Business & Financial: Healthy Bottom Lines

By Robert S. Reichard, Economics Editor

Textile and apparel industry profits are a pretty good bet to at least equal last year’s strong levels. Credit this positive outlook to a combination of modest demand gains, the absence of any significant cost pressure, and fairly firm prices. Indeed, given the current business climate, earnings could well inch a bit higher. Nor are TW editors alone in looking forward to another good year. The economic consulting firm Englewood, Colo.-based IHS, in its latest industry projections, is pretty much telling the same story. Its analysts, for example, see 2- to 3-percent profit gains in 2015 for both basic textile mills and apparel manufacturers with mills making more highly fabricated products showing a small fractional advance. Moreover, these increases will be coming on top of the much larger double-digit advances racked up over the past year when sharply lower cotton costs gave producers’ bottom lines a big boost. And the outlook beyond 2015 as seen by IHS analysts seems to be equally bright. Next year, for example, continuing modest earnings gains are projected averaging out at near 4 percent for all three of the just noted industry subsectors. Moreover, go further out into the future, and the economic consulting firm anticipates further small profit gains. That’s hardly a bad future for an American manufacturing sector that many had seen headed for the scrap heap as recently as just five years ago.

Other Upbeat Signs
There are also a host of other signs that would seem to indicate solid bottom-line progress over the next few years. For one, there’s the optimism of mill executives. They would hardly be earmarking more than a billion dollars a year for new plant and equipment if they did not expect a decent return on their investment. Also supporting a rosy earnings picture is the fact that this improving profit scenario is not just something that has suddenly cropped up. Indeed, IHS numbers for the current 12-month period — numbers that factor in all the industry’s profit determinants — have consistently been in the plus column for well over a year now. Still another positive sign: The new 2015 forecast for both textile mills and apparel makers actually are a bit higher than they were six years ago — a time when demand was considerably higher than it is today. Still another indication of stronger earnings is the fact that the percentage of the revenue dollar needed to cover production costs had been declining steadily. Latest 2015 numbers, for example, show combined labor and material costs accounting for 44.6 percent, 56.5 percent and 84.3 percent of the sales dollar for basic textiles, more highly fabricated mill products, and apparel, respectively. They are well under levels prevailing just two year ago. Other things being equal, such declines would clearly suggest that profit margins — profits per dollar of sales — are now also moving higher. Indeed, a look at Uncle Sam’s latest margin numbers would clearly seem to confirm this trend.

The Improving Demand Impact
A few further words also are in order on the demand influence on profits. As point out above, anticipated higher industry activity should be an important contributor to better bottom-line performance. Indeed, improving activity already is apparent, with early 2015 retail apparel sales running upwards of 3-percent above year-ago levels. And TW would expect to see these sales continuing to increase because of a combination of factors: expectations of a 3- to 3.5-percent-advance in 2015 gross domestic product, about 0.5-percent more than last year; a falling jobless rate that could slip to near 5 percent by next fall or winter; a substantial boost in consumer purchasing power engendered in large part by the recent sharp drop in gasoline prices; and the strong recovery in household net worth combined with a significant decline in the household debt/disposable income ratio from 130 percent just before the recession to 107 percent currently. Add in the fact that consumer confidence is now near its highest level in years, and TW now expects the buying of apparel and other textile products to actually accelerate a bit over the remainder of the year and well into 2016. Point to keep in mind here: The pickup in buying is almost certain to have a positive effect on industry earnings. To be sure, just how much of an impact is difficult to precisely quantify. But throw all of today’s profit-enhancing factors into the consumer hopper and TW feels fairly certain that as much as half of any near-term bottom-line improvement will probably be because of improving industry demand.

April 14, 2015

Gerber Technology’s AccuMark 10 Now Available

TOLLAND, Conn. — April 8, 2015 — Gerber Technology announces the availability of the AccuMark 10 intelligent pattern design, grading, planning and marker making software solution. In addition to digital printing capabilities and other features that increase productivity throughout the system, AccuMark 10 will also offer a fully integrated 3D solution for garment development and pattern making as an optional module (available later this spring).

“AccuMark 10 truly revolutionizes the design process in apparel and fashion, by improving communication and productivity all along the line,” said Mary McFadden with Gerber Technology. “This next-generation solution helps manufacturers get their products to market faster, smarter and better.”

