Pakistan:


Textileexports reflect a dismal performance


Recently released export figures for the period July - March2007-2008 pertaining to the textile and garment industry in Pakistan reflect a dismal performance. Only raw cotton, made ups (exclusive of towels andbeadwear), art silk and synthetic textiles has been able to register a growthcorresponding to the same period of last fiscal. The main export items in thetextile and garment basket like yarns, garments, cotton fabrics, knitwear, beadwear, towels and canvas have recorded dismal negative growth rates. The savinggrace has been the leather industry which has registered growth in leatherfabrics as well as garments but lost out in footwear. The best overallperformance was delivered by raw cotton with a positive increase of 17.12percent in quantity and 18.15 percent in terms of value while art silk andsynthetic textiles registered 16.03 percent in terms of quantity and astupendous 40.91 in terms of value. Made ups recorded a positive growth of12.60 percent. Categories which recorded a negative growth corresponding to thesame period last year were cotton yarn and other yarns with figures of 8.27percent and 20.46 percent by value respectively. The biggest fall came fromcotton fabrics which lost 20.90 percent vide quantity and 11.01 percent invalue. Readymade was one of the sectors to record one of the lowest de-growthswith 4.24 percent in quantity and 12.05 percent in value. Knitwear hosieryfollowed suit with negative figures of 10.53 percent quantity wise and 7.97percent value wise. Leather on the other hand made handsome gains with leatherfabrics going up by 35.46 percent and leather garments by 24.08 percent valuewise.


Spain:

 

Production of textiles & clothing turn negative in 2007


According to data released by Centre of Information aboutTextile and Clothing Industry (CITYC), production of textiles and clothing in Spain has gone down by 2.3 and 3.0 percent respectively in 2007. Exports from the countryamounted to Euro 7.81 billion while imports recorded Euro 13.38 billion. Thelions share of exports was taken by knitwear and clothing with Euro 4.67billion, trailed by textiles with Euro 2.87 billion and fibres with Euro 257million. The major category of imports is again knitwear and clothing with Euro10.12 billion, followed by textiles with Euro 2.91 billion and fibres with Euro344 million. Major share of exports is claimed by clothing with Euro 2.53billion and constitutes 32.4 percent of all exports from the textile and clothingindustry. Knitwear with Euro 1.76 billion and 22.5 percent share, fabrics withEuro 1.50 billion and 19.3 percent share, technical textiles with Euro 719million and 9.12 percent share and yarns and filaments with Euro 564 millionand 7.2 percent share made up the rest. Of the total exports from the industry,exports to Portugal amounted to 14 percent, France 12.6 percent, Italy 9.9 percent, Morocco with 8.2 percent and followed by Germany with 6.4 percent. Imports from China accounted for 20.7 percent, Italy 12.9 percent, Turkey 8.3 percent, Morocco 7.6 percent andtrailed by France with 7.3 percent of all imports done within the textileindustry. Imports from EU-25 amounted to Euro 5.39 billion while exportsaccounted for Euro 4.44 billion.


 

Beginningfrom 2002 revenues from exports stood at $220.8 million; in 2003 it grew to$237.01 million, fell back to$228.40 million in 2004 and again rose to $247.04million in 2005 to again slip back to nearly 2002 levels at $223.65 million in2006. Textile shipments closed at an unbelievable $219.65 million in 2007 whichis lower than the figures registered in 2002. In short, exports of textiles andits allied products posted flat growth rates in six long years for the dataunder review. Imports of garments, on the other hand, have shown a trend unlikeexports while imports of textile products maintained the same dormant growthnoticeable in exports. Total import figures for the sector reached $1,234.1million in 2007 corresponding to $1,148.35 million in 2002 for a gain of 7.49percent. Imports of garments grew from US $34.56 million (CIF) in 2002 to$34.92 million in 2003. It slightly slipped back to $33.37 million in 2004 torise again to $48.53 million in 2005. The import growth rate was maintained in2006, though albeit marginally in 2007 which closed with figures of $66.44million and $66.85 million respectively. Compared to 2002, imports of apparelsgrew by nearly 93.43 percent in 2007. Shipments of textile products in to Philippines like yarns and fabrics which was US $1113.79 million in 2002, touched $1,167.25million in 2007 to register a gain of just 4.85 percent. Comparative figuresfor 2003, 2004, 2005 and 2006 show $1,018 million, $999.53 million, $1,046.21million, and $1,144.25 million respectively. The textile and garment industryin other countries like China, India, Vietnam and Bangladesh is making rapidstrides and registering double digit growth rates in the last few years.Compared to those countries, the Philippine textile and garment industry hasdisplayed inertia in the last few years.

