More companies report higher inventory levels on average than in Asia and Europe—up to 37% in Southeast Asia. African and North American companies reported fairly normal inventory levels (i.e. more likely to choose the answer as ‘average’) and South America scored the lowest with almost 60% of respondents for that inventory levels are ‘low’, according to the 19th ITMF Global Textile and Apparel Industry Survey (GTIS).
Most textile companies worldwide report average inventory levels. About 25% of respondents answered ‘high’, 58% ‘medium’ and 18% ‘low’. Asia and Europe have more companies reporting higher inventory levels, while Africa and North America have normal inventory levels; Smaller companies have lower inventory levels.
Company size also affects this indicator. The results show that smaller firms (i.e., with sales less than $50 million) have lower inventory levels. No significant difference can be observed between companies with revenues between 50 and 200 million, 200 million and 1 billion or more than 1 billion.
The proportion of companies reporting high inventory levels is very similar for upstream segments, from spinning mills to finishing mills, including textile machinery manufacturers. Firms with low inventory levels in this group focus a lot on yarn production, spinning and textile chemical production. The percentage of companies reporting high inventory levels was smallest for apparel manufacturers and highest for home textile manufacturers.
Fiber2Fashion (NB) News Desk
