Following a rapid decline in industry sentiment throughout the first half of 2020, attitudes towards and stories circling Industry 4.0 have finally inclined in the third quarter (Q3) of the year. WTiN data tools show that the sentiment has risen from +0.39 in Q2 to +0.48 in Q3 – up by 37.14%.
Although the virus continues to spread and analysts predict ongoing economic impact within the textile & apparel sectors, industry news suggests new technologies and investments have helped trade to chug along as industry players adopt and innovate to keep up with competition. In fact, news of Industry 4.0 trade rose from +0.17 in Q2 to +0.60 in Q3 of 2020, a whopping 252.9% rise in sentiment that suggests digital transformation is indeed the solution the industry touts it to be.
Digital transformation and sustainability
As expected, there were reports of continuous sales and economic decline in the industry as businesses tightened up to survive. Within the theme of companies & finance, a decline of 18.6% was reported (from +0.43 to +0.35 between Q2 and Q3 of 2020). This was likely affected by Q2’s trailing news of declined investments; however, as Q3 progressed, news showed an increased support of technological investment as players viewed digitalisation to be a solution to economic and production hurdles.
Thus, in response to economic pressures and physical limitations, many companies in the textile & apparel space turned to ecommerce platforms and digital transformation to keep their businesses afloat. Developments in this area included the launch of the Caldera WebShop from software specialist Caldera, which allowed businesses to “go digital by creating a bespoke storefront which can be integrated into a streamlined […] solution”. The company says the launch accompanied the ongoing digital transformation trend that has “been accelerated and intensified as a result of the Covid-19 pandemic”.
The adoption of these new digital business models was also noticed by SupplyCompass, who not only noted new modes of selling, but doubly drew attention to the use, experimentation and development of technologies to reduce wasteful production. Industry analysts suggest consumer interest in sustainability has skyrocketed since the spread of the pandemic, so it is no surprise technology leaders have noticed and utilised an opportunity to invest in sustainable technologies.
Conversation around sustainability rose in sentiment from +0.5 to +0.63 in sentiment, while manufacturing technology sentiment rose from +0.57 to +0.67, indicating that new technologies and digital tools are bringing positivity and competition back to Industry 4.0 conversation following a detrimental period in the industry. However, the discourse around sustainability through innovation may have led to a decline in sentiment around the theme of design & trends – a decline from +0.49 to +0.47 – since criticism circled traditional production practices which damage the environment.
Sentiment score for digitalisation in the textile & apparel industry
Trade saw a 252.9% increase in industry opinion between Q2 of 2020 and Q3 of 2020
Within the theme of companies & finance, sentiment declined from +0.43 to +0.35 between Q2 of 2020 and Q3 of 2020
A shifting calendar
The communication and display of new industry technologies has long been dependent on the textile & apparel sector’s comprehensive trade show calendar, but the Covid-19 pandemic left industry with no choice but to cancel or postpone key get-togethers. In response, WTiN began previewing its Innovate Textile & Apparel virtual trade show, which helped to increase sentiment around Industry 4.0 and technology-based events from +0.5 to +0.77, an increase of 54%.
Many textile machinery companies announced their virtual trade show debut would be at Innovate Textile & Apparel – including Karl Mayer, Epson and more – perhaps suggesting a shift in the nature of exhibitions within the new normal. The event (though it would not take place until October – Q4 of 2020) allowed industry to anticipate numerous technologies across the textile spectrum, continue essential business communication and mend its broken calendar without international travel, further supporting the notion that businesses were on the lookout for new technologies and digital tools to resume business as usual while strengthening their resilience against the pandemic.
Regional sentiment
This positivity (surrounding new technologies and virtual trade shows) filtered through to regional sentiment too. In continents like Europe, East Asia and North America where Industry 4.0 conversation remains popular, anticipation for virtual trade shows helped to bring positive sentiment back to the regions.
Additionally, in the US, sentiment rose from +0.06 to +0.40, driven by news of new sustainable solutions, robotic technologies and transparency solutions, revealing the US textile industry may be catering more closely to new customer demands. A similar rise is noted in the UK – an increase from +0.03 to +0.37 – where news is driven by similar trends, and notably new simulation and design technologies to limit the need for physical presence.
Looking ahead
In the future, we anticipate the Industry 4.0 sector and the Textile 4.0 channel to continue to rise in sentiment. As businesses acclimatise to the new economic and cultural surroundings generated by the Covid-19 pandemic by turning to new technologies, a period of stabilisation may take place: even among ongoing economic turmoil, it appears that industry is well aware only those who digitalise, adapt and innovate can survive.
Sustainability increased in industry opinion from +0.5 to +0.63 between Q1 of 2020 and Q2 of 2020
Events saw a 54% increase in industry opinion - from +0.5 to +0.77 - between Q2 of 2020 and Q3 of 2020
The sentiment of the US increased in industry opinion from +0.06 to +0.40 between Q2 of 2020 and Q3 of 2020
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