Turkey:


Textile & garment sector clocks consistent growth rates


The textile and garment industry of Turkey is clocking growth rates far beyond that of a lot of its peers and contemporaries countries across the globe. While on one hand countries like China and a few other countries which had delivered stupendous growth in 2007 are struggling hard to maintain those figures in face of mounting adversities, Turkey has managed to surmount the tribulations and exceed the pace of growth. The textile sector delivered a growth of 11.79 percent in the first seven months of 2008 corresponding to the same period in 2007. The sector is also responsible for contributing singlehandedly nearly 22 percent of all export revenues generated from the industrial sector for the country. Exports from the industry grew from US $13.85 billion in Jan-July 2007 to $15.49 billion in the comparable period of 2008. Ready made garments, the biggest revenue generator and accounting for 63.6 percent of all shipments from the sector closed the first seven months of 2008 with figures of $9.85 billion compared to $9.06 billion in the same period of 2007 thereby, clocking a growth rate of 8.7 percent. Exports of textiles and its allied products like yarns, fabrics etc, posted revenues of $4.27 billion in the first seven months of this year compared to $3.67 billion in the same period in 2007 to record an amazing 16.3 percent growth and garner a share of 27.6 percent of all shipments from the sector. Leather and its products posted export revenues of $731.43 million corresponding to $629.59 million to generate growth rates comparable with that of textiles. Carpet was one sector which also delivered growth rate at an astonishing 29.3 percent. Shipments from the sector in the period under consideration grew to $637.69 million from $493.28 million. Leather and carpets contributed 4.7 and 4.1 percent respectively to the export basket from the industry. At the same time for the month of July08, total figures of exports from the sector rose to $2.30 billion from $2.14 billion in July07 to post a growth of 7.64 percent. Comparable figures of exports of RMG are $1.51 billion and $1.43 billion for a growth of 5.1 percent, textiles $569.79 million and $498.61 million, Leather $129.79 million and $123.70 million and finally carpets grew to $94.82 million from $81.71 million, corresponding to the months of July08 and July07. Textiles, leather and carpets registered growth figures of 14.3, 4.9 and 16.1 percent respectively for the period under preview. The overall industrial exports, encompassing all products, rose from $51.07 billion in the first seven months of the previous year to $70.15 billion of the corresponding period of the current year to witness a growth of a flabbergasting 37.4 percent. Looking at the exponential pace of growth, the textile and garment sector is all set to crown itself in glory and very likely to cross the targets set for the year 2008.


Philippines:


Textile & garment sector posts positive balance of trade


Irrespective of sluggish exports delivered by the textile and garment industry of Philippines, the one silver lining that is brought forth is the consistent positive trade balance the sector has managed to record over the last several years. The sector posted a positive trade balance in 2002 amounting to US $1597.95 and also closed 2007 with a net $1,631.91 million. Exports though have more or less seen a stagnant growth in the last six years. The figures either indicate a dip or growth for each of the six consecutive years from 2002-2007. Cumulative export figures for the industry as a whole touched just $2,866.01 million in 2007 compared to $2,746.31 million in 2002 to register a gain of just 4.36 percent in six years. While garment exports stood at $2,526.23 million (FOB) in 2002, it slipped to $2,416.06 million in 2003 and further dipped to $2,312.93 million in 2004. The trend was reversed in the next two years when exports once again registered growth to reach $2,473.91 million in 2005 and $2,775.57 million in 2006. 2007, once again turned out to be a watershed year for exports of garments, which again witnessed a negative growth compared to 2006, and saw revenues from garment exports slide to $2,646.36 million and shed the gains made in 2006. In the period between 2002 and 2007 garment exports grew by a marginal 4.75 percent and fell by 4.9 percent in contrast to 2006. Textile exports, compromising of yarns, fabrics and other products also did not fare better.

