Survey report on the resumption of production and

Research Briefing on the resumption of production and work of enterprises in China's coating industry

Research Briefing on the resumption of production and work of enterprises in China's coating industry

March 12, 2020

in early 2020, in view of the impact of the prevention and control of COVID-19 on the resumption of production and work of enterprises, the China Coating Industry Association conducted two batches of research on the resumption of production and work of major production enterprises in the industry on February 13 and March 9, respectively. The details are as follows:

a total of 126 enterprises were investigated on February 13, and 33.3% of enterprises started to resume production before February 13; Enterprises that plan to resume work before February 29 account for 33.3%; Enterprises that have not yet determined the date of resumption of production or waiting for the government's notification of resumption of work accounted for 33.3%. Major problems faced by enterprises that have resumed production:

(1) transportation and logistics problems. Nationwide epidemic prevention and control, and local logistics are blocked; As a result, the supply of raw materials in some enterprises is tight and the sales link is blocked

(2) labor shortage. Under the overall situation of epidemic prevention and control throughout the country, local governments have strict control, observation and isolation measures for incoming and outgoing personnel, resulting in a large number of labor shortages in enterprises

(3) shortage of funds. Some enterprises were affected by the sales and production in the first quarter, but according to the national regulations, employees' wages cannot be stopped. According to the time of epidemic prevention and control, relevant enterprises judged that enterprise funds would have great difficulties in turnover in the near future. When some enterprises have bank loans or social financing, it is difficult to repay the loan and operate the enterprise, and the enterprise risk is high

(4) approval of resumption of production and work. Local governments have implemented the approval system for the resumption of production and work of enterprises under their jurisdiction according to the situation of prevention and control of the continuous energization of epidemic electromagnetic directional valves in various regions, and some enterprises have not been approved

on March 9, the China Coating Industry Association conducted a survey on the resumption of production and work of 97 major coating enterprises, of which 55 responded to the information, 52 resumed production and work, accounting for 94.54% of the reply information, and 3 did not return to work, accounting for 5.45% of the reply information. The main problems faced by the research enterprises are:

(1) transportation and logistics problems. In the survey, 29 enterprises mentioned logistics problems, accounting for 52.72%. The transportation and logistics in some regions are still affected, which has been significantly improved compared with February 13, but the efficiency has not been fully recovered compared with that before the improper adjustment of the position of a opposite pulley, especially in the key areas of epidemic prevention and control; In addition, the resumption rate of logistics companies and drivers has not reached the previous state, and the resumption drivers still need health certificates to ensure smooth traffic in the corresponding areas

(2) substantial consumption in downstream and end markets is depressed. The downstream market of coatings mostly involves labor-intensive, retail and other situations. During the epidemic period, it is basically in a stagnant state, and the consumption is depressed, which directly affects the order volume of the upstream coating industry

(3) shortage of funds. In the survey, 15 enterprises mentioned the problem of capital flow, accounting for 27.27%. With the continuous prevention and control of the epidemic, although most enterprises have resumed production and work, these have affected the safety of modern residents. The substantive consumption in the downstream market is depressed, and enterprises also need to bear the wages, social security, bank interest and other conditions of employees. At 6:30 a.m. on October 19, the pressure on working capital of enterprises is increasing day by day with the continuation of the epidemic, and the vitality of the downstream market will have a recovery period after the epidemic, It is bound to prolong the tense period of the capital chain of enterprises

(4) the prices of some upstream raw materials rose rapidly, which had an impact on the operation of enterprises in the coating industry in special periods

China Coating Industry Association

March 10, 2020