By Sourcing Journal
This article was published in Sourcing Journal October 16, 2021.
The 10th International Textile Manufacturers Federation (ITMF) “Corona-Survey” among companies around the world covering all segments of the textile value chain found that textile makers see a mostly good business situation and anticipate even more favorable prospects in six months’ time.
ITMF said some differences between regions and segments persist. The survey was conducted between the middle of August and the middle of September. The latest results reveal that on average the business situation of the companies was mostly positive.
The balance between companies finding themselves in a “good” and a “poor” business situation was 10 percentage points, and 5 percent higher than in July and 14 percent above the May survey. The business expectations in six months’ time was on a relative high, with 48 percent of companies expecting a more favorable condition and 13 percent a less favorable business.
Regions with a slower inoculation campaigns are lagging those with high vaccination rates when it comes to business situation and expectations, ITMF said.
As for the segments, upstream players have been faring somewhat better since the recovery began than their downstream peers, but the latter seems to be catching up.
“One important reason for this are the supply chain disruptions the industry is faced with,” ITMF said. “Further down the value chain, the disruptions are felt more pronouncedly due to the cumulative effects in delays of raw and intermediate materials.”
Compared to May and July, order intake has increased significantly through September on a global level and companies anticipate a further increase in the next six months, according to survey respondents. A look at the order backlog since May revealed that companies have a stable order queue averaging around 2.4 months. Differences between regions and segments remain.
The ITMF has conducted these surveys since the Covid-19 pandemic began impacting textile manufacturers. The first one was published in April 2020.