Textile Sector Faces Energy Costs, Inflation, and Recovery at Textilhogar Fair

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The textile sector weathered the COVID era with surprising resilience, driven by rising demand for household textiles and a continuing shift toward hygienic clothing. Yet the conflict in Ukraine intensified pressure by pushing up energy costs and raw material prices, while inflation began to bite. Companies are already feeling the squeeze from weaker consumer demand, and some are weighing measures such as Employment Regulation Files. All of this follows Textilhogar’s return to Feria Valencia, after five events in Madrid and a two-year pause caused by the pandemic. The fully booked fair has become a practical gauge for assessing how deep the next downturn might be.

Energy costs have weighed on the most energy-intensive segments of the industry and left a visible footprint in the Alicante districts of l’Alcoià and El Comtat, as well as parts of Vall d’Albaida in Valencia. Around a thousand firms employ roughly 8,500 workers in these regions. The paints and finishes sub-sector, a key pillar of the value chain, bears a particular burden since energy now accounts for roughly half of its costs. This energy intensity underscores the broader challenge facing suppliers across materials, processes, and products that rely heavily on power, from dye houses to finishing operations.

Inflation is eroding household purchasing power as families tighten belts amid warnings of a sharp slowdown. While precise figures remain scarce, indicators point toward a potential dip in textile activity and a softer export outlook as costs climb and consumer confidence wavers. In this climate, many firms are reassessing orders, inventories, and production schedules to align with a more cautious demand environment.

Pepe Serna, president of Ateval, the Textile Entrepreneurs Association of the Valencia Community, warned of a horizon filled with uncertainties amid weakening consumption. He noted that textiles often bear the first blows when demand falters. Some firms are considering ERE filings, while the Spanish Intertextile Council has pressed for direct government aid and tax relief as energy bills rise. These pressures echo across the industry, shaping strategic moves and investment planning for the near term.

León Grau, head of the Technological Textile Institute and director at Hilaturas Miel, echoed the sentiment of a market where profit margins are narrowing for many players. Jorge Sanjuan, CEO of Comersan, highlighted how difficult it is to pass higher costs on to customers, a challenge that many supply chain participants are grappling with today. The consensus is that margins are being squeezed as input prices trend higher and demand remains uneven across regions and markets.

Against this backdrop, the Home Textiles Premium by Textilhogar fair, scheduled for September 20 to 23, offers a timely snapshot of the sector’s health. Valencia will host the event on the same floor as Hábitat and Espacio Cocina, turning it into a focal point for professionals in the decoration industry. Early indicators are promising: the fair occupies all 3,000 square meters and has attracted 82 exhibitors representing 237 brands. Buyers from 44 countries are expected, supported by coordinated efforts from Ateval, Ivace Internacional, and ICEX. These collaborations underline ongoing efforts to sustain international demand in a challenging year.

Máximo Solaz, chief executive of Textilhogar, commented that Valencia is the right setting for a joint showcase with habitat-focused events, creating a strong platform for exhibitors to connect with buyers face to face after a long pause. The overall mood among participants remains optimistic about the fair’s potential to generate tangible business outcomes. Serna emphasized that organizational efforts are crucial to attracting a large number of international visitors, while noting that the final impact will depend on whether those visitors translate into purchases or new business ties by the fair’s close. The prevailing caveat remains the ongoing uncertainty about what the near future holds for the industry.

Despite delays in some markets, the Textilhogar fair has reached a milestone by nearing its 50th anniversary. The event did not take place during the pandemic, pushing the celebration two years into the future. It first emerged in 1970, conceived by a coalition of companies mainly from l’Alcoià, El Comtat, and Vall d’Albaida to promote regional textile products. After a hiatus during the Madrid tour, the fair returns to its Valencia roots on its golden jubilee, continuing a long tradition of supporting regional manufacturers and facilitating market access. It remains a touchstone for gauging regional vitality, the health of exports, and the momentum of the broader European textile ecosystem. The story is one of adaptation under pressure—of firms recalibrating their operations, regions coordinating international outreach, and a community of buyers and sellers reuniting to drive commerce in a challenging but hopeful landscape.

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