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In Portugal’s name I render homage today to the entrepreneurs of the Footwear industry upon their contribution towards the Portuguese economy and tor the Country’s international prominence.

Included in the scope of the Routes to a Dynamic Economy that I have carried out, I dedicate this day to the Footwear industry.

This is a sector that stands out in our industrial landscape due to the vision of its entrepreneurs and to their capability for the building and assertion of a unique space in the global market.

In difficult times, the footwear sector was able to replace plaints with proactive and strategic initiatives adequate to growth, investing in research and innovation. Individualism was substituted by sharing and competitive cooperation and, instead of a passive commercial routine, embarked on a concerted and assertive presence in the international markets.

We are thus viewing an industry that was able to outset a dynamic, sustained and pragmatic model of integrated development, a model that deserves being recognized and assessed as an example to be followed by other areas of national industry and entrepreneurism.

The Portuguese footwear industry has lived through a very deep change in the last 30 years. From a traditional intensive labour and low added value sector, it changed into one of the most dynamic, modern and expansionist industries in the Portuguese economy, exporting approximately 95% of its production.

In the mid-90s, with the entrance of China in the World Trade Organization (WTO), the world of footwear became radically changed. Asia’s relative weight in footwear production went, in less than 20 years, from 45% to 87% of the total. China alone increased its share in world footwear production to 61%, as compared to 17% two decades previously.

Europe, which in the end of the 80s ensured 34% of world production, shrank to only 3% of the international total.

The manufacturers and the main multinational brands transferred their mass and larger sized production runs to Asian countries, attracted by the lower production costs and by the increase in competitiveness that the margins so obtained achieved in the markets.

The Portuguese footwear entrepreneurs faced this threat tranquilly and with courage and overcame it with intelligence and determination.

They invested in products with greater added values in order to escape price competition. The development of new technologies allowed increasing productivity and competitiveness through the improvement in flexibility and in the companies’ capability for response.

Our footwear industry became the world’s most modern in the manufacture of medium to high range fashion articles. It conquered worldwide reputation through a creative, sophisticated and differentiating image campaign.
The innovation network of the Footwear Cluster was responsible for the launching of many new unique materials in the world. The incorporation of these advanced materials in the manufacture of high performance footwear, complied with the strictest criteria as to quality, comfort, safety and environmental protection.

The footwear sector comprises today more than 1700 companies, employing more than 41,000 people and exports 95% of its production to 150 countries. In 2013 exports exceeded, for the first time, the 1,700 million euro barrier, grew by 8% and contributed with more than 1,300 million euros to the trade balance. Portuguese footwear has the second highest average comparative price in the world, as a result of its internationally conquered reputation for quality, sophistication and creativity.

Exports are growing in practically all the markets. Exports to countries outside the European Union more than doubled in the last four years. Significant growths were achieved in markets such as China, USA, Japan or Russia.

The success of the footwear industry is a factor of confidence in the Country’s future, which is joined by other recently disclosed positive indicators.

To start with the significant increase in employment shown in third quarter figures and the 1% growth in production, made known today by the National Statistics Institute, to which is joined the disclosure by an English think tank, of the prosperity index that places Norway at the head, Switzerland as 2nd and Portugal as 27th in 146 countries that represent 96% of the world population. In the face of the negativism that is daily disseminated by the media and in several speeches, it is fairly comforting to know that only 26 countries in the world enjoy greater prosperity than Portugal, in the midst of the more than 190 existing countries.

Ladies and Gentlemen,

What I equally wish to stress here, is the recognition owed to the footwear industry entrepreneurs, to its Sectorial Association, APICCAPS, and to the Footwear Technological Centre, for the joint work they have been carrying out, responsible for the success achieved and for the benefits it has brought to the Country.

In July 2013, the APCCAPS Officers presented to me their new strategic plan / 2020, a result of months of joint reasoning by a wide team of technicians and entrepreneurs who had also fully discussed it with bodies from the scientific and technological system and from the universities.

I noted with great interest that the sector does not want to rest on its laurels and that it continues ambitiously exploring new paths towards modernization, sustained, as until now, on the sector’s cohesion, on the share of knowledge and innovation, in intelligent entrepreneurial partnerships, in competence, in professionalism, in investment in new talents and in internationalization.

And I have just received the information that APICCAPS and the Federation of Trade Unions that represents the footwear industry’s employees have reached agreement over the review of the respective Labour Contract.

APICCAPS considered that this was the right time for the industry to share with its employees the good results it has achieved.

The agreement which I’m told will be signed next week includes updating the payroll by 3.5%. In an area of the economy that has contributed so much for the reduction in unemployment, I can only congratulate entrepreneurs and employees for the agreement now reached.

These were the reasons why I decided to dedicate this whole day to the footwear sector and render it, on behalf of Portugal, the recognition, the praise and the tribute that it justly deserves.

The president of APICCAPS, Mr. Fortunato Frederico, to whom the footwear industry is so much in debt, was decorated in 2005 and APICCAPS itself in 2009. I took the decision to distinguish today other individualities that have stood out, by their own merit and which, in addition, embody the dynamism and the spirit of unity that rules in the National Footwear industry. Through them I render tribute to all the footwear manufacturers.

I thank you for your presence and to you all go my best wishes for the greatest personal and professional success.

Thank you.