Sewn Products Success In Mexico City

ExpoProducción successfully concluded its third edition held February 4-6, 2015, in Mexico City, Mexico. According to show organizer Atlanta-based ExpoProducción Mexico LLC, the show was well-supported, which illustrates the need for a sewn products trade fair in Mexico.

“We are extremely pleased with the continued and growing support we received from our exhibitors and attendees that made ExpoProducción 2015 such a success,” said David Audrain, president and CEO, ExpoProducción, Mexico. “The 2015 event showed that Mexico and Central America continue to see growth both for domestic consumption and exports, and that ExpoProducción plays a vital role by providing an event in Mexico that brings together the suppliers and buyers for this emerging and growing apparel and textile market.”

A total of 2,398 attendees walked the exhibition floor during the show’s three-day run. Visitors were global and came from the following countries and regions: Ecuador, Guatemala, Costa Rica, Honduras, Taiwan, Belgium, South Korea, Spain, France, Italy, Japan, Peru, the United States and Mexico.

Attendees — including designers, engineers, educators, plant managers, purchasing managers, quality control managers, research and development managers, and sourcing managers — came from all facets of the textile industry including aerospace, automotive, garment manufacturing, government manufacturing, home textiles, leather and footwear, medical, military and pet products sectors.
 


The collaborative Lean Sewing Lines project was demonstrated at Casa Diaz’s booth during ExpoProducción.

Exhibits
The show featured 115 exhibitors offering products, services and equipment from across the fashion, home and technical textiles industries including computer software and information technology; full package and private label contract manufacturing; cutting and sewing equipment; distributor and wholesaler; fabrics; fibers and yarns; findings and trims; nonwovens; research and development; services and logistics; supplies; textile machinery; associations and academia; and publications.

Feedback from exhibitors about the show and the business climate in Mexico was positive.

“There have been tough years in the apparel industry in Mexico, but we are seeing opportunity and growth in sewing again,” said Alfonso Peláez, Casa Diaz, the exclusive representative in Mexico for leading garment, embroidery and screen printing brands, with more than 80 years of experience in the industry. Casa Diaz had the largest floorspace at the show encompassing booths from many of the companies it represents including Groz-Beckert, Brother, Tajima and Schmetz, among other companies.
 


Frank Henderson (center), president and CEO, Henderson Sewing Machine Co.;


The team from Block Bindings and Interlinings Ltd.
 

“The synthesis of machinery, technology and ideas to provide manufacturers with solutions is where we see opportunity and big changes in the sewing industry,” said Peláez. “We do not see any big developments or innovations in technology.” He mentioned the collaborative Lean Sewing Lines project where workers stand to sew, multitasking and moving from one machine to another to produce a complete product rather than sitting at one machine all day sewing only one component of a garment repetitively. According to Peláez, workers experience less fatigue and fewer repetitive injury problems using this process, among many other benefits. Cary, N.C.-based [TC]2 — participating at ExpoProducción as a special guest in the Casa Diaz booth — organized and trained a Lean Team of sewers from a foundation for single mothers of children with special needs. During the show, the team demonstrated the Lean Sewing process while producing backpacks that Casa Diaz handed out to show visitors. The foundation, sponsored by Casa Diaz and Iberomericana University in conjunction with [TC]2, aims to develop skilled sewing specialists for the industry while providing jobs to women with children with disabilities.

Lonny Schwartz, president, New York City-based Superior Sewing, a wholesale distributor of industrial sewing and cutting machine replacement parts and supply items, views the event as a valuable sales tool for his company. As a wholesaler, Superior is a non-traditional type of exhibitor, but Schwartz said the show provides the perfect platform for Superior to safely meet with Mexico-based dealers. “We’ll definitely be here in 2017!,” Schwartz said.

