Euratex: European textile industry faces new ...

European textile industry faces new challenges ahead

(Source: Euratex)
(Source: Euratex)

Latest economic data confirm further recovery of the textile and apparel industry from the corona pandemic. This recovery may, however, be disrupted by the current supply chain and energy problems.
The textile activity has now surpassed its pre-pandemic level from Q4/2019 (+3.6%), but the apparel sector still remains 11.5% below Q4/2019 levels, although it continues to improve. In quarter-on-quarter terms, the EU turnover showed signs of improvements across the sector. The textile turnover increased by +3.3% in Q2/2021, after slightly contracting in Q1/2021.
However, this recovery is hampered by higher shipping costs and price increases in raw materials and energy. The cost of energy, in particular gas, has increased more than 3 times since the beginning of this year. Since the announcement of the EU’s “Fit for 55” package, there have been CO2 prices rising above €60. This inevitably has an impact on the industry’s competitiveness, especially in a global context. The future recovery is also threatened by some factors limiting production, such as shortage of labor force and equipment, which are putting additional pressure on T&C industries.

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