Exporting: An Excellent Revenue Stream For The U.S. Textile Industry

Eximport
Image courtesy of Pixbay

U.S. Federal agency EXIM offers financial products that empower U.S. companies to compete with foreign competitors and win more international sales.

By James Burrows

Textile and apparel companies across the United States are benefiting from exporting; it’s a great means of boosting the bottom line and growing a business. According to the Washington-based National Council of Textile Organizations, the United States’ exports of textiles and apparel accounted for $28.6 billion worth of economic activity in 2017.

Exports have played a major role in pulling the U.S. economy out of recession, and it’s not just the major corporations that benefitted. The U.S. Department of Commerce reports small and medium-sized businesses with fewer than 500 employees represent almost 98 percent of U.S. exporters.

Exporting offers plenty of benefits and opportunities, including:

  • Accessing more consumers and businesses — If a company is only doing business domestically, it may be limiting its potential profits by not expanding worldwide. It can also help in offloading excess production.
  • Lowering unit costs — Exports help to put idle production capacity to work and improve efficiency.
  • Spreading risk through geographic diversification — Exporting has parallels to a stock portfolio. When the domestic economy falters, the company may rely on other growing markets. Exporting can also minimize the effect of seasonal sales and prolong the sales cycle.
  • Expanding the lifecycle of mature products — If the U.S. market is saturated with a company’s products, they can be sold in other parts of the world.

Savvy and strategic managers in the textile industry are boosting revenue by targeting the 95 percent of world consumers living outside the United States. They sell their wares across the North America Free Trade Agreement (NAFTA) and Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) areas, as well as in Asian and European markets.

While exporting is not new, many small businesses and corporate executives are still reluctant to sell overseas, or may be selling to just one or two markets they are comfortable with. Oftentimes, this is because exporting is perceived to be too burdensome or risky. Naturally, there are some complexities that come from exporting, including financial risk. Since there is little recourse for American exporters if overseas customers do not pay for goods already shipped, it is easy to understand why getting paid is the primary concern of U.S. companies selling goods and services into international markets. The good news is that help is available.

Selling On Open Account

There is an excellent solution to this concern of buyer nonpayment: the Export-Import Bank of the United States (EXIM). EXIM, a U.S. federal government agency, offers financial products that empower U.S. companies to compete with foreign competitors — many of whom have similar backing by their home governments — and win more international sales.

EXIM’s export credit insurance is a popular product among U.S. exporters. The insurance policy protects foreign accounts receivable generated by the sale of goods and services from U.S.-based companies to international customers. The policy covers up to 95 percent of the sales invoice against nonpayment due to commercial — bankruptcy and protracted default for example — and political — such as war or insurgency — risks.

Export credit insurance also improves textile companies’ competitiveness in the world market. While many American exporting companies resort to cash in advance to avoid nonpayment risk, most foreign competitors are able to offer open account credit terms, which are significantly more attractive to potential buyers. They expect credit terms and companies that are unable to extend credit may lose out on valuable opportunities.

Export credit insurance empowers U.S. businesses to negotiate credit terms — typically in 30, 60 or 90 days — with foreign buyers up front, which is a powerful marketing tool and can be the competitive edge that wins deals. EXIM can cover a company’s entire portfolio of customers or a single buyer.

In addition to reducing the risk of nonpayment and offering open account credit terms to foreign buyers, EXIM’s export credit insurance can enhance a company’s borrowing capacity by assigning now secured foreign receivables to a lender, improving liquidity and easing cash flow constraints.

EXIMboxEXIM Customer Stories

Between 2015 and 2017, EXIM has supported more than $253 million in exports of U.S. textiles and apparel to international markets, ensuring that American textile and apparel products can be worn around the world.

The agency’s support is available to businesses of all sizes. In fact, small businesses comprise 91 percent of EXIM’s total authorizations, and no transaction is too small.

Textile and apparel companies have used EXIM insurance to a great effect.

EximDarnTough
Above: Marc Cabot (left), founder of Cabot Hosiery, and father of Ric Cabot (right), founder of Darn Tough Vermont — a company using EXIM’s export insurance program. Photograph courtesy of Darn Tough.

Northfield, Vt.-based Darn Tough Vermont, a Cabot Hosiery Mills brand, already was exporting and offering its distributors 30-day open account credit terms, but two things were on their minds — inklings of potential problems with payment from one international source, and an upcoming trade conference to discuss deals with new distributors.

With the protection of EXIM’s export credit insurance, Darn Tough Vermont representatives were able to negotiate payment terms with new international distributors, secure in the knowledge that the receivables were insured against nonpayment and covered for commercial and political risks. In addition, export credit insurance bought the management team peace of mind, knowing they had decreased the risk of payment problems from a potentially shaky partner.

“Thanks to EXIM’s excellent export insurance program, Darn Tough Vermont is well on its way to achieving its goal of worldwide brand recognition and substantial growth in international markets,” said Steve Kelley, Darn Tough CFO.

EximBuhler
Right: Fashion brands use Supima cotton yarns produced by Buhler Quality Yarns Corp. in their garments. Buhler uses EXIM’s export credit insurance to sell on open account credit terms and protect itself from the risks associated with selling yarns to emerging markets in Central America. Photograph courtesy of Buhler.

Jefferson, Ga.-based Buhler Quality Yarns Corp. sells cotton yarns to Central America, and its product can be found in Lacoste™ polo shirts, T-shirts, and other clothing. The company needed to find other avenues of providing payment terms to new companies beyond requiring cash in advance. EXIM export credit insurance allowed the company to sell on open account credit terms and cover the risks in emerging markets. “EXIM allows us flexibility to go after business in international markets,” said David Sasso, International sales manager, Buhler Quality Yarns Corp. “EXIM understands companies and empowers them to have continued growth.”

