While the industry remains uncertain, details of the government aid announced in December for gas-intensive sectors are still unclear. Production is slipping again, marking eleven consecutive months of decline. Industrial production data released yesterday by the Institut Valencià d’Estadística reinforces the idea that Castellón’s economic engine needs support. February figures show a 30.8% drop compared with the same month a year earlier.
The first two months of 2023 combined show a 28.5% decrease, nearly doubling the 15% drop seen for the whole of 2023. Ascer, the employers association that unites ceramic manufacturers, says these figures confirm ongoing production pressure. Still, some signs suggest activity might be bottoming out and that a stabilization could begin in the coming months. Ascer notes that production levels remain below normal, yet if the index is viewed in absolute terms, February shows some recovery.
The absolute index peaked at 150 in September 2021, just before the energy crisis began. It stood at 76.2 in mid-January, and by February it had rebounded to 91.2.
The coming months will determine whether a more positive pattern emerges. Uncertainty persists, with energy costs and inflation affecting consumer and corporate purchasing power in Spain and in the markets it serves.
Fairs
Another factor that could spur tile production is the balance of promotional activities in recent weeks. Cevisama finished with positive impressions from participants, alongside other sector events. Some forecasts are still being refined. Soon, the Coverings fair in the United States will bring together more than 70 companies, highlighting the United States as a major buyer of Spanish ceramics.
Labor dynamics add to the scenario. Unemployment in the sector continues to rise in March, yet the number of workers on short-term layoff schemes decreased by 22%.
Ascer reiterates support for the Port of Valencia
Recently, changes occurred at the Port Authority of Castellón with the replacement of Rafa Simó by Enrique Vidal, and shifts at the presidency of the Port of Valencia, a key hub for the ceramic industry. Ascer notes that 75% of total exports depart by sea, and the port handles the majority of traffic, with 85.7% of exports by ship. The port is not only vital for ceramics but also essential for Valencia’s broader port activity, accounting for 32.1% of exported cargo weight.
With Joan Calabuig taking over the port authority, Ascer maintains its call for infrastructure improvements that boost competitiveness for Spanish tile manufacturing. The proposed expansions and northern access to the Port of Valencia are seen as crucial, along with ongoing investments that remain uncertain due to discussions, yet are necessary for the ceramic sector and the wider regional economy. Valencia’s ceramics sector seeks to be more competitive, more sustainable, and to create more jobs.
Vicente Nomdedeu, president of Ascer, underscores the adept management of Valenciaport’s current leadership in boosting the industry’s competitiveness in foreign markets and signals a cooperative stance with the incoming president, Joan Calabuig, as part of ongoing strategic discussions.
Business leaders press for a meeting with the new minister
The sector faces many front-end challenges, making a strict 100-day deadline impractical. There is a strong desire to meet with the new Minister of Industry, Héctor Gómez, to outline company realities and accelerate needed measures. This could bolster progress on the ground.
Ascer states that a formal letter has been sent and awaits a response from the ministry’s new head. Concurrently, the regional government leader Ximo Puig has also expressed an intent to meet with Gómez’s team.
The urgent issue is the resolution of the 450 million euro direct aid mechanism, with concerns raised about obstacles in delivering the economic injection.