the garment and textile industry in the...

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1 THE GARMENT AND TEXTILE INDUSTRY IN THE REPUBLIC OF MACEDONIA Contents Summary ................................................................................................................................................. 2 1. Structural Data .................................................................................................................................... 3 1.1 Number of Employees ................................................................................................................... 3 1.2 Number of Companies ................................................................................................................... 3 1.3 Concentration ................................................................................................................................ 4 2. Production........................................................................................................................................... 5 3. Trade Data........................................................................................................................................... 9 3.1 Exports .......................................................................................................................................... 9 3.2 Imports ........................................................................................................................................ 11 3.3 Customers ................................................................................................................................... 11

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  • 1

    THE GARMENT AND TEXTILE INDUSTRY

    IN THE REPUBLIC OF MACEDONIA

    Contents

    Summary ................................................................................................................................................. 2

    1. Structural Data .................................................................................................................................... 3

    1.1 Number of Employees ................................................................................................................... 3

    1.2 Number of Companies ................................................................................................................... 3

    1.3 Concentration ................................................................................................................................ 4

    2. Production ........................................................................................................................................... 5

    3. Trade Data ........................................................................................................................................... 9

    3.1 Exports .......................................................................................................................................... 9

    3.2 Imports ........................................................................................................................................ 11

    3.3 Customers ................................................................................................................................... 11

  • 2

    Summary

    The textile and garment industry is one of the most developed economic sectors in Macedonia, with over 1,100

    companies actively involved at various levels of production. The

    industry employs over 35,000 workers and produces over EUR

    400 millions worth of exports, contributing to a total of about

    2.4 per cent of GDP.

    Companies within this industry have made products for a large

    number of well-known worldwide brands including Versace,

    Diesel, Gucci, Gerry Weber, Betty Barclay and Jack & Jones

    among many others.

    The competitive advantages of the Macedonian Garment and

    Textile Industry include:

    1. Short periods from orders to delivery; 2. High quality of performance at attractive costs; 3. Good transport and logistics services; 4. Convenient geographic location and favorable economic conditions.

  • 3

    1. Structural Data

    1.1 Number of Employees

    The garment sector is very important for the economy of the Republic of Macedonia. The two main aspects of

    this sector, which are contributing significantly to the stability of the Macedonian economy, are the

    employments and the exports.

    Skilled labor is one of the industrys main strengths. The industry employs about 35,000 workers which is

    approximately 32 per cent of all employees in the manufacturing sector, or about 6.7% of the total number of

    employees, as shown in the following table.

    Table: Employees in the garment sector

    Sector 2008 2009 2010 2011 2012 2013

    Total number of employees in MK 434 858 426 252 435 078 458 873 474 398 483 447

    Manufacturing 107 706 104 751 101 093 100 878 101 132 104 214

    Manufacture of textiles 4 535 4 362 3 714 3 158 2 712 2 737

    Manufacture of wearing apparel 35 638 35 376 34 680 32 525 33 360 32 611

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

    1.2 Number of Companies

    There are over 1,100 registered entities in the production of textiles and wearing apparel. The following table

    provides the number of companies according to the NACE Rev.21 classification.

    Table: Number of companies in the Textile and Garment Industry (NACE Rev.2)

    Classification 2011 2012

    C13 - Manufacture of textiles 202 203

    C131 - Preparation and spinning of textile fibres 9 9

    C1310 - Preparation and spinning of textile fibres 9 9

    C132 - Weaving of textiles 10 9

    C1320 - Weaving of textiles 10 9

    C133 - Finishing of textiles 51 52

    C1330 - Finishing of textiles 51 52

    C139 - Manufacture of other textiles 132 133

    C1391 - Manufacture of knitted and crocheted fabrics 5 3

    C1392 - Manufacture of made-up textile articles, except apparel 72 73

    C1393 - Manufacture of carpets and rugs 5 5

    C1394 - Manufacture of cordage, rope, twine and netting 4 5

    C1395 - Manufacture of non-wovens and articles made from non-wovens, except apparel 4 4

