Complex supplier situation
The Spanish Association of Footwear Components Companies (AEC) reported that geopolitical tensions, wars, and the pandemic have led to increases in the prices of raw materials, transportation, and energy, coupled with the growth of prices.
The resulting economic recession and reduced consumption caused around a 25% contraction in both the industrial and commercial level of the industry from January 2020 to nearly the end of 2023.
Macroeconomic factors are accompanied by national-level variables. Faced with massive imports of Asian products and decreased consumption, profit margins have decreased. Additionally, the overall production downturn has forced suppliers to seek new sectors or international clients.
Companies are also affected by the lack of skilled labor and high absenteeism levels.