The ceramic industry of Castellón, the largest tile product in Europehas experienced a severe crisis in recent years marked by the increase in gas prices, first, and the collapse of demand in Europe, the primary destination for its exports, which account for more than 70% of sales, later.
Despite this, heCeramic companies have managed to cushion the collapse in production in terms of employment in the last two years, according to a report on the economic impact of the sector prepared by PwC.
Between 2021 and 2023 this industry, which concentrates more than 90% of its activity in Castellón, suffered a drop in production of 32.9%, up to 394 million square meters. However, The cut in its workforce was more limited, and stood at 13.1%, with 14,934 workers at the end of last year, according to the analysis. Even in terms of company personnel costs, despite the lower number in 2023, personnel spending grew by 2.9% compared to 2021.
Furthermore, according to PwC, despite the strong loss of manufactured volume and sales in that period, the tile increased its weight in Spain’s industrial GDP from 2.4% in 2021 to 3% in 2023. Specifically, the consultancy estimates the total impact of the ceramic tile and flooring sector on the economy amounted to 6,522 million euros.
22% of the Valencian industrial GDP
An effect that is magnified if its impact at the regional and provincial levels is considered. The weight of ceramics represents 22.2% of the industrial GDP of the Valencian Community (two points more than in 2021) and 32.2% of the total GDP of the province of Castellón (almost ten points more than in 2021). Along these lines, the report highlights that for every euro of direct GDP generated by the sector, an additional 3.5 euros were generated in total GDP.
The president of the sectoral association Ascer, Vicente Nomdedeu, highlighted in his presentation that the study shows “the mark that the cost crisis has left on the sector, which led to a demand crisis” and shows “the need to strengthen our position in an increasingly competitive global environment given the impact generated by the sector”.
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