TEXTILESMARKET ANALYSIS
Demand weakens but
brighter future beckons
As higher energy costs, inflation
and the economic downturn
pose challenges to global trade,
European businesses are gaining
from the strong dollar.
71recyclinginternational.com | November/December | 2022
The high cost of energy, rampant infla-
tion rates and the effect of currency
exchange rates are all common themes
being experienced by businesses
across the global used textiles trade. In
Europe, businesses are reporting that
collections of clothing are down across
the board, with some suggesting that
this is by as much as one third. With
energy prices and inflation soaring,
householders are doing what they can
to keep their costs down.
Keeping warm and buying food take
priority over buying the latest fashion-
able item and it therefore makes
sense that they are keeping their
clothing for longer. Hence fewer items
are being put in the clothing/textile
collection banks and so on.
This downturn in collection rates has
the effect of pushing up overall collec-
tion costs, which is also been com-
pounded by the increased wages that
businesses now have to pay in order
to attract and keep staff. But many are
still reporting chronic staff shortages.
With virtually full employment in many
countries, people naturally want to
find the best jobs with good wages. It
is incredibly difficult for our sector to
compete in this area.
DOLLAR BOOST
However, one area that has been
reported as being a positive develop-
ment in recent months by European
businesses is not shared by their
American counterparts. The high
value of the US dollar which has seen
it reach parity with the Euro and
almost parity with British Pound
means that used clothing from
European countries has become rela-
tively more affordable.
Whilst European businesses are saying
that demand from their key African
and Eastern European markets is quite
firm at the moment, businesses in
North America are reporting a drop in
demand from Central and South
America with whom they do a lot of
trade, because of the increased costs
for the importers.
Some suppliers in North America are
reportedly holding onto their product
for longer, even though the winter
season is approaching, in the hope
that buyers in Central and South
America will then agree to maintain
the higher prices they need to charge.
North Americans are also reporting
that, in some cases, their buyers are
looking to switch to supplies of cloth-
ing that have come from Europe
because they are more affordable.
With regards to the market for recy-
cling grades going into Pakistan and
India, this is remaining firm with
demand for wipers high, although
delays and the cost of freight are a
constant concern.
EXCITING TIMES
Despite the continuing complexities
that the used textiles sector faces, it is
important it keeps an eye on the
future, particularly in relation to the
establishment of new policies and leg-
islative drivers that are set to overhaul
our industry.
As one European trader put it, we are
now in exciting times and we have the
chance to establish a new circular tex-
tile re-use and recycling economy with
the right support and infrastructure in
place to deliver this within Europe.
We need to work with our partners
from across the clothing and textiles
supply chain to deliver this and to
work in a positive and pro-active man-
ner to achieve these goals.
A U T H O R Alan Wheeler
71_matextiles.indd 71 09-11-2022 11:52