Ben Kaufman Sales Co. a distributor of towels and apparel to Caribbean countries, also has benefitted from EXIM support. With an EXIM export credit insurance policy, Ben Kaufman Sales mitigated the risk of nonpayment and eased the company’s initial concern about expanding into riskier international markets. Its foreign accounts are protected from potential losses that could result from an international business deal gone awry. As a result, exports now account for 20 percent of the company’s sales.

EXIM can help companies of all sizes boost sales while protecting financial assets. Contact EXIM to learn more.


Editor’s note: James Burrows is EXIM’s senior vice president, Office of Small Business. He has more than 30 years of professional experience in both the public and private sectors of the financial services industry, including commercial banking, retail banking and investment banking.
For more information, visit exim.gov or e-mail exporthelp@exim.gov.


September/October 2018

Uniquetex Installs Two Spunmelt Lines

Grover, N.C.-based Uniquetex LLC — a joint venture between Foshan Nanhai Beautiful Nonwoven Co. Ltd., and Chaolong Textile Machinery Co. Ltd., both based in China — reports it has installed its first two spunmelt lines, which are capable of producing more than 10,000 tons of spunbond/spunbond (SS) and spunbond/meltblown/spunbond (SMS) fabrics and composite materials. The company provides industrial, home furnishing, packaging, medical and hygiene markets with 100-percent Made in USA nonwoven goods.

“Uniquetex has its own spunmelt technology that can offer finer fiber denier extrusion for superior softness and great comfort to meet the market demand, especially in the hygiene and medical markets,” said Dwight Fillers, vice president of sales, Uniquetex. “Our nonwoven technology also provides us with the flexibility and a cost-effective way to make and customize elastic nonwovens. Combined with the company’s two parent companies’ technical expertise and integrated nonwoven manufacturing experience, we are confident in establishing Uniquetex in the global market for a bright future.”

September/October 2018

Trevira, imat-uve Develop 3D Auto Interior Technology

Trevira GmbH and imat-uve GmbH, both based in Germany, have partnered to develop 3D flat knitting technology for automotive interiors. According to the companies, the process pairs “innovative yarn technologies with cutting-edge connection and finishing techniques” to create anatomically contoured seat covers and trim components. By using a single knitting process instead of multiple, a manufacturer can reduce production and materials costs and eliminate cut-and-sew steps.

“The development company imat-uve came up with a new breakthrough technology, while here at Trevira, we contributed our own recycled yarns and a new low-melt yarn we’ve developed based on synthetic fibers, which provides a stabilizing effect,” said Thomas Rademacher, head of development at Trevira.

“The 3-D flat knitting technology doesn’t just make it possible to save time and money on production,” added Hans Peter Schlegelmilch, CEO, imat-uve’s CEO. “It also opens up a whole new world of personalization for end consumers.”

September/October 2018

Kordsa Acquires Two U.S-Based Composite Companies

Turkey-based Kordsa recently acquired commercial aviation industry composite suppliers Fabric Development Inc. (FDI), Quakertown, Pa., and Textile Products Inc. (TPI), Anaheim, Calif., as part of a $100 million investment. The company wishes to strengthen its composite market position in the United States.

“Over the years, we leveraged our expertise in tire reinforcement technologies into construction reinforcement and composite technologies  and expanded our lines of business,” said Kordsa CEO Ali Çalıçkan. “Our business journey today is brought to a new level with this brand-new investment which will lead us to become a global player in the field  of commercial aviation having an important presence in the commercial aviation value chain. This new step will ensure us to be a strategic supplier of key players in aerospace and civil aviation, particularly Boeing and Toray Composites Materials America Inc. With this acquisition, we also aim to strengthen our strong global leadership in reinforcement technologies.”

September/October 2018

MSC Announces Expansion

Horsham, Pa.-based composite materials producer Material Sciences Corp. (MSC) will invest $2.7 million to build a second facility in Greenville, S.C., to complement its existing Greenville facility, which is located at the South Carolina Technology and Aviation Center. The new facility will expand MSC’s research and development efforts, as well as increase manufacturing and commercialization of advanced composites.

The 32,000-square-foot expansion is expected to create 23 jobs over the next five years, and initial hiring will begin in the fall of 2018.

“Our mission is to continuously develop, test, improve and manufacture advanced materials that can be transferred into applications of high value,” said Tom Cassin, president and CEO, MSC. “We have been very pleased with our operations in Greenville County and South Carolina and look forward to continuing to grow and contribute to the success of the Palmetto State.”

September/October 2018

Asahi Kasei To Acquire Sage Automotive Interiors

Tokyo-based Asahi Kasei has announced it will acquire Sage Automotive Interiors Inc., Greenville, S.C., from Sage’s 100-percent owner Clearlake Sage Holdings LLC. The cash transaction is valued at approximately $700 million, with the total acquisition price including Sage’s interest-bearing debt totally approximately $1.06 billion. Sage will become a consolidated subsidiary of Asahi Kasei once the transaction closes, pending approvals from relevant authorities.

Asahi Kasei reports the purchase is in line with its Cs for Tomorrow 2018 medium-term strategic initiative to expand automotive-related business in the material sector, and that Sage will strengthen and contribute to the overall expansion of its automotive-related business, in addition to other expectations.

September/October 2018

3D Textiles: Embracing The Depth

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A 0.84-inch-thick 3D woven E-glass billet. Photograph courtesy of Tex Tech Industries.

