At the beginning of the new year, with the sound of firecrackers in the textile market, the new year of struggle comes with everyone’s expectation. The resumption of work in the weaving market is currently the focus of textile people’s attention. The editor visited the market and got some current resumption of work.
Textile companies started work earlier and the resumption rate has reached 80%
It is understood that due to the improvement in the market situation in the fourth quarter of last year, the entire industry generally started earlier this year. In the market, the sales staff of the sales department were put in place around the eighth day of the lunar month, and the weaving factories also started to return to work one after another. I heard that most employees from other places had returned to work and started production on the fifth and sixth day of the first lunar month. Let’s look at it in detail below.
Most local stores start operations on the eighth day of the first lunar month, and some start operations on the tenth day of the first lunar month. At the same time, many companies are already busy shipping goods. Among the orders currently being shipped, some were placed before the Spring Festival, some were placed during the Spring Festival, and there were even new orders received on the eighth day of the Lunar New Year.
The person in charge of a company with 96 water spray machines said: “Although we did not start work during the Chinese New Year period, we kept in touch with customers during the Spring Festival. We got quotes and placed orders. Even on the first day of the eighth day of the Lunar New Year, we also placed orders.”
The person in charge of a company that specializes in satin fabrics said: “We started shipping goods on the first day of work. Some of them were not finished before, and some were newly received today. Starting at around 9 o’clock today, customers have been placing orders and requesting delivery. Goods.”
As for weaving factories, most of the local factories have not yet started operations. Some started on the 10th day of the lunar month, some started on the 12th day of the lunar month, and some even later. Mainly due to the late return of non-local workers and the fact that many companies are still short of workers, they are currently mainly recruiting workers. However, in addition to the boss’s wishes, the start-up time of the weaving enterprise also mainly depends on the sewage plant. At present, some companies in Wujiang area have started operations on the 10th day of the Lunar New Year, but there are still some factories that have not resumed production because they have not received notification of the resumption of sewage treatment plants. Due to the timely arrival of employees and inconspicuous shortage of workers in overseas weaving factories, some factories have started operations on the eighth day of the Lunar New Year, and the production resumption rate on the first day of operation was 70-80%.
The person in charge of a company with 96 water spray machines said: “Our factory is located in northern Jiangsu. It started operation on the eighth day of the Lunar New Year. From now on, the attendance rate of old employees is quite satisfactory. On the first day, 70% to 80% of the factory can be opened.”
At present, companies generally start operations in advance. On the first day of operation, they receive new orders and are busy delivering goods. Chemical fiber raw materials also have a good start, and the price of gray fabrics also rises in response. A good start is a foregone conclusion, but how long the increase can last depends on how the demand side continues. However, there are still many problems behind the good performance of the current textile market. We must remain cautious about whether the market will be prosperous this year.
Textile will still be full of challenges in 2022
While textile bosses are actively and optimistically preparing for the new year, many bosses believe that the textile industry in 2022 can be said to be “mixed and full of challenges.”
“It’s hard to say what the market will be like this year, because there are too many uncertain factors, so we are going to operate cautiously this year and don’t hoard if we can. Cash is king.” said Mr. Wang, who has been in the textile business for ten years. From the interviews, we found that Mr. Wang is not an exception. Although the current market is on an upward trend, many bosses are still lamenting last year’s sharp rise and fall in raw materials, power cuts and production shutdowns, and the fluctuating exchange rates.
01 Labor wages increase by 5-10%
In addition, comprehensive costs have risen, and companies are also under significant pressure. In recent years, in addition to the high cost of raw materials, labor costs, water, electricity, rent and other costs have also become “serious problems” for manufacturers. Some textile companies said that employee wages are constantly rising every year, especially when funds are tight, the pressure on wages is very high. There are a small number of job shortages in sales departments and factories, but companies say that in terms of recruitment, if the salary is high, there will be applicants, but if the salary is low, it will be difficult to find them, and workers will make comparisons, so wages have to rise with the market. This year, employee wages have been increased by varying degrees, ranging from 5-10%.
02Raw materials have surged and plummeted, and profits have been damaged
The price of raw materials is also an important factor affecting costs. In recent years, the price of polyester filament has fluctuated greatly, and polyester filament prices rose on the first day after the holiday. Many companies have reported that although the price of gray fabrics has been increased, according to cost calculations, it was originally increased by 0.2 yuan/meter, but in fact it was only increased by 0.5-0.1 yuan/meter, and part of the cost is borne by themselves.
All in all, driven by factors such as rising raw material prices and holding costs and improving market confidence, there is a strong desire to increase raw material prices. However, whether there will be a “Red February” in the textile market in the future will have to wait until after the Lantern Festival before the real market recovery can be seen.
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