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Profile of the Textile and Clothing Industry in Portugal
Textiles Intelligence, Sep 2003, Pages: 26
Textiles and clothing represent Portugal’s largest industrial sector. In 2001 the industry accounted for 19.4% of total exports and employed 225,869 people, providing some 24.8% of total manufacturing employment in the country. Small enterprises dominate. Of the 13,069 firms in the industry in 2001, some 70.3% employed fewer than ten people.
Membership of the EU has enabled the Portuguese textile and clothing industry to develop its trade with the rest of Europe. In 2001 EU member states took 83.4% of Portuguese exports and supplied 78.8% of the country’s imports. In terms of turnover, Portugal is the seventh largest textile producer in the EU and the sixth biggest producer of clothing.
By late 2002, however, the Portuguese textile and clothing industry was experiencing difficulties. A number of firms went bankrupt while others relocated their operations in an attempt to reduce costs, resulting in a large number of redundancies.
In the past, the Portuguese textile and clothing industry was able to compete on the basis of low wage levels. But new shifts in global production have resulted in the relocation of production to Portugal’s low cost neighbours in East European and Mediterranean countries, with a consequent loss of jobs.
To survive, Portugal’s producers need to adapt to these new conditions by moving away from their present model of low cost operations and embracing the challenges posed by innovation, creativity and marketing.
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