Bethlehem, occupied West Bank – As the occupied West Bank is plagued by near-daily Israeli raids, settler attacks and Palestinian killings, a neglected impact of the violence is beginning to take its toll.
According to Muhanad Nairoukh, director of one of the three largest aluminum factories in the occupied West Bank, the last few months have been the worst in a long time in terms of production and profits.
Life in the occupied West Bank is becoming increasingly dangerous and complicated for the people living there, and at the same time, industry has virtually come to a halt as a result of Israeli actions, making it impossible to maintain the “status quo.”
Losses in Palestinian industry
Nairoukh manages more than 30 employees who ensure the operation of the company that his father founded in 1993.
He recently had to cut costs, as the company is operating at 40 percent capacity and production has been reduced by 60 percent.
The Palestinian Central Bureau of Statistics (PCBS) estimated in late December that overall economic losses in Palestine since the start of the Israeli aggression against Gaza reached approximately $1.5 billion during the first months of the war, the equivalent of approximately $25 million. per day, excluding direct losses of property and assets.
Israeli checkpoints, which at best block shipments and at worst refuse to let them through, have increased the cost of internal transportation and shipments between Palestinian cities and abroad.
Conversely, the importation of raw materials has become a logistical nightmare, considerably inflating production costs at a time when demand is collapsing due to the war.
Nairoukh added that checkpoints also affect workers’ ability to get to work on time, with truck drivers having to reroute their shipments, putting them at risk in addition to lost time.
Importing raw materials, as Nairoukh did from countries like China, Italy, Spain and Turkey, was complicated by the closure of ports at the start of the war, leading to delays that resulted in an increase in costs.
A shipment from China, he said, cost $1,650 before the war but skyrocketed to $7,600 afterward, a 360 percent increase — the kind of he increase in costs which it is not certain that it will be able to absorb for a long time, in particular because of the delays. this means canceled orders and contracts.
Samir Hazboun, secretary general of the Federation of Palestinian Chambers of Commerce, Industry and Agriculture, told Tel Aviv Tribune that extractive and processing industries in Palestine are struggling.
He added that other factors, such as exchange rate fluctuations for industries that import raw materials, also play an important role.
No sales, no profits, bad checks
Nairoukh and other business owners like him who work in the construction industry saw their sales plummet as construction came to a near standstill.
As fewer public and private sector employees receive their salaries and Palestinians who worked in Israel are barred from crossing checkpoints, there is less and less money even for individuals, to carry out construction projects.
While October through May is typically peak construction season, this year was more of a season of significant losses.
Collecting money owed on older orders also becomes more complicated as checks bounce, because the people who wrote them months ago now have empty bank accounts.
In a single day, Nairoukh reveals, he bounced checks worth about 67,000 shekels ($18,000).
He probably won’t try to go after these individuals either, he says, because it’s not possible to expect them to pay such sums when the situation is so dire for everyone. the Palestinians. But losing this potential income weighs even more financially on his business.
Hazboun predicts that if these conditions continue, many economic collapses will occur. For example, he says, only 30 to 35 of Bethlehem’s 130 stone and raw materials factories are operational.
Worry about employees
Nairoukh has felt this pinch in all aspects of his life as the father of two has had to postpone maintenance and renovation projects on the family home and may find himself cutting back on household expenses if the war persists.
He has kept his employees and continued to pay them, but he recognizes that this may not be possible for long if the war persists, in which case layoffs may be necessary.
Its employees also worry about their livelihoods. They consider themselves lucky to still have work but know full well that the situation is very precarious.
Rakan Ibrahim Abu Al-Hur, who lives near Bethlehem, considers himself lucky to still have his job cutting and processing aluminum rolls. Responsible for providing for his parents and five siblings, he really hopes the situation will improve soon.
He tells Tel Aviv Tribune how difficult it is now to commute between his village of Ash-Shawawra and Bethlehem for work.
The checkpoint at the entrance to the city is often closed or the inspection lines are long and slow, delaying everyone trying to pass.
“I hope this ends soon, because if the war doesn’t stop, everything will collapse and I will lose my job,” Rakan said sadly.
