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Technical Textiles Market in the EU – Poland Emerges as the Fastest-growing Exporter

technical textiles

Technical Textiles Market in the EU – Poland Emerges as the Fastest-growing Exporter

IndexBox has just published a new report: ‘EU – Textile Products And Articles For Technical Uses – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the technical textiles market in the European Union amounted to $1.6B in 2018, stabilizing at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Overall, technical textiles consumption continues to indicate a slight descent. The pace of growth was the most pronounced in 2016 when the market value increased by 6.6% year-to-year. Over the period under review, the technical textiles market attained its maximum level at $1.9B in 2007; however, from 2008 to 2018, consumption stood at a somewhat lower figure.

Consumption By Country in the EU

The countries with the highest volumes of technical textiles consumption in 2018 were the UK (19K tonnes), Germany (12K tonnes) and France (12K tonnes), together accounting for 36% of total consumption. These countries were followed by Italy, the Netherlands, Spain, the Czech Republic, Romania, Poland, Sweden, Belgium and Portugal, which together accounted for a further 47%.

From 2007 to 2018, the most notable rate of growth in terms of technical textiles consumption, amongst the main consuming countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

In value terms, the largest technical textiles markets in the European Union were Germany ($311M), France ($248M) and the UK ($170M), with a combined 47% share of the total market. Sweden, Italy, the Czech Republic, Romania, the Netherlands, Belgium, Poland, Spain and Portugal lagged somewhat behind, together comprising a further 27%.

The countries with the highest levels of technical textiles per capita consumption in 2018 were the Netherlands (582 kg per 1000 persons), the Czech Republic (536 kg per 1000 persons) and Sweden (415 kg per 1000 persons).

From 2007 to 2018, the most notable rate of growth in terms of technical textiles per capita consumption, amongst the main consuming countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Market Forecast 2019-2025 in the EU

Driven by increasing demand for technical textiles in the European Union, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +0.2% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 121K tonnes by the end of 2025.

Production in the EU

In 2018, technical textiles production in the European Union stood at 140K tonnes, reducing by -3.2% against the previous year. The total output volume increased at an average annual rate of +1.9% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2009 with an increase of 15% against the previous year. The volume of technical textiles production peaked at 161K tonnes in 2011; however, from 2012 to 2018, production remained at a lower figure.

In value terms, technical textiles production totaled $1.9B in 2018 estimated in export prices. Overall, technical textiles production, however, continues to indicate a mild deduction. The most prominent rate of growth was recorded in 2016 with an increase of 3.8% y-o-y. The level of technical textiles production peaked at $2.3B in 2007; however, from 2008 to 2018, production failed to regain its momentum.

Production By Country in the EU

The countries with the highest volumes of technical textiles production in 2018 were Germany (32K tonnes), Italy (18K tonnes) and the UK (15K tonnes), with a combined 47% share of total production. These countries were followed by the Netherlands, Spain, Belgium, France, the Czech Republic, Sweden, Poland, Hungary and Romania, which together accounted for a further 43%.

From 2007 to 2018, the most notable rate of growth in terms of technical textiles production, amongst the main producing countries, was attained by Romania, while the other leaders experienced more modest paces of growth.

Exports in the EU

In 2018, the amount of textile products and articles for technical uses exported in the European Union stood at 138K tonnes, declining by -5.6% against the previous year. The total export volume increased at an average annual rate of +1.5% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2010 when exports increased by 30% year-to-year. The volume of exports peaked at 152K tonnes in 2011; however, from 2012 to 2018, exports remained at a lower figure.

In value terms, technical textiles exports amounted to $2.8B (IndexBox estimates) in 2018. In general, technical textiles exports, however, continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2011 with an increase of 14% year-to-year. Over the period under review, technical textiles exports reached their peak figure at $2.9B in 2008; however, from 2009 to 2018, exports remained at a lower figure.

