In the 2nd half of March 2022, the ITMF conducted the 13th ITMF Corona-Survey amongst more than 220 companies around the world in all segments along the textile value chain. On average across all regions and all segments, the business situation in March 2022 (see graph) remains in positive territory with +14 percentage points (pp). Nevertheless, this is well below the +26pp in November 2021 and the +18pp in January 2022. That a relatively high number of companies (43%) judge their situation as satisfactory shows that demand remains strong despite the many challenges companies are facing on the supply side like delayed deliveries and higher production costs.
Companies were again 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. In addition, they were asked about their main concerns and whether and to what extent they can pass on recent costs increases.
When it comes to the business expectations in 6 months’ time, the global textile value chain remains optimistic but stands on a much weaker foundation. Since September 2021 the balance between more favorable and less favorable business expectations has fallen from +32pp to +7pp. As for the different segments the downstream segments – weavers/knitters, finishers/printers, and garment and home textile producers – are generally struggling more than the upstream segments – fiber producers, spinners, and textile machinery producers.
Higher costs for raw materials, energy, and transportation are the main concerns for companies. Weaker demand is another worry though not (yet) a dominant one. On average across the supply chain companies can only pass on 40% of the additional costs.