Industry insights and figures Manufacture of textiles

Operating margin
10.1 %
2020
Companies
60000
2020

Key insights Manufacture of textiles

Actionable signals from current data
EU27_2020
Average operating result: 10.1% of revenue (2020).
Personnel costs: 20.6% of revenue (2020).
Number of companies: 60,000 (2020).

Sector outlook Manufacture of textiles

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Manufacture of textiles sector across EU27 average comprises approximately 60,000 enterprises employing about 488,095 people and generating €67.3 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a healthy operating margin of 10.1% of revenue in 2020, the sector reports €6.8 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Manufacture of textiles cost mix is reasonably balanced: cost of revenue at 69.4%, personnel at 20.6% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2014 to 2020 the operating margin moved from 8.6% to 10.1% (+1.5 percentage points), an encouraging upward trajectory. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Manufacture of textiles

Sector average % of revenue
Log in to see the full 6-year history
Cost structure for Manufacture of textiles in EU27_2020, 2011 to 2020, expressed as percentage of revenue.
Revenue / costs 2014 2015 2016 2017 2018 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 20.0% 20.0% 20.0% 20.0% 20.6%
Gross wages 14.3% 15.0% 15.7% 15.5% 16.0%
Social and pension contributions 4.6% 4.4% 4.7% 4.5% 4.5%
Other costs 70.0% 70.4% 69.3%
Gross operating surplus (EBITDA) 8.6% 12.0% 10.0% 12.0% 9.7% 10.1%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 6 years

Sector average % of revenue
Average
10.4%
Peak
12%
2015
Low
8.57%
2014
Latest
10.1%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Manufacture of textiles (2020)

Recommended next steps

Based on the latest available data for Manufacture of textiles