Ruyi Group Amicably Negotiates With Israeli Men’s Clothing Manufacturer Bagir To Resolve Mutual Concerns

JINING, China — February 28, 2020 —  Israeli men’s clothing manufacturer Bagir Group plans to sue Ruyi Group because Ruyi has not delivered a remaining payment of about $10 million.

The Bagir Group, an Israel-based menswear group founded in 1961, produces 3 million garments a year. On November 23, 2017, Ruyi Group announced its intention to acquire 54 percent of Bagir Group Ltd. for $16.5 million to become Bagir’s controlling shareholder. Ruyi Group was then undertaking global expansion and acquiring well-known fashion brands to build a Chinese version of global fashion industry group. The acquisition of Bagir is to transfer part of the processing and manufacturing capacity and improve the global layout.

Bagir Group has stated that Ruyi Group’s acquisition provided Bagir with important business opportunities to expand Bagir’s suit pants production in Ethiopia and establish the production of jacket products. Stimulated by the acquisition news, Bagir Group’s stock rose sharply.

Speaking of the postponed deal, Ruyi Group spokesman Chris Chen explained that the acquisition plan was originally scheduled to be completed by the end of 2018 but had to be postponed to May 2019, as the Chinese government was taking more time to review the deal. Since 2019, the textile and apparel industry has faced great uncertainty under the impact of the Sino-US trade war. Simultaneously, the operation of Bagir Group in recent years has not improved as promised before the acquisition, and its Ethiopian factory has not attained the production goal by 2018. Ruyi Group and Bagir Group had negotiated to delay the settlement day.

Chris Chen said, “Ruyi Group is conducting friendly negotiations with Bagir to properly resolve the acquisition issue and ensure that both parties’ benefits are fully protected.”

Since 2010, Ruyi Group has successively acquired international brands such as Japan’s Renown Group, British fashion brand Aquascutum, French luxury fashion brand SMCP Group and Hong Kong’s Trinity Group. These acquisitions have demonstrated Ruyi’s determination to enter the fashion field from manufacturing. Even though the acquisition of Bagir has encountered some setbacks, Ruyi still firmly believes in the transformation to the high-end fashion industry. The follow-up issues are still under negotiation.

Posted March 2, 2020

Source: Ruyi Group

Picanol To Exhibit At Egypt’s AFRO STITCH & TEX

YPRES, Belgium — March 2, 2020 — Picanol will be present at AFRO STITCH & TEX from March 5-8, 2020, at the booth of its agent for the region, Nobeltex (Booth B1, Hall 5). This trade fair is dedicated to textile processing technologies and this is the tenth time that the event will be held in Egypt. AFRO STITCH & TEX will feature two complementary trade fairs: the first one relates to garment processing technologies (this runs from February 27 to March 1), while the second trade fair will focus on textile processing technologies, one of which will be weaving (this will run from March 5-8). Egypt is home to the only fully vertically integrated textiles industry in the Middle East, with the entire production process – from the cultivation of cotton to the production of yarns, fabrics, and ready-made garments – being carried out on a domestic level. The textile sector plays a central role in the Egyptian economy.

Picanol is a worldwide manufacturer of airjet and rapier weaving machines, and it is active in all of the different segments of the textile industry: i.e. apparel, home, and technical textiles. Its current product program includes the all-new OmniPlus-i airjet machine, which was launched last year. This machine features a brand-new insertion system and it sets a new benchmark in airjet weaving by combining the highest levels of performance with best-in-class air consumption and power consumption. The OptiMax-i and the GTMax-i 3.0 cover a complete range of applications and they are generally recognized as being the most versatile and best-performing rapier machines on the market. With the TERRYplus Summum and TerryMax-i machines, Picanol is the only premium weaving machine manufacturer able to offer both airjet and rapier technology for the weaving of terry fabrics. Customers can count on a highly professional service team, with local presence in all textile segments and a high-performing aftermarket team that supplies spare parts within the shortest lead-times.

“The positive and fruitful relationship between Picanol and the Egyptian market is long-standing and it will certainly continue into the future in line with our ’Let’s grow together’ slogan! We are looking forward to meeting our Egyptian customers, as well as customers from other African countries, in order to share information regarding the latest technology offered by Picanol,” explained Bruno Caffieri (Picanol Area Sales Manager).

Posted March 2, 2020

Source: Picanol

Automotive Textile Manufacturer TESCA Announces The Acquisition Of Willy SCHMITZ And Its Respective Business Units In Monchengladbach And Oberndorf, Germany


PARIS/MONCHENGLADBACH, Germany — March 2, 2020 — TESCA and Willy SCHMITZ announce that they have closed a transaction whereby TESCA is acquiring the business of Willy SCHMITZ and its operations, located in Germany.
 TESCA, headquartered in Paris, is a major supplier of automotive fabrics, value added textile parts and seating components. TESCA employs 3,500 people and operates 22 facilities globally.