As advanced technologies continue to evolve from ancient textile methodologies, a broader assortment of opportunities unfolds.

By Jim Kaufmann, Technical Editor

Anyone making a cursory inquiry into the intriguing world of 3D textiles will find that the sector embraces a rather nebulous term leading to an untold number of different routes and a wide array of opportunities. A quick Google search of 3D fabrics, for example, results in somewhere around 325 million hits, which include 3D versions of everything from traditional wovens and knits to nonwovens and non-traditional prints, not to mention an exponentially diverse list of applications, some obvious and others not so much so. An immediate thought surrounding this growing interest is that engineers are finally becoming significantly more comfortable with and accepting of 3D textiles in dynamic performance-based applications. At the same time, product designers continue to become even more adept at creating fabrics or maybe more appropriately fibrous materials, which exhibit these specific technical, visual and/or tactile requirements.

Versatility and clearly defined performance attributes continue to be the prime drivers for interest in 3D textiles. Given that virtually all textile manufacturing technologies can be adapted or modified in some way to create 3D textiles, the breadth of applications is truly almost endless.

3D Weaving, 3D Braiding

3D weaving and 3D braiding continue to see interest and find applications mostly in the composites field, where the emphasis remains on replacing steel in order to achieve weight reduction. According to Dr. Keith Sharp, new product development manager for 3D Weaving at Portland, Maine-based Tex Tech Industries: “3D wovens in composites are perfect for replacing steel. You can weave billets or near net-shape preforms that can be molded into exacting shapes with intricate designs, which saves not only weight, but labor in manufacturing and potentially increases long term reliability as well. There are many applications now, but the LEAP jet engine fan blades that Albany International is 3D weaving are probably the biggest example of this.”

The ability to control fiber placement and tailor yarn paths in order to achieve specific performance profiles is also reflected in the LEAP engine module. According to Albany International’s website, LEAP offers the following benefits:

  • “Composite fan module (comprised of blades, platforms, spacers and fan case) is 300 pounds lighter compared to equivalent metallic components per engine;
  • Can achieve composite blade geometries that are challenging to produce with titanium;
  • Higher impact resistance and lower weight than laminated composite alternatives.”

Interest in 3D woven composites is driving new equipment innovations as machinery manufacturers are becoming more active in the 3D sector. Historically, 3D weaving machines either were highly modified versions of traditional 2D weaving machines, or were custom purpose-built one-offs with specific product concepts in mind. Over the past few years, Switzerland-based Stäubli Group, known for its jacquard warp shed control systems, introduced its technical fabric weaving system — a heavy-duty weaving machine derived with a modular design that when mated to its jacquards or Unival warp shedding control systems, provides incredible flexibility of product design along with the manufacturing capability to produce it.

Not to be outdone, Germany-based Lindauer Dornier — widely known for producing weaving machines for technical, industrial and performance fabrics — recently introduced a collection of products targeted directly at the composites industry. Its Composites Systems now include a machine explicitly designed for weaving 3D preforms. The suite also includes a spread tow unidirectional tape line and machines specifically for weaving rovings and spread tow tapes.

3DDornier
Dornier’s weaving machine for thick fabrics with integrated guide and horizontal take-up is targeted at the composites industry.

3D Knitting

Recent articles found on websites Gizmodo.com and ZDnet.com make for excellent examples of just how impactful 3D textiles have become. The first article on Gizmodo by Julian Goldman proclaims, “The Future is Knit: Why the Ancient Art of Knitting is High-Tech Again.” The second article on ZDnet by Greg Nichols touts, “The High Tech Science Behind 3D Knitting (yes knitting!).” Both articles focus on the advent of 3D or shaped weft knitting and the control of dimensionality found in knit structures, but not inherent to wovens, along with improvements made in the user interface leading to more effective and efficient knit product designs. 3D knitting offers not only product design aspects — you program the machine, load the yarn and out comes a full garment — it also creates the potential for incorporating wearable electronics into fully fashioned knit products, some of which have already made it to market. Cambridge, Mass.-based Advanced Functional Fabrics of America (AFFOA), a non-profit institute headquartered near the Massachusetts Institute of Technology (MIT) was established through federal funding to advance the use of textile technologies into integrated and networked devices and systems. As part of this effort, AFFOA is focusing on the effectiveness of 3D knitting to create complex shapes. Yoel Fink, AFFOA’s CEO and a professor of material sciences and electrical engineering at MIT, was quoted in Goldman’s article stating: “You’re no longer going to pay for the shirt. You’re going to pay for what that shirt does for you. You pay for the service and you get the fabric.” Certainly a different way of looking at textiles of the future.

Not to be outdone by its weft knitting cousin, 3D warp knit spacer fabric manufacturers including Hauppauge, N.Y.-based Gehring Textiles Corp. and Apex Mills, Inwood, N.Y., continue to advance the technology’s versatility in new and exciting ways for applications ranging from fashion to seating and bedding, along with other areas where conformability, filling voids, increasing air flow and additional engineering parameters remain desirable.

3D Nonwovens And Additive Manufacturing — 3D Printing

In the grand scheme of things, at least from a textile perspective, it can be argued that 3D printing — which continues to gain interest and attention across many areas — is essentially a more precise version of spunbond nonwovens where polymer is extruded onto a collecting belt or platform where it bonds together, creating a defined structure. The only real difference is that spunbonds typically have a random orientation and bonding pattern, while 3D prints are extruded in precise layers at specific locations. But regardless of whether you believe 3D printing is an extension of textile manufacturing methodologies or not, it has certainly become the it technology and a media darling of recent years.

