When asked about how they would rate their current inventory level, most textile companies across the world reported average inventory levels. Around 25 per cent of respondents answered ‘high’, 58 per cent ‘average’, and 18 per cent ‘low’, as per an International Textile Manufacturers Federation (ITMF) survey.

The number of companies that reported high inventory levels is greater on average in Asia and Europe—up to 37 per cent in South-East Asia. African and North American companies reported having quite normal inventory levels (i.e., were more likely to choose ‘average’ as an answer) and South America registered the lowest score with almost 60 per cent of respondents deeming inventory level as ‘low’, according to the 19th ITMF Global Textile Industry Survey (GTIS).

Company size also influences this indicator. The results showed that smaller companies (i.e., with a turnover lower than $50 million) have lower inventory levels. No significant difference can be observed between companies with turnovers between 50 and 200 million, 200 million and 1 billion, or over 1 billion.

The share of companies that reported high inventory levels is very similar for upstream segments, from spinners to finishers, including textile machinery producers. Those with low inventory levels in this group are rather concentrated in fibre producing, spinning, and textile chemical producing. The share of companies that reported high inventory level is the smallest for garment producers and the highest for home textile producers.

Fibre2Fashion News Desk (NB)

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