Operation Of China'S Textile And Clothing Industry Cluster In 2022

In 2022, the economic operation of the textile industry will continue to be under pressure due to the complex development situation at home and abroad, the interference of epidemic situation in some regions, the fluctuation and contraction of the manufacturing industry, the decline of residents' consumption confidence and market expectations and other risk factors. The production and operation volatility of the textile and clothing industry cluster gathered by small, medium-sized and micro enterprises will significantly increase, and the differentiation and development trend among enterprises will be significant. According to the data tracked by the Industrial Economics Research Institute of the China Textile Industry Federation on 52 key textile industry clusters nationwide, the pressure on the development of textile industry clusters will increase in 2022, and the pressure on profitability and employment will be more prominent.

The production and operation of cluster enterprises are basically stable, and the pressure on production and marketing has increased

Tracking data shows that there are 42000 textile enterprises in 52 key industrial clusters, of which 8% are enterprises above designated size. From the perspective of composition, small and medium-sized textile enterprises account for the vast majority. In 2022, the number of enterprises operating in the cluster will account for 98.1%, a slight increase of 0.3 percentage points over 2021. However, due to repeated domestic epidemics, insufficient domestic and international market demand, rising inventory pressure and other factors, the enterprise production and marketing connection is blocked in stages, and the production and marketing rate has declined significantly. In 2022, the production and sales ratio of cluster enterprises will be only 72.6%, 22.4 percentage points lower than that in 2021; Among them, enterprises above the designated size have a more stable pace of production, more stable market orders and channels, and relatively strong anti risk ability. The annual production and sales rate remains at a high level of 93.8%. However, the production and sales situation of small, medium-sized and micro textile enterprises below the designated size continues to fluctuate, and business difficulties occasionally occur. The production and sales rate in 2022 is only 46.8%, which is a low level in recent years.

Figure 1: Changes in production and sales of textile and clothing industry clusters in 2022

Data source: Industrial Economics Research Institute of China Textile Industry Federation

Enterprise profits continue to be under pressure, and the trend of differentiation and development continues

The tracking data shows that in 2022, the operating revenue of textile enterprises in the cluster will only increase by 2.2% year on year, the total profit will decrease by 12.5% year on year, and the operating revenue profit margin will be 4.5%, 0.8 percentage points lower than that in 2021. Among them, the shrinking trend of profits of enterprises above the designated size in the cluster is more obvious. In 2022, the total profits will decrease by 17.6% year on year, and the operating income profit margin will be 4.4%, down 1 percentage point from 2021; In the same period, the total profit of enterprises below designated size increased slightly by 3.9% year on year, and the profit margin of operating revenue was 4.8%, higher than the average level of enterprises above designated size. Against the background of severe market situation and increasing operating pressure in the whole industry, the differentiation and development trend of enterprises in the cluster is still significant, and the pressure of profit improvement for small, medium-sized and micro enterprises is difficult to ease. In 2022, the average annual operating income and total profit per household of enterprises below the scale of the cluster are only 3.4% and 3.6% of those of enterprises above the scale of the cluster in the same period.

Figure 2: Year on year changes of benefit indicators of textile and clothing industry cluster in 2022

Data source: Industrial Economics Research Institute of China Textile Industry Federation

The employment situation is stable and under pressure, and the employment situation of small and medium-sized enterprises is more severe

The tracking data shows that in 2022, all employees of 52 key textile industrial clusters in China will be 1.077 million, a year-on-year decrease of 2%. Among them, the number of employees of enterprises above the designated size increased by 2% year on year, while the number of employees of enterprises below the designated size decreased by 6.8% year on year, which indicates that under the difficult situation of weak market demand and declining corporate benefits, the employment contraction of small, medium-sized and micro textile enterprises is more obvious, and the employment situation tends to be severe.