ETSA Analyses Cost Index of National Associations

As the textile services industry grapples with the mounting challenges of rising costs, ETSA has stepped up to provide an insightful analysis. In preparation for the National Associations' meeting in Bern in April of 2023, ETSA examined the cost indexes of several ETSA National Associations, shedding light on the prevailing trends. This comprehensive analysis brings forth a wealth of information on the significant increases in the cost of doing business, particularly with respect to energy and labour expenses. If you're eager to gain a deeper understanding of these developments, the full report is linked below. The report is a privilege of ETSA Membership, so you'll have to log in to view it.

EurpETSA's analysis reveals a noteworthy pattern of cost escalation across the textile service industry in the last two years. Energy costs have witnessed a considerable surge, alongside significant rises in labour along with smaller rises in the cost of material, transport, and resource expenses. These findings underscore the multifaceted nature of the challenges faced by businesses in this sector. However, it is important to note that while costs have increased overall, there are notable variations among different national associations. ETSA's analysis offers valuable insights into these discrepancies and explores the underlying factors contributing to this divergent effect.

In pursuit of a comprehensive understanding, ETSA delved into key explanatory variables that have significantly impacted the textile service industry. Inflation, triggered by increased central spending in response to the COVID-19 pandemic, has played a pivotal role in the rising cost structure. The analysis uncovers the cascading effects of inflation on currency devaluation and subsequent demands for higher wages. Furthermore, the energy crisis, triggered by the Russian invasion of Ukraine, has had a profound impact on energy prices, posing additional challenges for businesses reliant on fuel resources.

ETSA's analysis of the cost indexes in the textile service industry offers a crucial lens through which to understand the prevailing challenges faced by businesses across Europe. By focusing on energy and labour, the analysis paints a comprehensive picture of the evolving cost landscape. If you'd like to provide feedback or insight on the report, please contact ETSA Secretariat.


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