Originally viewed by many as a way of creating incredibly intricate shapes and novel gizmos, 3D printing now is prophesied as a solution for just about every manufacturing opportunity or shortcoming. The perception, or maybe significance, circling around 3D printing is that it literally seems to imply that if you can conceive it, 3D printing can make it. 3D printing initially found acceptance in rapid prototyping where detailed and exacting one off pieces could be produced, concepts could be explored and theories could be evaluated. As the technology has progressed and generated more interest, new and advanced polymer systems have been developed that include variations for printing “metals,” adding fibrous media as reinforcements and improving the layer to layer integrity of the 3D-printed structure. In conjunction with advancements in the media or inputs used, the size, scope, complexity and consistency of 3D printers also have improved greatly. Over the last several years, 3D printers have grown from primarily being desktop models able to produce at most a cubic foot sized piece — still a core competency — to metal 3D printers as big as a bus with the potential for even larger versions not very far off.

3D printing now is seen as a valid manufacturing technology, particularly where mass customization is preferred or for products that are overly complex, limiting or restricting their process ability via traditional manufacturing methodologies. The advantages continue to be product design possibilities aligned with simplifying the overall manufacturing of complex parts, reducing production time and reducing labor content. This combined with the relatively small footprint needed and increasing reliability of the inputs and resultant products produced present vast opportunities for generating replacement parts in-house instead of dealing with OEM’s and parts suppliers, especially on difficult to reach areas, even for overnight delivery services, like ocean-going ships or even future space travelers.

As the technology continues to advance and scale into more cost-effective, larger-scale productions, potential applications will only continue to grow exponentially. Unfortunately, there’s not enough room here to discuss those applications because there’s an even more intriguing new category on the horizon.

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Resulting transformation of an activated 4D fabric. Photograph courtesy of Dr. Chris Pastore

4D Textiles?

While researching for this article, a longtime friend Dr. Chris Pastore, professor of Transdisciplinary Studies at Jefferson University and Fulbright Specialist, asked, “Why aren’t you including 4D textiles in this update?” Researchers at places like MIT, Harvard, Aachen University and Jefferson University, among others, are exploring the possibility of combining textiles and other programmable materials with 3D printing in astounding ways. The term 4D printing is said to be coined several years ago by Skyler Tibbits, director of the Self-Assembly Lab at MIT and a Jefferson University alumni, by incorporating the dimension of time to that of length, width and depth for these structures.

As Dr. Pastore explained: “Wouldn’t it be interesting to combine the flexibility and elasticity of textile materials with the rigid polymer structures of 3D printing to create systems that when you add heat or some other actuator to transform them, they change from two-dimensional structures into complex three-dimensional structures? Or maybe if you were to incorporate shape memory polymers in the 3D print structure, then it’s possible that with activation the object can result in a totally different configuration. Think of the possibility of taking flat textile material then 3D printing a grid over it which can then be activated later. At a later time, you apply an actuator to the flat configuration and it self deploys into a tent. If you think about it, the potential for 4D textiles is tremendous!”

Yes, this concept might cause one to think a bit too much, but several interesting video examples can be found on YouTube that show flat 3D printed structures changing into a different shape. The most famous of these videos shows a seemingly straight line of polymer magically transforming into the initials MIT.

While 4D textiles are still in their relative infancy, they offer yet further evidence that 3D textiles indeed represent a vast opportunity to those with a bit of imagination and some knowledge of the ancient, yet continually advancing technology known as textiles.

September/October 2018

The North American Nonwovens Filter Market

Filtration
The filtration market is diverse with seemingly endless categories including food and beverage, health and medical, and automotive among other categories.

INDA offers a look at the nonwoven filter media market.

TW Special Report

Filtration — a separation process using a filter medium — has become so important that you can find it almost everywhere in your life. The Cary, N.C.-based Association of the Nonwoven Fabrics Industry (INDA), in its triennial North American Nonwovens Industry Outlook report, attempts to quantify the nonwoven filter media used in the many, many filtration processes.

The filtration market is a diverse one with seemingly endless categories. Filters allow us to cleanse the air we breathe and purify the water we drink. Filtration in the food and beverage industry removes impurities and extends the shelf life of the products we consume. Medical filters can safeguard sterile environments like operating rooms by keeping out harmful pathogens and bacteria. Filters in vehicles make them more efficient. These needs, along with government regulations and environmental concerns, have put the filtration market on a path of continued growth.

The Materials

Filters are constructed with filter media that can be either paper, woven including woven metal, nonwoven including glass fibers, microporous membranes, or a combination/hybrid of media. Nonwoven fabrics typically add backup support and/or mechanical strength to the comparatively thin and fragile polymer-based membranes that are produced by directly coating onto the carrier material’s surface.

Nonwovens are well suited to the filtration market because the fabric can specifically be engineered to provide the precise porosity and flow rate needed for the particular filtering application. Nonwoven media are different sizes and shapes; may be perforated, folded, pleated or fluted; and may be used in pleated tubes for tube filters and in cartridge filters. Filter media are manufactured from all of the nonwovens processes — airlaid, drylaid, spunmelt including spunbond and meltblown, and wetlaid — from a variety of materials.

In addition to filtering, nonwovens can be engineered to offer benefits for many applications, including the removal of a wide range of contaminants, a uniform structure, tear and puncture resistance, chemical resistance, high retention capacities, high air permeability, excellent abrasion resistance, flame retardancy, the absorption of fats and oils, a high level of flow capacity, and high tensile strength.