    C1396 - Manufacture of other technical and industrial textiles 1 2

    C1399 - Manufacture of other textiles n.e.c. 41 41

    C14 - Manufacture of wearing apparel 968 943

    C141 - Manufacture of wearing apparel, except fur apparel 920 900

    C1411 - Manufacture of leather clothes 7 7

    C1412 - Manufacture of workwear 74 72

    C1413 - Manufacture of other outerwear 754 739

    1 NACE is the acronym for Nomenclature statistique des activits conomiquesdans la Communauteuropenne.

  • 4

    Classification 2011 2012

    C1414 - Manufacture of underwear 48 50

    C1419 - Manufacture of other wearing apparel and accessories 37 32

    C142 - Manufacture of articles of fur 4 4

    C1420 - Manufacture of articles of fur 4 4

    C143 - Manufacture of knitted and crocheted apparel 44 39

    C1431 - Manufacture of knitted and crocheted hosiery 24 23

    C1439 - Manufacture of other knitted and crocheted apparel 20 16

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

    Of these companies, the most dominant (50 per cent) are small enterprises employing between 10 and 49

    workers, followed by medium size enterprises who employ between 50 and 249 workers (35 per cent).

    Graph: Number of companies in the Textile and Garment Industry (by number of employees)

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

    1.3 Concentration

    More than 40% of the industry is located in the Macedonian Eastern Statistical Region. The center of the

    Textile and Garment Industry is the town of Stip, followed by Kocani and Delcevo.

    1 - 9

    10%

    10 - 49

    50%

    50 - 249

    35%

    250+

    5%

  • 5

    Figure: Concentration of companies in the Macedonian Textile and Garment Industry (% of total companies)

    2. Production

    The most dominant is the production of wearing apparel. The production of textiles consists of production of

    textiles for denim clothing, as well as bedspreads, blankets, bathroom and kitchen linen.

    The garment production, according to the Harmonized Commodity Description and Coding System, is classified

    into the following groups:

    61 Articles of apparel and clothing accessories, knitted or crocheted,

    62 Articles of apparel and clothing accessories, not knitted or crocheted.

    Resen

    Bitola

    Prilep

    Strumica

    Radovis

    Berovo

    Delcevo

    Stip

    Kocani

    Veles

    Negotino

    Probistip

    Kratovo

    Valandovo

    Vinica

    Tetovo

    Gostivar

    Debar

    Kicevo

    Krusevo

    Makedonski

    Brod

    Struga

    Sveti

    Nikole

    Kriva

    Palanka

    Kumanovo

    OhridGevgelija

    Skopje

    Kavadarci

    East

    (42%)

    Northeast

    (5%)Skopje

    (11%)

    Polog

    (5%)

    Southwest

    (6%)

    Pelagonia

    (10%)

    Southeast

    (14%)Vardar

    (6%)

  • 6

    About 70% of the production is in the group of not knitted apparel. The main products in this group are:

    - Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear)

    - Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear)

    - Men's or boys' shirts - Women's or girls' blouses, shirts and shirt-blouses - Tracksuits, ski suits and swimwear; other garments - Babies' garments and clothing accessories

    The main products in the knitted apparel group are:

    - Women's or girls' blouses, shirts and shirt-blouses - T-shirts, singlets and other vests - Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and

    brace overalls, breeches and shorts (other than swimwear)

    - Jerseys, pullovers, cardigans, waistcoats and similar articles - Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles - Pantyhose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for

    example, stockings for varicose veins) and footwear without applied soles

    The following tables provide statistical information on quantity produced.

