Textile industry: focus on global production
The textile industry is an extremely dynamic sector in terms of prices, delivery timeframes and quality. The main reason is the fierce competition that shapes the industry. The purchase cycles are becoming shorter so that more collections have to be produced in a shorter amount of time.
The price pressure causes many traders to go abroad for cost-effective production. Others respond by specialising in the development and production of technical materials and operating in a niche market. The shift of textile production abroad results in longer production cycles and long transport routes – therefore, clothing manufacturers, spinning mills and weaving mills have a high amount of outstanding bills for a longer period of time. The risk of production errors and loss or damage of goods during transport also increases. By contrast, textile retailers are under pressure to have more goods available at all times due to growing online business. In this case, the financial risk are outstanding bills for warehouse maintenance and the protection of warehouse inventories, for example against fire and natural hazards.
Insurance models for the textile industry
- Property damage insurance against fire/explosion and machinery breakdown (technical and organisational fire protection)
- Business interruption insurance due to property and technical damage
- Liability insurance for third party claims resulting from the operation or the products themselves
- Professional liability insurance
- Environmental insurance against production risks
- Product recall insurance
- Marine cargo insurance
- Credit insurance
- D&O insurance
- Legal protection and criminal defence insurance
- Vehicle insurance
- Employee health and benefits concepts
Global expertise in textile production and trade
The textile industry is shaped by continual technical developments with innovative products and production processes. Comprehensive risk management must take these developments into account with flexible, adaptable insurance cover of operations and technical systems as well as the transport and supply chain. As a reliable partner, Funk identifies and analyses specific risks that arise from these market developments and devises individual solutions for a wide range of areas in the textile industry. Many renowned companies rely on our expertise, among them:
- Weaving mills
- Spinning mills
- Knitwear workshops
- Embroidery workshops
- Clothing manufacturers
- Textile finishing workshops
- Textile traders
With well-founded industry knowledge and global expertise on the insurance market, Funk meets the challenge of increasing globalisation in the textile industry and supports your company in all its needs.
Risks
Liability risks
The potential liability of companies varies depending on the industry or clientele. Nevertheless, all companies have one thing in common: even small mistakes can lead to severe losses.
Property damage and BI risks
While property insurance is a basic protection every company should have, the risk of business interruption is increasing steadily as well – especially for globally connected players.
Risks in M&A processes
The M&A market is booming: in a constantly changing market environment, transactions are the key to the success and future viability of companies. But their risks should not be underestimated.
Services
Funk China
Investing and operating outside of China becomes more and more essential for Chinese companies. The Funk China Division supports its Chinese clients in managing the risks, challenges and chances of worldwide outbound investments.
Insurance + risk management
Funk devises and implements holistic risk and insurance solutions for companies across all industries, sectors and countries. In doing so, our experts do not only secure your individual assets but also create genuine added value for your company.
Employee health + benefits
Employee benefits concepts are a sustainable component of a good corporate policy. Funk provides comprehensive, transparent advice with a view towards the long-term advantages for your company and your employees.
