Survey on the work resumption of 4,650 enterprises in 19 clusters of cotton textile enterprises

Production resumption of cotton textile enterprises

Basic information

During the period from February 14 to March 2， a total of 1，880 enterprises in the cotton textile industry participated in the report of production resumption. Among all the enterprises participating in the survey， the proportion of enterprises that have resumed work rose from less than 50% to about 80%. The number of staff getting back to work in the normal production situation rose from less than 20% to more than 70%.

Note 1： There are many large enterprises with reported data， and the operating rate of the enterprises is expected to be slightly higher than the actual situation. Because there is no guarantee that enterprises will report continuously， the number of enterprises surveyed every day will vary， and the results are for reference only.

In order to avoid fluctuations in statistical results due to changes in daily samples， the China Cotton Textile Association has selected 938 enterprises that reported data from February 18 to March 2 as a fixed sample for analysis， as shown in Figure 2. The comparison results show that from the perspective of work resumption of these enterprises， the operating rate is basically consistent with the ratio of the total reported enterprises. The large and mediumsized enterprises covered by the fixed sample in Figure 2 accounted for more than 95% of the enterprises， and the enterprise started well. The proportion of enterprises that started operations exceeded 85%， and the rate of staff getting back to work has steadily increased， reaching nearly 80%. The start of large enterprises and staff getting back to work are better than the industry average， driving the recovery of industrial vitality.

Problems faced

Since February 14， the China Cotton Textile Association has collected problems and suggestions encountered by enterprises in fighting the COVID-19 and resuming production. As of March 2， a total of more than 150 pieces of online information from 110 enterprises have been received， as shown in Figure 3.

In response to the lack of orders reflected by enterprises， the China Cotton Textile Association has understood the order situation in the industry chain. In March， the order recovery volume of major cotton textile enterprises was around 70%. The orders of large enterprises in Shandong， Jiangsu and Zhejiang are better， and the order volume reaches about 80% of the normal level， and the recovery rate of export orders is slightly slower， basically recovering to the range of 50% - 80%； small enterprise orders based on conventional products will take some time to return to normal levels.

Industrial chain and cluster

The work resumption progress of enterprises in the industrial chains is not synchronized

From the perspective of the industrial chain， the work resumption in upstream enterprises is better than that in the downstream enterprises. Data from surveys of large enterprises shows that about 90% of the chemical fiber industry has resumed work， and 70% of cotton textile enterprises have resumed work. Downstream weaving， clothing and other links have a relatively high labor density. At present， due to the shortage of workers， insufficient epidemic prevention management capabilities， etc.， coupled with the fact that terminal retail entities have not resumed normal operations and poor sales channels， the resumption of progress is relatively slow. According to the survey data of the CATA on February 25， 69 of the 101 textile and apparel professional markets surveyed have already opened. The open rate of the single market is 68.3%， but the proportion of opening shops in the open professional market is not high.

The work resumption progress in the industrial clusters between regions is not synchronized

The China Cotton Textile Association has conducted a survey on the work resumption in 19 cotton textile industrial clusters. The total number of enterprises involved in the surveyed cluster is about 4，650， mainly small and medium-sized enterprises. The proportion of enterprises below designated size accounted for 74% of the total. The total scale of spinning and weaving is about 25 million spindles and 100，000 units， and the total number of workers is nearly 300，000. Most of the clusters resumed work after February 15.

In general， the situation of work resumption among the clusters is quite different. Clusters in Shandong， Jiangsu and Zhejiang have higher operating rates， clusters in Hebei， Hunan， and Jiangxi have lower operating rates. Most of the clusters in Hubei， Henan， and Xinjiang have not yet started. Compare the situation in the last week of February with the previous week. The average resumption rate of cluster enterprises has increased by 11 percentage points from the previous week. Among them， 47% of cluster enterprises have a work resumption rate of more than 60%， and 37% of cluster enterprises have a work resumption rate of less than 40%； from the perspective of enterprise scale， the average resumption rate of enterprises above designated size is better than that of enterprises below designated size， which are 56% and 43%， respectively， an increase of 5.6 and 11.4 percentage points from last week； from the perspective of workers getting back to work， clusters dominated by local or surrounding employees have a higher rate of work resumption than clusters with more migrant workers. On February 28， CNTAC collected the resumed production data of 29 key textile industrial clusters located in 15 provinces across the country. The results showed that the resumed work situation among the clusters was quite different. The proportion of resuming work in the key clothing and home textile industry clusters has increased significantly by 11.7 percentage points from last week， indicating that the resumption of work in the terminal industry has accelerated. However， this proportion is still 2 percentage points lower than the total proportion of the 29 clusters that have resumed work.

The main characteristics in the textile industrys work and production resumption

From the perspective of the entire textile and apparel industry， the work and production resumption of enterprises in the steady progress mainly presents the following characteristics：

Large and medium-sized enterprises resume work quickly， but the start-up load is low. few enterprises realize full resumption of work， the export orders of enterprises are greatly reduced by the impact of the epidemic， and the recovery of domestic demand market also needs a certain process. It is expected that in a considerable period of time， the capacity utilization rate of most enterprises will be lower than normal.

The work resumption of small enterprises is slow， and when domestic and foreign market demand is greatly reduced， in addition to the shortage of workers， insufficient epidemic prevention management capabilities， and most professional markets have not opened normally， the lack of order and sales channels has become the core reason for slow work resumption of small enterprises.

The outbreak will further exacerbate the adjustments and reshuffles that are already underway in the textile industry. The pressure caused by the epidemics downturn in production and sales and difficulties in capital turnover is relatively prominent. There are fewer investment projects under construction and lack of sufficient confidence in investment development.

Summary

The China Cotton Textile Association will continue to pay attention to the trend of epidemic prevention and control and the actual situation of production and operation of the enterprise. It will timely summarize and feed it back to CNTAC and relevant departments， do a good job of industry information warning and analysis， and work hard to ensure the smooth operation of the industry in special times.