FiltrationgraphThe Market

The filtration market is the most diversified of all the nonwoven end-use categories, with more than 30 major market segments. Nonwoven filter needs vary in size from four story filter houses with up to 1,800 filters down to tiny blood filters.

There are numerous drivers affecting nonwoven filter media demand. The over-arching megatrends are demands for purer air and cleaner water, which are both the subjects of ever-more stringent legislation.

Over the past few years, there has been a steadily increasing demand for improved air quality, particularly indoors, whether in private, public or industrial areas. Emissions may come from a variety of sources, such as gases from interior materials, particles which enter a room via the external air supply or processes running within the room. Further complicating factors may be the small size of a room, too many people in the room and the restricted availability of fresh air.

Consumers are increasingly aware of the potential health and aesthetic benefits of water and air treatment systems, and are becoming more willing to invest in these products to improve the environment inside their homes. Media reports about water and air contamination affect consumer perception about local water or air quality and thereby drive sales.

FiltrationDefinitionsIncreasing Demand

Economic and population growth will increase demand, which will require increased production and increases in manufacturing efficiency for industrial products, foods and beverages, and transportation. All of which means an increase in the need for filtration media. As the housing recovery strengthens and consumer spending activity continues to improve, so will consumer spending on water and air treatment systems. Rising home sales will also drive sales, since many consumers purchase or upgrade water and air treatment systems once they move into a new home. As the economy strengthens, consumers should return to replacing their existing filter products closer to the recommended replacement periods. Continued trends toward the incorporation of smart features and complementary monitoring devices indicating filter replacement time and toward specialized, industry-specific filtration media will support unit growth.

The further strength of the manufacturing and industrial sectors, specifically the power generation and hydrocarbon processing segments, will boost filtration demand as well. As manufacturers look to streamline their manufacturing processes, filtration of resources is increasingly being viewed as a way to boost efficiency and reduce carbon footprints.

Nonwoven filter media is used for the filtration of engine air, cabin air, oil and fuel. The increasing demand for vehicles is projected to continue through the forecast period, which in turn, will create the requirement for nonwoven filter media. Better economic situation and shift in lifestyle along with the rising consumer confidence have resulted in the increasing demand for new, fuel-efficient, and technologically advanced cars. Additionally, the easy availability of financing options is also driving people to invest in cars. This will fuel the growth of the automotive industry which is identified to be one of the primary factors driving the growth of this market.

FiltrationClarcor
Jeffersonville, Ind.-based Clarcor Air Filtration Products manufactures HVAC filtration products for commercial, industrial and institutional applications. Photograph courtesy of Clarcor.

Increased Regulation

Another driver of the industry is new legislation and regulatory controls increasing at local, state and national levels. Enforcement of these regulations by the Environmental Protection Agency and other agencies has increased the demand for products that limit emissions and has increased demand for products that protect people from the effect of emissions. Relatively comprehensive environmental regulations in the United States and Canada continue to drive filter use designed to promote air and water quality.

The market for nonwovens in filtration media is also growing — because of more economical and better performing nonwoven media — by taking share from woven and paper-based filter media.

Nonwoven Material Developments

These drivers and developments have resulted in the North American filtration market consuming an ever greater amount of nonwoven material — 3.1 million square meters, weighing 371,000 metric tons, in 2016. This is an increase of 3 percent annually in square meters and 3.8 percent in metric tons from 2011. The filtration market is forecast to consume 3.6 million square meters, weighing 445,000 metric tons, in 2021 — an annual increase of 3.1 percent and 3.7 percent respectively.

There have been technological advancements in developing new and innovative filter media over the past few years to meet all these demands, some of which were driven by government regulations. Nonwoven producers continually work to improve the efficiency — the ratio of particles trapped by media over total particles upstream of media — of filter media which enhances the removal capability of both particulate and chemical contaminant. This has resulted in filter manufacturers increasing the range of spunmelt nonwoven materials, incorporating nanofiber layers or coatings, using fibers with integrated functional additives in nonwoven filter constructions, and developing hybrid fiber/material composite materials — all while optimizing the media structure and element configuration by computational modeling.

This is in addition to the ever-present demand of sustainability, both in terms of lower energy consumption and renewable raw materials and in the development of economically and ecologically effective disposal/recycling solutions for filters and filtration residue.


Editor’s note: This article was published courtesy of INDA, Association of the Nonwoven Fabrics Industry. The Cary, N.C.-based organization serves hundreds of member companies in the nonwovens/engineered fabrics industry in global commerce. Since 1968, INDA events have helped members connect, learn, innovate, and develop their businesses. INDA educational courses, market data, test methods, consultancy, and issue advocacy help members succeed by providing them the information they need to better plan and execute their business strategies. For more information on the filtration sector and analysis of the supply and demand balance in the nonwovens industry, contact Brad Kalil, director of market research and statistics, bkalil@inda.org. For more information on INDA, visit www.inda.org, or download the INDA mobile app for immediate updates.


September/October 2018

Capital Ideas: USA Attracts Textile Investments

InvestmentLenzing
Lenzing’s existing facility in Axis, Alabama, soon will be joined by a second plant as part of a $293 million investment to expand TENCEL™ capacity in the United States.

TW Special Report

From economic booms to its most painful periods of restructuring, U.S. textile manufacturing has always been a magnet for investment. Since 2006, the United States has attracted $20 billion in capital spending in new textile supply chain plants and equipment, with $2.4 billion coming in 2016, the latest year for which investment information is available.

