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Turnover for Italian Textiles in 2014 surpassed 8 billion
euros (+3.8% over 2013). A positive trade balance of 2.3
billion euros is confirmed for the sector
1. Preliminary Sectorial Balance for 2014
Following two years of negative results, the Italian Textile Industry (comprised of woolen, cotton, linen, silky and knitted fabrics) experienced a trend reversal in 2014. In fact, according to SMI estimates, the sectorial turnover should surpass 8 billion euros, registering an increase of +3.8%. Considering these results, the weaving sector accounts for 15.3% of the total turnover for the Textile-Fashion Production Chain (Fig. 1), substantially in line with 2013 statistics (15.5%). The woolen division plays the leading role, making up 37.2% of sector turnover, followed by the cotton division (21.5%) and knitted fabric division (19.9%).
Both foreign and domestic demand were favorable, as we will elaborate later in more detail. In fact, the various divisions making up the Italian weaving sector showed dissimilar dynamics in terms of market performance. The only countertendency below average came from the cotton division which registered negative results, even though figures were less drastic than before; both the woolen and linen divisions abandoned their stagnancy and started to grow once again. On the other hand,
Tab. 1 – The Italian Textile Industry (2008-2014)(1)
(in mlns of euros)
2008 2009 2010 2011 2012 2013 2014(2)
Fatturato 8 924 6 691 7 650 8 365 7 983 7 730 8 022
Var. % -4,5 -25,0 14,3 9,3 -4,6 -3,2 3,8
Valore della produzione 7 069 5 365 6 128 6 542 6 237 6 021 6 197
Var. % -5,2 -24,1 14,2 6,8 -4,7 -3,5 2,9
Esportazioni 5 070 3 740 4 206 4 537 4 374 4 276 4 417
Var. % -9,7 -26,2 12,5 7,9 -3,6 -2,2 3,3
Im portazioni 1 798 1 436 1 845 2 101 1 834 1 912 2 036
Var. % -6,2 -20,1 28,5 13,9 -12,7 4,2 6,5
Saldo com m erciale 3 272 2 303 2 361 2 436 2 540 2 365 2 381 Consum o apparente 3 797 3 062 3 767 4 106 3 697 3 656 3 816
Var. % 1,0 -19,4 23,0 9,0 -10,0 -1,1 4,4
Indicatori Strutturali (%)
Esportazioni/Fatturato 56,8 55,9 55,0 54,2 54,8 55,3 55,1 Importazioni/Cons. apparente 47,3 46,9 49,0 51,2 49,6 52,3 53,4
Fonte: SMI su dati ISTAT e Indagini Interne (1)
Tessuti serici, lanieri, cotonieri, linieri e a maglia. (2)Stime
In 2014 the textile industry underwent a trend reversal with an estimated increase of +3.8%
The weaving sector makes up 15.3% of total turnover for the Textile-Fashion Production Chain
The cotton division, still hampered by negative trends, is the only exception to the overall positive picture
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Fig. 1 – Textiles in the ItalianTextile-Fashion Production Chain (2014)(1)
(% of turnover) T e s s it ura ( 15 ,3 %) Tessuti a maglia (19,9%) Tessuti serici (17,9%) Tessuti linieri (3,5%) Tessuti cotonieri (21,5%) Tessuti lanieri (37,2%) Altri Prodotti Tessile-Moda (84,7%)
Fonte: SMI; (1) Stime
the knitted and silky fabric divisions continued their positive trend which began in 2010 and extended throughout the following period; in fact, both divisions are expected to grow, with respect to 2013 figures.
Even the production value (in SMI estimates, the value of total sales is distinguished from sales deriving from imported products) should be characterized by a positive trend reaching +2.9% according to current estimates.
There was friction during the year for the textile sector, as far as employment was concerned; however, when compared to the recent past, the decrease was limited to -1% in 2014, according to an SMI survey conducted at a panel of sector firms.