Seminar Series
A number of companies participated in a seminar series held during the three-day show. New York City-based Fashion Snoops; [TC]2; Burlington Industries, Greensboro, N.C.; Atlanta-based Lectra North America; Jesta I.S. Inc., Quebec; InkCups Now Corp., Danvers, Mass.; Polyfab USA LLC, Manhattan Beach, Calif.; and the Americas Worldwide Responsible Accredited Production (WRAP), Arlington, Va., gave presentations on a variety of topics ranging from fashion trends and sustainable manufacturing to technical developments in fibers and fabrics and software solutions. José Manuel Martínez Cabrera, director general, Cámara Nacional de la Industria del Vestido (CANAIVE), offered a look at the Mexican sewing industry in his State of the Industry presentation.
 

(left to right) Mario Gomez, sales manager, and Jamie Castaneda, after-sales technician, Stäubli Corp. Mexico, and Ludovic Pitrois, Textile Division manager, Stäubli Corp. North America


David Sasso (center), vice president, sales, and PJ McCord (right), director of sales, Buhler Quality Yarns Corp.

Luis Valázquez, director of business development, Lectra North America, in his “Creating Value Through Technology” presentation, talked about the growth in Mexico’s retail market and how it is an attractive market for fast fashion driven by millennials.  Valázquez stressed that Mexico has lots of expertise in making traditional textiles as well as lots of design talent. His suggestion is for Mexico to harness this talent and know-how to establish its own brands that can be manufactured in Mexico for the Mexican retail market versus importing foreign brands produced outside of Mexico.

ExpoProducción is supported by CANAIVE; Clover, S.C.-based Synthetic Yarn and Fiber Association; U.S. Department of Commerce, Office of Textiles and Apparel; and Textile World and its sister publication Textiles Panamericanos.

The next show will be held in 2017, and will continue in a biennial format.

March/April 2015

Loepfe Introduces WEFTMASTER® FALCON-i

WETZIKON, Switzerland — March 17, 2015 — The optical yarn defects sensor WEFTMASTER® FALCON-i for simple and reliable monitoring of all finest knots, filamentation, fluff, smallest thick places or capillary breaks on running threads

In order to monitor an individual thread for finest knots, fluff, filamentation, smallest thick places or even capillary breaks, Loepfe’s newly developed FALCON-i sensor is installed, e.g., before or after a weft feeder. The thread can be monitored by using sensitivity levels, to be set manually or automatically. Automatic mode determines the sensitivity level itself. The sensor is insensitive to vibrations which can be extremely disturbing, especially with laser measuring devices, and which could cause false stops. When contamination is severe, the sensor can also be installed «upside down» which allows most reliable and constant monitoring. The thread is guided virtually contact-free through the optical measuring field by yarn guides before and after the sensor and a stop is triggered for defined faults. The color of the thread to be monitored also has no influence on measurement reliability.

It is therefore possible to monitor the latest high-tech materials, e.g. carbon, without problems with FALCON-i. Monofilaments, multifilaments as well as spun yarns in any material composition can be processed. Conductive materials can also be processed without restriction. The housing of the sensor is made from shielding material so that any existing static or electromagnetic fields will not affect measurement reliability.

The FALCON-i sensor is microprocessor-controlled and therefore provides many options for connection to evaluation modules. The latest findings and experience flow into the design work of our software engineers. Adaptations of the software and individual adaptations to customer requirements can therefore be easily
implemented through software upgrades of already available sensors.

Loepfe is today global leader in manufacturing optical yarn clearers for automatic winding machines. Many years of experience in this field enabled the development of the new optical FALCON-i sensor. Technical support and spare parts availability, even many years after purchasing the sensors, are a matter of course for
Loepfe.

Loepfe’s new yarn defect sensor FALCON-i is not only complementing the various available knotless weaving concepts, but can be used in many different processes down the textile production chain — wherever an individual yarn monitoring should ensure quality.

Posted March 17, 2015

Source: Loepfe
 

TED Speaker Seth Godin To Speak At AAPN Annual Meeting

ATLANTA — March 13, 2015 — The Americas Apparel Producers’ Network (AAPN) will hold its 35th Annual Meeting in a row May 3-5, 2015 at the Fontainebleau Hotel, Miami Beach, Fla.

These are not meetings but rather the continuation of conversations held both face-to-face, in travel, at trade shows and online every day by the over 600 executives from nearly 200 organizations in the AAPN. THE Meeting format is open interaction. More than half the agenda is set aside for networking.

