Albania’s garment manufacturing industry is facing increasingly serious difficulties. From around 65,000 employees previously working in the manufacturing sector, the workforce has now fallen to approximately 40,000, while nearly 150 garment factories have shut down in recent years.
The alarm was raised in Elbasan during a meeting between the Albanian Manufacturing Association and business owners operating in the sector. Industry representatives say that declining exports, production costs, labour shortages and the depreciation of the euro are putting increasing pressure on businesses.
According to Florian Zekja, chairman of the Albanian Manufacturing Association, the sector has lost around 25,000 jobs, while the value of exports has fallen significantly.
“We are at a point where we are facing enormous difficulties. We have gone from 65,000 to 40,000 employees. Exports have also declined, from 1.4 billion euros in 2023 to 960 million euros last year,” Zekja said.
For business owners, one of the biggest challenges comes from the euro exchange rate. Currency fluctuations are making production planning difficult and, according to businesses, are also affecting foreign companies’ interest in cooperating with Albania.
Faced with high costs and competition in foreign markets, business owners are calling for support to modernise machinery. They argue that automation would increase productivity and help preserve jobs.
“One of the forms of assistance the government should provide is investment in new machinery and technology. It would be beneficial to receive support through grants under the 2027 Fiscal Package,” said Agron Hyseni, a businessman from Gramsh.
Another concern for businesses is the tax burden on wages. According to business owners, reducing this burden would create opportunities to increase salaries and make the sector more attractive to workers.
To halt the sector’s decline, the Albanian Manufacturing Association is calling for measures to be included in the 2027 Fiscal Package. Six proposals are on the table, including reducing labour costs, increasing tax depreciation allowances, lowering customs duties on raw materials, providing tax relief on reinvested profits, and establishing a dedicated fund for technology and automation.
The manufacturing sector, which has long been one of Albania’s main employers and exporters, is going through a difficult period. Business owners are calling for concrete measures to prevent further factory closures and protect jobs.
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