After Coronavirus(COVID-19), China normalizes operations

After Coronavirus(COVID-19), China normalizes operations
After Coronavirus(COVID-19), China normalizes operations

Recently, the China Garment Association (CGA) conducted a survey to see if clothing companies (brands and manufacturers) resumed their operations in China in the midst of major Coronavirus spread–COVID-19.

Hubei Province is a major hub for the manufacture of clothing, but it doesn't have any clear plans to restart production in the coming days due to large virus spread across the province.

Operation resumption is still facing challenges due to difficulties such as a shortage of workers; asynchronous resumption of work between procurement process, production process and post-production process within companies in the industrial supply chain; inadequate transportation and logistics; reduced market downturn orders; and lack of protective material and services.

During this study, 325 companies from 14 industrial clusters in China were asked questions on 27-29 February and 77.1% of companies replied to CGA's questionnaire. Of 325 firms, 69.7% were manufacturing companies, while 30% were brands. The feedback CGA got indicates a positive trend as 80.8% of companies have resumed work. 19.2% Organizations have not resumed work to avoid the possibility of an outbreak.

Some of them reported that there are government restrictions, while some wait for approval for resumption. Most of these companies are believed to resume work before mid-March.

In addition, the Survey found that the resumption of large companies ' activities is much higher than that of small and medium-sized firms. In the third week of February CGA performed the same survey and the gap in large companies and SMEs' re-establishment has substantially narrowed in the recent survey. In the case of SMEs, 58% of large enterprises saw a return of more than 70% of their employees, while the same amount was 41.5%.

It is found that out of 77.1% of those who answered the questionnaire, about 94% of large-scale companies have resumed work. 

A significant improvement has taken place for clothing companies in the south-east coastal provinces as a result of faster and efficient management of the outbreak. Such employees also receive bonuses and subsidies to successfully restart production.