Effects of Covid-19 on Global Manufacturing Industries with a Brief Reference to Spinning and Weaving Industries in Egypt

Document Type : Original Article

Author

National Planning Institute Egypt

Abstract

The study seeks to analyze the effects of the COVID-19 pandemic on manufacturing industries with application on Egypt's spinning and weaving industry, through adopting deductive and inductive approaches and using the descriptive-analytical method. The study reveals that the COVID-19 pandemic has adversely impacted the manufacturing and spinning and weaving industry globally. That impact extends to the demand side, the manufacturing structure, and the global supply chains. Additionally, the pandemic negatively impacted the spinning and weaving industry in Egypt, represented in the drop in local sales, the increase in the prices of production inputs from yarn and fabrics, the decrease in 2020 exports compared to 2019, and the lack of production inputs for some spinning and textile factories, among others. Egypt has intervened by undertaking many actions to mitigate the negative impact of the pandemic in the short term and to stimulate the spinning and weaving industry as a whole. The study envisions the need to change the integration pattern of the Egyptian industries into the global supply chains, diversify the production sources as much as required by the spinning and weaving industry, restructure and upgrade the spinning and textile factories in compliance with modern technology standards, support the spinning and weaving industry, encourage the establishment of integrated textile cities, and train and enhance workers' capacities to comply with modern technologies.

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