ERTEs proliferate in textiles and threaten recovery
After enduring the toughest stretch of the pandemic, the textile sector in Europe managed to rebound to pre crisis levels by last year. A pivot to making masks and other hygienic apparel for hospitals and the public helped restore turnover, but rising energy costs now weigh heavily on many firms. Industry surveys show real strain: about one in five companies paused production at times, and roughly 15% used temporary employment arrangements to stay flexible. As costs climbed, many businesses passed higher prices along to customers, yet nearly half reported tighter finances. The overall outlook remains fragile, with energy price pressures showing no quick fix, especially in the face of the ongoing conflict in Europe.
The Valencian Community textile sector, concentrated in the Alicante districts of l’Alcoià and El Comtat and the Vall d’Albaida area, reported revenue around 2,010 million euros last year, echoing the level seen before the pandemic in 2019. Flexibility has helped the industry adapt, shifting toward sanitary garments and expanding home textiles as households renovated during lockdowns. The sense was that the downturn had ended and growth was back on track, though only temporarily.
But the onset of war interrupted momentum. Soaring energy costs rose again, underscoring the need to gauge their real impact on operations. A survey of textile employers yielded stark results: a large majority reported adverse effects from the energy burden, with costs rising sharply over the past year. Electricity and gas together account for a meaningful portion of operating expenses, while labor costs remain a major share of total outlays.
About twenty percent of firms paused production lines, sacrificing a quarter of their capacity on average. Fifteen percent resorted to ERTEs to manage the increases, and the impact on employment varied widely. The report shows that only a small slice of companies fully absorb energy costs, while many pass on some portion to customers, and a notable minority pass the burden on entirely. Those absorbing costs tend to cover roughly a third of their energy expenses themselves.
In parallel, treasury pressures are evident for many firms, and external financing has become a common tool to meet obligations. Roughly half of the respondents reported a direct hit to their order books. Taken together, these figures outline a sector navigating a difficult period where energy costs intersect with inflation and shifting demand.
ERTEs proliferate in textiles and threaten recovery
Pepe Serna, president of the Valencia Community Textile Entrepreneurs Association, notes that the most affected players are in Europe, especially in sub sectors with high energy use. He describes a challenging environment marked by persistent inflation and warns that demand for nonessential products could decline.
Jorge Sanjuan, director at Comersan, laments the twin pressures of higher energy costs and rising transport and raw material prices. Francisco Jover, leader of a related group, has long pursued photovoltaic self consumption to blunt energy volatility but warns that gas price spikes remain a serious threat to any firm.
Visatex, Interfabrics and Hilaturas Ferre earned recognition for their contributions to the regional textile sector. These honors celebrate firms that strengthen the local industry through solid performance, international reach, and sustainable practices. Visatex, based in Muro, was celebrated for international expansion after building ties with many countries and planning a U.S. subsidiary. Interfabrics, headquartered in Muro, received a Responsible Company Award for aligning sustainability goals with programs across processes, products, and people. Hilaturas Ferre from Banyeres was honored for ethical conduct, waste management, emissions reduction, and worker safety. Second prizes went to Punt Nou, Babidu and Vialman from Vall d’Albaida. The piece also highlights the career of Jose Ramon Revert, a notable figure in Home Textiles from Spain.