Concern over the sector’s future was openly expressed in Elbasan during a meeting held by the Albanian Manufacturing Association with garment industry entrepreneurs. Industry representatives said the sector was being weighed down by several factors at once: shrinking exports, high production costs, a labor shortage and the depreciation of the euro.
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The figures point to a worrying reality. The manufacturing industry, which once employed around 65,000 people, now has approximately 40,000 workers, while nearly 150 garment production units have ceased operations in recent years.
According to Florian Zekja, chairman of the Albanian Manufacturing Association, the sector has lost around 25,000 jobs, while exports have suffered a significant decline in value.
“We are in an extremely difficult situation. We have fallen from 65,000 employees to 40,000. Exports have also declined, from €1.4 billion in 2023 to €960 million last year,” Zekja said.
One of the strongest blows to businesses is coming from the euro exchange rate. Currency fluctuations are making production planning difficult and, according to entrepreneurs, are also discouraging foreign companies from signing contracts with Albanian partners.
To cope with high costs and competition in international markets, businesses are seeking support to modernize their equipment. They say automation would increase productivity and help preserve jobs.
“One form of assistance the government should provide is investment in new machinery and technology. For the 2027 Fiscal Package, it would be valuable for us to be eligible for grants,” said Agron Hyseni, an entrepreneur in Gramsh.
Another concern raised by businesses is the tax burden on wages. Entrepreneurs believe that reducing this burden would create room for higher wages and make the sector more attractive to workers.
To halt the sector’s decline, the Albanian Manufacturing Association is calling for measures to be included in the 2027 Fiscal Package. Six proposals have been put forward: reducing labor costs, increasing tax depreciation, lowering customs duties on raw materials, providing incentives for reinvested profits, and establishing a special fund for technology and automation.
The manufacturing sector, which for years has ranked among the country’s leading employers and exporters, is going through a difficult period. Entrepreneurs are calling for concrete measures to curb the closure of garment factories and protect jobs.
