Chequered time for industry

The report shows many firms are expanding retail operations in a bid to increase their worldwide market share.

There are currently 450 textile companies in Scotland, directly employing more than 17,000 people with an annual turnover of �1bn.

Most of the firms are in the Borders with further pockets in East Ayrshire, Angus and Renfrewshire.

The industry has been hit by a number of staff cutbacks and foreign takeover bids in recent times.

SCOTTISH TEXTILE INDUSTRY SURVEY MAIN FINDINGS 40% of companies increased turnover in past year 32% of firms said turnover remained the same 90% of companies remain Scottish owned Biggest export markets in USA, France, Germany, Italy and Japan One third of companies made new capital investments in past year Nearly half of companies increased levels of productivity

However, the new survey - commissioned by Scottish Enterprise's textiles team - claims companies are increasingly positive about the future.

It said that in 2007 nearly half of the textile firms surveyed had their own retail operations - compared with just 25% two years ago.

The main concentration of the industry remains in the Scottish Borders, with its emphasis switching more and more to higher value produce.

"As competition continues to intensify within the global textiles sector, Scottish textiles companies have recognised the need to build their own brand presence and sell directly to consumers," said Kirsty Scott, head of the textiles team.

She said increasing numbers of companies were moving their focus from just manufacturing towards design, wholesale and retail.

Signs of hope

"This will give them the competitive advantage required to continue to adapt their business to meet global demands," she added.

The chairman of the Scottish Textiles Industry Association, James Sugden, said there were signs of hope in the survey.

"This year's survey shows some very promising trends and there seems to be a growing optimism within the wider textiles community," he said.

"However, we need to continue to increase levels of productivity, innovation and collaboration as well as continue to raise the international profile of Scottish textiles as a whole."