As for foreign fabric trade, 2014 was characterized by an increase in export and import, which had already entered the positive zone in 2013. In particular, an average annual increase of +3.3% is estimated for sectorial exports. This could bring the total level to 4.7 billion euros, while imports from abroad should also increase by at least +6.5% (a total of 2 billion euros ca.).
In view of this trend in foreign trade, the sectorial trade balance should be slightly higher, which would confirm 2013 results, totalling 2.3 billion euros. Therefore, the textile surplus would account for 25.5% of total turnover for the Textile-Fashion Production Chain.
Sector employment is still on the decrease
Annual growth in export is estimated at +3.3%, while import is expected to reach +6.5%
The trade balance should confirm 2013 figures, assuring 25.5% of Textile-Fashion surplus
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Fig. 2 – Textiles: ISTAT industrial production index (adjusted for work calendar, basic year 2010=100), 1st qtr 2009- 3rd qtr 2014 (tendential var. %) -35 -25 -15 -5 5 15 25 35 I t rim 09 II t rim 09 III t rim 09 IV t rim 09 I t rim 10 II t rim 10 III t rim 10 IV t rim 10 I t rim 11 II t rim 11 III t rim 11 IV t rim 11 I t rim 12 II t rim 12 III t rim 12 IV t rim 12 I t rim 13 II t rim 13 III t rim 13 IV t rim 13 I t rim 14 II t rim 14 III t rim 14 Tessitura Tessile
Fonte: SMI su ISTAT (Cod. ATECO 2007 CB13 e CB132)
The comeback of a positive trend regards not only textile import from abroad but also domestic production value. In fact, domestic demand in 2014 (approximated in the “apparent consumption” variable) shows an end to the slowdown and the beginning of an upswing estimated to reach +4.4% annually (pre re-stocking).
The positive trend that characterized Italian textiles is also evident in ISTAT surveys pertaining to the evolution of industrial production (cfr. Fig. 2). With specific reference to orthogonal textiles (excluding knitted fabrics), the production index, adjusted for the work calendar, after the slowdown experienced during the 2nd quarter of 2013 (+0.1%), shifted into the positive zone for the following five consecutive quarters. In particular, an increase of +9.4% was registered from January-March 2014, while during the 2nd and 3rd quarters it surpassed +6%.
2. Foreign Trade During the First 10 months of 2014
If we analyze foreign trade regarding knitted and orthogonal fabrics in natural fibers (cfr.Fig. 3 Nota1), we find that from January to October 2014 there was a trend reversal registering a +2.5% increase, totalling 3.1 billion euros. At the same time, import, which had been enjoying a positive trend since 2013, showed a more dynamic increase, going from +3.7% during the first 10 months of 2013 to +6.6% during the same period of 2014. As for total volume, export increased by +1.9% while import reached the double-digits (+12%).
As indicated in Fig. 3, EU countries were more favorable than non-EU nations, like in 2013: while the former show a +4.7% increase, the latter halted at levels obtained in the January-October 2013
From January-September 2014, the ISTAT index for industrial production regarding orthogonal fabrics remained on the rise
For knitted fabrics and natural fiber fabrics, export and import increased +2.5% and +6.6%, respectively (January-October 2013)
Export among EU countries increased (+4,7%) while export to non-EU countries remained stable
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period. This represents a countertendency to results obtained during the 2010-2012, period when non-EU nations became more dynamic than EU-market countries. In fact, EU countries continue to absorb the major share of Italian textile export, amounting to 53.3% of the total (compared to 52.1% during the same period in 2013).
On the other hand, non-EU suppliers – making up 67.3% of total fabric import – registered a +6% increase, while EU suppliers recorded an increase of +8%.
In addition to average data per macro-area, it is essential to analyze the dynamics involving single countries, major business partners of Italian textile firms (cfr. Tab. 2), which reveal different trends. Germany remains the primary market outlet for Italian fabrics, absorbing 10.6% of total goods exported: during the first ten months of 2014, Germany purchased 333 million euros worth of Italian textiles, a slight decline of -3.4%. Romania, in second place, registered an +8.3% increase while France showed a decline of -1.9%. Other EU countries showed positive results like Spain (+13.8%) and Portugal (+13.6%) on the Iberian peninsula. In addition, Italian export to Bulgaria reached the double-digits (+11.5%).
