The industry and its challenges
The industry includes 3 sub-industries:
- Textile manufacturing. Spinning, weaving and finishing of textiles
- Production of outerwear and underwear
- Production and processing of leather products and related accessories such as: luggage, bags, saddles and shoes.
The industry currently contributes about 0.2% to GDP, compared to about 3-4% in the middle of the last century. The industry’s share of GDP continues to shrink as a result of the growth in high-tech industries.
The history of the industry
The industry is considered one of the traditional industries in Israel, which developed during the 20th century. Over the years, facing increasing competition from the international market, especially from the Far East, has led to significant changes in the industry. Many factories have closed, and salaries have frozen, which has led to a decline in profitability.
The impact of globalization
Globalization has changed the face of the industry. Production processes that were previously local have moved to countries where labor costs are lower. As a result, Israeli factories have had to face tough competition, which has led to the closure of many of them.
The future of the industry
Despite the challenges, there are areas where the industry can develop. For example, producing high-quality textiles, local brands, and working with renewable materials can present new opportunities.
Important indicators
| 2005 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
| Industry GDP | From NIS | 2.4 | 2.4 | 2.5 | 2.7 | 2.7 | |
| Share in GDP | % | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | |
| Sales | From NIS | 7.3 | 7.3 | 8.0 | 9.1 | 9.2 | |
| export | From NIS | 4.5 | |||||
| Employed | Thousands | 11.5 | 11.5 | 12 | 11 | 11 | |
| Average monthly salary | Thousands | 8.5-9.5 | 8.5-9.5 | 9-10 | 9-10 | 9-10 | |
| GDP of the economy | From NIS | 1,166 | 1,224 | 1,330 | 1,406 |
The data presented in the table shows the changes that have occurred in the industry over the years. A continuous decline in the industry’s share of GDP can be seen, which indicates the many challenges it faces.
New opportunities
Despite the challenges, there are areas where the industry can develop. For example, producing high-quality textiles, local brands, and working with renewable materials can present new opportunities.
Technological innovation
Technological innovation can improve the efficiency of production processes, reduce costs, and improve product quality. Investing in new technologies can be a significant competitive advantage.
summary
In conclusion, the industry faces many challenges, but it also has many opportunities for development. In order to succeed, innovation, investment in technology, and the development of quality products that can compete in the international market are necessary.
As part of efforts to revive the industry, collaborations with technology companies, developing customized products, and using advanced materials that can improve product quality and reduce production costs should also be considered.
The challenges of the 21st century
In the 21st century, the industry faces new challenges such as climate change, stricter environmental requirements, and the need to adapt to rapid changes in technology and consumer needs. In order to succeed, flexible strategies are needed that can respond to these changes.
Climate change
Climate change is affecting the availability of raw materials, manufacturing processes, and consumer demand for green products. Companies in the industry need to adopt sustainable approaches and develop products that reduce environmental impact.
Changing consumer demands
Consumers today are increasingly looking for personalized, high-quality, and sustainable products. To meet these demands, companies need to be flexible and develop products that provide added value.
summary
In conclusion, the industry is at a crossroads. On the one hand, it faces significant challenges, but on the other, it has many opportunities for development. In order to succeed, innovation, investment in technology, and the development of quality products that can compete in the international market are needed.
The future of the industry depends on its ability to adapt to changes and take advantage of the new opportunities offered by the 21st century.
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