Willy SCHMITZ, headquartered in Monchengladbach, Germany, is a major supplier of fabrics to the German automotive manufacturers, but also to other industries, including via its affiliated company OGUS. Willy SCHMITZ employs 150 people and operates in two facilities in Germany. “The TESCA and Willy SCHMITZ businesses are very complementary in terms of customer interface and geography”, said Carl de Freitas, TESCA CEO. “Merging our activities will provide a broader more efficient platform to support our customers globally.”

“TESCA global footprint is an ideal asset to enable Willy SCHMITZ to support the needs of our historic customers with our products beyond their traditional markets”, said Markus Schmitz, owner and President of Willy SCHMITZ.
 Financial terms of the transaction were not disclosed.

The TESCA Group, whose textile origins date back to 1836, is a world leader in the creation, design and manufacture of automotive textiles, materials and seat components. Owned by private investors, the Group has 3,500 employees in 22 locations and 16 countries, in Europe, North Africa, Russia, Asia, Latin and North America.

The group holds a significant number of patents for the design and manufacture of seat components such as headrests, armrests, seat upholstery, padding, and smart materials.
In 2019, it generated sales of about 250 million euros.

Willy SCHMITZ is a textile company founded in 1897, its activity is spread over two sites in Germany, one in Monchengladbach and the other in Oberndorf.

It now has 150 employees with a turnover of around 35 million euros.

Willy Schmitz is an essential textile supplier of the German car manufacturers, like VW, Mercedes, BMW, Audi or Volvo and the company is present at iconic manufacturers such as Porsche and Aston Martin.

Posted March 2, 2020

Source: TESCA Group

U.S. Manufacturing Sector Grew In February — PMI® at 50.1%; GDP Growing at 2.1%; February 2020

TEMPE, Ariz.— March 2, 2020 — Economic activity in the manufacturing sector grew in February, and the overall economy grew for the 130th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The February PMI® registered 50.1 percent, down 0.8 percentage point from the January reading of 50.9 percent. The New Orders Index registered 49.8 percent, a decrease of 2.2 percentage points from the January reading of 52 percent. The Production Index registered 50.3 percent, down 4 percentage points compared to the January reading of 54.3 percent. The Backlog of Orders Index registered 50.3 percent, an increase of 4.6 percentage points compared to the January reading of 45.7 percent. The Employment Index registered 46.9 percent, an increase of 0.3 percentage point from the January reading of 46.6 percent. The Supplier Deliveries Index registered 57.3 percent, up 4.4 percentage points from the January reading of 52.9 percent. The Inventories Index registered 46.5 percent, 2.3 percentage points lower than the January reading of 48.8 percent. The Prices Index registered 45.9 percent, down 7.4 percentage points as compared to the January reading of 53.3 percent. The New Export Orders Index registered 51.2 percent, a decrease of 2.1 percentage points as compared to the January reading of 53.3 percent. The Imports Index registered 42.6 percent, an 8.7-percentage point decrease from the January reading of 51.3 percent.

“Comments from the panel were generally positive, with sentiment cautious compared to January. The PMI® remained in expansion territory, but at a weak level. Demand slumped, with (1) the New Orders Index contracting at a weak level, despite new export order expansion, (2) the Customers’ Inventories Index remaining at ‘too low’ status and (3) the Backlog of Orders Index expanding for the first time in several months, but at a slow rate. Consumption (measured by the Production and Employment indexes) contributed negatively (a combined 3.7-percentage point decrease) to the PMI® calculation. Inputs — expressed as supplier deliveries, inventories and imports — strengthened in February, due primarily to supplier deliveries expanding, offset partially by inventories declining. Despite imports contraction returning at a strong rate, inputs contributed positively to the PMI® calculation, a reversal from the previous month. (The Supplier Deliveries and Inventories indexes directly factor into the PMI®; the Imports Index does not.) Prices returned to contraction, at moderately strong levels.

“Global supply chains are impacting most, if not all, of the manufacturing industry sectors. Among the six big industry sectors, Food, Beverage & Tobacco Products remains the strongest, followed by Computer & Electronic Products. Petroleum & Coal Products is the weakest. Overall, sentiment this month is marginally positive regarding near-term growth,” says Fiore.

Of the 18 manufacturing industries, the 14 that reported growth in February — listed in order — are: Wood Products; Furniture & Related Products; Plastics & Rubber Products; Printing & Related Support Activities; Paper Products; Textile Mills; Primary Metals; Food, Beverage & Tobacco Products; Computer & Electronic Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Machinery; and Chemical Products. The three industries reporting contraction in February are: Petroleum & Coal Products; Transportation Equipment; and Nonmetallic Mineral Products.

