Contrary to the loss in productivity in the Bulgarian economy discerned by local and international analytical outfits, the textiles sector has been testing the reverse trend.
In the first six months of the year, the textiles sector has raised per-worker productivity by 20 per cent on the year, a pick-up without parallel in Bulgaria's other industries, chairperson of the Bulgarian Association of Apparel and Textile Producers and Exporters (BAATE), Valeria Zhekova, said in an interview with Dnevnik business daily.
The reason behind the increase was a general hike in the number of orders. It is no less attributable to the qualitative shift in the type of orders, namely from sewing of clothing elements on request to production of ready-made apparel. The shift has not only spearheaded efficiency, but has also seen the value of orders and, respectively, the sector zooming.

Even though Zhekova refrained from citing first-half figures for the sector, she projected the sector's value would be higher than in the same period a year ago.

Export statistics can cast light on sectoral value as the industry is primarily export-orientated. According to Bulgaria's National Statistics Institute, textile companies exported 1.8 billion euro worth of apparel last year. This represents 20 per cent of foreign currency revenues of the country.

The general pick-up has also had a beneficial impact on salary levels in the country. It also contributed to the wipe-out of the seasonality problem in the country to year-round work.

Zhekova said that in the first six months of 2007, the size of wages had gone up by 17 per cent on the year. The increase was both in response to the general boom in the sector and was intended to offset the enduring labour force outflow. The increase has gone to the benefit of 165 000 people, the workforce size in the sector.

The shortage of workforce is among the sector's most acute problems and it should be paid due attention because the situation has worsened in the first half of the year, according to Zhekova. While last year the outflow was one per cent, in the first six months of the year this rose to 2.5 per cent.

Zhekova said that resolving the problem was essential if Bulgaria wanted to take advantage of foreign textile makers' continuing migration to cheaper destinations eastwards. Zhekova said that a slew of foreign textile players had already opted out from production in the Czech Republic, Poland and even Romania, and the trend was set to be sustained.