textile

 

 

 

 

 

 

With a long, rich tradition in clothing and textiles, this sector is the second largest export industry in North Macedonia. The competitive export advantages include short delivery periods, flexibility of delivery size together with exceptional value for money. In addition to garments, there is manufacturing potential for cotton thread and fabric, wool yarn, fabric and knitted fabric. The country offers potential not only for new foreign direct investment, but also for outsourcing, strategic alliances and joint ventures with many local well established companies.

Textile Industry

Textile and clothing industry has a great contribution to the Macedonian economy. Cloth­ing industry, today, is one of the locomotive sectors of the Macedonian economy in terms of industrial production, employments, and export earnings.

According to national Classification of Activity (NCA), Macedonian textile companies are di­vided in two groups:

Spinning and fabric production account for 1.5% of industrial production, and ready-made products account for 11.32%.

Macedonian textile industry has a long tradition. Textile companies are located all over the country. Every large municipality has a company connected with the garment industry, but there are 11 large regions or areas:

Availability of Workforce

North Macedonia offers a cost competitive environment for textile manufacturing. With nearly half of the population under 30 years of age, companies operating out of North Macedonia can rely on an ample source of trained and qualified professionals to contribute to the growth of their business.

Labor Costs North Macedonia has a sustainable supply of young, highly skilled labor at a competitive cost. The average salary in 2018 was €580 per month across all sectors, while in textile manufacturing in December 2018 the average net salary was €386.

Number of Employees

Number of employees by year Manufacture of textiles Manufacture of wearing apparel; dressing and dyeing of fur TOTAL:
2006 5314 40384 45 698
2007 5335 36063 41 398
2008 5017 36898 41 915
2009 3456 31548 35 004
2010 2685 38459 41 144
2011 2650 38850 41 500
2012 5885 33147 39 092
2013 2737 36611 39 348
2014 4928 32913 37 841
2015 5135 31742 36 877
2016 5286 30919 36 205
2017 6027 30243 36 270

Source: State Statistical Office of the Republic of North Macedonia, 2018

 

Business entities

The total number of production capacities – 800.

In terms of the number of employees and company size, the companies can be divided in 4 groups:

  1. More than 250 employees - 2.6% of the companies with 38.5% of the employees
  2. From 50 to 249 employees - 9.6% of the companies with 39.2% of the employees
  3. From 10 to 49 employees - 18.9% of the companies with 16.1% of the employees
  4. From 1 to 9 employees - 68.9% of the companies with 6.2% of the employees

Advantages of Macedonian Textile and Clothing Industry

One of the biggest competitive advantages that the Macedonian textile industry possesses is its close proximity to Western Europe, a large and consumer market.

Export of Textile Products (€ M)

The garment industry in North Macedonia exports mainly to EU countries. 93% of the production is organ­ized by the CM or CMT (Cut, Make& Trim) system for foreign markets. Full production and own brand production is partly exported and the rest is placed in the domestic market.

The competitive export advantages of the Macedonian apparel industry are:

Export by sections in the textile industry

(in EUR million)

 

 

 

2014

 

 

2015

 

 

2016

 

 

2017

Finished products

 

Clothes

 

 

509.16

 

481.88

 

473.99

 

465.06

Footwear

 

 

58.93

 

 

57.93

 

54.10

 

57.27

 

Semi-products

and materials

 

Leather and fur products

 

 

1.45

 

1.12

 

1.17

 

2.54

Textile yarns

 

 

58.52

 

60.54

 

70.67

 

71.29