What Respondents Are Saying

“There are always supply chain challenges with Lunar New Year shutdowns, and this year is no different. Coronavirus is wreaking havoc on the electronics industry. Companies are delayed in starting up production, which is resulting in longer lead times, constraints and increased pricing. It’s a mad dash to dual source stateside in case China isn’t back online soon.” (Computer & Electronic Products)

“January started out strong, but the effects of the virus in China [and] the continued grounding of the 737 Max have suppressed new orders. We are still expected to be flat to slightly up [year-over-year] for 2020 sales, based on those issues.” (Chemical Products)

“Layoffs are here.” (Transportation Equipment)

“Coronavirus and its impact on the supply chain: We will see some softness in demand, but also [experience] havoc on items sourced from China that may cause significant delays to production.” (Food, Beverage & Tobacco Products)

“Energy markets seem to be responding to a potential drop in demand that may be related to responses [to] the coronavirus.” (Petroleum & Coal Products)

“Coronavirus continues to be front and center as a major supply chain risk to our company. Access to information in China — from our supply base and customers — is slow to come by.” (Fabricated Metal Products)

“Sales continue to be strong, with the supply base able to support as required. The major concern is the China virus and what that crisis could affect in getting parts. The company is putting plans in place to source out locations, especially in the U.S., for parts.” (Machinery)

“Business continues to be strong. We had a little January slowdown, but February has been fantastic.” (Plastics & Rubber Products)

“We have seen an increase of sales for our products.” (Furniture & Related Products)

“Current favorable forecast to budget for first-quarter sales.” (Primary Metals)

MANUFACTURING AT A GLANCE

February 2020

Index Series 
IndexFeb Series 
IndexJan Percentage

Point

Change

Direction Rate of 
Change Trend* 
(Months)
PMI® 50.1 50.9 -0.8 Growing Slower 2
New Orders 49.8 52.0 -2.2 Contracting From Growing 1
Production 50.3 54.3 -4.0 Growing Slower 2
Employment 46.9 46.6 +0.3 Contracting Slower 7
Supplier Deliveries 57.3 52.9 +4.4 Slowing Faster 4
Inventories 46.5 48.8 -2.3 Contracting Faster 9
Customers’ Inventories 41.8 43.8 -2.0 Too Low Faster 41
Prices 45.9 53.3 -7.4 Decreasing From Increasing 1
Backlog of Orders 50.3 45.7 +4.6 Growing From Contracting 1
New Export Orders 51.2 53.3 -2.1 Growing Slower 2
Imports 42.6 51.3 -8.7 Contracting From Growing 1
OVERALL ECONOMY Growing Slower 130
Manufacturing Sector Growing Slower 2

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes.

*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY

Commodities Up in Price
Capacitors; Crude Oil* (2); Resistors; Steel — Hot Rolled* (4); and Steel Products.

Commodities Down in Price
Aluminum; Aluminum Products (2); Copper; Corrugate; Crude Oil*; Natural Gas (3); Polypropylene (4); Scrap; Steel — Hot Rolled*; and Steel — Stainless.

Commodities in Short Supply
None.

Note: The number of consecutive months the commodity is listed is indicated after each item.

*Indicates both up and down in price.

FEBRUARY 2020 MANUFACTURING INDEX SUMMARIES

PMI®

Manufacturing expanded in February, as the PMI® registered 50.1 percent, a 0.8-percentage point decrease from the January reading of 50.9 percent. “The PMI® expanded in February, but at a slower rate. Four of the big six industries expanded, at similar rates compared to January. Four of the  PMI®’s 10 subindexes recorded expansion, down from six the previous month,” says Fiore. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI® above 42.8 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the February PMI® indicates growth for the 130th consecutive month in the overall economy, and the second month of growth following five months of contraction in the manufacturing sector. “The past relationship between the PMI® and the overall economy indicates that the PMI® for February (50.1 percent) corresponds to a 2.1-percent increase in real gross domestic product (GDP) on an annualized basis,” says Fiore.

THE LAST 12 MONTHS

Month PMI® Month PMI®
Feb 2020 50.1 Aug 2019 48.8
Jan 2020 50.9 Jul 2019 51.3
Dec 2019 47.8 Jun 2019 51.6
Nov 2019 48.1 May 2019 52.3
Oct 2019 48.5 Apr 2019 53.4
Sep 2019 48.2 Mar 2019 54.6
Average for 12 months – 50.5

High – 54.6

Low – 47.8

 

New Orders

ISM®’s New Orders Index registered 49.8 percent in February, a decrease of 2.2 percentage points when compared to the 52 percent reported for January. This indicates that new orders contracted after growing in January. “Of the top six industry sectors, four expanded, with Computer & Electronic Products; Fabricated Metal Products; and Food, Beverage & Tobacco Products expanding respectably. Transportation Equipment and Petroleum & Coal Products continue to be challenged,” says Fiore. A New Orders Index above 52.5 percent, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders (in constant 2000 dollars).

Of the 18 manufacturing industries, 16 reported growth in new orders in February, in the following order: Wood Products; Paper Products; Printing & Related Support Activities; Primary Metals; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Textile Mills; Furniture & Related Products; Computer & Electronic Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Fabricated Metal Products; Machinery; Food, Beverage & Tobacco Products; and Chemical Products. The two industries reporting a decline in new orders in February are: Petroleum & Coal Products; and Transportation Equipment.

