WIELSBEKE, Belgium — November 19, 2018 — Beaulieu Engineered Products announced global price increases across its Fibres, Yarns and Technical Textiles divisions effective as of January 1, 2019, or as contract terms allow.

The move follows on-going significant increases in energy, raw material and delivery costs.

Sales representatives will contact customers individually over the coming weeks to discuss the impact of the price changes on their specific products.

Karena Cancilleri, Vice President of Beaulieu Engineered Products, commented: “Through the price increases, Beaulieu Engineered Products will be able to maintain the level of innovative and reliable support our customers expect. At the same time, our three divisions will continue to look at ways to improve their operations to limit the effect of any further internal cost increases on customers.”

Posted November 19, 2018

Source: Beaulieu International Group

WASHINGTON — November 16, 2018 — The U.S. International Trade Commission (ITC) held a public hearing on November 15-16 in Washington as part of its investigation of the likely impact of the U.S.-Mexico-Canada Agreement (USMCA) on the U.S. economy.

National Council of Textile Organizations (NCTO) President & CEO Auggie Tantillo testified on Panel 4, General Manufacturing, on Friday, November 16, the hearing’s second day.

Tantillo’s testimony as prepared for delivery is below:

Testimony of Auggie Tantillo, president and CEO, National Council of Textile Organizations

U.S. International Trade Commission Hearing on the United States-Mexico-Canada Agreement

November 16, 2018

“On behalf of the National Council of Textile Organizations (NCTO), thank you for the opportunity to provide input regarding the recently negotiated United States-Mexico-Canada Agreement (USMCA). NCTO represents the full spectrum of the U.S. textile sector, from fibers to yarns to fabrics to finished products, as well as suppliers of machinery, chemicals, and other products and services with a stake in the prosperity of our industry. The entire U.S textile manufacturing chain, from fiber through finished sewn products, employs 550,000 workers nationwide. In 2018, the industry manufactured nearly $78 billion in output, while exporting more than $28 billion of our production.

I want to preface my remarks by stating that NCTO has not yet adopted a formal position on USMCA. We have produced a detailed internal analysis on the agreement for our members and have solicited their feedback. Once we have reviewed input from our membership, the NCTO Board will come to final position that we will then make public.

With that said, it is important to note that the United States, Canada, and Mexico have built a vibrant and prosperous textile production chain over the 24-year life of the North American Free Trade Agreement (NAFTA). In 2017, total textile and apparel trade between the three countries was approximately $20 billion. U.S. exports accounted for more than $11 billion of this trade, with Canada and Mexico serving as our two largest export markets worldwide.

These figures compare to just $7 billion in textile trade between the three countries in 1993, the year prior to NAFTA’s implementation. An understanding of this data validates that the current, yarn-forward structure embedded in NAFTA has been highly successful, providing significant benefit to North American manufacturers throughout the entire textile production chain.

It is for this reason that NCTO is very pleased that the basic textile origin rules adopted originally in NAFTA were essentially reaffirmed in USMCA. Further, we commend the three governments for creating a separate textile chapter in the new agreement as opposed to relegating textiles to an annex of the broader market access provisions. A stand-alone chapter recognizes the sensitivities associated with trade in this sector and allows for unique provisions, such as separate and enhanced customs enforcement language over the original NAFTA. Enforcement is critical in the textile sector as the lucrative duty-free benefits create enormous incentives for fraud.

In terms of changes to the original text, NCTO is very supportive of revisions that will require the use of USMCA-origin sewing thread, pocketing, narrow elastics, and coated fabrics in certain end items. While there are transition periods associated with these new requirements, their ultimate inclusion should offer a boost for U.S. producers formerly left out of the origin rules in the original NAFTA. We estimate the USMCA market to be $250 million annually for sewing thread for apparel applications and $70 million annually for pocketing.

We are also appreciative of a key change made in the Government Procurement Chapter of USMCA regarding the Kissell Amendment, which is a Buy American statute for textiles that applies to the Department of Homeland Security (DHS). Kissell requires 100% U.S. content, with very limited exceptions, for purchases by the Coast Guard and Transportation Security Administration (TSA).

Regarding TSA procurement, Kissell has a problematic loophole tied to NAFTA that has allowed Mexico to supply these contracts. As a result, under the terms of NAFTA, Mexico can supply TSA uniforms made from Mexican fiber, yarn, and/or fabric. The TSA Mexico loophole translates to a significant weakening of U.S. Buy American statutes. Noting that DHS spent $34 million on clothing and textiles for TSA in FY2017, closing the Kissell loophole was a substantive change from NCTO’s perspective.

While all the items mentioned to this point are clear improvements to the original NAFTA, there was one key area of disappointment, from our perspective, with USMCA. NAFTA incorporated a major exemption to the yarn-forward origin requirement through a system of Tariff Preference Levels (TPLs). TPLs allow products to be shipped duty free among free trade partner countries even though the components within the product are sourced from countries that are not signatories to the agreement.