The entire supply chain that overlays the Western Hemisphere attends this forum. Fiber and yarn, fabric and finishing, trim and supplies, shipping and software, factories and logistics, and brands and retailers participate equally.

AAPN is a factory-centric organization led this year by Juan Zighelboim, president, El Salvador-based activewear producer TexOps. In fact, the AAPN has a 2:1 ratio of producers to service members. Participants are often the owners, presidents or senior executives of their firms.

The theme of the meeting this year is specifically STRATEGIC INNOVATION. Speakers include:

Seth Godin, Keynote Speaker
Seth is a world renowned author of marketing and management books, a TED speaker and a widely followed blogger. He will speak on change.

Anastasia Charbin, Worldwide Fashion & Apparel Marketing Director, Lectra
Evolutions of the Market: Product Innovation – an update on fashion and technology trends around the world

James Vatalaro, Productivity, Inc.
Let’s Get Personal … Strategy Innovation and YOU! — How factories and other producers can implement change easily
    
Johnnie Rush, VP, Retail Innovation, HSN Inc.
The Retail Discussion: Innovation and Engagement – amazing new ways for consumers to order directly instantly

Shawn Neville, President RBIS for Avery Dennison Corp.
Driving Innovation from Consumer Through Supply Chain — How a ‘label’ producer became an innovation company with Nike

In his manifesto, Stop Stealing Dreams, Seth Godin wrote how students today are educated in “….collecting dots. Almost none of it spent teaching them the skills necessary to connect dots. The magic of connecting dots is that once you learn the techniques, the dots can change but you’ll still be good at connecting them.”

Well, Aapn Connected The Dots Starting In 1981 And Was The First Apparel Industry Organization To Implement Email Broadcasts For Sourcing, Answers, Information And Help In 1996. Aapn Is The Author Of A Asia/americas Report Card; The First Ever ‘living Wage’ Project Ever Shared In Our Industry; The Online Denim Map; The Summit Of The Americas; And Other Innovations.

We expect a capacity crowd at the meeting because of the popularity of Seth Godin. Non-AAPN members can contact Mike Todaro or Sue C. Strickland in Atlanta at 404.843.3171 to discuss attending this unique event. 

Posted March 17, 2015

Source: AAPN
 

Madeira Introduces Cotton Blend Embroidery Thread

Laconia, N.H.-based Madeira USA Ltd. has introduced BurmilanaCo, a 50-percent cotton/50-percent acrylic embroidery thread. The 12-weight thread is available in 72 colors and offers a more hand-embroidered look than other machine embroidery threads. According to the company, the thread has a natural, soft hand, and works well for chenille embroidery, chain stitch, fringing, decorative seams and other special effects. The thread received a Class 1 rating from the Switzerland-based Oeko-Tex Association, which means it may be used on baby clothing.

March/April 2015

Bulletin Board

Mira Loma, Calif.-based Enduratex has introduced the Coastal Ranch collection upholstery fabrics. Available in 20 colors, the collection features Forbid srt, a treatment that prevents denim dyes used in blue jeans from transferring to the upholstery fabric.
 


The Coastal Ranch upholstery fabrics collection from Enduratex

The Washington-based International Cotton Advisory Committee (ICAC) is taking applications for the ICAC Researcher of the Year Award. The closing date for applications is March 31. Go to icac.org/tech/ICAC-Researcher-of-the-Year-Award for more details.

The Brussels-based CIRFS: European Man-made Fibres Association has published the 50th edition of its “Information on Man-made Fibres,” its statistical report on man-made fiber developments.

China-based GCiS China Strategic Research has published results of a market study on flame retardant (FR) chemicals, which shows the phosphorous-based FR market in China is poised for growth. Contact research@gcis.com.cn for more information about the report.

Chicago-based Cintas Corp. recently published its 2015 Cintas Uniform Book and issued its 2015 Workplace Fashion Trends Forecast.

