Czech Textile Industry In Recession

Located in the heart of Europe, Czech Republic is a land locked country, located in central and Eastern Europe, bordering Poland in the north, Slovakia in the East, Austria in the south, and Germany in the West and northwest. Czech Republic has officially become a member of the European Union since May 1, 2004. Thanks to the gradual warming of the market opening effect, large factories in Western Europe have invested in Czech Republic in consideration of cost, geographical advantages, high-quality skilled labor and infrastructure construction and other factors. In 2017, thanks to the stability of the euro zone economy and the appreciation of the Czech krona, driven by domestic consumption demand, the economic growth rate reached 4.4%, ranking first in the European Union.

The Czech Republic has a long history of industrial development and maintains a strong industrial base in the automotive, mechanical equipment, chemical, environmental protection, energy and other sectors. Textile clothing industry plays an important role in the national economic development and people's life. According to the data of atok, there were 393 enterprises (more than 20 employees) in the Czech textile and garment industry in 2017, with 34000 employees. The number of employees in the textile industry accounted for 67% and that in the clothing industry accounted for 33%.

96% of Czech textile and garment products are exported to European countries, 2% in America, 1% in Africa and 1% in Asia, and the main products are Germany (36%), Italy (8%), Poland (7%) and Slovakia (7%). The textile part is mainly composed of yarn and special-purpose fabrics (such as non-woven fabric). The number of men's clothing in ready-made clothes is more than that of women's clothing, and the main products are T-shirts, sweaters or pullovers Most of the imported products are from Germany (20%), China (19%), Bangladesh (8%), Turkey and Italy (6%). Most of the textile import products come from Germany, and most of the clothing products come from China.

In 2018, the sales value of Czech textile and garment enterprises reached 56.5 billion kronor (equivalent to US $2.4 billion), with a year-on-year growth of 3%. According to the annual report of atok Association, the industry's salary growth rate is 8.5%, which will also affect enterprise revenue.

Czech industrial cloth manufacturers are facing difficulties such as cheap competition from Asia, labor shortage and economic slowdown. According to the textile industry association, textile companies supplying the automotive industry recorded the largest decline. Textile manufacturers had a surplus of CZK 44.8 billion in 2018, down 4.3% from 2017.