Page 75 - TEXtalks November/December 2021

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Textile business situation

and expectation: regions except East Asia, and business expectations increased by +3.3% in Q2 2021, after slightly

The ITMF Corona-Survey are optimistic in all regions. contracting in Q1 2021. Similarly, the business activity
in the clothing sector expanded by +7% in Q2 2021,
As for the different segments, the gap between the
after increasing by +1% in the previous quarter. In
the 2nd quarter of 2021, the EU-27 trade balance for
upstream segments – fiber producers, spinners, and
textile machinery producers, on the one hand, and
T&C improved, resulting primarily from an increase in
the downstream segments, including
weavers/knitters, finishers/printers, and garment export sales across third markets and a drop in textile
imports. T&C Extra-EU exports boomed by +49%
producers, on the other hand, is narrowing. As far as compared with the same quarter of the previous year.
International Textile Manufacturers Federation (ITMF) order backlog, and 5) capacity utilization rate. In a order intake is concerned, the very favorable situation T&C Extra-EU imports went down by -26% compared
is an international forum for the world's textile previous survey during 2020, ITMF reported that the (+40 pp) is the source for the abovementioned ideal with the same quarter of the previous year, following
industries, dedicated to keeping the worldwide textiles orders dropped 41% globally; and the global business situation. Order intake expectations increased a decrease in imports from some central supplier
membership constantly informed through surveys, turnover in 2020 was down by 33% compared to again from an already high level to +41 pp. countries. EU imports from China and the UK
studies, and publications, participating in the 2019. collapsed due to Brexit and weaker demand in
evolution of the industry's value chain and through Order backlog has remained almost unchanged Europe.
the organization of annual conferences as well as On average, the business situation has improved since May and is around 2.5 months. By nature, the
publishing considered opinions on future trends and significantly since the 10th survey in September textile machinery segment has, on average, a much However, this fragile recovery is hampered by higher
international developments. Through ITMF, the textile across all regions and segments. The balance longer backlog (6 vs. 1.5 months for spinners). The shipping costs and increases in raw materials and
industries cooperate internationally with organizations between good and poor business companies capacity utilization rate has increased slowly but energy prices. The cost of energy, in particular gas,
representing other sectors allied to their industry. jumped from +10 percentage points (pp) to +28 pp continuously since May 2021, indicating that the has increased more than three times since the
(see graph below). When it comes to business supply chain disruption is still a significant - but beginning of this year. Since the announcement of
ITMF has conducted its 11th ITMF Corona-Survey to expectations in six months (May 2022), the balance is hopefully diminishing - concern. the EU's "Fit for 55" package, we have seen CO2
analyze the global textile business situation and +33 pp. This means that significantly more prices rising above €60. This inevitably impacts the
expectations. More than 330 companies worldwide in companies expect business to be more favorable The European Apparel and Textile Confederation industry's competitiveness, especially in a global
all segments along the textile value chain. For the than less favorable by May 2022. Nevertheless, (EURATEX) presented its survey on the 11th October context. The future recovery is also threatened by
fourth time since May, companies were asked the expectations were slightly higher in the previous 2021, which showed a similar trend to ITMF. In factors limiting production, such as shortage of labor
same set of questions about their 1) business surveys. Looking at the different regions reveals that quarter-on-quarter terms, the EU turnover showed force and equipment, which put additional pressure
situation, 2) business expectation, 3) order intake, 4) the business situation improved on average in most improvements across the sector. The textile turnover on T&C industries.

November/December 2021 November/December 2021