According to the responses to the survey conducted by ATP in the last half of July, in the period between April and July more than half of the companies in the sector had a drop in turnover of more than 30%. Expectations for the year as a whole are not much better: 46% of companies believe they will have a drop above 30%.
Regarding the level of employment for 2020, and despite the measures defined by the Government, half of the companies surveyed believe that they will have to reduce the number of employees, with about ¼ of the companies estimating that this reduction is greater than 10%.
Due to the great volatility that characterizes the current moment, expectations regarding the recovery are very diffuse and uncertain: about 80% of the respondents estimate a recovery below 60% for the month of September.
This survey also revealed that about half of the companies used or were using Simplified Lay off and Credit Lines, with the end of Simplified Lay-off being one of the main concerns of companies, taking into account the current scenario and the weak prospects of recovery.
In measured terms, companies ask for more speed, simplification and less bureaucracy in support measures. In the absence of the Simplified Lay off, they ask for a support mechanism for companies with activity breaks or billing above 20%; more incentives for investment in the industry in areas such as modernization and internationalization, but also faster payments by Portugal 2020, increased participation in investment, increased incentive to non-repayable funds, faster approval of submitted applications, extension of deadlines for implementation of investment projects; in terms of taxes, companies request a reduction, among others, of TSU and IRC, especially for the most affected companies; it is essential to reinforce credit lines as well as an export credit insurance policy adapted to reality.
Mário Jorge Machado
President of ATP
Vila Nova de Famalicão, August 7, 2020
“ATP - Associação Têxtil e Roupas de Portugal” is a National Employers Association, which gathers around 500 companies, which provide about 35 thousand jobs and almost 3,000 million euros in revenue, two thirds of which value intended for export markets.
According to the responses to the survey conducted by ATP in the last half of July, in the period between April and July more than half of the companies in the sector had a drop in turnover of more than 30%. Expectations for the year as a whole are not much better: 46% of companies believe they will have a drop above 30%.