Gerber was one of the first to introduce CAD Pattern Making Software for the apparel industry. Today, AccuMark CAD systems are used by more than 15,000 customers, including many of the world’s leading fashion brands. Gerber has a history of bringing forward innovations and technologies that optimize customers’ design and manufacturing processes. Gerber has launched technologies that have become the benchmarks for CAD pattern making, grading planning and marker making software, and automated spreading and cutting machines.

AccuMark 10 automates the entire production process while providing significant advances in quality control, communication and efficiency. The system helps manufacturers reduce raw material and labor costs, and generate fewer samples and prototypes. Users will find that AccuMark 10 is easy to use, improves collaboration and helps to automate every day tasks in pattern design, grading, marker making and production planning.

AccuMark 10 elevates pattern design and streamlines the production process at every level. Features of this system help users in a variety of areas:

Pattern Design: Artwork images that represent fabric textures, appliques, logos, trims and other visual details can now be added to patterns in PDS. This enables the ability to provide partners with visual instructions for pattern placement. Pleats can now be edited, deleted and folded, and the patterns can be modified while the pleats are folded, providing major productivity improvements.

Grading: Allowing users to create Points of Measurement between pattern and chart, provide pattern details to production. With automatic grading updates, intelligent calculations and pre-set size tables, users are able to make pattern changes on the fly and create made-to-measure garments from basic sizes.

Marker Making: AccuMark 10 simplifies the marker ordering process while offering the capability of such advanced technologies as generating digital printing files directly.

Production Planning: Work orders can be imported from ERP systems and automatically planned, nested, plotted, and have reports and cut data generated without human interaction. This ability greatly increases productivity and reduces human error.

“Digital printing will bring dramatic increases to the creativity and production speed of the industry, and we’re happy to be able to offer that capability within AccuMark 10,” said McFadden. “Not only will it offer a more creative range of design options, digital printing will also allow for development of short run “fast fashion” lines – all with lower production costs. When combined with our optional 3D module, users can generate virtual samples and then bring them to life with digital printing. AccuMark 10 is truly next-generation technology, and will help apparel manufacturers unleash their creative vision in design and production.”

Posted April 14, 2015

Source: Gerber Technology
 

Emerald Kalama Chemical Makes Multi-million-dollar Investment In Production Of High Purity Benzoic Acid-based Products In Rotterdam

CUYAHOGA FALLS, Ohio — April 9, 2015 — Emerald Kalama Chemical, a business group of Emerald Performance Materials, announced approval for final design engineering and the initial purchase of key long lead time process equipment for the addition of a second benzoic acid purification and finishing process at its facility in Rotterdam, Netherlands. Final approval for full construction is expected in third quarter 2015. The expansion, slated for completion in 2016, will support the group’s benzoic acid production unit, adding capacity to process an additional 100,000 metric-tons per year of high purity material and supporting output from the company’s two reactor trains in Rotterdam. This project is the group’s seventh multi-million-dollar investment in the last several years at its Rotterdam site.   

The added purification and finishing capacity will support growing demand for the company’s high purity Kalama® and Purox® brands of benzoic acid flakes, sodium benzoate granules and liquid benzoic acid, which it provides to the market and utilizes for the production of downstream products, notably K-FLEX® non-phthalate plasticizers and coalescents. Benzoic acid and sodium benzoate are used as antimicrobials to produce a wide range of products, in markets such as pharmaceuticals, food and beverage, personal care and industrial applications, including paint, coatings, down-hole drilling and plastics.

“This latest investment is a part of our long-term strategic plan to enhance operations and build the infrastructure needed to support our core global business,” said Hubert Degens, vice president of the Emerald Kalama Chemical Benzoates and Intermediate business. “The current project will support increasing demand for our high purity products by our customers in the core food and beverage segment, as well as in growing segments such as personal care, where benzoates are increasingly used as a non-paraben, non-formaldehyde antimicrobial. The added capacity will also meet our internal consumption needs for downstream products.”

Engineering and design for the project are underway. Construction will begin later this year and continue through 2016, with a planned start-up in the fourth quarter of 2016.