New Orders %Higher %Same %Lower Net Index
Feb 2020 28.8 49.1 22.0 +6.8 49.8
Jan 2020 24.8 54.4 20.8 +4.0 52.0
Dec 2019 18.6 51.2 30.2 -11.6 47.6
Nov 2019 20.5 48.3 31.2 -10.7 46.8

 

Production

ISM®’s Production Index registered 50.3 percent in February, 4 percentage points lower than the 54.3 percent reported for January, registering two months of growth following five consecutive months of contraction. “Two of six big industry sectors expanded, down from five in the previous month. Production was restricted due to disruptions in the supply chain across multiple industry sectors,” says Fiore. An index above 51.7 percent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures.

The 12 industries reporting growth in production during the month of February — listed in order — are: Wood Products; Paper Products; Printing & Related Support Activities; Furniture & Related Products; Plastics & Rubber Products; Primary Metals; Textile Mills; Miscellaneous Manufacturing; Fabricated Metal Products; Machinery; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products. The three industries reporting a decrease in production in February are: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; and Transportation Equipment.

Production %Higher %Same %Lower Net Index
Feb 2020 26.4 53.5 20.1 +6.3 50.3
Jan 2020 25.3 55.9 18.8 +6.5 54.3
Dec 2019 15.8 49.8 34.4 -18.6 44.8
Nov 2019 20.3 56.3 23.4 -3.1 48.0

 

Employment

ISM®’s Employment Index registered 46.9 percent in February, an increase of 0.3 percentage point compared to the January reading of 46.6 percent. “This is the seventh month of employment contraction, but at a slower rate compared to January. Among the six big industry sectors, two expanded and four contracted. Panelist comments were generally cautious regarding future employment potential,” says Fiore. An Employment Index above 50.8 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, three reported employment growth in February: Food, Beverage & Tobacco Products; Plastics & Rubber Products; and Computer & Electronic Products. The nine industries reporting a decrease in employment in February, in the following order, are: Petroleum & Coal Products; Paper Products; Primary Metals; Textile Mills; Transportation Equipment; Machinery; Miscellaneous Manufacturing; Fabricated Metal Products; and Chemical Products. Six industries reported no change in February compared to January.

Employment %Higher %Same %Lower Net Index
Feb 2020 11.7 69.1 19.2 -7.5 46.9
Jan 2020 11.7 66.0 22.3 -10.6 46.6
Dec 2019 11.5 63.7 24.8 -13.3 45.2
Nov 2019 13.9 64.9 21.2 -7.3 46.8

 

Supplier Deliveries†


The delivery performance of suppliers to manufacturing organizations was slower in February, as the Supplier Deliveries Index registered 57.3 percent. This is 4.4 percentage points higher than the 52.9 percent reported for January. “Suppliers continue to struggle to deliver, at a stronger rate compared to January. The index reached its highest level since November 2018, when it registered 61 percent. Lead times are generally stable. Concerns about current and ongoing reliable Asian supply dominated the comments from panelists,” says Fiore. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.

The 13 industries reporting slower supplier deliveries in February — listed in order — are: Textile Mills; Apparel, Leather & Allied Products; Computer & Electronic Products; Chemical Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Paper Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Transportation Equipment; Fabricated Metal Products; Food, Beverage & Tobacco Products; and Machinery. The only industry reporting faster supplier deliveries in February is Primary Metals.

Supplier Deliveries %Slower %Same %Faster Net Index
Feb 2020 20.3 74.0 5.7 +14.6 57.3
Jan 2020 16.8 72.3 10.9 +5.9 52.9
Dec 2019 11.5 81.4 7.0 +4.5 52.2
Nov 2019 11.3 80.8 8.0 +3.3 51.7

 

Inventories

The Inventories Index registered 46.5 percent in February, a 2.3-percentage point decrease from the 48.8 percent reported for January. “The index contracted for a ninth straight month at a faster rate, and reaching its lowest level since September 2019, when it registered 46.3 percent. Inventories are expected to grow as disruptions in the supply chain lead to inefficiencies in material conversion,” says Fiore. An Inventories Index greater than 44.3 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The five industries reporting higher inventories in February are: Furniture & Related Products; Wood Products; Primary Metals; Plastics & Rubber Products; and Food, Beverage & Tobacco Products. The nine industries reporting a decrease in inventories in February — listed in order — are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Chemical Products; Computer & Electronic Products; Transportation Equipment; Machinery; Miscellaneous Manufacturing; and Fabricated Metal Products.

Inventories %Higher %Same %Lower Net Index
Feb 2020 14.9 66.6 18.5 -3.6 46.5
Jan 2020 18.2 61.2 20.6 -2.4 48.8
Dec 2019 17.5 58.1 24.4 -6.9 49.2
Nov 2019 15.4 60.2 24.4 -9.0 47.2

 

Customers’ Inventories†


ISM®’s Customers’ Inventories Index registered 41.8 percent in February, which is 2 percentage points lower than the 43.8 percent reported for January, indicating that customers’ inventory levels were considered too low. “Customers’ inventories are too low for the 41st consecutive month and continue to move away from ‘about right’ territory. These inventories remain at a healthy level to support future production output,” says Fiore.

