Allianz Trade Sectors Report for 2022 states that the textile industry was not able to reach pre-pandemic productivity, production and profitability levels. According to the report, worldwide demand for textile products recovered in Q2 and Q3 2021, but remained well below pre-pandemic levels both in major producing countries and end markets.
Allianz Trade, the world leader in trade credit insurance, published its Sectors Report for 2022. The report points out that despite the recovery in demand, Textile sector – which was among the industries covered in the report – was far from recovering its pre-pandemic levels both in major producing countries and in end markets.
Supply chain problems that emerged after the pandemic was emphasized in the report as one of the reasons restraining the recovery of the sector, the Report drew attention to the possible increase in the costs of companies in the coming period due to “intense competition coming from the rapidly growing second-hand market”, “shifting production from China to alternative countries such as Vietnam, Bangladesh, Indonesia” and “new sustainability standards”. The report also highlighted the supply chain disruptions and the suspension or slowdown of the activities of companies with partnerships, subsidiaries, dealers and stores in the countries effected from the Russia-Ukraine War will continue to be effective in material and moral losses. Other reasons suppressing demand, hence preventing the sector to reach pre-pandemic levels were listed as; Russia’s invasion of Ukraine and the ensuing energy crisis, volatility in commodity prices, global supply chain problems and the logistics crisis.
Turkey is closely monitoring the European Economy / Turkey’s eyes on the European EconomyAccording to the report, the Turkish textile industry will be keeping an eye on economic developments in Europe in 2023 – as 70% of ready-to-wear exports are to European Union (EU) countries. For the Turkish textile industry, which experienced a decrease in orders in the second half of 2022 due to the gas shortage, rising interest rates and recession concerns in EU countries, the effects of the expected moderate recession in Europe, its largest market, will be decisive for 2023.