Moreover, it is not just Americans making the expenditures. Foreign entities have also made substantial investments. In recent years, Japan-based companies have announced $2 billion in carbon fiber investments; two large China-based companies are investing $628 million in yarn spinning; and multiple Europe-based companies have invested in nonwovens capacity in the United States.

Many reasons exist for this capital infusion in capacity, as well as in services. For some, it is speed-to-market and the presence of a qualified labor pool. For others, it is the availability of a highly efficient, eco-friendly supply chain and the proximity of NAFTA and CAFTA customers. But, perception also plays a part in location decisions. “People around the world associate Made in USA with quality and performance,” said National Council of Textile Organizations President and CEO Auggie Tantillo. “That has market value and it is one reason why the United States has been a focal point for textile investment.”

InvestmentDorner
Dorner

Lenzing Commits To U.S. Production

One company putting substantial new investment into the United States is the Lenzing Group, one of the leading fiber manufacturers in the world. Headquartered in Austria, with production sites in all major markets as well as a worldwide network of sales and marketing offices, Lenzing supplies the global textile and nonwovens industry with a variety of high-quality cellulose fibers.

As part of the company’s sCore TEN strategic growth plan, Lenzing is investing $293 million to open a second U.S. plant near its existing facility in Axis, Ala., close to Mobile. Scheduled for completion in 2019, the new operation is expected to create 163 new jobs to significantly increase production of one of the Lenzing’s flagship products — TENCEL™-branded lyocell fibers.

We see the growth in the Made in USA movement, and we want to be a part of that. There is a lot of perceived value in that program.

— Andreas Dorner, Commercial Director, Lenzing

TENCEL™ is Lenzing’s brand name for a series of lyocell fibers it makes from reconstituted cellulose, in this case, wood. More absorbent than cotton, softer than silk and cooler than linen, TENCEL™ fibers are used to make everything from mattresses and bed linen to sportswear and denim. Hygiene products like wipes and diapers are another important market for the product.

The unique process Lenzing employs to make TENCEL™ fiber is extremely environmentally responsible because of its closed loop system, meaning almost 100 percent of the solvents used to make the product are captured and recycled. In fact, it is so sustainable Lenzing received the “European Award for the Environment” from the European Union.

“The expansion will more than double current TENCEL™ production in Axis, making it the largest lyocell production site in the world, with a total capacity of 140,000 tons annually,” said Kevin Allen, site manager of the Mobile facility. The new plant will account for about 90,000 tons of that production. “We are very proud to have in Axis the first-generation production site and now the most advanced, state-of-the-art facility in the same location,” he said.

Investmentwarehouse
Lenzing employees at the Axis, Alabama, site inspect TENCEL™ fiber bales prior to shipment.

Andreas Dorner, commercial director, Lenzing, said the new facility is a strategic move for the company that allows better, faster service to customers throughout the western hemisphere. “We see significant advantages to having facilities located in the United States. It allows us to respond quickly to customer needs and eliminate some costs and much time in shipping. It is much better to be able to ship to fabricators in Central America from Alabama than from Austria or China.”

But there are other reasons, too. “We see the growth in the Made in USA movement, and we want to be a part of that,” Dorner said. “There is a lot of perceived value in that program. Again, it goes back to making the value chain better for our customers. The expansion just made a lot of sense to us. In Alabama, we had the land, the equipment and the resources to make a major expansion. It puts us closer to some of our significant markets and allows us to be part something we think is important.”

Dorner said Lenzing is committed to maintaining a strong U.S. presence. “This is a very important market to us, and we are going to continuously think outside of the box for ways to continue growing the business.”

Investmenttesting
McKinnon

Central Textiles: Investing To Satisfy Market Demand

Investment in the U.S. textile sector, however, is not limited to capacity expansions. Investments in supporting services also contribute to a highly efficient and competitive industry — one that can offer value through the best combination of quality, price and delivery.

Founded in 1984 and currently in its third generation of family management, Central Textiles Inc. in Central, S.C., manufactures apparel fabrics and technical textiles. Its sister company, Cotswold Industries Inc., founded in 1954, is a leader in the development and distribution of technical textiles and apparel fabrics. Like Central, Cotswold is a vertically integrated manufacturer, converter and distributor.

You cannot be afraid to fail. You make, you test, you reengineer. And who knows? What looks like a failure today may become your leading product two seasons from now.

— James McKinnon, CEO, Central Textiles

Always racing to bring new textiles to market, Central and Cotswold often were slowed by a shortage of reliable, cost-effective textile testing services. Seeing unmet demand, Central filled the void by making a considerable investment in TexTest LLC in Columbus, Ga. — a modern testing facility that allows producers to ensure their products meet the exacting standards required by their customers.

“We have to continuously look at how an old-line, private textile company can be of value to our global customers,” said James McKinnon, Central’s CEO. “And the answer is that we have to provide products and services that make sense from a sourcing perspective in the various areas we serve.”

“We have a diverse, complex business,” he said. “And we have to constantly reinvent ourselves — as often as every few months. We have to be complicated to survive.”

Central Textiles looks at the countries or regions covered by U.S. trade agreements and customizes offerings for those specific areas. For the United States, one of Central’s offerings is the recently acquired TexTest lab.

InvestmentLab3
Central Textiles invested in the TexTest lab to offer testing services — including Hi-Vis A2LA — to the industry to help drive innovation across the board.

