Textile Survey: Serious Damage To Small And Medium Sized Textile Enterprises

The new crown pneumonia epidemic sweeping the globe has caused heavy losses to the economy and life. The international development of the epidemic has caused the global supply chain to be cut off, and the flow of personnel and materials is limited. China's textile enterprises have already encountered the behavior of withdrawal and abandonment, and cotton consumption has basically stagnated.

The roller coaster market turmoil makes small and medium-sized enterprises worry about their livelihood. With the intensification of the epidemic, domestic and foreign textile consumption has shrunk, and the prices of all kinds of textiles have been dropping step by step. After the Spring Festival, the prices of raw materials such as cotton fell rapidly. The textile enterprises maintained their low purchasing power for raw materials. In communication with textile enterprises, it is understood that even small and medium-sized textile and garment enterprises belonging to "small boats and good turning around" can only take the most primitive and most effective measures of self-protection, that is, conservative production of orders, and control the raw materials in textile production in a very short production cycle, and put the inventory backlog of finished products in less than five days. It can be seen that enterprises are doing their best to avoid the extent of risk loss under the shadow of the epidemic.

Lack of new orders, enterprises have no heart to fight. More frightening than the fall in prices is that the global epidemic has led to a "shutdown" of enterprises. In early April, the author communicated with 7 small and medium-sized textile enterprises with 20 thousand spindles around Yancheng and Nantong in Jiangsu. They first returned to work in February 15th, but did not begin to resume production in real sense until the end of February. However, it is not expected that when the market is spreading to the market, the global epidemic is spreading and increasing. A large number of cotton spinning enterprises are faced with the cancellation or slow signing of the original order. Among the 7 enterprises surveyed, 6 enterprises indicated that they would complete all the orders in the year by the end of April. At present, although most of the enterprises have started production, the days of shutting down have been flexed, and they have abandoned the purchase of raw materials because of no new orders.

It is difficult for small and medium enterprises to make decisions. Enterprises reflect that not only an order, but only a small quantity of orders, but the need for a substantial reduction in production capacity can only be done. Some enterprises consider that maintaining customers have to take orders, but adjusting production capacity is not easy. Consideration for efficiency is also necessary. In the face of this "hot potato", small and medium-sized textile enterprises are really embarrassed. Because of the small scale of small enterprises and the general strength, in the global economic trend, great changes have taken place in the disaster situation, which is carrying the tremendous pressure of spirit and material, and the ability to find a way out is relatively weak.

By the middle of April, the development trend of the global epidemic was still high. China's main textile trading partners and the control measures of the European and American countries are still stepping up efforts. The upgrading of these measures will undoubtedly cut off the textile and other foreign trade operations. At present, almost every day, there are small and medium-sized enterprises who press the pause button again due to the interruption of orders. The market adjustment and consumption recovery after the outbreak of the epidemic will be a sight. In the coming days, the small and medium sized textile enterprises will experience how to shuffle cards and whether they can regenerate the fire.