Of 18 industries, the only industry reporting higher customer inventories in February is Transportation Equipment. The 11 industries reporting customers’ inventories as too low during February — listed in order — are: Plastics & Rubber Products; Wood Products; Textile Mills; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Fabricated Metal Products; Paper Products; Chemical Products; Machinery; Primary Metals; and Food, Beverage & Tobacco Products. Six industries reported no change in customers’ inventories orders in February.

Customers’ Inventories % Reporting %Too High %About Right %Too Low Net Index
Feb 2020 76 6.6 70.4 23.0 -16.4 41.8
Jan 2020 77 10.1 67.5 22.4 -12.3 43.8
Dec 2019 79 8.8 64.7 26.5 -17.7 41.1
Nov 2019 76 9.7 70.6 19.7 -10.0 45.0

 

Prices†

The ISM® Prices Index registered 45.9 percent in February, a decrease of 7.4 percentage points from the January reading of 53.3 percent, indicating raw materials prices decreased after increasing for two consecutive months. “Prices contracted in February, driven primarily by steel, scrap steel, aluminum, natural gas, corrugate, copper and all basic manufacturing fundamentals,” says Fiore. A Prices Index above 52.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

The five industries reporting paying increased prices for raw materials in February are: Wood Products; Textile Mills; Computer & Electronic Products; Miscellaneous Manufacturing; and Fabricated Metal Products. The eight industries reporting a decrease in prices for raw materials in February — listed in order — are: Petroleum & Coal Products; Furniture & Related Products; Paper Products; Primary Metals; Plastics & Rubber Products; Machinery; Food, Beverage & Tobacco Products; and Transportation Equipment.

Prices %Higher %Same %Lower Net Index
Feb 2020 16.6 58.6 24.8 -8.2 45.9
Jan 2020 23.8 59.2 17.1 +6.7 53.3
Dec 2019 16.5 70.5 13.0 +3.5 51.7
Nov 2019 14.6 64.2 21.3 -6.7 46.7

 

Backlog of Orders†

ISM®’s Backlog of Orders Index registered 50.3 percent in February, 4.6 percentage points higher than the 45.7 percent reported in January, indicating order backlogs grew after contracting for nine consecutive months. “Backlogs entered expansion territory, a positive for the future months, but at weak levels. Backlog growth is supported by suppliers having trouble delivering materials to support production. The index recorded its strongest performance since April 2019, when it registered 53.9 percent. Three of the six big industry sectors’ backlogs contracted during the period, up from two the previous month,” says Fiore.

Eleven of the 18 industries reported growth in order backlogs in February, in the following order: Apparel, Leather & Allied Products; Textile Mills; Wood Products; Primary Metals; Paper Products; Furniture & Related Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Machinery; and Fabricated Metal Products. Four industries reported lower order backlogs in February: Petroleum & Coal Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; and Chemical Products.

Backlog of Orders % Reporting %Higher %Same %Lower Net Index
Feb 2020 88 21.8 57.0 21.3 +0.5 50.3
Jan 2020 88 17.1 57.2 25.6 -8.5 45.7
Dec 2019 89 12.6 61.4 26.0 -13.4 43.3
Nov 2019 90 16.2 53.7 30.1 -13.9 43.0

 

New Export Orders†


ISM®’s New Export Orders Index registered 51.2 percent in February, a decrease of 2.1 percentage points compared to the January reading of 53.3 percent. This is the second consecutive month of growth. “New export orders remained in expansion territory, but at weaker levels compared to the prior month. Three of the six big industry sectors expanded during the period, up from two the previous month. Many respondents reported that their operations were impacted by the coronavirus outbreak,” said Fiore.

The eight industries reporting growth in new export orders in February, in the following order, are: Wood Products; Paper Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Fabricated Metal Products; Transportation Equipment; and Machinery. The four industries reporting a decrease in new export orders in February are: Nonmetallic Mineral Products; Plastics & Rubber Products; Chemical Products; and Miscellaneous Manufacturing.

New Export Orders % Reporting %Higher %Same %Lower Net Index
Feb 2020 78 14.8 72.9 12.3 +2.5 51.2
Jan 2020 77 15.4 75.9 8.8 +6.6 53.3
Dec 2019 79 11.3 72.2 16.6 -5.3 47.3
Nov 2019 77 11.0 73.9 15.1 -4.1 47.9

 

Imports†

ISM®’s Imports Index registered 42.6 percent in February, a decrease of 8.7 percentage points when compared to the 51.3 percent reported for January. This indicates that imports contracted after growing for one month. “Imports returned to contraction territory, with the index recording its weakest performance since May 2009, when it recorded 38.5 percent. Respondents noted the combined effects of the Lunar New Year as well as the coronavirus. Lower imports will continue as the effects of the virus are better understood,” says Fiore.

The five industries reporting growth in imports in February are: Wood Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Furniture & Related Products; and Plastics & Rubber Products. The 10 industries reporting a decrease in imports in February — in the following order — are: Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Primary Metals; Petroleum & Coal Products; Fabricated Metal Products; Transportation Equipment; Machinery; Computer & Electronic Products; Chemical Products; and Food, Beverage & Tobacco Products.

