Manufacturers warn of end of Israel's textile industry

850 employees lost their jobs during the first half of 2008.

The Manufacturers Association of Israel has repeated its warning that Israel's textile industry could be facing closure, as a result of the slowdown in the economy, despite the consistent strengthening of the dollar against the shekel in recent weeks. According to figures released by the Affiliation of Textile and Fashion Manufacturers, 850 employees lost their jobs in the first half of 2008.

While textile exports fell 3.3% to $520 million in the first half in real terms, compared with the corresponding period, textile imports (especially from Asia), rose 18.6% to $656 million.

The Manufacturers Association also claims that Israeli exporters find it hard to raise prices for overseas customers to compensate for the fall in the shekel-dollar exchange rate, and as a result many of them have to sell without making a profit and even at a loss. On the other hand, domestic sales rose by 2-3%, although the rate of growth was less than in previous years, which has resulted in inventory piling up in company warehouses.

The Manufacturers Association repeated its call for the government to announce an emergency program to rescue the textile industry, which currently provides a livelihood for 16,000 families.

Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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