Different economic sectors of the state of Alicante live on a roller coaster Since the outbreak of the covid pandemic at the beginning of 2020. Since then, companies have made an extraordinary recovery, although they have always faced serious hurdles such as rising raw material prices, logistical problems or ups and downs in restrictions. . However, since the outbreak of war in Ukraine, the picture has gotten much worse and worse than the recovery trend, such that after the holiday period, The most complex autumn in memory looms on the horizon. While the energy crisis and run-of-control inflation spread fears that sales will fall between industry and commerce, tourism, confident in having a profession very similar to its pre-pandemic profession, admits to a near-collapse in cost-effectiveness. Construction is also skeptical of skyrocketing costs and increasingly expensive mortgages.
European authorities have been warning about this for some time. The fall, which is about to begin, presents itself with grim prophecies, given more-than-predictable cuts to gas supplies from Russia and Russia. inflation that threatens to have direct consequences on consumption. And in the context of this uncertainty, the economic sectors of the province are acting with nowhere to hold on to look optimistically towards the future.
The sector, which has seen the worst, is overwhelmed by energy costs and problems in supply chains. An example of this is footwear, Alicante’s main export sector. It does not rule out the possibility of a recession breaking out in the Spanish economy at the end of the year.. Although Marián Cano, president of the Valencian Footwear Entrepreneurs Association (Avecal), has managed to recover sales levels abroad from the pre-pandemic period, “We cannot trust ourselves, because we will still have to wait for a long time before the threats we are facing will disappear.
Expressing himself in similar terms, Luis Rodríguez, president of the Alicante State (Fempa) Metal Entrepreneurs Federation, warned of the recent decline in four-tenths of the IPC «not much optimism» and is convinced that this last period of the year will bring a decline in sales. “Markets – he points out – will become cautious and companies are very likely to delay some investment decisions during this four-month period”.
On the other hand, what Pepe Serna, president of the Valencia Community Textile Entrepreneurs Association (Ateval), fears most is instability, as inflation will result in a loss of purchasing power, which in turn affects sales. “So far,” he says. we weathered the storm thanks to good performance of home textile and sanitary apparel. But if people don’t have money to buy, the first thing they’ll give up is non-essential products like ours.”
The toy, meanwhile, is fighting for almost all the consequences this last time of the year, which coincides with the Christmas campaign. Therefore, there is a great expectation among the companies in the province about what might happen. José Antonio Pastor, managing director of the Spanish Association of Toy Manufacturers, warns that uncertainty is already affecting exports and that it will be necessary to see the evolution of events in a threat scenario. High costs, inflation and events in China’s supply chains.
Marble, overwhelmed by its own sectoral crisis, has not yet seen the light at the end of the tunnel. Alicante president David Beltrá points out that the competition between marbles of other colors and new materials is joined by the energy crisis that “does not allow us to breathe”.
Plastics is another important industry in the province and is mostly concentrated in Foia de Castalla. Héctor Torrente, director of the IBIAE employers association in this region, states: The blow to this sector has not yet come., but everything points to a slowdown. He also stresses that projects that could benefit companies, such as the Sagunt gigafactory or Ford’s electric vehicles, “won’t have an immediate impact.”
To change the third, commerce is another activity that does not see it clearly at all. The head of state federation Facpyme, Carlos Baño, is clear that September will be particularly difficult. end of vacation combined with back to school, and an inflation that leaves little margin for consumption». The industry representative is confident that business activity will increase for the New Year’s campaign, but leads to a more complex start to the year.
Construction, on the other hand, has experienced an exceptional period last year and now, as all the pent-up housing demand built up during the hardest moments of the pandemic has been released. with everything, there is a perception that this dynamic is coming to an end. Jesualdo Ros, secretary of the Real Estate Developers Association of the State of Alicante (Provia), points out that “the increase in mortgage prices will affect, if not much, perhaps because of the type of clientele we have. very dependent on credit. We are more concerned about the disproportionate cost of raw materials.”
Tourism is also coming from a summer 2019 where it managed to regain its occupancy figures, something it now hopes to continue with the arrival of the fall-winter season. This is expressed by Nuria Montes, general secretary of the Hosbec employers’ association, and said, “Along with Malaga, we are the only ones left open on the Peninsula at the moment, so the estimates are good.” He adds that the problem will come from the hand of profitability.as a result of rapidly rising costs.
The restaurant industry does not see this clearly either. “June and July went very well, but there were already fewer customers in August,” said Mar Varela, president of the Provincial Hospitality Entrepreneurs Association (Apeha).
Agriculture demands measures to get fair prices
Agriculture in the province of Alicante is plunged into the worst campaign in memory, with losses of close to 200m euros. Factors such as meteorological negativities caused by climate change, increase in energy costs as well as fertilizer and phytosanitary products and competition from third countries mean that almost all products are affected more or less.
But what worries the industry most is the low prices that farmers receive for their work, sometimes even below the cost of production. Both José Vicente Andreu, president of Asaja Alicante, and Carles Peris, general secretary of La Unió, agree on the need to enact food chain law so that producers can earn a fair income that avoids losing money. At the same time, they demand greater control of fruit entering the EU so that it can compete on an equal footing with local produce.