How the textile industry is finding new development opportunities under global economic challenges
How the industrial relocation helps textile businesses all over the world find new development opportunities in global economic crisis
Business challenges in 2022
Every year life becomes more and more expensive. Even though we don’t want to say otherwise, it is very costly to deploy and maintain large production facilities, and running a business today is undergoing difficult times. The manufacturing relocation will be a very good solution for keeping your business.
The world is still recovering from the effects of the coronavirus, and there are other problems ahead that need to be solved as soon as possible. Among the main issues of the global economy are rising electricity and energy prices and inflation rates, which have a negative impact on doing stable business in general. Today European businesses need to find new anti-crisis management tools to cope with challenges of a rapidly changing market to stand up to global shocks.
For example, inflation in Poland has been rising almost continuously for the past 16 months, and electricity bills are growing exponentially. In the UK, inflation has reached a 41-year maximum of 11.1%. A similar situation is observed in Germany, where running an energy-intensive manufacturing including cotton, linen, knitwear, textile fibers, threads and yarns preparation and production, fiber and textile finishing, apparel industry, and other energy-intensive production facilities, simply becomes unprofitable, and company owners must look for new ways to save their business. As a result, production facilities relocation is on the minds of company owners more often.
Economic trends and perspectives for 2023
Just imagine, according to the Allianz Trade research many experts predict, that the number of insolvent companies in the world will increase by 10 percent in 2022 and 19 percent in 2023! That means one out of every five companies will declare bankruptcy, people will lose their jobs, and the world will lack the products and tools it needs to run its normal life. To avoid this, you can make manufacturing relocation to Uzbekistan.
Different kinds of companies suffer from these problems, including apparel and textile industries in Europe (Italy, Great Britain, Germany, Spain, Portugal, Poland). This is the textile industry, knitwear, fabric production and tailoring, because they are energy intensive because of the machines used in their work. But without them, large factories would not be able to exist at all.
Best anti-crisis solutions for businesses in 2023
However, there is a way out even from such a seemingly difficult and hopeless situation. This is the business relocation to the regions of Central Asia. The Hugo Boss brand (Germany) is a striking example of such business relocation to Uzbekistan. Together with a local company “Fazman Textile”, a new textile factory was opened in 2022, where will be produced Hugo Boss suits and pants as well as men’s, women’s and children’s clothes.
Industrial relocation to Uzbekistan
Taking advantage of the situation, the world-famous clothing brand Hugo Boss became one of the first world leaders concerned about business relocation to the prospective region. The cost of Hugo Boss brand manufacturing relocation to Uzbekistan is about 40 million dollars, and at the same time the factory will provide more than 3 thousand workplaces. The company has installed modern equipment from Turkey and Germany to provide quality sewing. The Hugo Boss management plans to produce about 1 million finished products a year, and the export volume is about 15 million dollars. Over the past 10 months only, Uzbek textile exports have exceeded 2.6 billion dollars (10.7% more). By 2025, exports are expected to triple to $7 billion. Cotton yarn as well as finished knitwear and garments are particularly popular.
Why do different brands decide to relocate business to Uzbekistan? There are several reasons:
- cheap and skilled workers (unlike China),
- affordable electric power,
- resources, raw material base,
- the support of the government,
- the presence of already built plants and factories, etc.
This is one of the most favorable regions for business relocation. Front Desk Helpers will help you organize all relocation stages, from transport and document preparation to internal and external processes, management and recruitment. Our Managers will take and coordinate automation of new production, using advanced approaches of American business partnership and organization of anti-crisis solutions for industry in Europe. Using this opportunity, you will not only be able to save your business, but also to multiply it and reach a new level of development.
Stable price policy in the energy structure allows making long-term plans on doing business in Uzbekistan, and the state support of such projects ensures legitimacy of all processes on business relocation.
Front Desk Helpers manufacturing relocation services
It does not matter which country your business is located in; we will help you organize business relocation from Europe, the turnkey launch of modern, automated production, set management connections, and establish logistical communications. This will be a solid base for further development of your business. We have an extensive network of partners in Uzbekistan among companies and government agencies, and a staff of professional coordinators and managers to help you find your way in a new place. As trusted US partner, FDH will help you with all stages of your business relocation for any manufacturing size to deploy your new subsidiary enterprise and production capacity in Uzbekistan.
Join those who have already made the right decision and trusted the Front Desk Helpers team to relocate their business!
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