Exports by Country

Germany represented the major exporting country with an export of about 41K tonnes, which amounted to 30% of total exports. It was distantly followed by Italy (18K tonnes), the Netherlands (9.6K tonnes), Belgium (9.6K tonnes), Poland (8.4K tonnes), the Czech Republic (7K tonnes), Spain (6.9K tonnes) and France (6.5K tonnes), together mixing up a 48% share of total exports. The following exporters – the UK (5.8K tonnes), Sweden (4.2K tonnes), Austria (3.8K tonnes) and Slovakia (3K tonnes) – together made up 12% of total exports.

Exports from Germany increased at an average annual rate of +2.4% from 2007 to 2018. At the same time, Poland (+11.3%), the Czech Republic (+7.9%), Slovakia (+6.6%), the Netherlands (+5.5%) and Italy (+2.5%) displayed positive paces of growth. Moreover, Poland emerged as the fastest-growing exporter in the European Union, with a CAGR of +11.3% from 2007-2018. Sweden, France and Austria experienced a relatively flat trend pattern. By contrast, Belgium (-1.8%), Spain (-4.7%) and the UK (-5.7%) illustrated a downward trend over the same period. From 2007 to 2018, the share of Germany, Poland, Italy, the Netherlands and the Czech Republic increased by +6.7%, +4.2%, +3.1%, +3.1% and +2.9% percentage points, while Belgium (-1.6 p.p.), Spain (-3.5 p.p.) and the UK (-3.9 p.p.) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Germany ($1B) remains the largest technical textiles supplier in the European Union, comprising 37% of total technical textiles exports. The second position in the ranking was occupied by Italy ($297M), with a 10% share of total exports. It was followed by France, with a 5.9% share.

In Germany, technical textiles exports expanded at an average annual rate of +1.2% over the period from 2007-2018. The remaining exporting countries recorded the following average annual rates of exports growth: Italy (+1.1% per year) and France (-1.6% per year).

Export Prices by Country

The technical textiles export price in the European Union stood at $21 per kg in 2018, jumping by 12% against the previous year. Overall, the technical textiles export price, however, continues to indicate a slight downturn. The growth pace was the most rapid in 2018 when the export price increased by 12% year-to-year. Over the period under review, the export prices for textile products and articles for technical uses attained their peak figure at $23 per kg in 2008; however, from 2009 to 2018, export prices failed to regain their momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Austria ($36 per kg), while Spain ($13 per kg) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2018, technical textiles imports in the European Union amounted to 116K tonnes, dropping by -2.9% against the previous year. The total import volume increased at an average annual rate of +1.0% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The growth pace was the most rapid in 2010 when imports increased by 19% y-o-y. The volume of imports peaked at 120K tonnes in 2016; however, from 2017 to 2018, imports stood at a somewhat lower figure.

In value terms, technical textiles imports totaled $2.1B (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +1.2% over the period from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The pace of growth was the most pronounced in 2011 with an increase of 16% y-o-y. Over the period under review, technical textiles imports reached their maximum in 2018 and are expected to retain its growth in the near future.

Imports by Country

In 2018, Germany (21K tonnes), distantly followed by Italy (12K tonnes), France (11K tonnes), the Netherlands (10K tonnes), the UK (9.1K tonnes), Poland (7.5K tonnes), the Czech Republic (5.7K tonnes) and Spain (5.4K tonnes) represented the major importers of textile products and articles for technical uses, together creating 70% of total imports. The following importers – Belgium (4.5K tonnes), Romania (3.9K tonnes), Austria (3.1K tonnes) and Sweden (3K tonnes) – together made up 12% of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

In value terms, Germany ($497M) constitutes the largest market for imported textile products and articles for technical uses in the European Union, comprising 24% of total technical textiles imports. The second position in the ranking was occupied by France ($223M), with a 11% share of total imports. It was followed by the Netherlands, with a 8.9% share.