    Table: Production of Textiles Description U/M 2010 2011 2012 2013

    Wool or animal hair, carded or combed (including wool tops) t 48 4 - -

    Synthetic staple fibers, carded, combed or otherwise processed for spinning t 319 41 - -

    Yarn of uncombed cotton, n.p.r.s., for knitted fabrics and hosiery t 180 - - -

    Yarn of combed cotton, n.p.r.s., for knitted fabrics and hosiery t 317 300 309 426

    Cotton sewing thread t 269 247 252 398

    Man-made filament yarn, p.r.s. (excluding sewing thread) t 451 - - 6

    Yarn containing < 85% by weight of polyester staple fibers (other than sewing

    thread), mixed with artificial fibers, n.p.r.s.

    t - 81 - -

    Yarn containing < 85% by weight of synthetic staple fibers, mixed with

    combed wool or fine animal hair, n.p.r.s.

    t 262 23 - 719

    Woven fabrics of carded wool or carded fine animal hair '000 m2 41 56 31 28

    Woven fabrics of combed wool or combed fine animal hair; woven fabrics of

    coarse animal hair

    '000 m2 15 12 8 9

    Woven fabrics of cotton, not of yarns of different colors, weighing > 200

    g/m, for clothing

    '000 m2 1 022 1 304 1 411 1 301

    Woven fabrics of denim cotton weighing > 200 g/m '000 m2 3 009 3 537 4 361 4 637

    Woven fabrics of denim cotton weighing > 200 g/m t 1 505 1 965 2 400 2 549

    Woven fabrics of synthetic staple fibres mixed mainly or solely with carded

    wool or fine animal hair

    '000 m2 338 259 212 259

    Woven fabrics of synthetic staple fibers mixed mainly or solely with combed

    wool or fine animal hair

    '000 m2 174 86 83 152

    Terry toweling and similar woven terry fabrics of cotton '000 m2 845 677 653 1 016

    Cotton knitted fabrics t 180 98 89 103

    Artificial fur and articles thereof, knitted or crocheted '000 m2 346 532 202 475

    Blankets and traveling rugs of wool or fine animal hair (excluding electric

    blankets)

    '000 pieces 28 28 27 17

    Bathroom linen and kitchen linen, of terry toweling or similar terry fabrics of

    cotton

    '000 m2 845 677 653 60

    Bedspreads (excluding eiderdowns) '000 pieces 3 060 5 949 12 867 380

  • 7

    Description U/M 2010 2011 2012 2013

    Furnishing articles including furniture and cushion covers as well as cushion

    covers etc. for car seats

    '000 pieces - - 736 1 016

    Articles of bedding of features or down (excluding mattresses, sleeping bags) '000 pieces 285 561 621 25

    Carpets and other textile floor coverings (excluding knotted, woven, tufted,

    needle felt)

    m2 337 497 369 2 661

    Rubber thread and cord, textile covered; textile yarn and strip impregnated,

    coated, covered or sheathed with rubber or plastics

    t 2 2 - 11 179

    Felt, whether or not impregnated, coated, covered or laminated, n.e.c. t 160 294 319 538

    Source: State Statistical Office, Republic of Macedonia, Industry 2007 - 2013

    n.p.r.s not prepared for retail sale

    p.r.s. prepared for retail sale

    Table: Production of wearing apparel Description U/M 2010 2011 2012 2013

    Men's or boys' ensembles, of cotton or man-made fibers, for industrial and

    occupational wear

    '000 pieces 859 693 754 881

    Men's or boys' jackets and blazers, of cotton or man-made fibers, for

    industrial and occupational wear

    '000 pieces 73 503 423 400

    Men's or boys' trousers and breeches, of cotton or man-made fibers, for

    industrial or occupational wear

    '000 pieces 30 506 629 630

    Men's or boys' bib and brace overalls, of cotton or man-made fibers, for

    industrial or occupational wear

    '000 pieces 66 177 122 172

    Women's or girls' ensembles, of cotton or man-made fibers, for industrial or

    occupational wear

    '000 pieces 160 155 25 35

    Women's or girls' jackets and blazers, of cotton or man-made fibers, for

    industrial or occupational wear

    '000 pieces 17 169 97 78

    Women's or girls' trousers and breeches, of cotton or man-made fibers, for

    industrial or occupational wear

    '000 pieces 697 87 69 47

    Men's or boys' other garments, of cotton or man-made fibers, for industrial

    or occupational wear

    '000 pieces 375 612 482 393

    Women's or girls' other garments, of cotton or man-made fibers, for

    industrial or occupational wear

    '000 pieces 559 200 174 183

    Men's or boys' overcoats, car-coats, capes, cloaks and similar articles, of

    knitted or crocheted textiles (excluding jackets and blazers, anoraks, wind-

    cheaters and wind-jackets)