Cuyahoga Falls, Ohio-based Americhem Inc. has launched a company blog entitled “Inspired Color. Defined Performance.” Located at blog.americhem.com, the blog functions as a forum between the company, its customers, the press and business community.

White Plains, N.Y.-based Surtex® has announced a series of preshow webinars to help exhibitors prepare for the event and maximize their return on investment. Webinars are free for exhibitors and can be accessed by contacting Michelle Daniels, michelle. daniels@emeraldexpo.com.

Federation of European Screen Printers Associations (FESPA) will launch Printeriors alongside FESPA 2015, to be held May 18-22, 2015. The new event and conference is designed to illustrate the capabilities of printed products for interior applications.

March/April 2015

Quality Fabric Of The Month: IR Performance In A Softer Hand

By Janet Bealer Rodie, Contributing Editor

Hologenix LLC, Santa Monica, Calif., has been developing and manufacturing what it calls “bio-responsive” textile materials since the early 2000s — first offering its mineral-infused products under the Holofiber® brand and more recently under the Celliant® brand. The technology involves a blend of thermo-reactive minerals ground to a size of less than 1 micron and embedded in a man-made fiber or filament. The minerals capture the body’s radiant heat and convert it into infrared (IR) energy that is directed back into the tissue. Celliant materials have been proven in clinical testing to promote blood circulation and oxygenation and offer regenerative healing in activewear, bedding, veterinary and medical applications.

Celliant fiber can be used alone or blended with other natural or man-made fibers. Originally, the minerals were embedded in polyester, but Hologenix now has succeeded in embedding the minerals in nylon as well, and is introducing the technology, which it calls Celliant 6.6, into new markets in which softer-hand nylon is the fiber of choice.


Project Clothing’s new Arctic line of technical jackets and pants features Celliant 6.6 inner sleeves (below) and hood linings as well as ThermaDown™.

According to Trenton Horinek, director of business development at Hologenix, the company worked for several years to develop Celliant 6.6 nylon, noting that it was necessary to fine-tune the size of the mineral particles to make them work with nylon. “We partnered with Far Eastern New Century Toung Loong [Textile Mfg. Co. Ltd.], yarn manufacturers in Taiwan, to achieve the blend, and they will be the sole providers of the yarn for now,” he said.

“Celliant 6.6, available in 70- and 40-denier drawn-textured or air-textured yarn, has allowed us to increase our product range within the activewear market, including yoga wear, rash guards and compression wear,” Horinek continued. “It has been difficult to introduce polyester into the yoga market, where consumers are used to the soft hand of nylon. Celliant 6.6 enables us to effectively broaden our customer base, while also increasing sales to current customers.”

Celliant 6.6 launched earlier this year at the Outdoor Retailer Winter Market (ORWM) in Salt Lake City, where Hologenix shared a booth with Australia-based Project Clothing, a newcomer to the U.S. market. Project debuted its Arctic line of technical jackets and pants featuring Celliant 6.6 inner sleeves and hood linings, and ThermaDown — a Celliant-coated high-performance down insulation codeveloped by Hologenix and Allied Feather & Down Corp., Montebello, Calif. Horinek said Project is also developing a running tight using Celliant 6.6.

At ORWM, Hologenix also showed two new blends — Celliant/Pima Cotton, codeveloped with Portland, Ore.-based The S Group and manufactured by Peru-based Cofaco Industries SAC, and Celliant/ Merino wool. Horinek noted that the Pima and Merino blends could be made using either Celliant Polyester or Celliant 6.6.

March/April 2015

HanesBrands To Acquire Knights Apparel

Winston-Salem, N.C.-based HanesBrands has entered into an agreement to buy Spartanburg-based Knights Apparel Inc. from affiliates of Merit Capital Partners, Chicago. Knights Apparel sells licensed collegiate T-shirts, sweatshirts and other sports apparel to the mass retail channel.

The all cash transaction value for Knights Apparel is approximately $200 million on an enterprise-value basis. The purchase is expected to close early in the second quarter 2015.

“Knights Apparel has a tremendous business model and a highly talented team of employees,” said John T. Marsh, HanesBrands group president, Global Activewear. “With Knights Apparel added to our existing Gear for Sports collegiate bookstore business, we are building a powerful licensed college apparel business that we can leverage with our substantial capabilities in apparel production, graphic design and graphic printing.”