The company has been producing benzoic acid at its Rotterdam and U.S. operations for more than 50 years. In addition to the current benzoic acid investment, the company commissioned a second 75 kilo-ton benzoic reactor train in 2014, new flaker production unit for its Purox® B benzoic acid line in 2013 and a new K-FLEX plasticizer operation in 2012. The company also completed an expansion of its aroma chemical product line capacity in 2013 and several K-FLEX expansions at its Kalama, Wash., facility.        

Emerald Kalama Chemical’s portfolio of benzoic acid products is FDA-approved and GRAS-classified. The Rotterdam operation is also certified to a number of important quality standards, including ISO-9001, ISO-14001, HACCP, FamiQS and FSSC22000.

Posted April 14, 2015

Source: Emerald Kalama
 

Proxy Biomedical Introduces Custom Synthesized ProTEX Med™ Medical Grade PP Resin

GALWAY, Ireland — April 14, 2015 — Proxy Biomedical, a leading global innovator in the design, development and manufacturing of biomaterials, today announced the release of ProTEX Med™ Polypropylene Resin, a unique custom synthesized resin, available exclusively for Proxy Biomedical partners, leveraging downstream textile conversion processes. ProTEX Med can be provided as a textile component, sub‐assembly or finished device.  Qualification of the device, for long-term implantation, is undertaken by the device owner themselves, with the assurance that the constituent material is not contra-indicated for long term human implantation.

ProTEX Med is certified to technical specifications and ISO 10993-5 (cytotoxicity), with proven equivalency to currently implanted Polypropylene grades. The material has undergone comprehensive testing and characterization performed in resin, fiber and mesh forms, to demonstrate physical, chemical and biocompatibility equivalency. A file registration for ProTEX Med is in place, with a unique FDA Device Master File reference, available to resin users in support of associated product qualification.

“There are serious concerns about companies implanting textiles that are not composed of materials sourced specifically for medical applications; Proxy Biomedical aims to address these concerns with ProTEX Med polypropylene resin,” said Caitriona Conneely, QA & RA manager, Proxy Biomedical. “At Proxy Biomedical, we believe strongly in traceability, accountability, quality, consistency and safety of supply chain, from initial precursor substances to final materials production. ProTEX Med reduces the risks associated with a contraindicated resin, overcoming issues related to material regulatory compliance, while ensuring security and continuity of the supply chain.”

Proxy Biomedical has extensive expertise in homopolymers and compounds of both resorbable and non-resorbable materials, along with their respective characteristics, including mechanical performance, degradation profile and biocompatibility. Proxy Biomedical can also offer a custom synthesization service for partners looking for an exact match to specific polypropylene resin grades used in existing products.  The service includes comprehensive testing and characterization, to demonstrate physical, chemical and biocompatibility equivalency, in resin, fiber and processed textile forms.  This approach addresses material regulatory compliance for existing products, while ensuring long term security of supply.

Posted April 14, 2015

Source: Proxy Biomedical
 

INDA Annual Report Benchmarks North American Nonwovens Capacity And Production

CARY, N.C. — Cary, NC – INDA, the Association of the Nonwovens Fabrics Industry, publishes the second edition of the annual North American Nonwovens Supply Report for its members. The report provides key metrics of capacity, production and operating rates for the total North American nonwovens industry by nonwoven process. The 45-page report offers 12 tables and 25 figures.

“This new report is the benchmark for North American capacity, production, and supply information. It brings forth the clearest view available of the all-important supply/demand balance in the major nonwoven process categories; an essential element for our members’ strategic planning and business decision making,” said Dave Rousse, President, INDA.

The report — and the INDA Quarterly Market Pulse and INDA Price Trends Summary — are provided to the 300-plus INDA member companies and associates as part of their membership.

Findings include:

  • From 1990 to 2014, North American nonwovens capacity has increased an average of 5.5 percent per year, outpacing U.S. real GDP, which grew at 2.5 percent per year over the same period. During this time the industry has more than quadrupled in size, adding 1.95 million tonnes.
  • In 2014, North America’s nonwoven capacity increased to 2.71 million tonnes, (1.2 percent annual growth compared to the previous year’s growth of 1.5 percent).
  • Imports and exports are an important consideration in supply. The United States which accounts for 91 percent of North American capacity — is a net exporter in the Americas and net importer across the Atlantic and Pacific. Contrary to industry assumptions, imports from across the Atlantic and Pacific into the United States are not substantial, accounting for less than four percent of the U.S. nonwoven capacity.