    '000 pieces 65 76 82 89

    Men's or boys' jackets and blazers, of knitted or crocheted textiles '000 pieces 144 163 110 42

    Men's or boys' suits and ensembles, of knitted or crocheted textiles '000 pieces 17 15 3 1

    Men's or boys' trousers, breeches, shorts, bib and brace overalls, of knitted

    or crocheted textiles

    '000 pieces 99 113 108 126

    Women's or girls' anoraks, ski-jackets, wind-cheaters, wind-jackets and

    similar articles, of knitted or crocheted textiles (excluding jackets and blazers)

    '000 pieces 44 46 62 34

    Women's or girls' jackets and blazers, of knitted or crocheted textiles '000 pieces 81 102 112 8

    Women's or girls' trousers, breeches, shorts, bib and brace overalls, of

    knitted or crocheted textiles

    '000 pieces 409 197 223 210

    Men's or boys' jackets and blazers (excluding knitted or crocheted) '000 pieces 81 27 9 66

    Men's or boys' trousers and breeches, of denim (excluding for industrial or

    occupational wear)

    '000 pieces 179 128 253 266

    Men's or boys' trousers, breeches and shorts, of wool or fine animal hair

    (excluding knitted or crocheted, for industrial or occupational wear)

    '000 pieces 24 16 15 28

    Men's or boys' trousers and breeches, of cotton (excluding denim, knitted or

    crocheted)

    '000 pieces 44 99 89 149

    Woman's or girls' overcoats, etc. '000 pieces 230 195 54 45

    Women's or girls' ensembles (excluding knitted or crocheted) '000 pieces 21 29 28 11

    Women's or girls' jackets and blazers (excluding knitted or crocheted) '000 pieces 91 42 676 860

    Women's or girls' dresses (excluding knitted or crocheted) '000 pieces 251 345 408 683

    Women's or girls' skirts and divided skirts (excluding knitted or crocheted) '000 pieces 251 276 529 441

    Women's or girls' trousers and breeches, of denim (excluding for industrial or

    occupational wear)

    '000 pieces 74 209 251 278

    Women's or girls' trousers and breeches, of cotton (excluding denim, for

    industrial or occupational wear)

    '000 pieces 318 347 857 1 112

    Women's or girls' trousers and breeches, of wool or fine animal hair or man-

    made fibers (excluding knitted or crocheted and for industrial and

    occupational wear)

    '000 pieces 1 021 1 242 1 464 1 608

  • 8

    Description U/M 2010 2011 2012 2013

    Men's or boys' shirts and under-shirts, of knitted or crocheted textiles '000 pieces 3 329 4 465 4 732 4 600

    Men's or boys' underpants and briefs, of knitted or crocheted textiles

    (including boxer shorts)

    '000 pieces 1 700 1 822 2 020 2 240

    Men's or boys' nightshirts and pyjamas, of knitted or crocheted textiles '000 pieces 109 117 71 71

    Women's or girls' blouses, shirts and shirt-blouses, of knitted or crocheted

    textiles

    '000 pieces 1 113 945 843 168

    Women's or girls' briefs and panties, of knitted or crocheted textiles

    (including boxer shorts)

    '000 pieces 1 013 1 315 2 176 1 314

    Women's or girls' nighties and pyjamas, of knitted or crocheted textiles '000 pieces 76 70 72 62

    Men's or boys' shirts (excluding knitted or crocheted) '000 pieces 5 988 6 169 7 019 7 209

    Women's or girls' blouses, shirts and shirt-blouses (excluding knitted or

    crocheted)

