Impact of the COVID-19 epidemic on economic development of textile and garment industry cluster

On February 10 - 13， the Industrial Cluster Working Committee conducted a special investigation on the impact of the COVID-19 epidemic on the pilot areas of the national textile and garment industry cluster. The survey received valid questionnaires from 152 industrial cluster pilot areas. The key industry categories in the pilot areas involved spinning and weaving， apparel， dyeing and printing， knitting， home textiles and industrial textiles.

From the perspective of regional distribution， industrial clusters in the eastern region accounted for 81%， central regions accounted for 16%， and western regions accounted for 3%.

From the perspective of the industrial scale of the pilot areas， there are 9 enterprises with an annual sales of more than 100 billion yuan， accounting for 5.92%； 23 enterprises with an annual sales of 50 - 100 billion yuan， accounting for 15.13%； 23 enterprises with an annual sales of 20 - 50 billion yuan， accounting for 19.08%； 91 enterprises with an annual sales of less than 20 billion yuan， accounting for 59.87%.

From the perspective of the number of employees in the pilot areas， there are 15 enterprises with more than 200，000 employees， accounting for 9.87%； 8 enterprises with 150，000 - 200，000 employees， accounting for 5.26%； 19 enterprises with 100，000- 150，000 employees， accounting for 12.5%； 37 enterprises with 50，000 - 100，000 employees， accounting for 24.34%； 73 enterprises with less than 50，000 employees， accounting for 48.03%.

The epidemic has a great impact on the income and profits of the cluster area in the first quarter， and the situation of resuming production is not optimistic.

According to the survey， as of 20：00 on February 13， 30 industrial cluster pilot areas have been started， accounting for about 20%. It is estimated that there will be about 31 pilot areas that can be started before February 17， accounting for about 20%. It is estimated that 46 pilot areas will be started before the end of February， accounting for about 30%. The other 30% depends on the progress of the epidemic， and the start time is yet to be determined.

It is estimated that by the end of February， about 38% of the pilot areas will have the capacity restored to 20% - 50%； 22% of the pilot areas will have the capacity restored to 50% - 70%； more optimistically， 13 pilot areas will have the capacity restored to over 70%， accounting for 8.55%.

The main reasons for the resumption of work and production in the region are listed in the top five： epidemic prevention and control， not yet fully started； staff cannot be in place， labor supply is insufficient； the poor transportation and logistics； market demand is reduced， orders are insufficient； equipment， raw materials and other supplies are insufficient. （See Table 1 for details）

From the perspective of the main business income in the first quarter， compared with the same period last year， it is expected to decrease by about 30%， accounting for 38.82%； decrease by about 50%， accounting for 31.58%； decrease by more than 70%， accounting for 19.74%. （See Table 2 for details）

From the first quarter profit， compared with the previous year， 28.29% of the pilot areas will be decrease by more than 70%； 33.55% of the pilot areas will be decrease by about 50%； 24.34% of the pilot areas will be decrease by about 30%. Only 11.18% of the pilot areas will be decrease by less than 10%. （See Table 3 for details）

Taken together， the main issues affecting the sustainable development of the industrial economy in the first half of the year due to the epidemic situation include the top five： The first is the lack of start-up of enterprises（76.97%）； the second is the shortage of labor supply（74.34%）； the third is the poor transportation and logistics； the fourth is the problem of supply chain resource coordination and the procurement of raw and auxiliary materials （61.84%）； the fifth is the difficulty of cash flow and financing channels （39.47%）.

There are also 13 pilot areas （8.55%）， saying that after this “epidemic”， the development of regional industries has been hit hard and there is a risk of exiting the market.