InvestmentLab2InvestmentLab“We focus on speed-to-market and innovation. And we innovate in two ways, product offerings and intellectually. Reengineering both commodity and specialty products is accomplished by driving cost out of the product and driving performance into the product. The focus is on how we test and retest those materials. So, we provide testing services for the finished goods from our clients. A lot of what we experience is learning by failure. Sometimes you can only figure out the way something is going to work when it doesn’t perform. So, you learn, and you reengineer a fiber, a yarn, a fabric, a sheeting or a finished garment so that it will do something it didn’t used to do.”

Innovation is a key aspect for both Central and Cotswold. “We use testing to drive innovation across the board,” McKinnon said. “We don’t just offer testing services to our customers or use them for our own products. We offer these services to our competitors as well. The U.S. textile industry is a family, and we see our customers and our competitors as our cousins. We want to see multi-generational companies that have been around a while be around for a lot longer.”

McKinnon said the biggest differentiator for TexTest is speed-to-market and quick-turn testing. “TexTest does not do any testing other than textiles and apparel. We believe we are the deepest company for the types of testing that we do.

“From 1954 until 2003, Cotswold and Central were totally focused on wovens,” McKinnon continued. “But we started scouring the market and realized that we needed to be a textile engineering business — a business that doesn’t specialize in this or that, but, instead, a business that specializes in bringing its customers what they want.

“To be successful in our industry today, you have to take chances,” McKinnon said. “You cannot be afraid to fail. You make, you test, you reengineer. And who knows? What looks like a failure today may become your leading product two seasons from now.”

Disclaimer: TENCEL™ and Lenzing™ are trademarks of Lenzing AG


Editor’s Note: This article appears in Textile World courtesy of the National Council of Textile Organizations (NCTO) as part of the “American Textiles: We Make Amazing™” campaign. NCTO is a trade association representing U.S. textile manufacturing. Please visit ncto.org to learn more about NCTO, the industry and the campaign.


September/October 2018

NCTO Council Roundtable: Challenges & Opportunities For The U.S. Textile Industry

CouncilsTW Special Report

The National Council of Textile Organizations (NCTO) represents the breadth and depth of the U.S. textile industry through a council-based structure that provides a voice to the diverse interests of the industry.

There are four separate councils that comprise the NCTO leadership structure. Each council represents a major component of the U.S. textile supply chain and elects its own officers who make up NCTO’s Board of Directors.

CouncilsBockoven
Bockoven

Council Leadership

The Fiber Council represents domestic textile fiber producers and is currently chaired by Don Bockoven, president, Wellford, S.C.-based Leigh Fibers Inc. Every year, Leigh Fibers purchases approximately 300 million pounds of textile waste from a wide range of suppliers. Once sorted, the fiber is used to create both branded and customer-specific fiber blends.

The United States will continue to be advantaged in the cost of natural gas, a primary feedstock for many synthetic fibers.
— Don Bockoven, NCTO Fiber Council Chairman; President, Leigh Fibers Inc.

The Yarn Council represents domestic yarn manufacturers with Frontier Spinning Mills Inc.’s CEO Robin Perkins currently serving as chairman.

Founded in 1996 and based in Sanford, N.C, Frontier is one of the largest producers of 100-percent cotton and cotton-blend yarns in the world. The company operates state-of-the-art manufacturing facilities in multiple states and employs more than 1,100 people.

The Fabric & Home Furnishings Council represents domestic manufacturers of fabric, including woven, knitted, nonwoven, tufted, braided or other, and home furnishings. The council is chaired by Greenwood Mills Inc.’s President Jay Self. Headquartered in its namesake city of Greenwood, S.C., the company manufactures textiles from fiber through finished fabrics, and its subsidiary SingleSource Apparel (SSA) is one of the largest non-branded apparel manufacturers in the Americas.

The fourth council is the Industry Support Council, which includes textile distributors; converters, dyers, printers and finishers of textiles; and suppliers of products and services to such fiber and textile entities. Greenville, S.C.-based Picanol of America Inc.’s President Cyril Guerin currently serves as chairman. Picanol develops, produces and markets high-tech air-jet and rapier weaving machines. Today, approximately 2,600 weaving mills around the world use Picanol machinery, totaling more than 175,000 weaving machines.

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Self

Industry Challenges, Advantages

An upswing in investment by domestic and foreign firms in U.S. textile manufacturing has led many to posit that the industry is making a comeback after surviving exceedingly difficult times.

Beyond fundamental market factors, future investment is also dependent on sound government policy. Competitive tax and regulatory structures are vital.

— Jay Self, NCTO Fabric & Home Furnishings Council Chairman; President, Greenwood Mills Inc.

“I believe we will continue to see this investment trend in the near future as a result of continuing pressure on reducing supply chain cycle times and global competitiveness,” said Fiber Council Chairman Bockoven. The United States will continue to be advantaged in the cost of natural gas, a primary feedstock for many synthetic fibers.”

Fabric & Home Furnishings Chair Self stated: “I think the majority of the investments have been predominately in open-end spinning. The low labor content and competitive electrical rates have made this a good investment. We are starting to see some investment in weaving with some of the new speeds out there. This is primarily replacement and not new capacity.

Self continued, “Beyond fundamental market factors, future investment is also dependent on sound government policy. Competitive tax and regulatory structures are vital. In addition, we need to have logical trade policies, such as the yarn forward origin rules that are included in most of our international trade agreements. Policies like these are imperative to meet challenges from low-cost suppliers like Vietnam, who continue to grow market share with double-digit increases without any beneficial duty treatment thanks to generous state-sponsored subsidies.”

From a spinning perspective, “We will continue to invest responsibly in our plants to stay on top of technology,” Yarn Chair Perkins said. “Operating in a free marketplace is a privilege, but we continue to face labor challenges. One of the benefits the United States has had over foreign manufacturing is the lower cost of dependable and uninterruptible power.”