    '000 pieces 6 788 5 583 10 186 11 242

    Women's or girls' singlets and other vests, briefs, panties, ngligs,

    bathrobes, dressing gowns, housecoats and similar articles of cotton

    (excluding knitted or crocheted)

    '000 pieces 1 188 1 104 1 582 1 337

    T-shirts, singlets and vests, knitted or crocheted '000 pieces 80 65 232 318

    Shawls, scarves, mufflers, mantillas, veils and the like (excluding articles of

    silk or silk waste, knitted or crocheted)

    pieces - 45 187 40 082 34 299

    Shawls, scarves, mufflers, mantillas, veils and the like, of silk or silk waste

    (excluding knitted or crocheted)

    pieces 911 236 362 6

    Hat-shapes, plaited or made by assembling strips of any material '000 pieces 254 133 89 88

    Felt hats and other felt headgear, made from hat bodies or hoods and

    plateaux

    '000 pieces - 26 18 33

    Fur coats pieces 12 000 12 000 9 212 7 876

    Articles of apparel and clothing accessories, of fur skins, other pieces 869 622 49 635

    Articles of fur skin (excl. apparel, clothing accessories, hats and headgear) pieces - 62 738 56 773 44 837

    Panty hose and tights, of knitted or crocheted synthetic fibers, measuring per

    single yarn < 67 decitex

    '000 pieces - - 462 6 107

    Source: State Statistical Office, Republic of Macedonia, Industry 2007 - 2013

    Some of the main characteristics of the Macedonian Textile and Garment Industry include:

    - Customer focus and orientation; - Availability of experienced labor; - Flexibility to quickly respond to the customers' requirements; - Short periods from orders to delivery; - Capability to produce small orders at the same prices as big orders (higher productivity); - Long-term business relationships with worldwide partners and experience in working for well-known

    international brands;

    - Recognized quality for garments production; - Good transport and logistics services.

  • 9

    3. Trade Data

    3.1 Exports

    Annual exports of garments amount to over 400 million Euros.

    Table: Export of garment by tariff group (in Euro) H

    S DESCRIPTION

    2009 2010 2011 2012 2013

    Euro Euro Euro Euro Euro

    61 Articles of apparel and clothing accessories, knitted or

    crocheted 65 162 901 66 325 589 77 130 734 87 105 660 96 236 526

    62 Articles of apparel and clothing accessories, not knitted or

    crocheted 349 592 746 352 456 469 385 386 967 373 465 151 369 149 850

    Total: 414 755 647 418 782 058 462 517 701 460 570 811 465 386 376

    Change: 4 026 411 43 735 643 - 1 946 890 4 815 565

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

    The main products exported include womens and girls blouses, T-shirts, vests, suits, jackets and blazers as

    shown in the following table.

    Table: Major export products (tariff group 61)

    HS DESCRIPTION 2010 2011 2012 2013

    Euro % Euro % Euro % Euro %

    TOTAL 66 325 589 100% 77 130 734 100% 87 105 660 100% 96 236 526 100%

    6106 Women's or girls' blouses, shirts and shirt-

    blouses, knitted or crocheted 17 333 653 26% 21 576 019 28% 28 554 656 33% 29 712 551 31%

    6109 T-shirts, singlets and other vests, knitted or

    crocheted 21 797 803 33% 26 303 696 34% 23 924 209 27% 25 314 497 26%

    6104

    Women's or girls' suits, ensembles, jackets,

    blazers, dresses, skirts, divided skirts,

    trousers, bib and brace overalls, breeches

    and shorts (other than swimwear), knitted

    or crocheted

    11 174 936 17% 13 732 860 18% 17 531 036 20% 21 024 528 22%

    6115

    Pantyhose, tights, stockings, socks and other

    hosiery, including graduated compression

    hosiery (for example, stockings for varicose

    veins) and footwear without applied soles,

    knitted or crocheted

    2 195 489 3% 2 521 391 3% 3 406 283 4% 6 525 896 7%

    6110 Jerseys, pullovers, cardigans, waistcoats and

    similar articles, knitted or crocheted 3 674 933 6% 3 820 173 5% 3 833 102 4% 3 953 544 4%

