The international federation of textile manufacturers (ITMF) recently conducted a second survey of its members and their affiliates and associations (28 March solstice, 3 April) to understand the impact of the COVID 19 outbreak on the global textile chain. About 700 companies took part in the survey.
The second survey showed that companies around the world were cancelling and/or delaying orders in large Numbers. Globally, orders are down an average of 31 percent, with declines ranging from 20 per cent in east Asia to 41 percent in South America. Companies around the world expect turnover to be significantly lower in 2020 than in 2019. Globally, turnover in 2020 is expected to be 28 percent lower than in 2019, with a 15 percent drop in South Asia and a 45 percent drop in African companies.
Earlier, the ITMF's first survey (March 13, solstice, 25, 34 companies and 2 national textile associations) showed that companies in all regions of the world suffered significant cancellations or delays, with orders falling by an average of 8%. Order declines ranged from 4% in South America to 13.3% in Africa. The average decline is expected to be 7.5% in North America and 17.5% in Europe.
It is important to note that three weeks ago, some areas were not fully affected by the outbreak. The new figures for orders and turnover show the huge impact of this demand shock on the textile industry around the world. Uncertainty about the duration of the crisis has weighed heavily on the industry.
Companies around the world stress that the main challenges are the lack of current demand and/or the fear that future demand will decline significantly and lack of liquidity. Companies that make fibers, yarns, fabrics and end products with health and protection features will see new opportunities.