14/11/2016 – Germany’s Heimtex association — auf Deutsch lesen
The upturn in the German economy has continued throughout this year
"In its economic forecast for 2016, market researcher ifo Institute anticipates a 1.8 percent growth in GDP in real terms," reports Germany’s Heimtex association.
This growth is largely being fuelled by domestic demand. Driven by favourable lending conditions and a lack of alternative investment opportunities, demand in the construction sector remains high. "This would normally suggest that the German home textiles industry would perform well in such a climate. However, this does not ring true in all sectors or product segments within the home textiles industry whose performance is, in fact, extremely varied."
In the first half of 2016 tufted goods, for example, watched sales plummet by 12.2 percent. This slide is primarily the result of dwindling domestic demand in the low to mid-price brackets and cannot be seen as a reflection of the entire floor covering sector. By contrast, Heimtex reveals that higher quality goods in the tufting, weaving and needle felted segments, also including other applications (e.g. acoustics) and/or the hospitality, architecture and interior design fields, are all performing extremely well. Textile floor coverings have been competing fiercely with hard floor coverings in the private and public realms for several years now. German manufacturers of textile floor coverings are responding by offering a broader spectrum of products. Accordingly, classical fitted carpets are being complemented by modular textile floor coverings and measured rugs, mats and runners. Exports must be seen in terms of individual products, companies and countries. Business with Europe is largely stable, whereas the Russian market has dried up. Equally, the dynamism that once characterised Eastern Europe and Asia appears to be waning. Read more on our German Website.