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Monday, 21 march 2017

The textile industry slows the closure of companies after a black decade

Indications of economic recovery

 

 

  The sector triggers exports by 7.3% and consolidates job creation.

 

  The Spanish textile sector halted the destruction of businesses in 2016, a constant since the beginning of the crisis in 2008, after having completed almost a decade of constant loss of industrial fabric, according to the annual balance sheet and outlook for the 2016 textile sector By the employer Texfor, to which La Vanguardia has had access.According to the Texfor report, in 2016 there were 3,562 active companies, only three less than the previous year. Nearly 90 companies were lost in 2015 and since 2008 the number of active companies in the sector has fallen by about 1,800 in a black decade.

 

  "The sector, as in previous crises, has undergone the umpteenth process of consolidation, but now companies are more competitive and productivity has increased". The average profile of the companies of the textile industry are pimes that occupy an average of 30 workers. "Now we can say that we have overcome the crisis, although the recovery has been slow and progressive".

 

  The new export record illustrates the way out of the crisis for many textile companies. Last year, exports reached a new record up to 3,891 million euros, 7.3% more than in 2015. Sales abroad have been the key to the survival of many companies in the industry.

 "Exports have been fundamental year after year". The forecasts handled by the bosses show that 2017 may be the first year in history with a positive trade balance for the textile industry, thanks to the growth of exports.

 

  In 2016, the trade deficit was still 517 million euros, which meant a further reduction of 3%. And if exports continue to grow at rates of 7% this year the trade balance will be balanced.Textile imports suffered a sharp fall during the crisis, but were re-triggered in 2014 with the first signs of recovery. Regarding the destination of exports, the ones that increased the most were those directed to North Africa (12.8%).

 

  Exports to the EU grew 4.8% and sales to the Americas declined significantly last year. The main customers of the Spanish market are the EU with 56% of total sales and North Africa with 24%. The ranking of buying countries is led by Morocco, France, Portugal, Italy and Germany, which represent 58% of total foreign sales.On the other hand, the greatest increase in purchases abroad was concentrated in knitted fabrics (18.9%) and carpets and coatings (9.3%).

 

  Also noteworthy were the imports of textile machinery that in the last three years accumulated an increase of 56%. With regard to the origin of these imports, the European Union continues to be the main one with 44% of the total, followed by Asian countries accounting for 40%, with China accounting for 21.3% of total imports.In 2016, the largest foreign purchases were from North Africa, although the main suppliers remain China, Italy, Portugal, Turkey and Germany, which account for 55% of total imports.

 

  Another positive aspect of the sector is the consolidation of job creation, which closed 2016 with 44,799 workers, 3.7% more than the previous year.However, the textile industry has lost more than 10,000 jobs in the black decade of the crisis. Last year, turnover reached 5,654 million euros, 2.8% more than in 2015.

 

  The sector closed 2016 with 44,799 employees, 3.7% more than the previous year PRODUCTIVITY "Now the companies are more competitive"

 

  Meanwhile, industrial output growth stood at 5.1%, although industrial prices fell slightly by 0.5%. "During the crisis, the textile sector in addition to boosting exports, was dedicated to diversify its applications and now is not limited to being a supplier for fashion companies". Diversification involves working for sectors such as the automotive and the industry, which implies the production "of less meters but with more value"

 

 

Source: LA VANGUARDIA