The ITMF (International Textile Manufacturers Federation) has recently conducted a second survey among ITMF members and affiliated companies and associations about the impact of the Corona pandemic on the global textile chain. Around 700 companies participated in the survey. The results of the third ITMF Corona-survey will be released on April 23, 2020.
Companies in all regions of the world suffered significant numbers of cancellations and/or postponements of orders. Globally, current orders dropped by -31 per cent on average. The severity of the decrease ranges from -20.0 per cent in East Asia to -41 per cent in South America, according to the report by ITMF.
The results show that companies in all regions of the world are expecting their turnovers in 2020 to be significantly lower than in 2019. On world average, the turnover in 2020 is expected to be -28 per cent lower than in 2019. While in South Asia the expected turnover will fall by -15 per cent, companies in Africa are expecting a drop of -45 per cent.
Only three weeks ago, some regions were not fully affected by the Corona-pandemic. The new numbers on orders and turnover reveal the dramatic extent this demand shock has on the textile industry around the world. The uncertainty about the duration of the crisis weighs heavily on the industry.
Companies around the world highlighted the main challenges as lack of current demand and/or fear that future demand will drop significantly and lack of liquidity. Companies producing fibres, yarns, fabrics and end-products with health care and protection functions will see new opportunities.