 

Textile & clothing industry logs double digit growth rates

At a time when the textile and garment industry from many countries across the globe are gasping for breath and struggling to maintain targeted growth rates, the textile and garment industry of Spain is on a path of rapid growth and that too in double digits. Exports from the sector have grown by a phenomenal 16.1 percent in the first half of 2008 compared to the same period in 2007. Exports touched US $ 5.967 billion till June 2008 in contrast to $5.138 billion in the corresponding period of 2007. The production of textiles and clothing in Spain had gone down by 2.3 and 3.0 percent respectively in 2007, but has managed to reverse the trend in the current year. Production of the industry went up from $8.332 billion in the first six months of 2007 to $9.310 billion in the same period of 2008 showing a positive growth of 11.7 percent. Imports also took the course taken by exports increasing by 17.4 percent to reach $10.090 billion. The figures corresponding to the same period in 2007 were $8.596 billion. The only negative factor in an otherwise blooming sector was the fall in employment levels within the sector. Compared to 200,600 people employed in the period Jan-June 2007, the numbers fell to 183,100 in the same period of 2008 to record a negative growth of 8.7 percent.


Technical textiles contributes significantly to total output


The technical textiles industry across the globe is making rapid strides. In many industrial countries value added technical textiles account for more than 40% of total manufacturing activity. Spain is one of the countries which would prefer not to be left behind. As of 2007, Spain had 270 companies involved in technical textiles production, out of which 64 units were dedicated exclusively to the manufacturing of the same. The numbers of employees connected with the sector were around 9,200. The companies were able to generate a combined turnover of Euro 2,900 million in 2007 to garner a estimated share of 24 percent from among all textile related manufacturing activities in Spain. The technical textiles sector is involved in most of the branches related to the sector like Agrotech, Buildtech, Geotech, Indutech etc. Share of Agrotech (Agriculture) among the activities related to the T.T industry was 8.52 percent, Buildtech (Building & Construction) 24.97 percent, Geotech (Engineering) 5.87 percent, Medtech (Medical & Hygiene) 12.02 percent, Indutech (Industrial Applications) 6.16 percent and Autotech (Automobile) 13.88 percent. Packtech (Packaging), Protech (Protective clothing) and Sporttech (Sports application) made up for the rest of the share with contributions of 10.09, 13.49 and 9.68 percent respectively. There are around 9 centres of higher learning involved in providing knowledge and education and an equivalent number of associations and clubs connected to promoting the sector. The country also has had the privilege of hosting two conferences related to the sector in Barcelona.


Haiti:


Apparel industry tied up in knots


The apparel sector is important to Haitis economy. It is a small but resilient industry. The industry maintains manufacturing ties with the Dominican Republic and relies on the United States as a key export market for apparel. Haiti offers competitive wages and an ample labor pool. Haiti's product quality, productivity, and pricing are considered to be generally similar to apparel produced in the rest of the region, but its products tend to be more standardized and lower-priced. Established since several decades, Haitis apparel industry has experienced cycles of growth and contraction. The industry consisted of more than 100 firms and over 100,000 employees in the late 1980s. A U.N. trade embargo mandated in 1994 led to a downturn in Haitian apparel production. After the trade embargo was lifted in October 1994, Haiti's apparel sector rebounded. The subsequent abolition of quotas allowed lower cost suppliers such as China, India, and other Asian countries to boost their exports of clothing to the United States, thereby increasing competition for Haiti and other suppliers in the CBERA and CAFTA-DR region.

 

