EUROPEAN TEXTILE INDUSTRY – COMPETITIVENESS NEW DRIVES AND CHALLENGES. PORTUGAL AS A CASE STUDY AND INSPIRATION

21st MARCH 2019

A TEXTILE is a flexible material consisting of a network of fibers ( spun, extruded..) , natural orartificial, and produced by weaving, knitting, crocheting, knotting, tatting, lacing, webbing, felting, braiding, bonding, embedding… with endless applications.

2018• Turnover 7.610 B€

• Production 7.500 B€

• Workforce 138 000

• Exports 5.314 B€

• Imports 4.307 B€

• Trade balance 1.007 B€

• Gross added value 2.400 B€

• Companies > 12 000

• Source : ATP

Geo distribution of the Textile Industry in Portugal

7'385

7'9638'339

6'857

5'349

5'815

6'942

7'607 7'610

7'8448'159

6'595

5'123

5'631

6'767

7'439 7'500

4'049

4'927 5'073

4'101

3'5043'844

4'8115'215 5.314

263'181

235'608225'870

191'714

148'059137'264

131'513 136'928 138'000

0

50'000

100'000

150'000

200'000

250'000

300'000

0

1'000

2'000

3'000

4'000

5'000

6'000

7'000

8'000

9'000

1995 2000 2001 2005 2009 2010 2015 2017 2018

WO

RKFO

RCE

Bll€

Fonte: EUROSTAT/INE (2005: quebra de série/comparabilidade; 2017: dados provisórios; 2018: estimativas ATP)

TURNOVER XPT PRODUCTION WKFORCE

Evolution of the Textile Industry in Portugal

Textile Industry in Portugal between 2009 and 2018

2009 2018

NUMBER OF COMPANIES 14200 12101

TURNOVER 5.349 7.611 42%

EXPORTS 3.504 5.314 52%

WORKFORCE 145000 138000 6%

ADDED VALUE 1.7 2.4 41%

VAB per WKR 35000 56000 60%

TRADE BALANCE 0.8 1.1 125%

Textile Industry in Portugal since 2009 – what has been made ?

RESTRUCTURING OF COMPANIES throughmodernization and automationelimination of unnecessary jobshigher job qualifications and trainingbetter management practicesentepreneurship in younger generations

DIFFERENTIATION throughdesign - fashionable, appealing, creativeservice - quality, better and full service, less time to markettechnology - providing high end technical solutions

FOCUS ON CLIENTanticipating trends and needsprovide solutionsbetter market surveillance

INNOVATIONin products, processes, equipment and design innovative attitudecollaboration with Academia and Research centres

SHIFT TO MORE TECHNICAL TEXTILES high performance products, higher added value, less focus on price

GOING GREENmore ecological concernsustainability and circular economy consciousness

GOING GLOBAL increasingly presence worldwide – trade fairs, eventsselling global – new markets, new opportunities

CHANGE THE FACE OF PORTUGAL TEXTILE INDUSTRYreliable and worthy, state of the art technology, solution provider, very good design, resilient..

FROM A SMART FOLLOWER TO A TREND SETTER….

Textile Industry in Portugal - our drives since 2009

PEOPLE – SOCIAL FACTOR

Portuguese Textile Companies are mostly SMEs, ( some verysmall ), family owned, with very good know-how, tradition in the business, resilient, quick to adapt, eager to challenge newideas and willing to prosperNatural hability to overcome difficulties and thrive in harshtimes.

INDUSTRY CONTEXT

Textile Cluster – PT still has a fully vertical industry with 85% ofcompanies located within a small regional area – Braga andPorto areaMost companies are technogically well prepared, there are good infrastrucutres ( allowing for easy and fast moving ofmaterials ), and proximity to marketsSmall country – good network with industry peers

RESEARCH AND TRAINING COMPETENCE

Academia - UMINHO, UBI, UP, UA Reserch & Technological Centres - CITEVE, CENTI, CEIIA with strong ties with Industry and good providers of solutionsin innovation and development.Training centres - MODATEX, FORAVEInternationalization Programs – SELECTIVA MODAInstitutional and Srategic Think Tanks - ATP

NATIONAL CONTEXT

Public Policies - Externally - support of our textile industry in EU and WTO.

access to EU funds- Internally - support of i4.0 programs ( COTEC ).

funding on Innovation, Training andInternationalization projects

Well organized and functional CLUSTERS.

INTERNATIONAL CONTEXT

More fiercy global competition and often with no reciprocal rules on trade, unfair competition… However, new opportunities have risen that have a confortable fitinto our textile industry, mostly based on :

Flexibility, adaptability, quick response, client focus, service-orientation, innovation and reliability.

Portugal recognized as important global partner

Textile Industry in Portugal - what next ?

Innovation in design, creativity and image – the non technical areas.

Innovation in functionality and performance of products – more technical textiles, higher degree ofdiferentiation, inclusion of electronics, smart textiles… for clothing, auto and homes

Development in brands – PT with still has weak position in brand creation and brand awareness

Shift to more added value products – move away from “selling minutes” or products with fiercy competitionbased on price

Collaborative work – with Academia, Industry peers, Clusters, promote links between well establishedcompanies and start ups

Education and training – Academic and on-job training . Long life learning. Urgent need to focus on the newskills for i4.0 demands – automation engineering, data scientists, designers….

FOLLOW GLOBAL SOCIAL TRENDSSharing vs ownership - owning no longer status ( shift towards access to )Collaborative attitude – car sharing, crowdfunding… Urbanization and megacities lifee-commerce and digital platforms to buy, but also to shareMobility – autonomous, fossil fuel free, shared and connected

FOLLOW ECOLOGICAL ATTITUDESCircular EconomyDesign for performanceIncrease usefull life of productsLife Cycle AssessmentEco footprint

INDUSTRY 4.0 - No longer na option, but the condition to stay competitive

Integrating processes, systems, people and the correct information, in orderto move towards a more technological capable, optimized industry.

Issues such as Machine learningVirtual factoriesAugmented realityReal time parametersDigital twinsReal time location systemsConnectivityIoT

Will allow for smart factories, more eficient, with better performance, withreduction of costs, and above all, capable of defying the most competitivemarkets worldwide..

In a recent report by COTEC Portugal, the country figures on a modest 12th place on the Industry 4.0 Scoreboard – the last on the second flight. According to the report, 1 point on the Scoreboard Index can be matched by an increase of 2.1 to 2.4 % in GDP, placing Portugal on the lead of this group or even on the first group.

There is a positive correlation between the level of economic growth and the score onthe Index Score i4.0

Countries with higher i4.0 Index lead the GDP, regardless of size

Kop

khun

thank youdy

ekoo

yih

blagodaram

Dank u wel

gràcies

kiitos

dankzij

dankie

merci

takk

shuk

ran

grazietak

hvala

grac

ias

tack

arig

atô

obrigada

diolch

dank

e

TMG AutomotiveIsabel Furtado