23/02/2022 – 12th ITMF Corona-Survey
Business situation and expectation remain favourable
In the 2nd half of January 2022, the ITMF conducted the 12th ITMF Corona-Survey among more than 270 companies around the world in all segments along the textile value chain.
For the fifth time since May 2021, companies were asked the same set of questions about their 1) business situation, 2) business expectation, 3) order intake, 4) order backlog, and 5) capacity utilization rate.
On average across all regions and all segments, the business situation is still very favorable with +23 percentage points (pp), albeit lower than compared to November 2021 (+28pp). This high level is remarkable given the fast-rising infection number of the Corona-variant “Omicron” since the 11th ITMF Corona-Survey (see Graph 1). The fact that a rising number of companies find themselves in a satisfactory business situation (48%) is an indication for a strong and broad recovery.
Expectations are positive except for East Asia
When it comes to the business expectations in six months, the global textile value chain remains very optimistic. While the balance between more favorable and less favorable has fallen from +33pp to +25pp, it needs to be considered that these expectations are built on a very favorable business situation (see Graph 2). Or to put it differently, only 14% of companies are anticipating a less favorable business by July 2022.
A look at the different regions reveals that the business situation is in positive territory in all regions except for East Asia and Africa where the balance between good and bad business situation is negative. The expectations are very positive except for East Asia.
Order intake has fallen
As for the different segments the downstream segments – weavers/knitters, finishers/printers, and garment producers – are catching up with the upstream segments – fiber producers, spinners, and textile machinery producers.
The order intake has fallen from a high level of +40pp in November 2021 to +30pp in January 2022. This is in line with the slightly weaker business situation. Order intake expectations in January remained practically on the same level as in November (+40pp and +41pp, respectively).
Since May 2021 order backlog is hovering between 2.4 and 2.9 months. The expectations do not indicate a change in the next six months. The capacity utilization rate continues to increase slowly but continuously since May 2021, indicating that the supply chain disruption is still a big – but hopefully a diminishing – concern.