Most midsized plants of 300-400 employees closed, and in 2007, Haitis apparel industry had fewer than 20 firms and only about 15,000 to 18,000 employees. There is only a handful of apparel companies that are doing relatively well most of them based out of the capital Port-au-Prince, such as Multi-tex, the Apaid Group, and Sohacosa, which have been producing garments for U.S. and Canadian apparel companies for several years. Despite the contraction of Haitis apparel sector, the number of workers involved in production increased by 28 percent during 2004-2006 and by 15 percent in January-June 2007 over the same period in 2006. The Haitian garment industry mainly supplies mass-produced commodity knit products with simple stitching work such as t-shirts and sweatshirts, although woven products (e.g., pants, shirts, and suits) account for about 20 percent of total apparel output. Limited capital resources and the high cost of funds in Haiti also constrain apparel production. Interest rates for long-term loans reportedly exceed 30 percent, compared with rates averaging 11 to 12 percent in the rest of the Caribbean and just over 6 percent in Asia. The government of Haiti reportedly is establishing a loan-guarantee fund for Haitian factory owners who have closed their operations but want to reopen their facilities to take advantage of the HHOPE Act. In addition, the lack of managerial expertise in apparel manufacturing in Haiti has also reportedly hampered production efficiency and quality control. Many small Haitian apparel manufacturers are struggling, as buyers increasingly seek full-package programs that require fabric-cutting machines and high-tech equipment to track complex inventories and tasks. Astralis Corporation, a consortium of Haitian companies established in 2006, and the Haitian-owned Apaid Group have begun offering full-package programs. Haitian firms that produce in small volumes usually lack the money, technical know-how, and managerial skills needed for full-package production. This is also difficult to achieve for Haitian producers because they lack the economies of scale and domestic access to the raw materials needed to produce yarns and fabrics in commercial quantities. The yarns and fabrics used in Haitis apparel production, which are imported mainly from the United States, are often priced higher than inputs produced in Asia. In 2007, though exports from China and Hong Kong to Haiti of yarns and fabrics made from manmade staple fibers grew almost nine-fold. Historically, the largest category by far of Haitian textile and apparel imports consisted of knit apparel pieces; however, Haitian imports in this category decreased sharply from $147 million in 2005 to $31 million in 2007. This decline likely reflected an increase in fabric produced and cut in the Dominican Republic which was then shipped to Haiti for further process. Haitis total exports of knit and woven apparel increased 16 percent during 2005-2007, and the United States was the destination for 91 to 94 percent of such exports during this period. The EU, Canada, Mexico, and Australia accounted for the rest of exports. The European Union (EU) surpassed Canada in 2006 and became the second largest destination for Haitian apparel exports after the United States. Exports to the EU, which grew 243 percent during 2005-2007, were comprised largely of knit t-shirts, tank tops, and similar garments; the EU market for such items has been growing steadily. Knit garments like sweatshirts, pullovers, and similar garments were the most significant export items from Haiti to all markets. A few U.S. apparel producers and retailers such as Hanesbrands, Russell, and Target, along with a Canadian apparel producer, Gildan, began importing apparel from Haiti to diversify their sourcing, especially as production costs rose in neighboring Caribbean and Central American countries. Because of Haitis limited water supply and underdeveloped infrastructure, its apparel sector lacks washing and finishing operations. Apparel sewn in Haiti is sent to the Dominican Republic for washing and finishing and then shipped back to Haiti before being exported to the United States in order to benefit from the HHOPE (Haitian Hemispheric Opportunity through Partnership Encouragement) Act. The available electricity is insufficient to run apparel manufacturing operations and further hinders Haitian apparel production. Haitian manufacturers need to invest in generators. The costs to purchase and maintain generators and fuel reportedly reduce their competitiveness in international markets.



 

India:


Cotton exports register mind boggling figures

Cotton production in India is seeing a rising trend. While the production was 136 lakh bales (170 kg) in 2002-03 season, it rose to 241 lakh bales in 2005-06 and jumped to 315 lakh bales in 2007-08, translating in to a phenomenal growth of 131 percent in 5 years. Correspondingly the yield has also increased from 310.55 kgs/hectare in 2002-03 to 427.17 kgs/hectare in 2005-06 and 560.44 kgs/hectare in 2007-08 which means an increase of 80.46 percent again in 5 years. The best performance came on the export-import front. From 16 lakh bales in 2002-03 imports climbed down to just 6.5 lakh bales in 2007-08. Exports galloped from just 84 thousand bales in 2002-03 to 47 lakh bales in 2005-06 and a stupendous 85 lakh bales in 2007-08. This in effect means a growth in exports of a mind boggling ten thousand percent in just 5 years. The consumption pattern is also similar to the growth in yield. From 168.83 lakh bales in 2002-03 it ascended to 219 lakh bales in 2005-06 and an awesome 241 lakh bales in 2007-08. Closing stocks rose from 24 lakh bales in 2002-03 to a comfortable 72 lakh bales in 2004-05 but dipped to 43 lakh bales in 2007-08. The stock to use ratio also witnessed a similar pattern. From 14 percent in 2002-03 it augmented to a perfect 37 percent in 2004-05 and plunged again to a precipitous 18 percent in 2007-08. The alarms raised by the textile industry and industry bodies are not farfetched. Though production and yields have gone up, the exponential growth in exports has led to a shortage of good quality cotton in the market and led to a price increase of as much as 25 percent in the current cotton season. The stock to use ratio is also at a risky 18 percent, which ideally should be around 30 percent.


