Statement by Carlo Centonze
Carlo Centonze (Source: HeiQ)
The world economy is facing turbulent times. Being globally connected this also impacts the textile industry. During the last 2 years our industry has been through different crises – caused by the Covid pandemic – starting a recovery, and now as a result of the war in the Ukraine, energy price peak, inflationary pressures and a decrease in consumer confidence. We asked different stakeholders in our industry the question: “What are the 5 biggest challenges in the textile industry for 2023?” In his statement Carlo Centonze, Co-Founder and CEO of HeiQ Materials AG, Zurich/Switzerland, gives us his assessment:
1. Supply chain & raw material issues
Many brands and retailers have highly-priced and high volumes of inventories. Selling at loss is likely and will lead to foreclosures. Consumer demand is low as inflation and higher interest rates reduce the available income for the purchase of consumer goods.
Many brands and retailers have highly-priced and high volumes of inventories. Selling at loss is likely and will lead to foreclosures. Consumer demand is low as inflation and higher interest rates reduce the available income for the purchase of consumer goods.
2. Energy
2023 will see the European industry short on gas, leading to price hikes. Manufacturing textiles in the 2nd half of 2023 in the EU will become unprofitable, resulting in foreclosures.
3. Sustainability & climate protection
Energy transition and sustainability rules & regulations will increase the cost to serve the markets for European Industry, making it less competitive globally and resulting in foreclosures.
4. Traceability
More requests for traceability will increase the cost to serve the markets for European industry, making it less competitive globally and resulting in foreclosures.
5. Skills shortages
Given many foreclosures are to be expected and a recession is likely to turn into deflation many companies will lay off staff reducing the urgency for skilled labor availability.