“It is INDA’s objective to continue to improve the quality of data and industry information. One way we support this is by providing for the common use of nonwoven industry terminology and categorization,” said Brad Kalil, Director of Market Research and Statistics, INDA.

Posted April 7, 2015

Source: INDA
 

ICAC: Cotton Price Gains Attractiveness

WASHINGTON — April 1, 2015 — Although the price of cotton is less attractive than its competing crops, such as wheat, maize, soy, rice and sugar, compared with a year ago, its position has improved in the last few months. The record volume of cotton stocks has put downward pressure on international cotton prices, which have averaged around 68-70 cents/lb for much of the season. Like cotton, prices of competing crops fell in August and September.

However, prices for wheat, maize, and soybean recovered in late autumn and winter, while cotton continued to fall, making cotton less attractive. Then, in January and February 2015, prices for wheat, maize, and soybean all declined while cotton prices have held steady. The recent gain in the price attractiveness of cotton may mitigate the loss in area to competing crops. World cotton area is forecast to decrease 7% to 31.3 million hectares in 2015/16, and world production is projected down 9% to 24 million tons.

World production in 2014/15 is estimated at 26.4 million tons, up 1% from the previous season, while world average yield decreased 2% to 791 kg/ha. In India, area grew 5% to 12.3 million hectares in 2014/15, which is the largest area planted with cotton on record. However, erratic monsoon weather last summer caused India’s average yield to fall 5% to 551 kg/ha. As a result, production reached 6.7 million tons, about 20,000 tons fewer than in 203/14. Harvested area in the United States grew 29% to 3.9 million hectares, and production increased 26% to 3.5 million tons. In contrast, the area in China, Pakistan and Brazil decreased
 n 2014/15. After reaching 5.5 million hectares in 2011/12, the area under cotton in China has dropped in each of the subsequent seasons, despite high domestic prices, and is estimated at 4.3 million hectares in 2014/15, down 8% from 2013/14. Scarcity of labor, rising production costs, and greater profitability from other crops are among the factors that have discouraged farmers from planting cotton in China. China’s cotton production is estimated at 6.4 million tons in 2014/15. Although planted area in Pakistan increased slightly from 2013/14 to 2.9 million hectares, flooding in the autumn caused a loss of around 86,000 hectares so that harvested area decreased 3% to 2.8 million hectares. However, greatly improved yield is likely to push production to 2.3 million tons. Farmers in Brazil were discouraged by the sudden drop in international prices in the months before planting, and area in Brazil fell 13% to 976,000 hectares. Production is projected down 11% to just over 1.5 million tons.

After falling 1% in 2013/14, world consumption is projected to expand 3% to 24.1 million tons in 2014/15 with growth in Asia dominating. China’s consumption is expected to recover 5% to 7.9 million tons after several seasons of decline. India, the world’s second largest consumer is projected to increase consumption by 4% to 5.2 million tons while consumption in Pakistan is forecast to grow 2% to 2.3 million tons, making it the third largest consumer in the world. In 2015/16, consumption is expected to grow modestly by 2% to 24.6 million tons. World imports are forecast down 15% to 7.4 million tons in 2014/15 with imports by the world’s largest importer, China, expected to drop 50% to 1.5 million tons due to the greater availability of domestic cotton in 2014/15 and the restriction on additional import quota in 2015.

Although consumption is recovering in 2014/15, a production surplus of 2.3 million tons is likely, resulting in another year of rising ending stocks. In 2014/15, world ending cotton stocks are expected to rise by 12% to 21.8 million tons, which represents 90% of world consumption this season. However, in 2015/16, ending stocks may decrease by 3% to 21.2 million tons.

