The textile industry marches toward 65 billion euros

The textile and clothing industry is expected to end the year with cautious growth and consolidation, with a challenging 2024 ahead. The industry is being impacted by the inflationary crisis, volatile economic environment, and decreased consumer purchasing power. According to a recent report from the Confindustria moda study center for Smi-Sistema moda Italia, the sector is projected to achieve sales of 64.4 billion euros for the year, a 3% increase from the previous year. This is a slight decrease from the previous estimate of approximately one percentage point and a slowdown from the +17.8% in 2022 over 2021. The pull came from exports, which totaled 26.6 billion between January and August, accelerating by 3.2% with two primary destinations: France, ranking first with a weight of 11.7% and up 12%, and Germany, with a share of 10.3% and up 4.6%. The US is in third position, experiencing a 4.6% decrease.

«The figures indicate a post-Covid-19 recovery that extends beyond the current period. The textile-clothing-fashion sector has a total perimeter of 112 billion in 2023, with 41,380 companies and over 370,000 employees, demonstrating its immense importance for the Italian manufacturing system and strong global presence (70%). Although growth is a positive indicator, we must not overlook the significance of production volumes, as our analysis of the challenging and intricate 2024 landscape demonstrates. This year is characterized by high uncertainty and is expected to mirror the second half of 2023», Sergio Tamborini, president of Smi, explained during the results presentation at the headquarters in Milan. According to the latest economic survey conducted between October and November, the fourth quarter is expected to experience a slowdown. Of the surveyed companies, 34% anticipate a decline, while only 17% anticipate improvement. In contrast, 49% of the panel predicts that market conditions will remain stable compared to the period between July and September. «In addition, the polarization of consumption is becoming an issue, with extra luxury on the one hand running all over the world and craftsmanship on the other needing a larger industrial size. In general if there is an industry, it has to run with significant volumes and if they shrink it will be a problem. The supply chain needs balance».

Indeed, one of Smi’s top priorities for the 2023-25 plan is securing a reliable supply of raw materials. The federation highlighted the silk industry as a prime example, which heavily relies on China, the leading country for textile-clothing imports with a 16.5% share. «The goal is to restart the supply chains of Italian districts, beginning with raw materials, to mitigate the risk of Made in Italy. Failure to do so could require additional Government intervention». The federation will prioritize tax credits and the Epr-Extended producer responsibility decree in the new term, aiming to reduce the risk for companies and promote producer responsibility for garments at the end of their life.

«Italy was scheduled to enact the decree in 2022, but was unable to make a decision due to political reasons. We proactively established the Retex.Green consortium for textile waste management, investing 2 million euros in two years, and considered the potential for an alternative supply chain. Sadly, politics failed to act on its responsibility to lead society. It is vital that producers receive the necessary education. We have a number of appointments scheduled in the upcoming weeks, and we will persist in advocating for a decision», the president added.

«We will prioritize innovation with our entrepreneurs to keep up with the progress of artificial intelligence, avoiding clinging to traditional production methods. Additionally, we will concentrate on product R&D, implementing digitalization techniques to enhance product traceability, sustainability, and welfare». 2023 concludes Tamborini’s first two-year term as Smi’s president, with one more term remaining. «We are renewing the textile contract and working with the trade union to develop a new system. Our goal is to use the contract to prevent young people from not choosing factories. We aim to bring individuals back to the industry and restore continuity in the supply chain and dignity to manual labor. Textiles must revamp its image to attract new generations», he concluded.

The third edition of the Vsfs-Venice sustainable fashion forum, an international summit dedicated to promoting the sustainable transition of the fashion industry and including participation from new industries, will take place on October 24th and 25th, 2024. The event is promoted by Smi and focuses on sustainability. (All rights reserved)