Bulgaria - textile & apparel industry

In 2006 Bulgaria registered growth of 6.1 per cent against 3per cent in the EU-27. Major drivers of national growth include a thriving private sector and growth in investments.

Accelerated investment activity contributed to a dynamicindustry sector which registered growth of 8.3 per cent in 2006 and isgenerating over 31 per cent of the value added in the economy. Manufacturingexcels among industry sectors with real growth in value added of 19 per cent inthe fourth quarter of 2006 against the same period of 2005, growth inconstruction stabilizes at levels about 10 per cent, whereas the other twoindustry sectors register decline (27.5 per cent in generation of electricityand thermal energy and 17.7 per cent in mining and quarrying).

GDP per capita registers positive development, going up from25.6 to 35 per cent of the EU average in the period 1997-2005. On the otherhand, analyzed as a labor productivity measure, the indicator stands at EUlowest levels.

Industry in Bulgaria- Overview

Manufacturing industry in Bulgaria is the most importantindustrial sub-sector with a share of 73 per cent in its value added.Manufacturing industry has a substantial share in the country's gross domestic product. It accounts for almost 18 per cent of value added created in the economy.

  
In 2005 products of the manufacturing industry amount to BGN 31.5 billion(Table 1.2) and 40 per cent of them are sold on the international market.Value added created in 2005 amounts to over BGN 6.2 million.

The gross operating surplus of enterprises in the sector in2005 amounts to BGN 3.3 billion, i.e. 53.4 per cent of value added remains withemployers and the other BGN 2.9 billion or 46.6 per cent of value added arepersonnel costs (BGN 2.1 billion in the form of salaries and wages and BGN 0.7billion for social charges). During the year gross investment in fixed assetsin manufacturing amounts to BGN 2.7 billion, including 66 per cent forequipment.

In 2003-2005 the share of manufacturing in value added growswhile in employment declines slightly as a result of the faster productivity growth in manufacturing than in the other sectors of the economy. The followingindustry sectors account for the highest shares in value added in manufacturingin Bulgaria:

• Food processing - 14.3%,
• Machine building - 9.6%,
• Production of coke and petroleum products - 9.4%, and
• Apparel - 8.9%.

Three of these industry sectors have the highest shares inemployment

• Apparel - 22.4%,
• Food processing - 16.6%, and
• Machine building - 10.4%.

The Apparel industry creates high value added share,accounting for a large share in total manufacturing value: 4 per cent, against1.2 for EU. This is due to the positioning of the Bulgarian production in a specific production niche: toll processing.

The low perspective of such production, which restsexclusively on the advantage of low labor costs, is compensated by highspecialization and considerable restructuring of the industry sector in therecent years, which would probably help Bulgaria retain its competitiveposition in the region.

The trend is for the production of apparel in CEE to shrinkdue to high competition from Turkey and China. Another important factor forindustrial development is good Bulgarian traditions in the production of textile.

Manufacture of wearing apparel; dressing; dyeing of fur

Manufacture of textiles

The following industry sectors account for the highest shares in value added in manufacturing in Bulgaria:

• Food processing - 14.3%,
• Machine building - 9.6 %
• Production of coke and petroleum products - 9.4%, and
• Apparel -8.9%

Three of these industry sectors have the highest shares in employment  

• Apparel - 22.4 %
• Food processing - 16.6 % and
• Machine building - 10.4%.

Although Apparel industry in Bulgaria is one of the sectors which accounts for highest shares in value added in manufacturing in Bulgaria and has highest shares in employment but it is among the least profitable industries of Bulgaria.

The most profitable industries in the Bulgarian manufacturing industry are the production of RT equipment, ceramic tiles, glass, and pharmaceuticals. They are characterized by a high share of gross operating surplus in value added and a relatively high gross operating rate.  

To read more articles on Textile, Industry, Technical Textile, Dyes & Chemicals, Machinery, Fashion, Apparel, Technology, Retail, Leather, Footwear & Jewellery,  Software and Generalplease visit https://articles.fibre2fashion.com

To promote your company, product and services via promotional article, follow this link: https://www.fibre2fashion.com/services/article-writing-service/content-promotion-services.asp