+
If we consider non-EU market outlets, we note that Tunisia showed a -3.5% decrease. China, which has had positive performance over the last two years, is now in 5th place with a -9.6% decline; this is probably due to negative results regarding cotton fabric, carded and worsted woolens, while
Fig. 3 – Foreign Textile Trade: analysis by geographic macro-area (1)
(January-October 2008-2014) 3.1) Import (tendential var. %) 3.2) Export (tendential var. %) -35 -25 -15 -5 5 15 25 35 2008 2009 2010 2011 2012 2013 2014
Intra-UE Extra-UE To tale
-35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 2008 2009 2010 2011 2012 2013 2014
Intra-UE Extra-UE To tale
(1) – The products analyzed make up a sub-group (including only orthogonal fabrics with at least 50% natural fiber) of those used to define the sectorial balance shown in Tab. 1. On the other hand, in Tab. 1 orthogonal fabrics are taken into consideration, where natural fiber is less than 50% and the rest is composed of chemical fiber. Knitted fabrics are considered in both versions.
Source: SMI on ISTAT data
Export to non-EU markets experienced a slowdown, Tunisia (-3.5%), China (-9.6%)
Export to Germany, the primary market outlet for Italian textiles, decreased -3.4%, while export increased to Romania (+8.3%), Spain (+13.8%) and Portugal (+13.6%)
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knitted fabrics are on the increase. Hong Kong registered a -11.9% decrease while Turkey . declined by only -3,2%.
Among non-EU countries, the United States bounced back with a +10% increase and Japan remained almost stable with -0.8%.
If we analyze fabric import from a geographic viewpoint, we discover that it is characterized by a higher concentration of non-EU countries than in the recent past, when China triumphed over other suppliers. 2014 data confirms the trend that was anticipated the previous year, that is, a marked increase from Turkey. While the asiatic powerhouse still supplies Italy with 26.1% of fabric imports, Turkey supplies 21.6% of the share; From January-October 2010, China supplied Italy with 39.9% of semifinished products and Turkey provided 12.4%. During the same period, imports from China increased +7.4%, while Turkish fabric imports increased +9.1%, after the 19% registered in the January-October 2013 period, for a total of over 320 million euros.
Tab. 2 – Foreign Textile trade: analysis by country (1)
(January-October 2014) 2.1) Import 2.2) Export Paesi di origine Mln. di Euro Var. % % sul totale Totale generale 1 488 6,6 100,0 di cui: Intra UE28 487 8,0 32,7 Extra UE28 1 001 6,0 67,3 I primi 15 fornitori Cina 388 7,4 26,1 Turchia 321 9,1 21,6 Pakistan 104 12,7 7,0 Repubblica Ceca 95 2,8 6,4 Germania 92 11,7 6,2 Spagna 66 12,6 4,4 Francia 41 -2,2 2,8 India 36 -4,4 2,4
Corea del Sud 35 -7,6 2,4
Regno Unito 31 13,9 2,1 Romania 29 23,9 1,9 Belgio 27 -0,5 1,8 Ungheria 26 9,1 1,7 Egitto 25 20,2 1,7 Paesi Bassi 20 57,7 1,3 Paesi di destinazione Mln. di Euro Var. % % sul totale Totale generale 3 139 2,5 100,0 di cui: Intra UE28 1672 4,7 53,3 Extra UE28 1467 0,0 46,7 I primi 15 clienti Germania 333 -3,4 10,6 Romania 254 8,3 8,1 Francia 218 -1,9 7,0 Tunisia 184 -3,5 5,9 Cina 147 -9,6 4,7 Spagna 145 13,8 4,6 Stati Uniti 138 10,0 4,4 Turchia 132 -3,2 4,2 Hong Kong 131 -11,9 4,2 Portogallo 117 13,6 3,7 Bulgaria 110 11,5 3,5 Giappone 106 -0,8 3,4 Regno Unito 100 6,9 3,2 Polonia 90 22,6 2,9 Svizzera 73 1,2 2,3 (1) - Cfr. Fig. 3 Nota 1
Source: SMI on ISTAT data
Although inferior to the first two main suppliers, Pakistan registers a marked increase into double digits (+12.7%), thus supplying 7% of fabrics imported to Italy, surpassing the Czech Republic which increases +2.8%.
