A flexible and inexpensive labour force besides carrying a streak of innovation to avoid damaging the environment has put Portugal’s textile industry back on track in the recent past.
Industry experts are terming it a dramatic comeback, as the sector had lost nearly 100,000 jobs between the years 2000 and 2015. The Portuguese Textile Association (ATP) recorded it at 235,000 at the start of the era.
Portuguese textile rebuilt from ashes when it started rehiring against a minimum salary of 705 euros ($696) per month paid over 14 months, one of the lowest wages in the European Union, after those in Eastern Europe.
Accordingly, the industry sales registered a growth of 16.4 percent last year, recording a sales figure of 5.4 billion euros, said ATP. ATP President Mario Jorge Machado said, “The success could be attributed to low production costs and the sector’s capacity to adapt to the market.” He said the Textile and Clothing Association of Portugal is an employers’ association that consists of 500 companies from the entire Portuguese textile and clothing sector.
It may be noted that the Portuguese textile has been in tattering over the last 20 years, losing its competitive edge against Asia, Portugal’s textile industry has found its footing again and become a major player, supplying firms not just in Europe but also in the United States.
However, the recent sharp gas and electricity price increases caused by the war in Ukraine have added to the woes of the industry, which is heavily dependent on energy. Despite several billion euros in Portuguese government aid pledged for textile firms, industry executives are calling for a coordinated European plan to avert distortions in competition.
Director General Euratex Dirk Vantyghem said, “That would avoid creating competition among European countries.”
