Local factory workers are being replaced by foreign labor

Workers in the fason manufacturing industry are, for the most part, women with limited formal education and weak knowledge of technology and innovation. Over the past decade, the sector has become increasingly unattractive to young people due to low wages and long working hours in difficult conditions.

Companies state that the labor shortage is no longer a major issue, as a new wave of workers from Myanmar—earning no more than 500 euros per month—is performing very well.

For years now, factories have been hiring foreign workers, selecting those with stronger skills. Even though they cost 100–150 euros more per month than Albanian workers, they are still considered more cost-effective because they work longer hours and do not request frequent leave for family-related matters.

On the other hand, advancements in technology have reshaped production methods, creating a need for continuous training and adaptation to new processes. Digitalization is transforming the workplace, eliminating some jobs while creating new ones.

Part of this transformation is the Digi4Wearables project, coordinated by the Portuguese Footwear Technology Center (CTCP), which aims to improve digital skills and knowledge related to green and digital production within Albanian footwear companies.

The shift toward higher-value products requires a more skilled workforce and greater operational efficiency. Experts stress that targeted investment in education and vocational training, as well as closer collaboration between technical institutes, is essential.

In 2023, the textile and footwear industry employed 48.4 thousand workers, or 7% fewer than in 2019. However, data from employment indexes show an even sharper decline in 2024 and 2025.

Only 5% of production is fully integrated

The clothing and footwear manufacturing sector in our country estimates that only 5% of production currently operates with a fully integrated, closed-loop system.

One of the most notable examples is “DBS Group” in Tirana, an Italian-owned company that since 2014 has established two production units and is involved in every stage of the process—from material preparation, cutting, sewing, quality control, and packaging, all the way to the final product.

DBS is considered a fully integrated factory, employing over 600 people and benefiting from collaboration with the French giant “Decathlon Group,” for which it manufactures sportswear and accessories.

The company has invested in environmentally friendly technologies, using solar panels for energy production, carbon-fiber heating and cooling systems, and natural air recycling. These features make it a model of sustainable development within Albania’s fason industry.

Another example is the “Denim Factory Group,” which has implemented sustainable practices such as reducing water consumption in denim washing processes and using life-cycle analysis methods to minimize environmental impact. The factory has invested in advanced technologies and aims to strengthen its profile as a “Made in Albania” producer, moving from the classic “cut-make-trim” model (simple sewing for foreign brands) toward independent production under an Albanian label.

Similarly, Samwear Sh.p.k., one of the most modern companies in the fashion sector, uses digital sublimation printing technology, which enables highly precise designs with less waste, positioning it among the country’s first producers investing in a fully closed production cycle.

According to a study by the Department of Textiles and Fashion at the Polytechnic University of Tirana, about 56% of surveyed companies stated that they aim to transition to a full production cycle, while another 35% plan to do so in the short term but are hindered by limited investment capacity and the lack of locally sourced raw materials.

However, shifting to such a model is a slow process requiring capital, technology, and a highly skilled workforce, as many companies still depend on imported materials from Italy or Turkey.

In essence, the factories that have managed to establish a closed-loop cycle represent a new direction for Albania's fason industry, which is attempting to move away from subcontracting for foreign brands and toward producing higher-value, locally branded products.

This transformation is essential for ensuring competitiveness, sustainable employment, and broader inclusion.

The vast majority of companies (around 95%) continue to operate under the traditional “cut-make-trim” (CMT) model, in which they only sew or prepare part of the product on behalf of foreign brands, while materials, design, and sales are managed abroad.

“KORÇA BOOM”