Imports on the rise from main suppliers China (+7.4%) and Turkey (+9.1%)
Export to the USA gains ground (+10%)
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If we examine foreign trade according to various types of fabrics (Fig. 4), during the January- October 2014 period, the best performance goes to knitted fabrics, with export increasing +8.6%, followed by linen fabrics (+6.6%). Worsted woolen fabrics showed a +5.5% increase, while carded woolens increased +3.4%. On the other hand, pure silk fabrics are losing ground (-7.7%) while silky fabrics in chemical fibers are on the rise in foreign markets. Pure cotton fabrics (-2.9%) follow a countertendency with respect to the division average, although the decline has diminished with regard to figures recorded over the past two years.
During the first ten months of 2014, the import of knitted fabrics continued to grow, reaching a high rate (+16.2%); the import of pure cotton and linen fabrics continued to increase, +1.5% and +7.8%, respectively. As for woolen fabrics, the import of worsteds registered +4%, while carded woolens showed a slight decline, -2.6%. Lastly, pure silk imports from abroad came almost to a halt, -0.1%. Short term forecasts monitored during the Sample SMI Survey conducted last November, showed that wool division operators did not expect significant changes in the market, but leaned towards a “stability” in business conditions as experienced during 2014 (77.8% of sample group); orders in the portfolio for S/S 2015 resulted on the rise by +6.7%, characterized by a discreet dynamism, both on
Fig. 4 – Foreign Textile Trade: analysis by division (1)
(January-October 2014) 4.1) Import
(Mlns of euros; tendential var. %)
4.2) Export
(Mlns of euros; tendential var. %)
Fonte: SMI su dati ISTAT (1)
Cfr. Fig. 3 Nota 1
domestic and foreign fronts. On the other hand, cotton division operators remained equally divided between those counting on improvement over stability and those expecting a downturn (33.3%). However, even in the case of cotton fabrics, orders in the portfolio (although partial and temporary at survey time), were on the increase.
A 2014 trend reversal that we had predicted in our study the previous year has been confirmed. During the first half of 2015 a positive trend is expected to continue, based on recent research and
Export of pure wool, linen and knitted fabrics increased from January to October 2014
As for import, all divisions are on the rise except pure silk and carded woolens
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indications from firms. Although this must be handled with extreme caution, due to the fragility and uncertainty of the economic scenario, the Milano Unica event is the perfect “thermometer” to understand market orientation and distinguish opportunities that may arise in months to come for Made in Italy textiles, both on domestic and international levels.
Milan, February 4, 2015
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Publication by Tessile & Moda Service -soc. Unipersonale.
This publication is an exclusive and original document property of SMI-Sistema Moda Italia (Textile and Fashion Federation, member of Confindustria) for Tessile & Moda Service – soc. Unipersonale. SMI - Sistema Moda Italia is dedicated to numerous activities concerning the safeguard and promotion of the interests of textile-fashion firms. This Document may be distributed by electronic or regular mail and cannot be redistributed, reproduced, published or altered in any way without official authorization. All rights reserved. The Document serves informative purposes and does not represent an offer or solicitation of any kind. The information, opinions, evaluations and viewpoints contained in this Document have been obtained from sources that SMI-Sistema Moda Italia considers reliable. However, they do not constitute a guarantee, either implicit or explicit, and therefore, SMI-Sistema Moda Italia and Tessile & Moda Service – soc. Unipersonale do not consider themselves accountable.