March/April 2015

The Wide World Of Knits

Several hundred years ago, someone had the foresight to take a couple of pointed sticks and use them to manipulate a length of yarn into a series of interconnected loops in succession to create a fabric. Somewhere along the way, this activity came to be known as knitting, which has become a popular hobby for people of all ages today though in the past it was more associated with grandmas. Ironically, the same simple process used to make favorite homemade hats, sweaters and scarves has evolved into one of the most flexible and versatile fabric-forming technologies known to man. Consumers love knit fabrics and consequently, their breadth and diversity of applications only continues to grow. It’s virtually impossible to proceed through one’s day without directly using, wearing, encountering, or benefiting somehow from knit fabrics in some form or another.


Germany-based Karl Mayer Textilmaschinenfabrik will launch two new double-bar raschel machines for warp-knit spacer fabrics this spring. These types of 3-D fabrics are finding applications in shoes and other technical applications.

Knits are most commonly known for their natural softness, bulk, stretch, recovery and conformability. However, knit fabrics also offer excellent engineering opportunities because of the knitting process’s inherent ability to manipulate, control and secure individual yarn placement. This unique capability enables a designer to enhance the fabric’s look and feel, affect color placement, alter depth and surface texture, and generate a whole host of other fabric characteristics. An engineer can impart physical properties, create openings of various sizes and shapes, and control porosity and fiber placement. Several knitting techniques also allow for the creation of individual “whole garments,” seamless tubes and complex-shaped products.
 
Knit Structures: Weft
Virtually every knit structure falls into one of two primary categories commonly referred to as either a weft knit or a warp knit. As a general rule, weft knits are formed by a yarn or multiple yarns fed as one to all selected needles, including grandma’s, which is then manipulated into a series of interconnecting loops. On weft-knitting machines, the yarn is directed to the needles across the machine’s flow direction. For this reason, weft-knit stripes generally run across the width of the fabric. Because knit fabrics are composed of a series of interconnected loops, which are not necessarily locked in place, weft knits can be deknit, unravel or “run.” Weft knits lend themselves better to fashion and apparel related applications, and are more compatible with spun yarns and natural fibers, though filament yarns also can be used. Given the continuing blurring of lines between sports and yoga wear, and casual, business and everyday apparel, its not surprising to learn that roughly 90 to 95 percent of all weft-knitting machines in production today are used for apparel-related applications.


Italy-based Santoni S.p.A. specializes in seamless knitting machinery such as the Santoni SM8 Top2 single- jersey, electronic circular knitting machine.

Knit Structures: Warp
Warp-knit fabrics almost always are machine made and can be manufactured at much wider widths than weft knits. Contrary to weft knits, warp knits are formed as numerous individual strands of yarn — the warp — are guided to select needles in the machine’s flow direction. Warp knit stripes typically run the length of the fabric. Subsequent machine cycles reposition the guided yarn over a different needle to create the warp knit fabric. This interaction of the guided yarn to select needles creates a stable construction that, unlike weft knits, is difficult to unravel. Warp knitting, generally better suited to filament yarns, tends to be more oriented towards applications where engineering, physical properties and high production speeds are most beneficial. This includes some areas of fashion, but the structures also are well suited to industrial, specialty and technical fabric applications.

Weft and warp knits each have a variety of distinct types or sub-categories. As technology advances and evolves however, some of these distinctions are becoming more blurry.


A diagram showing a 3-D variable section of a warp-knit tubular fabric

Weft-Knit Types
Hand knits: As the name implies, hand knitting involves using knitting needles, crochet hooks, human-powered hand knitting machines, or some combination thereof to create knit fabrics. Hobbyists are the mainstay in this category making hats, scarfs, sweaters and other items for personal use. However, there are consumer oriented high-end, handmade applications as well. Because the process is performed by hand, the types of fibers, yarns and constructions used for hand knits are left entirely up to the knitter’s imagination.

