A decade of change

Abstract

The Czech Republic is a relatively small producer and consumer of textile products in world trade but the country's textile industry represents a significant segment of business. The article charts the structural changes that the Czech industry has faced since the 1950's. The first of which began in 1990 with the first stage of closure of ineffective plants and dismissal of workers. 1993-96 saw the formation of a number of small- to medium-sized companies and the partial restructuring of big, formerly state- owned firms. The decline in production and employee numbers moderated in the course of this period. By 1997 and through to 2000, firms with less than 500 employees represented around two-thirds of the total number of textile companies, but their share of turnover was no more than one-third of the total. At the end of the 1990's the Czech textile industry retains 25% of its original size and it has become considerably decentralised in a large number of small- to medium-sized firms. However, it does not incorporate technologically exacting production processes. The decisive share of production is carried out by some 20 larger companies. A section of the independent small- to medium-sized firms are thus dependent on forthcoming developments in this group or closer cooperation with foreign partners. A forecast for the next decade is provided.