Imports % Reporting %Higher %Same %Lower Net Index
Feb 2020 85 12.2 60.8 27.0 -14.8 42.6
Jan 2020 84 13.6 75.4 11.0 +2.6 51.3
Dec 2019 85 13.3 71.0 15.7 -2.4 48.8
Nov 2019 82 10.3 76.1 13.6 -3.3 48.3

 

The Supplier Deliveries, Customers’ Inventories, Prices, Backlog of Orders, New Export Orders and Imports indexes do not meet the accepted criteria for seasonal adjustments.

Buying Policy

Average commitment lead time for Capital Expenditures increased by three days in February to 143 days. Average lead time for Production Materials decreased by one day in February to 64 days. Average lead time for Maintenance, Repair and Operating (MRO) Supplies decreased by one day in February to 31 days.

Percent Reporting
Capital Expenditures Hand-to-Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average Days
Feb 2020 22 5 7 19 28 19 143
Jan 2020 22 4 10 20 25 19 140
Dec 2019 20 5 9 19 26 21 147
Nov 2019 20 6 11 16 27 20 144
Production Materials Hand-to-Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average Days
Feb 2020 10 34 28 19 7 2 64
Jan 2020 11 34 27 18 8 2 65
Dec 2019 11 33 28 20 6 2 63
Nov 2019 12 36 28 16 6 2 61
MRO Supplies Hand-to-Mouth 30 Days 60 Days 90 Days 6 Months 1 Year+ Average Days
Feb 2020 40 38 14 6 2 0 31
Jan 2020 40 36 14 8 2 0 32
Dec 2019 40 35 15 5 4 1 37
Nov 2019 41 36 16 4 3 0 31

 

Posted March 2, 2020

Source Institute for Supply Management® (ISM®) — Manufacturing ISM® Report On Business®

Crothall Laundries Recertify For Hygienically Clean Healthcare

ALEXANDRIA, Va. — February 28, 2020 — Crothall Healthcare, a healthcare support services provider serving clients in 45 states, has recently had the following locations recertified Hygienically Clean for Healthcare: Mobile, Ala. (Coastal Laundry); La Mirada and Ontario, Calif.; Rome, Ga.; Winston-Salem, N.C.; Johnson City, Tenn.; and Milwaukee, Wis. Hygienically Clean is the quantified, validated standard and measure for hygienically clean textiles in North America since 2011, and this re-certification reflects this laundry’s ongoing commitment to best management practices (BMPs) in laundering as verified by on-site inspection and their capability to produce hygienically clean textiles as quantified by ongoing microbial testing. Nine of Crothall’s laundries currently carry the Hygienically Clean Healthcare certification. In addition to the above, the other laundries are located in Phoenix, Ariz., and Manteca, Calif.

Crothall Healthcare’s renewals of this certification confirms the organization’s continuing dedication to infection prevention, compliance with recognized industry standards and processing healthcare textiles using BMPs as described in its quality assurance documentation, a focal point for Hygienically Clean inspectors’ evaluation. The independent, third-party inspection must also confirm essential evidence that:

  • Employees are properly trained and protected;
  • Managers understand regulatory requirements;
  • OSHA-compliant; and
  • Physical plant operates effectively.

To achieve certification initially, laundries pass three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean Healthcare textiles and diminished presence of yeast, mold and harmful bacteria. They also must pass a facility inspection. To maintain their certification, they must pass quarterly testing to ensure that as laundry conditions change, such as water quality, textile fabric composition and wash chemistry, laundered product quality is consistently maintained. Re-inspection occurs every two to three years.

This process eliminates subjectivity by focusing on outcomes and results that verify textiles cleaned in these facilities meet appropriate hygienically clean standards and BMPs for hospitals, surgery centers, medical offices, nursing homes and other medical facilities.

Hygienically Clean Healthcare certification acknowledges laundries’ effectiveness in protecting healthcare operations by verifying quality control procedures in linen, uniform and facility services operations related to the handling of textiles containing blood and other potentially infectious materials.

Certified laundries use processes, chemicals and BMPs acknowledged by the federal Centers for Disease Control and Prevention (CDC), Centers for Medicare and Medicaid Services, Association for the Advancement of Medical Instrumentation, American National Standards Institute and others. Introduced in 2012, Hygienically Clean Healthcare brought to North America the international cleanliness standards for healthcare linens and garments used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.

Objective experts in epidemiology, infection control, nursing and other healthcare professions work with Hygienically Clean launderers to ensure the certification continues to enforce the highest standards for producing clean healthcare textiles.

“Congratulations to Crothall on the re-certification of these laundries,” said Joseph Ricci, TRSA president and CEO. “This achievement proves their continued commitment to infection prevention and that their laundry takes every step possible to prevent human illness.”

Posted February 28, 2020

Source TRSA

KARL MAYER Acquires STOLL – A New Strong Brand In The KARL MAYER Group

(left to right): Jochen Franke, CFO, STOLL; Andreas Schellhammer, CEO, STOLL; Arno Gärtner, CEO, KARL MAYER; and Dr. Helmut Preßl, CFO, KARL MAYER

OBERTSHAUSEN, Germany — February 28, 2020 — As part of its growth strategy, the KARL MAYER Group has concluded an agreement to acquire the STOLL Group. The contract was signed on February 26, 2020, and the Stoll Group is to be part of the Karl Mayer Group from July 1, 2020.

