Portugal’s textile industry supplies to firms not just in Europe but also in the United States.

The industry has benefited from its flexibility and inexpensive labour along with a spirit of innovation focused on limiting damage to the environment.Portugal has the advantage of a workforce that remains competitive by offering quality products at reasonable prices.

Portugal’s textile sector has made a dramatic comeback.Shaken by competition from companies relocating to Asia for cheaper production costs, the sector lost between 2000 and 2015 nearly 1,00,000 jobs out of a total of 2,35,000 recorded at the start of the era.

Exports of textile products from Portugal, which find their largest markets in Spain and France, hit last year record sales, 16 percent higher than the previous year. This success owes not only to Portugal’s low production costs but also to the sector’s capacity to adapt to the market. Following the pandemic, which led to delays in deliveries, the industry prefers to use supply chains that are closer to home. Companies are finding solutions and partners to reconcile sustainable development with competitiveness. However, the sharp gas and electricity price increases caused by the war in Ukraine penalise a sector heavily dependent on energy.