Home / Knowledge / News / Textiles / Textile & clothing sector wobbles due to meltdown
Textile & clothing sector wobbles due to meltdown
01
Dec '08
Republic of Macedonia
Republic of Macedonia
The textile industry plays a significant role in the economy of the Republic of Macedonia. It is an inevitable fact that the textile industry is the most widespread branch of the Macedonian economy. The textile industry in Macedonia has a long tradition and is located all over the country. While every large municipality has a company connected with the garment industry, there are 11 major regions or areas in the country.

The textile industry employed 39,134 employees in 2006, predominantly women, which represents a significant 35.53 percent of the total number of employees in the industry with the garment industry alone accounting for as much as 31.1 percent of all jobs in the country and there were 267 textile manufacturing enterprises and 1,168 garment units. According to data available for 2006, the sector accounted for 26.4 percent of the total exports and 8.8 % of the total employed workforce along with a share of more than 2.8 percent of GDP in the country.

But with the advent of the post quota era from January 2005 and emergence of countries like China, Bangladesh, Vietnam, India and many other cost competitive Asian countries in the global textile and garment arena, the industry like its other European counterparts started floundering. The first to be affected were the small and medium size manufacturing units.

Now it is the economic meltdown and the resultant recessionary trends which is bringing the industry to its knees. According to reports emanating from the industry, many Macedonian textile and garment units are on the verge of closure, or are down sizing their operations, thereby putting employment of over 20,000 employees in jeopardy. Around 1,500 people are thought to have lost their jobs in the town of Stip, which is considered the nerve centre of the industry in the country.

The small units run the risk of being completely wiped out in the new unfolding global scenario. According to reports even the big textile units are holding orders in hand for only the next few months and no new orders are coming their way which raising fears of over 300 registered units shutting operations over the next few months. This is raising fears of mass scale unemployment as the sector accounts as mentioned above, for a large chunk of the working population.

The government on its part is trying to help the sector in its own way but they may not be adequate. The package which was unveiled last week lists ten preventive measures aimed to get Macedonian firms back into shape. The plan projects writing off or restructuring debts and accumulated interest of companies which arose due to unpaid pension insurances, value-added tax, personal and income tax and health insurance contributions.

In addition, the government has also proposed cuts in taxes on profits and custom duties. The government had earlier announced that it will tackle the worldwide crisis by increasing budget investment in capital projects for 2009, meant particularly for those companies who have lost their export markets.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search