Flatbed knits: Flat knitting can be done on a single needle bed — single row of knitting needles — machine or a “V” bed machine where two or more needle beds are set at opposing angles allowing the selected needles to create a “V” for the yarn to be fed into. Heavier, coarser and bulkier yarns, spun or filament, natural or man-made, work well on this type of machine producing fabrics with soft, supple, bulky and relatively open constructions. Applications mostly are geared towards the fashion and apparel industries, though fabrics for gloves, socks, medical and technical end-uses easily can be created.

The advent of 3-D knitting or shaping technology and multi-gauge weft knitting technology allows designers and manufacturers to create even more unique designs, fully-fashioned garments, 3-D shaped fabrics, and for some applications, seamless garments.

Circular knits: Like with flat knitting, a single needle bed or “V” bed configuration can be used to make circular knit fabrics, the difference being that circular knits, as the name implies, are constructed in tubular form. Circular knits typically use finer yarns, and exhibit soft, supple, conformable and elastic characteristics. Again, applications mostly are fashion- and apparel-related. These include T-shirts, dresses, hosiery, socks, underwear and leggings.

Warp-Knit Types
Tricot knits: Tricot-knit fabrics are formed perpendicular to the movement of the needles, which allows for high machine speeds and fabric throughput. Tricot knits are often characterized by their light weight; elasticity; and thin, smooth, silky feel. They are commonly found in a variety of apparel, swimsuits, intimate wear, print cloth, automotive and industrial applications.

Raschel knits: In raschel knitting, the fabric is formed in line with the movement of the needles. There are two categories of raschel knitting machine commonly available: single needle bar — where the needle bar is a row of needles — or double needle bar. The double needle bar machine, as the name implies, has two opposing rows of needles that can be set with a specific gap between them to produce different styles and thicknesses of fabric. This allows the knit loops or stitches to be effectively held in place during machine movements, which provides the ability to make a broad range of very intricate and complex fabric designs.

Single needle bar raschel knits are used in a wide array of applications ranging from lace and lingerie to various netting, medical, industrial and technical configurations. Double needle bar machines are able to make very complex knit structures that can include two different face fabrics interconnected by cross stitches. Applications include seamless garments, smart fabrics and wearable electronics, tubular and compression fabrics, and pile and plush fabrics for a variety of applications.

Weft-inserted warp knits: Weft inserted warp knits effectively use the stitching characteristics of warp-knitting machines to “stitch” together several layers of yarn. The yarn stitched together is flat and has zero crimp to it, which results in minimal unwanted stretch in the fabric. Also, if the ability to insert the non-crimp layers at different angles is incorporated, stitched fabrics with near isotropic strength can be produced. This attribute is highly desired in numerous composite applications. Weft-inserted warp knits also are used extensively as coating and laminating substrates.

Knitting design software, such as Shima Seiki’s SDS-ONE APEX3 design system and its complete 3-D virtual sample imaging component, offer designers the ability create complex knit designs.

Advanced Applications
Obviously, weft and warp knitting can, and does, get much more complicated depending on the application and its end-use requirements. Knitting technology continues to evolve and improve. Developments are led by closer and stronger collaborations between the machine and component manufacturers along with contributions from the end product’s supply chain. Improvements in graphic design software systems give designers and engineers even more flexibility in patterns and strategic yarn placement. These advances allow knit fabric manufacturers to target more technical, non-fashion-related and traditionally woven applications for technical textiles and composites products.

The rapidly evolving technological advances in knitting design, engineering and equipment afford knits virtually unsurpassed versatility with boundless design and engineering opportunities. There are lots of opportunities looking for the right knit.

Knit: A very generic term that covers a wide, wide range of products for an even wider array of applications. A world without knits would be a very dull and less comfortable world indeed.
 


Editor’s Note: Jim Kaufmann is senior engineer at T.E.A.M. Inc., Woonsocket, R.I.; and owner of NovaComp Inc., Willow Grove, Pa. The article is based on Kaufmann’s presentation given at the 2014 Textile World Innovation Forum.


