss.
In order to store inventory Cash out, take the order with a loss of 2 cents/meter reluctantly
The above-mentioned cloth boss revealed that although he had received an order recently, because the high-priced raw materials were used and the price of cloth could not rise, he would lose about 2 cents per meter of cloth. However, in order to maintain the basic expenses of the factory, including water and electricity, , workers’ wages, rent, etc., I endured the pain and accepted this order. But he also said that losing 2 cents per meter was the limit he could bear. It is understood that this textile factory currently has more than 1 million meters of gray fabric inventory. In other words, more than 1 million yuan of funds was invested in inventory. “At least part of the inventory can be liquidated, and we are an old customer that we have cooperated with for many years. The payment method is also better and it is full payment, so we accepted this price.” The cloth boss said helplessly.
The current situation of the dyeing and finishing industry supporting the weaving market is also difficult to describe. Recently, a printing branch factory in Shaoxing, Zhejiang issued a notice and decided to implement a rotating holiday period from July 11, 2020 to August 10, 2020. The holiday period is tentatively scheduled to be one month.
The situation in the coating factory is not very optimistic. A coating boss revealed that the market this year is really too bad. Worse, his coating factory used to be open 24 hours a day, but now it is only open at night and not during the day, because the electricity bill is cheaper at night. In fact, there is not much work, so he can finish the orders at hand by only opening it at night. .
Last year, although the market sentiment declined, the cloth boss could basically maintain expenses. Even though the order volume in the same period last year was not large, the order volume in the previous March to May was relatively still Yes, that’s why Boss Bu’s principle of accepting orders last year was still as long as there was no loss. But this year, it turned out that if you don’t lose much, you just need to realize part of it. This change is so disappointing!
Seasonal requirements for clothing orders are high, and manufacturers receive few orders
It is understood that in the textile industry, the export of home textiles and toy fabrics has increased, but it has still decreased by about 50% compared with the same period. Clothing fabrics are the most difficult to use this year. , on the one hand, the epidemic in the first half of the year has missed the best sales season in summer, and on the other hand, the inventory of autumn and winter has not been consumed. In addition, the seasonal requirements of clothing are high, styles are popular quickly, and the shipping time is tight. Some clothing fabrics are used Weaving factories that are mainly engaged in production have to choose ways to reduce production, shut down or even take holidays to avoid the pressure of accumulated inventory.
At present, it has become the norm for machines to start and stop in the market, and many manufacturers are already losing money. Most manufacturers on the market now have about 2 months of inventory, and some even have inventory for 3 months!
“Now our inventory is more than 4 million meters. It was more than 2 million meters in the same period last year, and it was only more than 1 million meters the year before. Now we take turns to take a break every month, and the time is about It is one week, and we will discuss whether to keep it longer during the high temperature season.” A manufacturer with more than 200 looms revealed.
Coincidentally, the manager of a factory with more than 60 machines also revealed: “We are currently on vacation, there are no orders, and the workers’ enthusiasm for production is not high. We tentatively plan to take a month off. During this period, Give workers a daily subsidy of 60 yuan.”
There is still a long way to go before orders pick up Go
In terms of the current textile off-season in July, it will take a long and difficult time before foreign trade orders recover. . Today, my country’s foreign trade development is faced with significantly increased uncertainties and unstable factors, coupled with the impact of Sino-US economic and trade frictions, the foreign trade export situation in the second half of the year will remain complex and severe.
The domestic trade situation this year is not good to begin with. As more and more foreign trade companies join in, the orders assigned to each company are getting smaller and smaller. A domestic trade company said: “Tell us A clothing factory we cooperate with last year basically started with orders worth tens of thousands, but this year they are basically orders of several thousand kilometers. One reason is poor demand, and another reason is that they have found a new supplier and will We allocate some of our orders to them, which resulted in our order volume getting smaller and smaller.”
“There is still a long way to go before orders pick up.” A person who is deeply involved in the textile industry A cloth boss with more than ten years of experience said that the shortcomings of insufficient demand and overcapacity caused by the epidemic are slowly becoming apparent, but no matter what, textile workers must control production costs. In the post-epidemic era, as long as continuous cash flow is ensured, there is still hope. �They will make a comeback!
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