By acquiring Stoll, Karl Mayer is opening up additional technological growth potential and an innovative solutions portfolio in the flat knitting sector. Stoll is an international industry leader with approximately 1,000 employees and offers innovative tools and services for the knitting of tomorrow.

Karl Mayer is an innovative market leader for solutions in Warp Knitting, Warp Preparation for Weaving and Technical Textiles, with more than 2,300 employees worldwide.

“The acquisition is an important step in our growth strategy and we are proud to welcome Stoll into our Group. Stoll is an internationally recognised brand in the textile industry and has comprehensive technological expertise and an experienced team in the knitting sector,” explains Arno Gärtner, CEO of the Karl Mayer Group.

With the acquisition, Stoll will become part of the global Karl Mayer Group, an independent family business. As a result, Stoll will benefit from the broad global positioning of Karl Mayer’s sales, service and production sites, and from the opportunities for joint development, such as in the field of digital solutions.

“This alliance brings together two very strong brands in textile machinery building whose solutions portfolios and regional presence complement each other brilliantly. This will enable us to expand and accelerate our innovation strategy in the areas of digitalization and technology, and strengthen our global presence. Our customers will be able to benefit directly from this and increase their competitiveness in the dynamically changing textile industry,” says Andreas Schellhammer, CEO of Stoll.

Both family-owned companies can look back on a long and successful company history, and at the same time prove themselves time and again as trendsetters. In their respective market segments, they represent innovation, quality, long-term orientation, reliability and comprehensive expertise.

The complementary product portfolios and an even greater regional presence in all relevant markets will create new, high-level expertise in the international textile market. Karl Mayer is thus the only company in the textile industry to offer industry-leading solutions for the two main stitch-forming processes: knitting and warp knitting.

The group of companies will thus be even more broadly positioned in the future with the business areas: Warp Knitting, Technical Textiles, Warp Preparation, Flat Knitting and Digital Solutions. Customers can be accompanied beyond the boundaries of technology.

The contract is an asset deal. The well-established Stoll brand will be continued unchanged within the Group. Karl Mayer is therefore not only expanding its portfolio, but is also strengthening its market position with the new brand.

“Our clients were always our focus when preparing the transaction. By becoming part of the Karl Mayer Group, customers will benefit from additional impetus for innovation, particularly with regard to overarching issues such as digitalization. There will be no change to the usual customer support and service,” the CEOs of both companies are keen to emphasize.

Posted February 28, 2020

Source KARL MAYER Group

INX International Ink Co. Addresses Supply Chain Impact Amid Coronavirus Outbreak

SCHAUMBURG, Ill. — February 28, 2020 — INX International Ink Co. is working hard to insure that the supply of their products to customers remain constant and secure while they manage through the global Covid-19 coronavirus situation.

“We are very cognizant of the impact we have on the overall supply chain,” said John Hrdlick, president and CEO of INX International. “Thanks to our vendors, INX manufacturing facilities are adequately stocked with raw materials and based on communications with them, we expect the supply from China to resume well before we have inventory concerns. We will continue to keep our customers updated during this process and are committed to making sure supply disruptions are minimized.

“Our hearts,” continued Hrdlick, “go out to everyone around the globe who have been negatively impacted by this outbreak in so many ways, including the loss of family and friends. We are keeping them in our thoughts and are hopeful Covid-19 runs its course as soon as possible.”

Posted February 28, 2020

Source INX International Ink Co.

INDEX™20 Exhibition Postponed To October 20-23, 2020

GENEVA, Switzerland — February 28, 2020 — By ordinance entering into force on February 28, 2020, at 10:00 a.m., the Swiss Federal Council has prohibited all events bringing together more than 1,000 people.  In the current circumstances, the situation is qualified as a force majeure event. As a result, taking into account the negative evolution of the situation, INDEX™20 is postponed to October 20-23, 2020.

The situation has recently significantly deteriorated with the appearance of the first confirmed cases of coronavirus in Switzerland. The organizers had no other choice than to review their assessment of the situation and to act in strict compliance with the ordinance of the Swiss Federal Council.

“We sincerely regret this situation, as large numbers of people around the world have invested in ensuring that the event takes place. However, the well-being and health of all INDEX™ exhibitors, visitors, and exhibition staff, as well as their business needs and expectations, remain our highest priority. We trust that all participants will understand this forced decision.” said Pierre Wiertz, EDANA General Manager.

The world continues to discover the important role of nonwovens in protecting healthcare staff and patients through medical devices and personal protective equipment, such as surgical masks, respirators, gowns, drapes and coveralls. It is of course unfortunate that the biggest nonwovens trade show ever, with more than 730 exhibitors and covering 24,700 square meters, has had to be postponed because of the largest epidemic in decades.

PALEXPO and EDANA remain at disposal for any further information.