March/April 2015
 

Utah State Opens Bio-products Scale-Up Facility

Utah State University (USU) has opened a Bioproducts Scale-Up Facility on its Innovation Campus. Funding for the facility came from the Utah Science Technology and Research (USTAR) initiative.

“Within this new, state-of-the-art facility, Utah State will begin the process of producing synthetic spider silk and other biosynthetic materials in quantities that have not yet been achieved, which will enable commercial partners to take advantage of years of USU faculty research on new biomaterials that can be used for a variety of applications,” said H. Scott Hinton, director, USTAR Synthetic Biomanufacturing Institute at Utah State.
 


Utah State University recently opened a Bioproducts Scale-Up Facility on its Innovation Campus.

 

March/April 2015

Business & Financial: Costs And Prices

By Robert S. Reichard, Economics Editor

Wondering how the industry’s prices are likely to fare over the next year or two? Cost trends may well provide the answer. History reveals a strong correlation between these two variables — quotes generally rising when production costs increase and falling when they begin to slip. One clear confirmation of this relationship comes from the recent sharp decline in gasoline prices when crude oil tumbled. The textile and apparel industries also provide a recent example. According to a study by Cary, N.C.-based Cotton Incorporated, the last three times cotton fiber dropped by more than 20 cents per pound over a six month period — during the 2009 business recession; the correction following the 2010-2012 price spike; and the recent 2014 falloff — the average price of cotton-containing products edged lower. There’s not that much of a time lag between these cost declines and their textile and apparel end products. According to the study, the full impact was felt in only seven months. More importantly, Cotton Incorporated analysts feel this downward industry cost-price drift will continue into late spring and summer, and even well beyond that time. This forecast is based on the likelihood of a continuing cotton glut — a glut being exacerbated by two other developments: the increasing availability of Chinese cotton, reflecting recent reforms in that nation’s stock reserve program; and large global cotton plantings because farmer returns on crops like corn and soybeans look even bleaker. Upshot: Factor in all the above, and cotton input costs are likely to remain low for quite some time, with fabric and garment prices likely to follow suit.

Other Costs Ease
There still are other cost slippages that could help put a lid on prices. Man-made fiber markets currently are far from firm, with Uncle Sam’s overall producer price index for these items now running fractionally under year-ago levels. All indications point to additional man-made-fiber market softness stemming from both today’s lower energy-influenced feedstock costs and continuing industry overcapacity. One thing for sure, overall fiber weakness — cotton plus man-mades — can’t be ignored, if only because this input factor accounts for 60 percent of the average base textile mill revenue dollar and about 45 percent of a typical garment. Also worth noting: Labor costs are following a similar non-threatening pattern, thanks to a combination of relatively small pay increases that are being offset or even more than offset by impressive productivity gains. Result: Average unit labor costs for the average mill or apparel manufacturer are flat or even down a bit. And this trend, too, should continue through the current year and into 2016. Finally, some relief in the transportation sector should also become apparent, with today’s significantly lower energy tabs expected to put some downward pressure on shipping bills.

Special Import Factors
The above cost-price discussion is equally applicable to textile and apparel imports. But when it comes to shipments from abroad, there are two other factors that are playing a role. First, the lower shipping costs just alluded to are a lot more important in the case of imports because of the long distances between our major overseas sources and the U.S. mainland. But equally important are international currency changes that currently are taking place. Specifically, today’s strong U.S. dollar, and conversely weak foreign currencies, are beginning to affect the cost of American purchases making them less likely to rise in price. This is especially true of China, by far our biggest overseas source. Note that the Chinese yuan, after advancing 25 percent vis-á-vis the dollar over the extended 2006-2013 period, has recently started to weaken falling about 3.5 percent since early 2014. Not surprisingly, this Chinese currency, shift as well as similar ones noted for some other big foreign suppliers, are beginning to have an effect on import quotes, with Uncle Sam’s import price index now topping out after the slow advance of recent years. This could well improve overseas suppliers’ competitive positions. As such, TW’s earlier projections calling for a slight drop in imports this year now seems less likely. A better bet: A relatively unchanged level of incoming textiles and apparel shipments.

March/April 2015

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