Mauritius:


A textile industry on hinges of survival

The textile industry has seen a lot of ups and downs in the last few decades, but has managed to be resilient. Presently, the sector is facing a lot of difficulties, some created and others due to changing international economic environment across the globe. Despite producing good quality products, the manufacturers of textiles and apparels have not been able to compete in the international markets due to their high pricing. The sector has not invested in the latest technology and makes do with obsolete machinery which ultimately leads to higher costs. Export of apparels and textiles only to the US in 2005 were US $167 million, dipped to $119 million in 2006 and fell to a further $114 million in 2007. The figures are a pointer to the extremely bad condition of the apparel industry in Mauritius. The depreciation of the Mauritian rupee (MUR) in 2005-2006 led to a favourable environment for the textile industry. It helped in making products price competitive internationally. However, the down turn began when the MUR started appreciating since late 2007, due to massive influx of foreign investment. This led to the Mauritian textile goods becoming less competitive in the international markets. At the same time, rampant inflation and rising fuel costs, among other factors, have contributed in making the environment difficult for the industry. Profits which used to be in the range of 12-15 percent are now reduced to 5-7 percent. Those companies which were surviving on wafer thin margins due to extreme competition are forced to put their shutters down. Despite low margins, industry morale was high, but, constant decrease in orders in last few months due to looming recession in the US and other factors across the globe altered the entire scenario. The first alarm bells started ringing in January 2005 with the advent of multi fibre trade agreement and dismantling of quotas. This led to an exodus of companies, who had invested in the sector to take advantage of quotas and left thousands of workers jobless in their wake.

 

The government has done its bit by coming out no less than 8 different schemes to benefit the ailing sector like the Textile Emergency Support Team (TEST), the Textile Modernization Fund (TMF), National Equity Fund, Working Capital Finance Scheme and finally creation of Enterprise Mauritius to make available an institutional framework for the sector. Veterans from the industry refuse to accept that this is the beginning of the end of the industry. They suggest that the government should actively intervene to control the march of the rupee. At the same time they recommend that companies should explore new international markets for their products instead of relying on only a few regions, on the lines of the Bangladesh garment industry which has successfully explored and created new destinations for their goods in Eastern Europe. They also advocate the adoption of modern technology as that is what will ultimately bring the cost competitiveness desperately needed to stand in the face of onslaught from the Chinese, Indian and Bangladeshi textile and garment industry.


USA:


Imports of textiles & apparels maintain steady growth


The United States is the globes biggest markets for textiles and apparels. Retail apparel purchases across the country touch an estimated $200 billion a year. Imports account for most of the domestic consumption of apparel. Retailers are increasingly sourcing apparel directly from developing countries. Many apparel companies have altogether winded up their production facilities and instead are concentrating on product design and marketing. During 2005-2007, total U.S. imports of textiles and apparel from all sources rose 9 percent, from US $89.2 billion to US $96.4 billion. Apparel imports accounted for 76 percent of total sector imports. China is the biggest exporter of textiles and apparels to the US market. Imports of textiles and apparel from China, the worlds largest textile and apparel producer and supplier of one-third of U.S. textile and apparel imports in 2007 rose 44 percent to $32.3 billion. In 1990 imports from China was only US $3.5 billion and has grown nearly 10 fold since then. As per data, imports from China in 2004 were only US $14.5 billion and have registered an annual growth of nearly 30 percent in the last 3 years. Imports from Mexico stood at second place at US $5.62 billion and closely followed by India with US $5.10 billion. Vietnam has also made rapid strides at fourth place from just US $ 3 million in 1994 to US $4.55 billion in 2007. Indonesia is one more country from where imports grew from $3.08 billion in 2005 to $4.20 billion in 2007. The surge in imports from China is attributed to the elimination of quotas in 2005 and also the countrys existing competitive advantages of abundant labor, low production costs, strong customer service, and the ability to make almost any type of textile product or garment at all quality levels and in large volumes. U.S. textile and apparel imports from Mexico, the second leading U.S. supplier, fell 22 percent during the period to $5.6 billion. This decline can be attributed to rising production costs and the subsequent relocation of some apparel production to Central America and the Caribbean, as well as increased competition from China. Likewise, U.S. imports of apparel from other FTA partners and non-partner suppliers declined during 2005-2007, which is also likely due to increased competition from China and other low-cost Asian suppliers. During the same period, U.S. exports of textiles and apparel fell 4 percent to just under US $16 billion.

