Everything seemed fine after the worst moment of the pandemic. In fact, the textile industry managed to return to 2019 figures at the end of last year, after a transformation effort to supply masks and other hygienic clothing to both hospitals and the general population, among other things. But the sharp rise in energy costs has become a burden for companies. This comes as a result of research done by employers that showed that 20% of companies were at some point forced to paralyze their production lines and 15% were forced to file their Temporary Employment Arrangement Files (ERTE). Also, nearly half of firms found their treasury to be stressed, in a context most of which had to pass on these increases to prices. The situation therefore appears more than complex, especially considering that no short-term solution to the war in Ukraine, one of the main factors driving up electricity and gas prices, is in sight.
The textiles of the Valencian Community are mainly concentrated in the cluster formed by the Alicante regions of l’Alcoià and El Comtat, as well as the Valencia region Vall d’Albaida, managed to bill 2,010 million euros last year, a figure very similar to the one used in 2019 before the coronavirus outbreak. The adaptability of the industry has contributed to this as it knows how to act quickly to produce sanitary garments and the good performance of fabrics for the home at a time when citizens are taking advantage of closure to renovate their homes. Therefore, everything showed that the recession was over and the sector was on the path of growth again.
But the outbreak of war put an end to this progress because beyond the uncertainty that gripped all markets, the already skyrocketing energy costs gained new momentum. In this sense, and to know the real impact on companies, textile employers conducted a survey with devastating results. Therefore, 98.1% of firms say their operations are affected on the basis of what they have to endure. some 180% increase in average over the last twelve months. In fact, electricity and gas account for 15% of operating costs, respectively, while approaching 33% of personnel costs.
20% had to stop a production line, which means giving up an average of 24% of their production capacity. Similarly, 15% of companies have resorted to ERTEs to cope with these increases, and there is very significant variability in the number of workers affected. He also underlines that only 13% of companies fully bear their energy costs. 70% of the rest was transferred to their prices partially and 17% completely. Those who preferred to be biased did so at the rate of 38%.
The study also states that: 43 percent of companies experienced treasury tension and 32% applied for external financing to meet their obligations. Likewise, 46% had a direct impact on their order portfolio.
Pepe Serna, President of the Valencia Community (Ateval) Textile Entrepreneurs Association, draws attention to the fact that the companies that suffer the most from the results of the increase in electricity and gas prices are those in Europe. finishing sub-sectorto be intense in energy use. “We are also in a very complex context, with the sharp rise in inflation. Our products are not essential, so we may find ourselves with a fall in consumption,” he warns.
Jorge Sanjuan, director of Comersan, regrets that the rise in energy costs, as well as transport and raw materials, has become a burden for companies as they begin to see the light at the end of the tunnel. . Francisco Jover, director of the group of the same name, is a longtime chose photovoltaic self-consumption to deal with this problem. But he stresses that gas also goes through the roof, affecting “any company”.
Visatex, Interfabrics and Hilaturas Ferre win their first Ateval awards
Three companies from the counties of Alicante, l’Alcoià and El Comtat, Visatex, Interfabrics and Hilaturas Ferrewon the first prizes of the Valencia Community Textile Entrepreneurs Association (Ateval), which aims to recognize the contributions of distinguished companies to the development and progress of the sector.
Muro-based Textiles Visatex Internationalization AwardDue to its continued commitment to foreign trade by investing a significant amount of personal and economic resources that has allowed it to establish business contacts with up to 77 countries and promote ambitious projects such as establishing a subsidiary in the United States.
this Responsible Company Award The headquarters of Aquaclean Group was transferred to Interfabrics in Muro. In this case, it took into account the success of the UN 2030 Agenda in implementing most of the Sustainable Development Goals (SDGs) through a sustainability strategy based on processes, products and personnel.
Hilaturas Ferre from Banyeres received the same award for his contribution to the Sustainable Development Goals in terms of ethical and responsible professional behavior, waste management, emission reduction and customer and worker safety. Second prizes in both categories went to Punt Nou, Babidu and Vialman from Vall d’Albaida. They also wanted to get to know the career of businessman José Ramón Revert.Current head of Home Textiles from Spain.