According to the latest Global Textile Industry Survey (GTIS) conducted by the International Textile Manufacturers Federation (ITMF) in July 2023, the global textile industry has shown signs of improvement despite the persisting negative conditions. The survey indicates that an increasing number of companies have successfully adapted to the challenging business environment, leading to reported improvements worldwide.

Regional Analysis: Asia Struggles While South America Bounces Back

The survey's regional analysis highlights Asia as the region facing the most significant struggles, while South America has made a remarkable comeback, returning to positive territory. Interestingly, global business expectations have remained unchanged since March 2023. However, optimism remains high across all regions for the situation to improve within the next six months, with the exception of East Asia, where concerns linger.

Segmental Trends: Weavers, Knitters, Dyers, and Finishers Report Negative Expectations

The GTIS identifies weavers/knitters and dyers/finishers/printers as two segments where expectations have turned negative. Despite a slight increase in order intake recorded in July 2023, the survey reports negative order intake across all regions and segments. While garment, home textile, and technical textile producers have experienced significant improvements, the overall balance remains negative. Notably, the order backlog has hit the lowest level ever recorded in the GTIS, with only South America and technical textiles showing any growth.

Capacity Utilization and Concerns: Industry Faces Challenges on Multiple Fronts

The capacity utilization rate has plummeted to its lowest level since the inception of the survey. Asia and Europe have witnessed a steady decrease since 2021, with home textile and technical textile producers experiencing recent drops. The major global concern in July 2023 is "Weakening demand," followed by "Inflation," "Higher raw material prices," "Geopolitics," and "Higher energy prices." However, some positive signs include falling costs for logistics, energy, and raw materials, and "Geopolitics" maintaining its position in the rankings without worsening.

Inventory Levels and Cancellations: A Ray of Hope Amidst Challenges

The number of canceled orders has remained relatively low on a global scale, attributed to most companies in the textile supply chain reporting average or low inventory levels, rendering cancellations obsolete. Surprisingly, 96% of garment manufacturers also report average or low inventory levels, while spinners, weavers/knitters, and fiber producers report the highest inventories.

In conclusion, the ITMF's GTIS showcases a global textile industry on the path to recovery, with companies adapting to the challenging environment and reporting improvements. However, challenges persist, particularly in certain regions and segments, while concerns over weakening demand and other external factors continue to impact the industry's trajectory. The ability to effectively manage these challenges and seize positive trends will be crucial for sustaining the industry's recovery.