Survey shows 34% of exporters experienced drop in exports in first quarter of 2013
Photo: Avishag Shaar-Yashuv
Drop in exports continues in Q1
Decline reflects Israelis exporters' difficulties dealing with intense competition in global markets, forcing them to continue dropping their prices
Regression in industrial activity continues: Thirty-four percent of Israeli exporters experienced a drop in exports in the first quarter of 2013, according to a survey conducted by the Economics Division of the Manufacturers Association of Israel.
The decline in exports in terms of foreign currency increased during the first quarter. This decline reflects exporters' difficulties dealing with the intense competition in the world's markets, which forced them to continue dropping their prices.
In addition, 48% see an erosion in export profitability due to the shekel's appreciation against the US dollar.
Manufacturing Industry
Reuters
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The manufacturers further noted a decline in the number of orders, difficulties penetrating new markets and low global prices.
"The industrial world is experiencing excess production in light of the slowdown in demands," says Ruby Ginal, the Manufacturers Association's VP economics and regulation. "Israeli exporters are fighting to maintain customers, and unfortunately manufacturers have been reporting drops in exports and a freeze in hiring employees for seven quarters in a row."
Ginal adds that "due to the high level of competitiveness in international markets, government are working to strengthen local industries, while in Israel the opposite is happening: Quotas and positions are being decreased and protection against unfair trade is being neutralized."
As for employment, the first quarter saw relative stability in this field: Twenty-four percent of manufacturers reported employee dismissals, while 26% said they had hired new workers.
According to manufacturers' estimates, the freeze in manpower will continue in the second quarter as well. This reflects an expectation of employee dismissals in the paper, printing, textile and clothing industries, in addition to further dismissals in the food and chemistry industries. The decline is expected to be compensated by the hiring of new workers in the electronics industry.
