Exports decline weighs on Alicante’s economy and its main product: aluminum
Alicante’s export activity has been under pressure as demand shrinks in major markets in Europe and the United States. The region remains heavily reliant on a few key sectors, with shoes as a primary export product and aluminum among the stalwarts of industrial output. The drop in consumption across these markets is being felt in the province’s export numbers and in the broader economic outlook.
Last September, shipments from Alicante to international destinations fell for the third month in a row, decreasing more than in August. Exports dropped 9.7 percent to 543.1 million euros, bringing the year-to-date total to 5 billion 319 million euros, only 0.57% higher than the same period in 2022. The rate of expansion in early 2023 has given way to a noticeable slowing, reflecting weaker momentum carried over from the previous year.
The slide in export activity is especially worrisome because it directly affects the provincial economy. Shoe sales abroad fell by 20.7 percent, reaching 88.7 million euros in September and marking a 4.2% decline for the year to date. In total, exports reached 970 million euros, compared with 1,014 million euros in the same period of 2022, underscoring the pressure on a sector that has long been a pillar for the region.
Marian Cano, president of the Valencian Shoe Entrepreneurs Association (Avecal), acknowledged sector concerns and called out the ripple effects of lower demand. He pointed to inflation and rate hikes across Europe and the United States as drivers of reduced consumer spending. After a weak spring and summer, many firms are operating with a cautious outlook, and a winter slowdown is evident in the shipment figures.
In this uncertain environment, business leaders do not expect a surge in new orders, and further declines are anticipated in the months ahead. Employment regulation filings are not being dismissed, particularly after actions by the Labor Inspectorate, which could force rehires of laid-off permanent staff to maintain contractual stability. Factories may have little room to maneuver without resorting to layoffs.
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Some firms are negotiating the temporary reinstatement of workers as permanent employees, a step included in the industry agreement, but many employers fear that the Labor Authority will not facilitate this transition. The evolving regulatory climate adds pressure to a sector already dealing with demand weakness.
Aluminum
The same passenger in demand affects other industries such as toys, which show an 8% drop in September to 19 million units, with nine months of the year recording a 10.8% decline in value. Furniture sales and the closely linked aluminum sector report a stark drop in foreign turnover, with orders down sharply as factories across the continent slow their activity. The fall in aluminum prices compounds the impact on downstream industries.
On a more positive note, agriculture shows resilience in certain segments. Exporting fresh fruit remains steady at 46.5 million, a 0.6% increase, suggesting a solid start to the lemon campaign. José Vicente Andreu, president of Asaja Alicante, highlights that vegetables reached 21.5 million with a 6.3% rise, noting that these figures reflect sales by regional exporters rather than domestic production. However, agri-food processing registered a sharper decline, with a 21.6% fall in the month, and olive shipments dropped due to a reduced harvest. Climate factors are cited as a contributing influence by industry leaders.
Meanwhile, machinery manufacturers report a brighter note, with exports rising 11% to 18.1 million. Electrical materials, including batteries, surged by 40.7 percent, totaling 20.7 million in external markets, signaling pockets of strength within the broader export landscape.
Just one hundred companies concentrate more than half of Alicante’s exports
destinations
Across markets, destination dynamics show a general downtrend for Alicante’s exporters. European partners posted a significant drop, with Germany leading declines and France, the United Kingdom, the Netherlands, and Italy all posting lower sales. Outside the European Union, the United States also contracted, with exports slipping 19.5% from 40.9 million to 32.9 million in September year over year, highlighting the breadth of the challenge facing Alicante’s trade network.
Overall, the regional export picture remains fragile, with a handful of sectors and a slimmed-down set of destinations sustaining activity while many others pull back. The data point to a need for strategic adjustments to navigate volatile demand, currency dynamics, and regulatory pressures as the province seeks to diversify its industrial base and stabilize employment in the near term.
Attribution: Data compiled from regional trade reports and industry associations. Summary reflects sector-specific movements and the broader macroeconomic context affecting Alicante’s exports.