World Cotton Supply And Distribution
                                  2013-14  2014-15   2015-16  2013-14        2014-15         2015-16

                                                   Changes
from previous
month		            
million
tons		 million
tons
Production 26.27 26.43 23.99 -0.01 0.07 -0.42
Consumption 23.49 24.14 24.55 -0.01 -0.08 -0.10
Imports 8.74 7.39 7.68 0.00 -0.01 -0.13
Exports 8.87 7.39 7.68 0.01 -0.01 -0.13
Ending Stocks 19.48 21.77 21.21 -0.05 0.11 -0.20
Cotlook A Index 91 68* 61**

*The price projection for 2014/15 is based on the ending stocks/mill use ratio in the world-less-China in 2012/13 (estimate), in 2013/14 (estimate) and 2014/15 (projection), on the ratio of Chinese net imports to world imports in 2013/14 (estimate) and 2014/15 (projection). The price projection is the midpoint of the 95% confidence interval: 63 cts/lb to 74 cts/lb.
**The price projection for 2015/16 is based on the ending stocks to mill use ratio in the world-less-China in 2013/14 (estimate), 2014/15 (projection) and 2015/16 (projection), on the ratio of Chinese net imports to world imports in 2015/16 (projection), and on the price projection for 2014/15. The price forecast for 2015/16 is the mid-point of the 95% confidence interval: 49 cts/lb. to 75 cts/lb.

Eurolaser Opens New Facility In Poland

LÜNEBERG, Germany — April 1, 2015 — The demand for high-tech CO2 laser systems for large-format cutting is growing worldwide. In particular countries with a large manufacturing industry are always on the look-out for new manufacturing technologies. In line with this trend eurolaser continues to extend its bases of competence in other European countries. In April 2015, it opened a new branch office in Poland.

Mariusz Deptuch, Manager of eurolaser Poland, said: ‘We are looking forward to being able to offer competent and personal consultation on the Polish market as of now in the local language. Proximity to the customer is a key factor, in particular where industrial products in need of explanation are concerned. So the establishment of eurolaser Poland is an important step towards acquainting the manufacturing industry in Poland with the many benefits laser technology has to offer. Thanks to our competent team we are in a position to ensure both market-orientated and individual consultation before a purchase as well as a technical customer service after a purchase. Our on-the-spot location enables us to respond quickly. The customer also benefits from short distances and saves on travel expenses.’

eurolaser Poland expands the international presence of the German premium manufacturer of laser systems. The CO2 laser systems are used primarily for the processing of acrylics, plastic films, technical textiles and wood.

Posted April 7, 2015

Source: Eurolaser
 

Messe Frankfurt And Milano Unica Extend Their Cooperation In New York

FRANKFURT — April 1, 2015 — Messe Frankfurt, market leader for the planning and organization of textile fairs worldwide, and Milano Unica, organisers of the trade fair of the same name in Milan, extend their collaborative activities. The collaboration, which began in 2012, is further strengthened by the presence of Milano Unica in the Javits Convention Center during the NYC Textile Week in July 2015. This means that there will be a greater concentration of apparel fabrics on show from manufacturers and brands in the premium and luxury segment. The intention is to strengthen the presence of Italian fabrics in America, one of the most important markets in the world.
 
“Milano Unica exhibits premium and luxury fabrics in Milan twice yearly and is the world’s leading trade fair for the luxury segment. As a result of the collaboration with Messe Frankfurt’s Intertextile Apparel Fabrics, we will be able to introduce and promote valuable Italian fabrics and accessories to the market and, at the same time, bring with them the unique image of style, culture and design,” says Silvio Albini, President of Milano Unica. “It was already clear to us, back in 2012, that this is just the beginning of our successful cooperation with Messe Frankfurt. Our new commitment during the NYC Textile Week means that we will be bringing the image and the atmosphere of Milano Unica and the Italian excellence in textile to New York, too.”
 
Detlef Braun, Member of the Executive Board of Messe Frankfurt explains: “Our partnership with Milano Unica represents a great success for the sector. The strategic alliance within the context of Intertextile in Shanghai has absolutely proved its worth and, by extending our collaboration to New York, we offer the textile industry an even larger portfolio of outstanding events. Like our Texworld USA, first established in 2004, and Apparel Sourcing, Milano Unica will also be held in the Javits Convention Center. As already experienced in Shanghai, the Milano Unica New York exhibition will take place in a separate and exclusive pavilion with entrance on invitation.”
 
