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Apparel Industry in Macedonia, Conditions and Challenges

Abstract

Around 395 registered companies in Macedonia work with apparel manufacturing. Even though they are spread across the whole country, the largest number of companies – 119 (or 30%) are located in the East region. This industrial activity employs 31,742 employees or 6.1% of Macedonia’s working population. Compared to 2012, a 4.8% decrease is noted. The cumulative manufacturing index for 2014/2015 is 107, and the manufacturing index for 2015 (compared to 2010) is 136. Textile production participates with 11.7% in the total export of the country, and with 6.9% in the import. The textile industry participates with 15.5% in the total gross domestic product, while in the industrial it participates with 21.8%. The textile industry participates in the total export with 26%, and employees 28% of the total number of employees in the industry. 93% of the apparel production is organized according to the CMT system for the foreign markets, mostly the European countries. The added value is low because 92-42% of the production is Lon, which brings small profits, even though the companies manufacture for quite famous worldwide brands. Statistic data shows there is a necessity for changing the manufacturing structure towards products with higher added value, i.e. products for internal use. For this, hiring larger domestic capacities and resources is required

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