    6107

    Men's or boys' underpants, briefs,

    nightshirts, pyjamas, bathrobes, dressing

    gowns and similar articles, knitted or

    crocheted

    3 518 410 5% 4 115 298 5% 3 510 820 4% 4 075 351 4%

    6108

    Women's or girls' slips, petticoats, briefs,

    panties, nightdresses, pyjamas, ngligs,

    bathrobes, dressing gowns and similar

    articles, knitted or crocheted

    3 257 347 5% 2 438 076 3% 3 159 765 4% 2 505 146 3%

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

  • 10

    Table: Major export products (tariff group 62)

    HS DESCRIPTION 2010 2011 2012 2013

    Euro % Euro % Euro % Euro %

    TOTAL 352 456 469 100% 385 386 967 100% 373 465 151 100% 369 149 850 100%

    6204

    Women's or girls' suits, ensembles,

    jackets, blazers, dresses, skirts, divided

    skirts, trousers, bib and brace overalls,

    breeches and shorts (other than

    swimwear)

    107 545 479 31% 115 920 371 30% 112 112 260 30% 118 314 625 32%

    6203

    Men's or boys' suits, ensembles, jackets,

    blazers, trousers, bib and brace overalls,

    breeches and shorts (other than

    swimwear)

    66 567 901 19% 74 711 928 19% 78 923 687 21% 74 914 835 20%

    6205 Men's or boys' shirts 65 737 355 19% 76 193 262 20% 71 988 394 19% 69 341 280 19%

    6206 Women's or girls' blouses, shirts and

    shirt-blouses 70 797 413 20% 69 379 774 18% 65 075 776 17% 61 741 016 17%

    6211 Tracksuits, ski suits and swimwear;

    other garments 20 824 926 6% 22 836 181 6% 23 540 224 6% 24 464 168 7%

    6202

    Women's or girls' overcoats, car coats,

    capes, cloaks, anoraks (including ski

    jackets), windcheaters, wind-jackets and

    similar articles, other than those of

    heading 6204

    8 804 445 3% 10 388 394 3% 8 978 456 2% 9 110 200 2%

    6201

    Men's or boys' overcoats, car coats,

    capes, cloaks, anoraks (including ski

    jackets), windcheaters, wind-jackets and

    similar articles, other than those of

    heading 6203

    6 513 969 2% 9 599 142 2% 6 187 449 2% 5 699 157 2%

    6210 Garments, made up of fabrics of

    heading 5602, 5603, 5903, 5906 or 5907 3 288 679 1% 3 757 751 1% 3 343 092 1% 2 213 122 1%

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

    The most important export destination, with more than 62% of exports, is Germany, followed by Greece,

    Netherlands, Italy, Great Britain, Austria, Switzerland and Bulgaria.

  • 11

    3.2 Imports

    The annual imports of garments reach the amount of about 50 million Euro.

    Table: Imports of garments: (in 000 Euro) HS DESCRIPTION 2009 2010 2011 2012 2013

    61 Articles of apparel and clothing accessories, knitted or

    crocheted 15 232 15 647 15 251 14 092 17 235

    62 Articles of apparel and clothing accessories, not knitted or

    crocheted 33 285 27 713 25 762 29 316 31 831

    Total: 48 517 43 360 41 013 43 408 49 066

    Source: State Statistical Office, Republic of Macedonia (MAKSTAT Database)

    The imports are dominantly made from China, Greece, Turkey, Germany and Italy.

    3.3 Customers

    Macedonian garment producers make products for major global brands, including:

    - Italy: Massimo Rebecchi, Versace, Nanette, Diesel, Gucci, Cinque, Pinko, MaxMara - Denmark: Jack & Jones - The Netherlands: Barnett & Barnett, La Salle - Germany: Marc Cain, Steilman, Gerry Weber, Apanage, Wahler, Betty Barclay, Escada - Belgium: Ahlers.