Between September 5th and 25th, 2020, ITMF has conducted its 5th ITMF Corona-Survey among ITMF members and affiliated companies and associations about the impact the Corona-pandemic has on the global textile value chain. In total, 216 companies from around the world participated. When asked about the expected turnover in 2020 compared to 2019 since the beginning of the Corona-pandemic, the companies’ expectations have significantly improved since 4th survey. While in the beginning of June companies were expecting a drop in turnover of around -32%, the expected reduction fell to -16% by the middle of September.
In the 5th ITMF Corona-Survey we have asked for the first time about the turnover expectations for the period beyond 2020 until the year 2024. On a global average, the expectations are that in 2020 turnover will be down by -16% compared to 2019. For 2021, the global textile industry is expecting stagnation (-1%). In the following years, companies are expecting to see higher turnovers compared to 2019. In 2022 they are expecting a turnover level of +9%, in 2023 of +14% and in 2024 of +18% compared to the base year 2019. With other words, expectations are that it will take on average until 2024 to fully recover the losses suffered in 2020.
When looking at the different segments of the textile value chain, it is interesting to observe that the segment of finishers/printers is expecting in 2020 a significantly stronger reduction of turnover (-30%) than the other segments. Like the 4th ITMF Corona-Survey revealed, integrated manufacturers seem to be coping better with the negative effects of the pandemic than other segments. Under “Others” companies can be found that are active in various segments of the textile value chain listed but also companies that are supplying chemicals, dyes, auxiliary material, etc.
The Corona-pandemic has proven in a brutal way how important digital capabilities are when physical interactions with suppliers or customers are impossible or restricted (Graph 2). 21% of all companies see a necessity to improve their digital capabilities. 18% are of the opinion that reducing the dependency from few customers is important going forward, followed by 17% of companies for which both broadening the products on offers and strengthening the balance sheet are crucial in the future. 15% are of the opinion that changing the products on offer is necessary and 10% believe that reducing the dependency from few suppliers is a relevant objective.
In terms of textile production capacity, they report that the Corona-pandemic led to a significant reduction of production capacities. 23% of the respondents reduced production by more than -30% and another 19% by -20% to-30%. On the other side of the spectrum - and unsurprisingly - only 9% of companies have increased their production capacity during the pandemic. 21% did not make any change.
Furthermore, 21% of all surveyed companies are expecting turnover to be back to pre-crisis level in 2020. 11% of companies think it is more likely to happen in the 1st quarter of 2021, 15% in the 2nd quarter of 2021, and 17% in the third quarter of 2021. It is important to note that 25% of all companies are expecting turnover to reach pre-crisis levels in 2022 and 2023.