The New Year’s Day and Spring Festival holidays are approaching, and many places, including Hebei’s Zhangjiakou Economic Development Zone, Guangdong’s Zhongshan City’s Sanxiang Town, and Guangxi’s Pingxiang City, have issued notices advocating celebrating the New Year on-site. The latest news is that another place advocates celebrating the New Year in situ.
On the evening of December 14, the General Office of the Ningbo Municipal Government in Zhejiang Province issued the “Notice on Supporting Enterprises to Retain Workers and Promote Production during the Holidays”. Through the introduction of a series of policies to stabilize production, retain workers and stabilize positions, warm-hearted actions, and strengthen services, we encourage and Support companies to retain and prioritize workers during the Spring Festival to promote production.
Among them, those who work in front-line production positions in Ningbo regulated industrial enterprises, restricted service enterprises (excluding state-owned and state-controlled enterprises) and major project construction enterprises from January 26 to February 10, 2022, and who will be employed in Ningbo in December 2021 Non-Ningbo registered employees who pay social insurance in Ningbo every month will be given special subsidies. The subsidy standard is 100 yuan per person per day, with a maximum of 500 yuan per person.
Zhejiang is of great significance to the textile and weaving industry. Texturing companies are relatively concentrated in Ningbo, while circular knitting machines and printing and dyeing companies are relatively concentrated in Xiaoshao. In terms of the distribution of printing and dyeing enterprises, Zhejiang accounts for about 35.9% of the national printing and dyeing enterprises. Among them, printing and dyeing enterprises in Keqiao account for 75.85% of Zhejiang’s total. Due to the impact of the epidemic, the two major dye giants Zhejiang Longsheng and Runtu Co., Ltd. have suspended production and work in the affected areas since the 9th. Polyester filament production companies in Ningbo have reduced production and other companies have also expressed that they will consider reducing their workload based on the epidemic situation. Shaoxing has not only stopped work due to the epidemic, but now logistics is also hindered.
Most downstream production companies said that the Spring Festival holiday may start early due to the epidemic and falling demand. Printing and dyeing factories in Jiangsu and Zhejiang have issued Spring Festival holiday notices, and will officially have a holiday on January 17 following the steam supply.
The initiative to celebrate the New Year in situ may actually cause some trouble to many migrant workers. Although celebrating the New Year in situ is conducive to epidemic prevention and control and is something that people across the country should actively cooperate with, for most migrant workers, , I am eager to return to my hometown for the New Year reunion. In order to return home smoothly, I have already planned the time to return to my hometown and moved the time forward. In addition, in order to avoid the peak period of Spring Festival every year, workers return to their hometowns at staggered times. In the past few years, many workers have returned home early, earlier than the factory holidays. This may further lead to passive production and holidays at the dyeing factory level due to lack of workers.
The early return of workers will also be a test for the production of the textile market. For some textile companies that have a good foreign trade order situation due to the global epidemic, the suspension of work and production during the Spring Festival may cause huge losses to the company, and there are increasing uncertainties in the return of foreign employees after the holiday. Temporary recruitment is not an easy task. Amid concerns about “labor shortages”, textile and apparel companies responded to the government’s call and actively adopted various talent retention strategies to ensure rapid production after the holiday. The cost of returning to work and resuming work during the start-up season is expected to be significantly reduced.
But for some weaving manufacturers with high inventories and missing orders, it may not be a bad thing for workers to take an early vacation. According to recent market conditions, the inventory of weaving manufacturers is on the rise. According to data monitoring, the inventory of weaving manufacturers is currently around 31 days, an increase of 2.5 days compared with November. Manufacturers also reported that the delivery speed of gray fabrics has slowed down, and the market is gradually entering the off-season.
At present, the high inventory in the weaving market has not been significantly alleviated, and many weaving factories are still in the stage of accumulated inventory. An early holiday may allow these weaving manufacturers to breathe a sigh of relief. It can not only alleviate the excessive inventory slightly, but also save a lot of labor costs. Therefore, textile mills are not very reluctant to take early holidays.
As downstream transactions continue to be weak and orders are discontinued, the inventory pressure of raw material factories is highlighted, and downstream procurement will also become more cautious. As the market declines at the end of the year, the downstream market will also usher in a greater holiday wave!
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