 

Canada:


Shipments from China account for 50% of all RMG imports

Total global imports of ready made garments in 2007 amounted to US $6.88 billion of which knit apparels accounted for $3.34 billion and woven apparels $3.53 billion. This helped in registering an overall growth of 11.94 percent with $6.15 billion compared to 2006. Exports from China dominated all other major countries with a lions share of more than 50 percent in global apparel exports to Canada. Shipments from China in 2007 total $3.63 billion compared to $3.02 billion in 2006, a growth of 20.22 percent over 2006. Of this knit apparels touched $1.73 billion and woven apparels $1.90 billion. China was followed by Bangladesh with $441.39 million a growth of only 3.1 percent over 2006. It was followed closely by USA with $395.69 million. USA was one of the few countries which registered a negative growth of 1.24 percent. India followed at fourth pace in the pecking order with exports of $321.72 million compared to $338.9 million in 2006 a degrowth of 5.07 percent. Knit apparel exports netted $174.06 million and woven apparels with $147.65 million made up the rest. Mexico with $283.56 million, Cambodia $184.98 million, Italy $179.03 million, Vietnam $154.8 million, Indonesia $150.44 million, Turkey $105.27 million were the other few of the major apparel exporting countries to Canada. Cambodia recorded the highest growth rate with 44.82 percent followed by Vietnam with 25.42 and China with 20.22 percent. The countries with negative growth rates in 2007 compared to 2006 were USA 1.24 percent, India 5.07 percent, Mexico 4.34 percent, Thailand 6.28 percent and Hong Kong with a stupendous 16.9 percent.



Peru:


Exports of textile & garments maintain steady growth

Apart from being ranked as one of the 15 lowest-cost producer countries in the world, Perus textile industry has a host of other advantages. High quality of raw material availability, duty-free access to US markets, low cost of production, proximity to North American markets and vertical integration have all gone a long way in strengthening the exports of the country. The total textile and garment sector of Peru recorded a growth of 19.9 percent in 2007 when compared to 2006. Total exports out of Peru amounted to US $1,718 million in 2007 in contrast to $1,433 million in 2006. The top ten countries including USA accounted for the lions share of exports amounting to $1,509 million which is 87.83 percent of all textile and garment shipments. Exports to USA topped with $ 825 million in 2007 evaluated against $841 million in 2006, a miniscule negative growth rate of 1.9 percent but accounting for nearly 48 percent of all shipments. Venezuela came second with shipment totaling $403 million compared to $178 million in 2006, a stupendous growth of 126.3 percent. Exports to Colombia, Chile and Italy followed with $52 million, $50 million and $50 million respectively. Growth in exports to Italy reached 44.4 percent over 2006. Ecuador with $35 million, France $27 million, UK $24 million, Spain $23 million and Germany with $21 million made up the rest of the top ten importing countries from Peru. Exports to countries other than the above totaled $209 million dollars compared to $175 million in 2006 a growth of 18.8 percent. Apart from USA, two other countries registered negative import growth rates. Ecuador with 0.5 percent and Spain with 4.8 percent. In keeping with the present scenario, the textile industry of Peru is likely to undergo massive development in due course of time provided the cost of production remains as conducive as during the existing circumstances.

 

Portugal:


Textile industry struggling hard to find its moorings

The Portuguese textile industry which had a peak turnover of Euro 8.33 billion in 2001 saw it drop to Euro 8.145 billion in 2004 and slump to Euro 6.925 billion in 2007. Production of textiles and related products which was Euro 8.15 billion in 2001 also slipped to Euro 6.38 billion in 2007. Corresponding figures of employment within the industry also reveal a similar trend. From a pinnacle of 243,264 in 2002, employment levels slipped to an estimated 187,326 in 2007. The share of textile in overall of baskets of exports from Portugal has also been dipping steadily. From a zenith of 18.7 percent in 2000, it touched 15.0 percent in 2004 and has now plummeted to 11.5 percent in 2007. The only silver lining noticeable, albeit marginal was the growth in textile and garment exports. Exports of the same rose from Euro 4.11 billion in 2006 to Euro 4.30 billion in 2007, an increase of 4.62 percent. Imports also kept pace with exports by registering a growth. Imports in 2006 amounted to Euro 3.085 billion which rose to 3.332 billion in 2007 an amplification of 10.82 percent. Among exports, textile products which include made-ups, sets, accessories, etc. accounted for the lions share among exports with shipments reporting 26.2 percent of all textile exports. Knitted apparels, man-made staple fibres and woven apparels account in that order registered percentages of 16.9, 16.2 and 11.0 respectively of all shipments made from the sector. The biggest share in loss came from knitted apparels which had a share of 40.2 percent in 2006 followed by woven apparels which had stood at 20.0 percent. The highest growth came from other textile products and man-made fibres which had shares of 14.7 percent and 5.9 percent respectively in 2006 among all shipments made from the textile and apparel industry. Within the ambit of imports, cotton came out topper with consignments reaching 46 percent of all textile related imports in 2007 against just 17.8 percent in 2006. The biggest dip in imports was witnessed by woven apparels. From 22.6 percent in 2006, it touched just 7.7 percent in 2007. Inward shipments of knitted apparels also fell to 9.0 percent in 2007 from 21.2 percent. Imports of man-made staple fibre reached 11.6 percent and other textile products with 6.9 percent made up for the major products of import in to Portugal. It can be safely said that the textile and apparel sector of Portugal is struggling hard to maintain the levels of the previous years with the only silver lining being the marginal growth in exports, but is negated by the corresponding growth rates in imports within the industry.


