Jewelry Exports from Israel Showed No Signs of Growth In 2005

Israeli jewelry makers exported $380 million worth of jewelry in 2005, a 1.5 percent decrease compared to the $385 million exported in 2004. According to the Ministry of Industry, Trade & Employment the Israeli jewelry industry is facing stiff competition from countries with lower labor costs.

The struggling Israeli jewelry trade registered a decrease in exports at a time of increased gold prices. Coupled with the cost of labor, the local industry finds it increasingly difficult to maintain a competitive edge that will allow viable pricing, says Sigal Shidlovsky, who oversees the jewelry industry at the ministry.

According to data collected by Shidlovsky, one area of fast growth in exports was fashion jewelry, increasing in value by nearly 50 percent to $35 million during the year, up from $24 million in 2004 and $20 million in 2003. Fifty seven percent of the items were exported to the U.S.

Fifty one percent of total jewelry exports were gold jewelry, 34 percent were diamond and semi-precious jewelry, 9 percent fashion jewelry and 6 percent silver jewelry. Sixty nine percent of these goods were exported to the U.S.

The category that suffered the sharpest decline in exports was diamond jewelry, falling back 8 percent to $129 million from $140 million in 2004.