In Germany, technical textiles imports increased at an average annual rate of +1.3% over the period from 2007-2018. In the other countries, the average annual rates were as follows: France (+1.5% per year) and the Netherlands (+7.6% per year).

Import Prices by Country

The technical textiles import price in the European Union stood at $18 per kg in 2018, jumping by 9.9% against the previous year. Overall, the technical textiles import price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 an increase of 15% year-to-year. The level of import price peaked in 2018 and is expected to retain its growth in the near future.

Prices varied noticeably by the country of destination; the country with the highest price was Germany ($24 per kg), while Romania ($11 per kg) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Romania, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

DHL Supply Chain Recognized by Top Employers Institute

Contract logistics market leader DHL Supply Chain received multi-faceted recognition from the Top Employers Institute including praise for their outstanding human resources policy and taking the spot for Top Employer on the international stage in Spain, Portugal, the Netherlands, UK, Canada, USA, Brazil and China.

“We are delighted to be awarded as a Top Employer for the third year in a row. This certification demonstrates that our efforts to create a sustainable HR strategy at DHL Supply Chain are paying off,” said Rob Rosenberg, Global Head of Human Resources at DHL Supply Chain. “Especially in the field of contract logistics, a motivated and well-trained workforce is key to offering customers optimal solutions. Which is why we take a proactive and multi-layered approach to both attracting and retaining employees. And this approach is proving successful, as shown by this renewed certification from the Top Employers Institute.”

This year’s Top Employer certification established the third year in a row the company has been recognized. Additionally, the company received high recognition for Leadership Development, Career & Succession Management and Learning & Development.

“Talent is the most critical piece in meeting our customers’ ever-changing needs and exceeding their expectations,” said Tim Sprosty, Senior Vice President of Human Resources at DHL Supply Chain North America. “That is why we place such a strong emphasis on creating a quality work environment that enables our employees’ success and promotes operational excellence. It is central to our culture, and we’re proud to accept this recognition for our continued efforts.”

Source: DHL

Standardization Strategy impacting Flower Supply Chain Prepares for Second Trial Phase

Europe’s fourth largest air cargo hub, Amsterdam Airport Schiphol teams up with the Holland Flower Alliance to support efforts surrounding the Ideal Flowerbox initiative. The goal of the initiative is to create a system of standardization and space efficiencies in shipping flowers, benefiting the flower supply chain in the region.

“The shipment of flowers is an important activity at Amsterdam Airport Schiphol, so we are very supportive of the Ideal Flowerbox project and we are excited about the initial trial results showing how the box can improve sustainability in the supply chain,” said Roos Bakker, Director Business Development, Amsterdam Airport Schiphol.

“We actively encourage innovation within the air cargo community, and we believe that collaboration with the HFA partners will continue to yield positive results for all stakeholders involved in the shipment of flowers.”

After a successful first trial run led by Royal FloraHolland’s Senior Consultant Christo van der Meer,  a second phase for the trial period is in the works and could lead to future implementation of the strategy on additional flower routes in 2019.

“The initial trial was very successful with a 15 per cent increase of weight on airline pallets and boxes on the Nairobi to Amsterdam route, which demonstrates the value of collaboration between Amsterdam Airport Schiphol, KLM Cargo, and Royal FloraHolland,” said van der Meer.

“The results show that with the use of the Ideal Flowerbox we are able to optimise the aircraft’s load factor, which is beneficial for a sustainable and efficient operation.”

Source: Schiphol

Europe Takes the Lead in 2019 E-commerce Index

UNCTAD’s B2C E-commerce index for 2018 confirms The Netherlands as the most prepared country in the world for e-commerce with Singapore and Switzerland in second and third. The United Kingdom ranked fourth on the index, but placed as the highest B2C spending per shopper in Europe and the world’s highest proportion of B2C revenues to GDP.