Italy:


Textile machinery manufacturing loosing its sheen

The versatility and flexibility of SME companies within Italy has gone a long way in making the textile machinery manufacturers a force to reckon with in the highly competitive global machinery markets. The involvement of a personal touch in each and every dealing, constant search for new technology solutions and professional skills among a few attributes have contributed to creating an international goodwill in the global textile markets. The major markets for the Italian machinery industry have been the continents of Asia and Europe which together import nearly 80 percent of all machinery output. Among nations, China is the biggest customer followed by other countries like Turkey, India and USA. But in the last few years the Italian textile machinery seems to be loosing its sheen, built carefully and relentlessly over the last few years. The industry seems to be on a downslide since the last few years. From a peak of Euro 2909 million in 2004, the production of plant and machinery slipped to 2547 million in 2005, but managed to regain lost ground in 2006 with figures of 2704 million and again went higher and closed 2007 with 2794 million. In real terms, growth in 2007 over 2006 is a miniscule 3 percent. Exports also followed the trend set by production. At its zenith in 2004, shipments totaled Euro 2211 million, slipped to 2012 million in 2005, rose to 2109 million in 2006 and completed 2007 with export figures of 2151 million, a marginal growth of just 2 percent in 2007 corresponding to 2006. Domestic sales kept pace with the declining numbers registered by production in recording a downslide from its high point in 2004 which had touched Euro 698 million in 2004. 2005 was the worst year as sales slipped by 14.75 percent to reach 535 million.

 

Thereafter the sector regained its composure by regaining some lost ground in 2006 and 2007 with sales of 595 million and 643 million respectively. Imports of textile machinery in retrospective have shown steady growth in the period 2004-07. From Euro 573 million in 2004, it grew to 582 million in 2005, slipped to 576 million in 2006 and jumped to 632 million in 2007 to record a growth of 10 percent over 2006. The inward shipments of machinery in to the country have actually grown by nearly 12 percent when compared with figures of 2004. The main reason for lowering of production and domestic sales could be attributed to the stagnating domestic demand in the last 4 years. Demand has stayed nearly the same in 2007 when compared with to the same period in 2004. Domestic demand which was Euro 1271 million in 2004 fell to 1117 million in 2005, ascended to 1171 million in 2006 and registered 1274 million in 2007. A flat growth compared to 2004, but a growth of 9 percent corresponding to 2006. It must be emphasised that the Italian textile machinery industry would need to put in greater efforts towards product and process innovation. The sector would also need to be flexible and penetrate new markets if at all, to get itself out from the downslide.


Europe:


EU-27 T&C sector records 1.2 % revenue growth

According to data available with the enterprise & industry section of the European Commission total employment levels in the textile and clothing sector within the EU-27 countries totaled 2,474,932 in 2007 resulting in a loss of 6.4 percent employment compared to 2006. The total number of firms registered from the textile industry is 175,830 in 2007 and the combined turnover of all the companies reached Euros 211.3 billion in 2007. The year on year growth in revenues recorded a marginal growth of 1.2 percent corresponding to 2006. The investments made in the industry touched Euros 5.6 billion which translated in to a growth of just 0.9 percent in 2007, when evaluated against figures of 2006.


Indonesia:


