ITMF COVID-19 survey: Vertical Integration improves resilience

Posted October 1, 2020

ZURICH – Between September 5th and 25th, the International Textile Manufacturers Federation (ITMF) conducted its fifth ITMF Corona-Survey among ITMF members and affiliated companies and associations about the impact the coronavirus pandemic has on the global textile value chain.

In total, 216 companies from around the world participated. When looking at the different segments of the textile value chain (See Graph 1 below), it is interesting to observe that the segment of finishers/printers is expecting in 2020 a significantly stronger reduction of turnover (-30 percent) than the other segments.

AS the fourth 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 pandemic has proven in a brutal way how important digital capabilities are when physical interactions with suppliers or customers are impossible or restricted (See Graph 2 below). Twenty-one percent of all companies see a necessity to improve their digital capabilities. Eighteen percent are of the opinion that reducing the dependency from few customers is important going forward, followed by 17 percent of companies for which both broadening the products on offers and strengthening the balance sheet are crucial in the future.

Fifteen percent are of the opinion that changing the products on offer is necessary and 10 percent believe that reducing the dependency from few suppliers is a relevant objective.

Source: ITMF