This year, The Netherlands beat Luxembourg  – previously ranking among some of the highest but due to its poor postal reliability score dropped out of the top ten list. Postal reliability is one of the key factors taken into consideration for ranking and overall score.

“The Netherlands has high values for most indicators, particularly in secure servers – a proxy for e-commerce shops – where it is top-ranked among all 151 countries included in the index,” Shamika N. Sirimanne, director of UNCTAD’s division on technology and logistics, said. “The country also has the second highest proportion of online shoppers in the world – 76% of the population aged 15 and older.”

This year’s index provided information related to improving measurement efforts:

“The 2018 UNCTAD B2C E-commerce Index, which measures an economy’s preparedness to support online shopping, has expanded its coverage to include 151 economies, up seven from the 2017 edition. The index consists of four indicators that are highly related to online shopping and for which there is wide country coverage (box 1).

“The release of new account ownership data from the World Bank’s 2017 Global Findex survey has increased the number of countries included and allows for an estimation of account data for the intervening years since the last survey in 2014,” (UNCTAD).

 

Source: UNCTAD

Apple, Starbucks Targeted by EU Tax Authorities

Los Angeles, CA – European Commission (EC) competition regulators are investigating tax breaks for Apple Inc. and Starbucks Corp. in Ireland and The Netherlands, respectively, that it suspects are in violation of European Union tax codes.

The investigation comes as governments around the world are cracking down on tax-avoidance and evasion by scrutinizing the financial practices of a growing number of multi-national companies such as Hewlett-Packard, Google, Microsoft, McDonalds, and Amazon.com.

According to the EC, tax avoidance and evasion by foreign companies operating in the EU amounts to more than $1.4 trillion a year.

The EC reportedly began gathering information about accords between Apple and Ireland, and Starbucks and the Netherlands last year following reports that some companies received “significant” tax reductions.

“We need to fight against aggressive tax planning,” said Joaquin Almunia, the EU’s competition commissioner at a recent press conference in Brussels, adding that it is “still too soon to anticipate” possible recovery if the EU finds the tax rulings to be illegal.”

Apple Responds

While Starbuck’s didn’t respond to requests for a statement on the EC investigation, California-based Apple issued a response saying that the company “pays every euro of every tax that we owe. We have received no selective treatment from Irish officials. Apple is subject to the same tax laws as scores of other international companies doing business in Ireland.”

Ireland’s Finance Ministry said it is “confident that there is no state-aid-rule breach” and will “defend all aspects vigorously.”

The EC said that it is “concerned that current arrangements could underestimate the taxable profit and grant an advantage to the respective companies by allowing them to pay less tax.”

Apple, the company said in a public statement, “pays every euro of every tax that we owe. We have received no selective treatment from Irish officials. Apple is subject to the same tax laws as scores of other international companies doing business in Ireland.”

Ireland’s Finance Ministry said it is “confident that there is no state-aid-rule breach” and will “defend all aspects vigorously.” The EU probe targets “a very technical tax issue in a specific case” and covers 2004 to 2014, it said in an e-mailed statement.

 “Patent Boxes” Under the Microscope

Widening the scope of its investigation, the EC is also seeking details from Belgium, Spain, France, Hungary, Luxembourg, The Netherlands, the UK, Cyprus and Malta on so-called “patent boxes,”  a mechanism that allows tax reductions on income derived from patents.

The EC said in March it has indications that the programs mainly benefit highly mobile businesses without triggering significant additional research and development.

The UK, for example, patent box phases in a lower corporation tax on some profits from patented inventions and certain other innovations, according to the EC website.

Changes to EU tax rules require unanimous approval among the bloc’s 28-member nations,  rendering major changes to individual county’s tax regulations difficult, if not impossible as even the most enthusiastic members of the bloc cling to their right to set corporate tax rates.

The opening of an in-depth investigation by the commission allows third parties, as well as the three countries concerned, an opportunity to submit comments.

06/16/2014