Textile industry growing from strength to strength


According to statistics released by the Department of textiles, under the Ministry of Industry and Trade in Indonesia, the textile and garment industry in the country is growing from strength to strength. The sector is witnessing all-round growth whether related to employment, production, investment or exports. The growth varies from a high of 11.23 percent in production by volume to a low of 1 percent in the number of new companies set up in 2007 when compared with 2006. Production in the industry grew from Indonesian rupiah (IDR) 99.15 billion to IDR 102.27 billion in 2007, which represents an increase of 3.09 percent corresponding to the same period in 2006. Exports from the country saw a growth of 3.86 percent by value though it witnessed a miniscule negative growth of 0.35 percent by volume. It grew from US $ 9.44 billion in value to $9.81 billion in 2007. Compared to exports, imports however saw a phenomenal growth. Imports grew by 16.56 percent to reach US $1.99 billion in 2007 in contrast to $1.71 billion in 2006, as a result of which the sector recorded a trade surplus of $8.02 billion in 2007 versus $7.73 billion in 2006. Employment numbers jumped from 1,190,656 to 1,234,250, number of companies from 2,699 to 2,726 in 2006 and 2007 to register a growth of 3.66 percent and 1.00 percent respectively. Irrespective of the all the issues affecting the sector in general, including the recession in USA and a very likely one in the European Union, the textile and garment industry of Indonesia has shown its resilience to withstand adversities in its path. The industry is expected to fare much better in the current year, particularly in shipments to the Japanese markets, since that country has granted a zero percent duty status for imports of textiles goods from Indonesia effective from July 1, 2008.



 

Vietnam:


Inward shipments of yarn fall amid growing cotton imports


Irrespective of all the hardships faced by the Vietnamese textile and garment industry, the sector is progressing by leaps and bounds. The industry is facing problems on several fronts like rising raw material prices, labour strikes, electricity shortages and many more which would have put any other industry under severe strain and stress. But, the industry has managed to over come all the obstacles in its progress, whether on production or on the export front and emerged a clear winner from among the textile hubs across the globe. According to the latest statistics released by the government for the first half of the current year, imports of cotton have jumped by a stupendous 63.52 percent in value and 33.79 percent in volume, yarn has soared by 14.07 percent in value and 1.03 percent by volume, fabric has leaped by 16.74 percent in value and import of other textile products and materials has increased by 15.63 percent. In the first six months of 2008 the sector imported cotton worth US $222.9 million and 147,636 tons by volume. Corresponding figures for yarn are $397.81 million and 205,894 tons. The value of fabric imported was $2.22 billion and that of other textile products and materials amounted to $1.22 billion. Corresponding figures for June 2008 reveal that cotton shipped in to the country amounted to 22,711 tons and $35.98 million in value to post a growth of 4.03 percent in volume and 7.55 percent in value compared to May08. In comparison to June07, it grew by an impressive 27.7 and 61.02 percent in volume and value respectively. Imports of yarn, fabrics and other textile materials in June 2008 on the other hand posted negative growth rates compared to May08 but except of yarn, witnessed positive growth when compared with June07. Shipments of yarn in to the country reached 28,810 tons and amounted to $58.52 million to post a de-growth of 15.24 and 12.99 percent by volume and value respectively in comparison to May08 and again a negative growth of 16.1 percent by volume and 6.09 percent by value in contrast to June07. Imports of fabric on other hand reached $412.0 million to record a fall of 13.36 and 17.62 percent against comparative figures of May08 and June07 respectively. Imports of ancillaries and other textile related products touched $234.20 million in the period under preview to register a loss of 2.26 percent compared to May08 and a gain of 26.78 percent corresponding to June07. High cotton and low yarn imports is a pointer to the fact that the industry has made very good progress in backward integration, along the lines of Bangladesh textile and garment industry which has received massive investments in yarn and fabric processing and in turn has made the RMG sector less dependent on imports of raw materials. This also ensures massive savings of precious foreign exchange for the country.


Honduras:


Garment exports show marginal growth


The Honduran garment industry has been going through rough times in recent years. The exports figures are none too impressive, since growth has more or less stagnated in the last few years. Garment export from the country which was US $2,622.30 million in 2005, dropped to $2,440.20 million in 2006 and rose marginally in 2007 to close the year with $2,510.90 million. In comparison to 2005, negative growth rates were registered in both of the following years. Recently released figures for the first four months of 2008 are also not so notable. Honduras exported goods worth $148.71 million in January, $207.59 million in February, $202.37 million in March and finally $213.50 million in April to sum up a total of $772.17 million. Corresponding figures for the first four months of 2005, 2006 and 2007 amount to $832.30 million, $705 million and $746.50 million respectively. When the figures of 2008 are evaluated against figures of 2005, there is a noticeable negative growth rate of 7.22 percent despite the passage of a good three years. However, in contrast to the first four months of 2007, exports have grown by a marginal 3.44 percent in the same period of 2008. Majority of Honduran garment export is dependent on the US for its existence. Within the nations, signatory to CAFTA, Honduras has emerged as the biggest exporter to the US with a share of 30.48 percent in the first quarter of the current year.