Energy costs, security of supply and the future of the European textile industry
Since 2020, the world of work, the political situation and, of course, the economic environment have changed for many people. Covid, the attack on Ukraine, de-coupling between the USA and China and much more have shaped the world and our lives since then. This has been accompanied by rising inflation, in particular energy costs have exploded, and in Germany there were even concerns about a gas supply shortage. Within a very short space of time, many employees moved to home offices and have remained there to this day. Schools and universities were only partially able to keep up and some companies were overwhelmed by these challenges. But what does this have to do with the textile industry?
The EU's textile and clothing industry currently consists of around 160,000 companies that employ around 1.5 million people. Added to this are the indirect jobs of suppliers (chemicals, mechanical engineering, etc.), universities, service providers and many more. The future of the European textile industry is strongly influenced by energy costs. High and extremely volatile energy costs affect their competitiveness, in addition to expensive and complex regulatory requirements for companies under the EU's Green Deal.
As entrepreneurs, we think in terms of solutions, not problems. Especially in times of crisis and under pressure, solutions emerge that might otherwise not have been created. However, investments require a reliable political environment that, if not promotes entrepreneurship, at least does not block it!
For us as a mechanical engineering company, physical proximity to customers and universities, with whom we develop creative solutions, is extremely important. We are also convinced of the importance of medium-sized industry for secure jobs and prosperity. European textile companies and their environment create jobs and products that we need every day, both in clothing and in many other areas such as medicine, transportation, security, etc.
While Fridays for Future became more and more popular, climate opponents blocked the streets, energy costs exploded and the media spread fear about the future, we tried to find out how much of these extreme scenarios are scientifically proven. This gave rise to the idea of founding 4Pi-Solutions: a non-profit association that aims to provide impartial information about the scientific facts on climate change and the energy transition. The abbreviation stands for a comprehensive view of our planet: we are committed to realistically achievable climate targets that give mankind sufficient time to reduce CO2 emissions and limit global warming. At the same time, we show the economy and politics opportunities to remain competitive in Europe in the future.
It is important that industry optimizes its production processes and implements sustainable energy solutions worldwide. These must be accompanied by a global CO2 price, because we can only achieve something if we work towards this goal worldwide. Otherwise, companies will relocate to countries with lower energy costs and jobs in the textile industry will move from Europe to other regions. However, as there is currently no CO2 pricing in these regions and energy costs are very low, production takes place under worse conditions for people and nature. In extreme cases, even more CO2 is emitted and more resources are needed. In some areas, this is already happening today via platforms such as "Temu" or "Shein", which import to Europe at extremely low prices, thereby avoiding import taxes and making a new trend known as "ultra fast fashion". All of the EU's well-conceived ideas are being turned into the absolute opposite.
So if we still want to keep a functioning textile industry going in Europe in the future, the following is essential:
- Political and legal framework conditions in the interests of all market participants in the EU
- Stable and affordable energy
- Good education in schools, universities and companies for lifelong learning
- A desire for performance must be defined positively again
- A policy that is based on facts and expertise and is prepared to critically scrutinize past decisions
With our association, we want to inform interested parties, explain the background, allay fears and also encourage the younger generation to play an active and positive role. Instead of blockades: develop new ideas, fight for good education, found start-ups and promote new ideas. You can read our demands regarding the energy transition and climate change on our website www.4PI-Solutions.com.
To do this, we need your support. Become a member and support us! We want to make a difference - for our prosperity and the future of the European textile industry!