Between March 13 and 25, 2020, the International Textile Manufacturers Federation ITMF conducted a survey of its members on the impact of COVID-19 on the global textile value chain, specifically on current orders and 2020 expectations Impact on turnover. Thirty-four companies from around the world attended the conference, plus two national textile associations, with several hundred people in attendance.
Worldwide, orders are currently down 8%.
The Impact of COVID on Orders
The results show that companies in all regions of the world have an average of large cancellations and (or) postponement. On a world average basis, current orders are down 8.0%. Order reductions ranged from 4.0% in South America to 13.3% in Africa.
Globally, expected turnover in 2020 is down 10.5% compared to 2019.
The results show that the average turnover of companies in all regions in 2020 is expected to be significantly lower than in 2019. At the world average, turnover in 2020 is expected to be 10.5% lower than in 2019. In North America, expected declines average 7.5%, while European companies expect a decline of 17.5%.
The impact of COVID on turnover
It must be pointed out that, Two factors played an important role in the investigation, and these factors are also interrelated. It’s geography and time. Those companies and national organizations that responded earlier and reported more orders between March 13 and 16 are not (yet) directly or indirectly affected. In other words, these companies and organizations have not been affected by the coronavirus in their own countries, nor by their customers (mainly Europe and North America).
Responses received later (from March 17) were negative in all regions. It can be assumed that after March 16, more and more governments in Europe and North America introduced new regulations restricting public and commercial life almost every day (such as closing kindergartens, schools, universities, shops, bars, cinemas, museums, sports facilities, Ski resorts, borders, etc.) are crucial. With all these restrictions in place, “offline” consumption of textiles and apparel in retail stores, industry stores, retail stores, etc. has dropped significantly. This appears to be causing major brands and retailers to significantly cancel and/or postpone orders.
Challenges: Security, lack of supply, demand and liquidity
Opportunities: Medical Textiles
Concerning the main challenges faced by companies, companies around the world have highlighted the following points.
Employee safety and health;
Supply chain disruptions, especially those related to China;
Supply shortages or delays in the apparel industry;
Insufficient demand or concern that demand will drop significantly;
Lack of liquidity;
Concerning opportunities, companies also mentioned:
Streamlining internal procedures during the crisis will make them More powerful;
Companies that produce fibers, yarns, fabrics and end products with health and protection functions will see new opportunities.
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