According to data, due to the Covid-19 outbreak, the European textile and garment manufacturing industry is expected to see sales and production drop by more than 50% this year, with most companies having laid off employees and facing Financial difficulties.
According to Eurostat data, although the sales and exports of the textile and garment industry performed well in 2019, due to the EU economic recession, trade frictions, and Brexit , the manufacturing industry needs to face uncertain tariff pressure, and the European textile and garment industry will have a difficult 2019.
The European Clothing and Textile Industry Association (Euratex) stated that the data for the textile and garment industry are consistent with the overall situation. Employment fell by more than 2%, and turnover registered negative growth for the first time since 2012-2013. Compared with 2018, textiles fell by 2% and clothing by 1.3%.
However, an ongoing questionnaire survey among Euratex members shows that in March 2020 due to Covid-19, the confidence index of the textile and clothing industry has “sharply Decline” and assess the impact that the situation is only getting worse.
Preliminary results of the questionnaire show that more than half of the companies expect sales and production to drop by more than 50%. In addition, 90% of companies face serious financial constraints, 80% of companies will temporarily lay off employees, and 25% of companies are considering suspending operations.
Euratex said that there are still some retailers and traders whose sales are growing.
The retail sales growth rate of textiles, clothing, footwear and leather products in specialty stores maintained a positive growth of 0.9% in 2019. In addition, the trade volume of the 27 EU countries has exceeded 170 billion euros (about 186 billion US dollars), an increase of 4% over the previous year, and the export speed is higher than the import speed.
Euratex is worried about the Covid-19 crisis and is feeling pressured by the operation of the domestic market. EU countries have sharply tightened border controls, causing supply delays and order cancellations, exacerbating the economic impact.
The report shows that many textile and garment companies are “under the strong global pressure brought by the epidemic, with limited ability to absorb and resolve the crisis” and need to take immediate relief measures. .
Euratex has asked the European Commission to pre-set a financial relief package to ensure a consistent approach across EU member states and to avoid restrictions on the free movement of goods and labour.
EU Director General Dirk Vantyghem said: The EU and its member states must make every effort to save our industry. At the same time, this crisis provides us with the opportunity to develop a new blueprint. The European Commission will propose a new industrial strategy that allows us to rethink existing business models. ”