While NAFTA TPLs have annual limits that cap their impact to a degree, more than $641 million in textile and apparel TPL shipments entered the U.S. last year. As such, eliminating the TPLs was a primary focus of NCTO’s in the NAFTA renegotiation. While USMCA did reduce the size of some specific TPLs, the reductions will not cut into existing trade levels. This outcome is frustrating given the President’s stated goals of increasing benefits for U.S. manufacturers and eliminating provisions that have helped non-signatory countries, such as China, take advantage of tariff preferences intended for North American producers.

Conclusion

As stated earlier, NCTO is not yet in a position to communicate a formal position on USMCA. We hope to have a decision finalized soon, which will be shared with both the Administration and Congress as soon as we complete our review process.

Nonetheless, it is accurate to state that in an overarching fashion, the new agreement is an improvement over the original NAFTA in many areas. This is certainly the case for U.S. manufacturers of component parts such as thread, pocketing, narrow elastics, and coated fabrics. There is also a clear victory on the Kissell amendment and a strong upgrade in customs enforcement. With our strong disappointment in the TPL outcome noted, we are also grateful for the Administration’s willingness to work with domestic manufacturers in an effort to improve this important agreement.

Thank you for this opportunity to provide input, and I would be pleased to answer any questions that you may have at this time.”

NCTO is a Washington-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

• U.S. employment in the textile supply chain was 550,500 in 2017.
• The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.
• U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.
• Capital expenditures for textile and apparel production totaled $2.4 billion in 2016, the last year for which data is available.

Posted November 16, 2018

Source: NCTO

ALEXANDRIA, Va. — November 16, 2018 — Canadian Linen and two U.S. AmeriPride Services Inc.’s locations have recently earned have earned the Hygienically Clean Food Safety certification, reflecting their 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. The company’s Canadian Linen and Uniform Service facilities in these locations have earned the Hygienically Clean Food Safety certification:

• Alberta: Edmonton and Lethbridge;
• British Columbia: Victoria and Vancouver/Burnaby;
• Manitoba: Winnipeg;
• Nova Scotia: Halifax;
• Ontario: Etobicoke, London, North York and Ottawa;
• Quebec: Quebec City; and
• Saskatchewan: Regina and Saskatoon.

The recently-certified U.S. AmeriPride laundries are located in Vernon, Calif., and Durant, Miss.

The certification confirms the laundry’s dedication to compliance and processing garments and linens using BMPs as described in its quality assurance documentation, the focal point for inspectors’ evaluation of critical control points (CCPs) that minimize risk. The independent, third-party inspection must confirm essential evidence that:

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

In addition, these facilities each passed three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean garments and other reusable textiles with diminished presence of harmful bacteria. To maintain their certification, laundry plants 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.

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 animal processing, dairies, fruit/vegetable, bakeries, grain and other food and beverage industry segments.

These Vernon, Calif. and Durant, Miss. locations of the AmeriPride chain join these laundries who have previously received the Hygienically Clean Food Safety certification:

• Tuscumbia, Ala.;
• Bakersfield and Fresno, Calif.;
• Twin Falls, Idaho;
• St. Cloud and Minneapolis, Minn.; and
• Amarillo Texas.

Hazard Analysis and Critical Control Points (HACCP) practices are examined in the Hygienically Clean Food Safety inspection process, evaluating the plant’s techniques for:

• Conducting hazard analysis;
• Determining CCPs, monitoring their control, correcting them if not under control;
• Validating and verifying HACCP system effectiveness; and
• Documenting and record-keeping to show ongoing conformance.

On-site inspections also evaluate practices relevant to handling and processing textile products used in food manufacturing/processing establishments for adherence to U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) directives. Introduced in 2014, Hygienically Clean Food Safety brought to North America the international cleanliness standards for laundering garments and other textile products for food manufacturing used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.

Twelve of the company’s U.S. locations have achieved the Hygienically Clean Healthcare certification:

• Little Rock, Ark.;
• Phoenix and Watkinsville, Ga.;
• Twin Falls, Idaho;
• Topeka, Kan.;
• Bemidji and Minneapolis, Minn.;
• Springfield, Mo.;
• Omaha, Neb.;
• Roswell, N.M.;
• Memphis, Tenn.; and
• Lubbock, Texas.

The company’s Canadian Linen and Uniform Service facility in Lethbridge, Alberta, is also Hygienically Clean Healthcare-certified.

In January 2018, Philadelphia-based Aramark Corp. announced the completion of its acquisition of AmeriPride, making AmeriPride a wholly owned subsidiary. Aramark’s uniform rental and career apparel business is headquartered in Burbank, Calif.

Posted November 16, 2018

Source: TRSA