While Italy remains the leading country in the EU for textile production, Germany has gained second place thanks to its many industries working in this sector. The fashion industry is one of the country’s most essential industries, weighing heavily on the gross domestic product.
With an annual turnover of €32 billion, over 1400 companies, and 120 thousand employees, the garment industry remains a massive sector in the country (Textile+Mode, 2024).
Germany is not home to a main central textile hub but rather to a series of manufacturers spread throughout its territories, from small towns to big cities. Despite its prominent position in the textile industry, it’s important to stress that Germany is now experiencing a period of stagnation in which growth seems to have stopped (Konjunkturbericht, 2024). The latest report published by the Confederation of the German Textile and Fashion Industry continues to show a negative picture, with the lack of orders being a main issue for the industry. But what are some of the central problems the country is now facing?
The Main Challenges Faced by the German Textile Sector
The German garment manufacturing industry is facing several problems at the moment, first of all, the lack of qualified workers. This is, unfortunately, an issue concerning several other European countries and different manufacturing sectors. A study conducted by the European Commission showed how, in 2022, 42.8% of industries in Germany reported challenges in finding skilled employees to hire. This was the highest percentage ever recorded. Specifically concerning the textile industry, German manufacturers complained about the lack of specialized workers, especially from countries where some of the most luxurious clothing brands in the world are located, such as Italy and France.
One of the main factors contributing to this situation is the retirement of the baby boomer generation and the lack of training paths that can attract the youths to this sector.
This country also seems to struggle with digitalization and sustainability. Industries in Germany are now asked to adapt to the new strict EU laws promoting sustainability, with some companies expressing their concerns about the many manufacturing changes that need to be implemented in their supply chain to continue production legally within the continent (Fashion Earth Alliance, 2023).
German Textile Sector and Sustainability: The Green Button
Despite the current challenges faced by the German apparel industry, this country has successfully managed to promote sustainable practices in its textile production. For instance, in September 2019, the world's first government-sustainable textile label, known as the Green Button, was introduced in the country.
In this regard, Micheal Windfuhr, the Deputy Director of the German Institute for Human Rights, commented: 'Textile processing companies and clothing retailers have an obligation to ensure that human rights standards are met during production. This basic concept has been an important development in recent years. (...) The system behind the Green Button offers an opportunity to make significant progress in the implementation of environmental and social standards in global supply chains."
But what does the Green Button stand for? Companies that gained this certification for their product, more than 60 as of July 2023, have successfully managed to improve their working and social conditions and implement sustainable practices to protect the environment. This initiative seems to have been a success, with a survey involving 1000 participants showing how roughly 44% of the German population was aware of this label. On top of this, over 260 million Green Button items have been sold from the label's launch to mid-2022 (BMZ, 2023).
German’s Textile Industry Through History: French Competition, Jewish Heritage, and Innovation
While in some areas of Germany, such as the city of Aachen, the textile industry has been thriving for centuries, with the first successful industries working in this sector dating back to the Middle Ages, most German regions experienced a true economic boom only following the Industrial Revolution. Despite this, however, the German apparel industry continued to rely heavily on manual equipment for years.
This became a concerning problem in 1871 when Germany annexed Alsace-Lorraise, a small French area known for its textile production. It soon became obvious that the local factories could not compete with the fast pace typical of French factories. However, this benefitted the German textile industry in the long run, pushing local manufacturers to improve their production, leading to quick growth. For instance, weaving production tripled in only forty years between 1870 and 1910, while the spinning sector doubled in twenty, from 1870 to 1890.
In the 1880s, Germany, particularly the Association of South German Cotton Industrialists, started to finance the German East Africa Corporation, pushing cotton production in African colonies. This was done to purchase cotton used for local production at cheap prices. This continued until the early 20th century when the German apparel sector started to collapse due to the rise of the National Socialist Party, the Nazi Party.
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