Speaking on behalf of his sector, Industry Support Chair Guerin said, “Those businesses who want to be prepared for the future now need to invest into new equipment.”

Guerin added that one of the strengths in the United States is a closeness to the market. “Proximity,” Guerin said. “We are a Belgium-based company with more than 50 years of presence in the United States. We established our company in Greenville in 1970 to serve our customers. What was true then is still valid today, even more so with the rapid pace at which the end users change their needs.”

Technology, Labor Challenges

As technology, including automation, continues to become more advanced, U.S. textile companies are faced with opportunities as well as challenges.

“Innovation, technology and automation are critical to driving global competitiveness,” Fiber Chair Bockoven said. “In addition, automation has been used to improve operator safety in areas like ergonomics where repetitive motion typically done by humans is now being done through automation.”

Finding skilled employees for the industry is a challenge according to Bockoven. “At the end of 2017, there were almost 6 million jobs in the United States unfilled. The textile industry is no different than the rest of the country in the challenges with attracting and retaining employees. We have been working to develop a strong succession plan and have promoted several millennials into critical positions because of what they’ve accomplished and the potential they’ve shown.”

“The most effective innovations increase flexibility and speed to market,” Fabric Chair Self said. “Also they allow us to take advantage of new fibers and their properties. We have become more proactive in training our workforce and have started apprenticeship programs with the school districts to promote workforce training.”

CouncilsPerkins
Perkins

“Innovation offers less dependency on labor resulting in the need for fewer employees; however, a good company will have to pay those employees more,” Yarn Chair Perkins said. “Managing a 24/7 operation in today’s workforce environment is very challenging. Finding quality candidates who want to work shift work and weekends has become extremely difficult. At Frontier, we try to focus on automating when possible and providing a good, clean, safe workplace for our employees with competitive benefits and wages.”

We will continue to invest responsibly in our plants to stay on top of technology.

— Robin Perkins, NCTO Yarn Council Chairman; CEO, Frontier Spinning Mills Inc.

“We offer innovation to one of the oldest industries in the world,” Industry Support Chair Guerin said. “Weaving is a process that has not changed much in 5,000 years! But with highly-advanced looms, we take weaving to an all new level of performance. And there is definitely more to come. Our machines are already Industry 4.0 enabled — as in are capable of capturing and processing huge amounts of sensoric data — and these data will be used ever more to further optimize the weaving process.”

Drivers Affecting Change In The U.S. Textile Industry

“Our customers continue to ask us for quicker turnarounds from point of sale to delivery,” Yarn Chair Perkins said. “We have to specialize in quick response for customer satisfaction. E-commerce is having a material impact on shopping today. The retail industry needs to adjust to the millennial purchasing habits as baby boomers age and purchase less.

“The CAFTA region needs to broaden its offerings to become more of a one-stop shop for retail buyers. U.S. textile suppliers are logistically positioned to better serve the U.S. retail sector than anyone else. We need to expand our product offerings to match products that are currently supplied from Asia,” Perkins added.

CouncilsGuerin
Guerin

Those businesses who want to be prepared for the future now need to invest into new equipment.

— Cyril Guerin, NCTO Industry Support Council Chairman; President, Picanol of America Inc.

“As the world grows smaller every day, it is critical to bring a significant level of differentiation to the table,” Industry Support Chair Guerin said as he discussed changes and drivers in the industry. “Picanol’s U.S. customers are very well equipped to develop new products, new solutions and new services. The performance, versatility and frugality of modern looms helps them to be more competitive, not only at home, but also on the world market.”

According to Fiber Chair Bockoven: “Continued efforts in automation, focus on circular economy and continued efforts in mass customization will all have some impact that will shape the industry of the future. I would foresee continued investments in automation particularly as the workforce challenges continue. The jury is still out as to how the circular economy thinking will play out in the industry where there have been considerable efforts in recycling for the past 20 or so years. Things like UNIFI®’s REPREVE®, regenerated polyester, for example — there has been considerable effort with yet a lot more to come.”

The Council System Benefits NCTO’s Message

“NCTO membership brings industry connectivity, camaraderie and leverage,” Bockoven said. “The relationship with industry is critical as evidenced by NCTO providing a unified voice in regulatory affairs and trade negotiations. While the Trans-Pacific Partnership is no longer on the table, the industry partnership during the negotiations was second to none. The relationship with the community is critical in demonstrating to employees the commitment to the area where we all live and work.

“Not only does NCTO give us a united front to present to our legislators, but they research the problems facing our industry and provide us with solutions and/or recommendations that are beneficial to us individually and to the industry as a whole,” added Yarn Chair Perkins. Regarding the relationship between industry, company and community, Perkins said: “It’s the reason we exist. We need local government to support us as corporate citizens so we can maintain a successful workforce that in turn supports our community and local businesses. Supporting our local schools and community colleges is key to growing a strong community that produces hard working citizens and leaders.”

The Council System Works To Support NCTO Members

It is clear in speaking with the NCTO council chairmen, although their views vary slightly due to their industry sector challenges, in the end the message comes down to one achievement by NCTO — a shared voice where the U.S. textile industry can speak in unison and affect positive change.

Councilsgraphic


Editor’s Note: This article appears in Textile World courtesy of the National Council of Textile Organizations (NCTO) as part of the “American Textiles: We Make Amazing™” campaign. NCTO is a trade association representing U.S. textile manufacturing. Please visit ncto.org to learn more about NCTO, the industry and the campaign.


September/October 2018

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