The next NYC Textile Week begins in July 2015. Besides Texworld USA, other trade fairs that will be participating include, inter alia, Kingpins and MRket.
 
As well as the joint venture in the USA, Messe Frankfurt and Milano Unica are also firming up their collaboration in China. The partners have signed the cooperation agreement, extending it for another two years, during Intertextile Shanghai Apparel Fabrics, which was held from 18 to 20 March 2015. “We are very satisfied with what we have developed together with Messe Frankfurt. The Chinese market is very important to us. In our exclusive pavilion, we have concentrated the best of the Italian textile industry which are interested in the penetration of this market,” adds Mr Albini. As a result, Milano Unica has continued to be represented with a pavilion in the SalonEurope premium zone during the world’s largest trade fair for apparel fabrics.
 
Posted April 7, 2015

Source: Messe Frankfurt
 

French Start-up Company Sizzy Captures Body Measurements With 3-D Body Scanners By Human Solutions

KAISERSLAUTERN, Germany — April 1, 2015 — More satisfied customers for online and mail order purchases and fewer returns – that’s what French start-up company Sizzy is aiming to achieve in its stores with the Human Solutions GmbH 3D body scanners, which capture customers’ individual body measurements in private scanning cabins.

March this year saw Sizzy open its first “Sizzy Center” in Paris and this store will be followed by six new French sites in Pronuptia stores within the next two months and around 20 other in 2016. In a second step, Sizzy would like to develop the concept in Europe and USA. The road to the right size & fit is simple and customer-friendly: in the Sizzy Center, the customer undresses in a private dressing room. He then triggers the scanning process himself – discreetly and easily without any staff help. He gets dressed again and just a few minutes later a member of the store staff gives him a card with his body measurements. Sizzy’s objective is to make choosing the right garment size easy for every customer when he or she wants to shop online or buy from a mail order company.

Sizzy chose the DITUS MC 3D body scanner and the foot scanner FOOTin 3D by the Human Solutions GmbH for its stores, which are operated in France by its partner company Neatek. “For Sizzy, the key factor was ease of use, because this would enable customers to take their own measurements – and the body scanner’s compact design and simple setup also convinced Sizzy”, says Dr. Helga Gäbel, of the 3D Body Scanner Sales Division at Human Solutions. “We are delighted with our excellent cooperation – and we wish Sizzy all the best!”

Posted April 7, 2015

Source: Human Solutions
 

Picanol Marks Production Milestone With 20,000th OptiMax Weaving Machine

YPRES, Belgium — April 2, 2015 – Picanol reached an impressive milestone this week when the 20,000th OptiMax rapier weaving machine rolled off the production line at its plant in Ypres, Belgium. The first OptiMax was produced in Ypres in 2007. The OptiMax is the most advanced and fastest rapier weaving machine on the market today with speeds of up to 700 picks per minute. The 20,000th OptiMax will be shipped this week to the company Sister Denim Composite Ltd. from Bangladesh.
 
The OptiMax offers the ideal combination of considerable versatility and highly productive weaving and features components that are designed for higher operating speeds and optimum productivity. The OptiMax was given a boost in 2011 when Picanol also presented a positive gripper version to complete the offerings of its rapier platform. Whilst it is available in all widths (up to 540 cm), in particular it opened new perspectives in technical segments such as coating fabrics, primary and secondary carpet backing and geogrids.
 
 “Our OptiMax represents the benchmark of the rapier industry. Thanks to its modular and future-oriented design, it can be adapted to a wide range of conditions, which means that it provides weavers with a great deal of flexibility in reacting to changes in market requirements. With speeds of up to 700 picks per minute, this is the fastest industrial rapier weaving machine in the world and it has an installed base at more than 800 customers in over 50 countries” explained Johan Verstraete, Vice-President Marketing, Sales & Services at Picanol. “We have every reason to be proud of the fact that we have produced our successful OptiMax model 20,000 times. Achieving this milestone demonstrates our ability to produce best-in-class, dedicated weaving machines for the world’s most reputable textile manufacturers. This is further proof of the confidence that our customers have in the Picanol brand, its quality and its rapier technology” This important production milestone was celebrated with all of the Picanol employees in the assembly department in Ypres.

Posted April 6, 2015

Source: Picanol
 

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