A Difficult Time for Central Portugal's Textile Industry: Depression or Recovery on the Road to International Production?

The textile and clothing industry of Central Portugal is an important part of the country's economy, with the potential to contribute to a successful manufacturing export drive. The industry must, however, modernize in order to withstand the internationalization of production, pressure from the newly-industrializing countries, and competition from the European Community after 1992. Portugal has the advantage of very low wage levels and a privileged location within the EC, but many of her small family-owned textile and clothing firms face problems of physical isolation, inadequate finance, inferior quality and design, few international links and a lack of awareness of international issues. Nevertheless, through official promotion of Portuguese exports, a switch to branded fashion wear, improved skills, better management, easier credit and the use of European Community funds, the textile and clothing industry could open up a new regional development path in Portugal.