Posted February 28, 2020

Source EDANA

Levi Strauss & Co. Announces Industry-Leading Paid Family Leave Benefit

ANN ARBOR, Mich. — February 27, 2020 — Levi Strauss & Co. today announced its new paid family leave benefit for all U.S. corporate and benefits-eligible retail employees. The new policy provides up to eight weeks of paid time off per year to care for an immediate family member with a serious health condition, and extends the company’s commitment to building a best-in-class workplace that supports well-being and enables its employees to take care of themselves and their family members in the moments they need it most.

Today’s modern workforce is balancing growing demands from their work and personal lives. According to a Pew Research Center study, more than one in ten U.S. adults are caring for an aging parent or immediate family member at the same time they are raising their own children. This so-called “sandwich generation” is growing due to an increased aging population, greater prevalence of chronic diseases and geographically dispersed families. The National Business Group on Health reports that 88 percent of adult caregivers correlate the additional responsibility of tending to a sick family member with a negative impact on their own health, and 44 percent experience financial strain.

“Some of the most important investments we make are in the well-being of our employees. We are introducing paid family leave to offer our employees the flexibility to care for ill family members without worrying about the stability of their job or finances,” said Chip Bergh, president and chief executive officer of Levi Strauss & Co. “Access to paid family leave addresses the needs of the modern workforce and can help boost employee retention and loyalty. It’s not only the right thing to do for employees, it’s the smart thing to do for business.”

LS&Co.’s paid family leave benefit provides up to eight weeks of paid time off annually to care for an ill spouse, domestic partner, parent or stepparent, child or stepchild up to 18 years of age. The benefit builds on LS&Co.’s paid parental leave program announced in 2016, which provides eight weeks of paid time off to welcome or care for a new child. Paid family leave is available immediately to qualifying LS&Co. employees.

“We applaud Levi Strauss & Co.’s expansion of its industry-leading paid parental leave policy to include paid family leave for both its corporate and benefits-eligible hourly workers,” said Debra Ness, president of the National Partnership for Women & Families. “Levi Strauss & Co.’s CEO Chip Bergh and his leadership team understand that when working people can take the time they need to care for a loved one — whether it’s an aging family member or a new child — it’s good for business, workers and our economy.”

Posted February 27, 2020

Source Levi Strauss & Co.

Los Angeles-Based Garment Maker USTRIVE Manufacturing Is First In United States To Gain GOTS, OCS Certification

LOS ANGELES — February 27, 2020 — USTRIVE Manufacturing, a Los Angeles-based garment maker specializing in knitwear, has become the first and only vertical clothing manufacturer in North America to be certified to both the Global Organic Textile Standard (GOTS) and Textile Exchange’s Organic Content Standard (OCS), the world’s two leading organic textile standards. USTRIVE enables brands to meet both Made in America and organic criteria throughout their entire supply chain from cut and sew to dyeing, finishing, screen printing, embroidering, packaging and storage — all within 12 miles.

USTRIVE is four companies vertically integrated into one: Tour Image, Jin Clothing, Care-Tex Industries and S&B Printing and Embroidery, all of which have deep roots in the local apparel industry. Tour Image is a 30-year-old sales and design-development company, while Jin Clothing is a family owned private-label apparel manufacturer that has been in business in Los Angeles for more than 28 years. Care-Tex Industries is a full-service dye and finishing facility that uses water-based low impact GOTS certified organic dyes, and S&B Printing specializes in nontoxic, water-based printing and embroidery using organic thread. USTRIVE partners with nearby Laguna Fabrics — the first US knitter to gain GOTS certification — for its organic fabrics.

The Global Organic Textile Standard includes both environmental and social provisions for post-harvest to retail shelf management, addressing all the processing stages (ginning, spinning, knitting, weaving, dyeing and manufacturing) of 70-100 percent organic fiber-containing products and prohibiting the use of toxic inputs. The Organic Content Standard verifies that five to 100 percent of the raw fiber in the product was grown to the US Department of Agriculture’s National Organic Program organic crop or livestock standards (in the US) no matter where in the world it was grown or raised, and allows blending of conventional and organic cotton as well as synthetic fibers.

“The GOTS certification process took over eight months to complete and included a complete retooling of our dyeing, printing and packaging methods in order to meet the standard’s stringent non-toxic chemical requirements,” said Scott Wilson, USTRIVE Founder and Partner. “At the same time, we chose to have OCS certification because it allows us to offer a broader range of organic fiber-based fabrics for our customers to choose from,” he continued.

USTRIVE also is ahead of the game when it comes to worker compensation. The company pays its workers hourly instead of by piece, ensuring that work is carried out at a pace that ensures quality. This means it guarantees a consistent wage (versus a variable wage) translating to approximately 25 percent higher wages per month than other similar knitwear contractors in Los Angeles.

On Friday, March 6, Wilson will present about USTRIVE at the Global Organic Textile Standard Roundtable to be held at the LA Textile Show in Los Angeles. For more information, see https://global-standard.org/gots-conferences-and-meetings.html. Contact Sandra Marquardt as soon as possible if interested in participating in the Friday afternoon bus tour to USTRIVE.

Posted February 27, 2020

Source USTRIVE Manufacturing

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