Positive Results In Houston

The recent Techtextil North America 2015 closed its doors after an event that show organizer Atlanta-based Messe Frankfurt Inc. said exceeded records from the past three west coast editions of the show. Techtextil collocated with JEC Americas Composites Show & Conferences — organized by Paris-based JEC Group — and selected Houston for the 2015 edition of the show based on attendee and exhibitor feedback. It was the first time the west coast edition of the show, now in its fourth edition, was held in Texas.

This is typically a smaller event than the show held in Atlanta in even numbered years, but organizers, exhibitors and attendees all seemed satisfied with the outcome of the show. Visitor numbers were combined with JEC visitor numbers since the two shows shared the exhibit hall and visitors were allowed to traverse the whole showfloor regardless of which show they had registered for. The collocated event counted some 2,821 total visitors across the three days, which Messe Frankfurt reported was a 39-percent increase in the total number of visitors when compared to the 2013 west coast edition of the show held in Anaheim, Calif. Techtextil also welcomed 145 exhibitors from 18 countries, which represented a 98-percent increase in net square footage and a 96-percent increase in the number of exhibitors compared with the Anaheim show.
 

The George R. Brown Convention Center in Houston hosted the collocated Techtextil North America 2015 and JEC Americas Composites Show & Conferences 2015.

Most Techtextil North America participants Textile World spoke with said the quality of visitors was impressive even if visitor traffic was light.

“We had a high level of traffic and a high level of qualified, quality traffic during the show,” said Josh Davis, marketing manager, PA Group USA. “As the only software company exhibiting at the show, we had a definite advantage, and are happy we chose to participate in the west coast edition of Techtextil.”

“We didn’t have too many visitors at the booth,” said Tom Johnston, sales manager, Greenville-based Picanol. “But I believe we developed two really strong leads. And it only takes one lead resulting in a sale for it to have been worthwhile to participate in the show.”

Successful Symposium
Techtextil also offered visitors a chance to participate in educational seminars. The symposium sessions ran concurrently with the exhibit hall opening times and featured 10 sessions with 33 presenters over the three days. Attendees were invited to interact with the presenters during a question and answer period at the end of each symposium session.

Topics included fiber developments, protective textiles, medical textiles, aerospace, nonwovens, and smart textiles among other topics. There also was a graduate student poster presentation session moderated by Dr. Behnam Pourdeyhimi, executive director, The Nonwovens Institute, Raleigh, N.C.

“The sessions were simply fantastic,” said Pourdeyhimi. “We had a full house all the time, with some people standing in the back during some sessions. Some of the speakers I invited were first-time speakers for Techtextil, and our speakers were incredibly impressed with the organization and professionalism.”

JEC Collaboration
The synergy created by the blend of technical textile and composite technologies presented at Techtextil and JEC Americas was obvious. The collocated shows presented a great opportunity to network and share ideas.
The Houston show represented the fourth edition of JEC Americas, and show organizers reported a 15-percent growth in space and exhibitor numbers.

In addition to a variety of events, seminars, interactive displays, awards, and targeted business meetings, JEC presented two keynote speakers on the show floor — former NASA astronaut Ron Garan proved to be a big draw on the first day, as did Byron Pipes, the John Bray Distinguished Professor of Engineering at Purdue University, on the second day.
 

A highlight on the JEC Americas showfloor was the 3-D printed Shelby Cobra developed at the Oak Ridge National Laboratory, Oak Ridge, Tenn.

“The dynamic interactions between exhibitors and attendees in Houston show how gathering the best and brightest minds can drive growth in the region and communicate the value of composites more broadly,” said Frédérique Mutel, president and CEO, JEC Group.

The JEC Group is already busy planning the JEC Americas Composites Show & Conferences 2016, which will be the only composites show on the east coast next year.

2016: Atlanta Bound
In 2016, for its thirteenth edition, Techtextil North America will return to Atlanta, which has been the tradition in even-numbered years. Techtextil North America 2016 will be held at the Georgia World Congress Center May 3-5. The show will collocate with Texprocess Americas and JEC Americas once again.

Messe Frankfurt predicts Techtextil and Texprocess will attract a combined 700 exhibitors and more than 8,000 visitors, with JEC Group predicting similar exhibitor numbers for its event. Mark your calendar for the chance to network with a large slice of the technical textiles, composites and textile processing industries next May.

July/August 2015

Business & Financial: Rosy Earnings Picture

By Robert S. Reichard, Economics Editor

The economy may have flattened out a bit over recent months, but the lull has hardly made a dent in textile and apparel profit levels. Indeed, in the textile mill sector, first quarter 2015 numbers are running an impressive 43-percent above the comparable period last year. Further downstream, domestic apparel manufacturers are managing to hold their own, with the latest quarterly total remaining virtually unchanged vis-à-vis comparable year-earlier readings. Note, too, that the textile industry’s profit performances over this time span actually has been a lot better than those reported for all U.S. manufacturing, where aggregate first quarter 2015 after-tax earnings have slipped some 10-percent under the comparable period last year. Textile and apparel industry margin performances — profit as a percentage of sales or stockholder equity — when compared to a year earlier, are equally encouraging. The actual numbers compared to a year earlier for profits per dollar of sales are 5.3 percent versus 4 percent for textile mills, and a pretty much unchanged 9 percent for domestic apparel makers. The story is much the same when it comes to profits per dollar of stockholder equity, which is 13.9 percent now versus 9 percent a year ago for mills, and again a relatively unchanged 18 to 19 percent for clothing makers. These latest margin readings are a lot more impressive than those noted for all manufacturing, where some modest erosion was reported over the past year. Also worth noting: The U.S. textile industry’s return on equity is far higher than current interest rates, which remain in the low single-digit range, thus helping to explain why mills continue to shell out upwards of a billion dollars a year for new plants and equipment.

More Improvement Ahead
These latest profit increases are likely to spill over into future years if new projections by U.S. economic consulting firm IHS are anywhere near correct. Its analysts — using the rough estimate of earnings of shipments less labor and material costs — anticipate further earnings increases in 2016. Its projected gains for that year is 3 percent for mills making basic products like fibers and fabrics, 3.8 percent for mills making more highly fabricated products such as carpets and home furnishings, and 2.1 percent for clothing manufacturers. This uptrend is expected to persist even over the longer haul. By the end of the current decade, IHS sees profits for mills making basic mill products running about 15 percent above this year’s estimated levels — with projected increases for more highly fabricated mill products and apparel expected to be up by an even more impressive 17 and 20 percent respectively. That’s not all that bad a scenario for these industries that seemed to be heading for the dust bin just a few years ago.

Behind The Profit
Several factors clearly are contributing to these still-rising earnings levels. For one, demand — as measured by the textile industry’s production numbers — continues to show modest gains. Output of basic mill products is currently running 11-percent above year-earlier levels. It’s pretty much the same story when it comes to apparel activity. With the economy expected to pick up a bit — rising at a 2.5- to 3-percent annual rate over the next few quarters — these output gains are almost certain to continue. This, in turn, should pretty much guarantee further profit increases since higher industry activity is almost always associated with stronger bottom lines. Even more importantly as far as earnings are concerned, is the continuing lack of any upward production cost pressures. IHS analysts predict that aggregate labor-plus-material costs will account for smaller and smaller percentages of the industry shipment dollar. Thus, this year, IHS sees this key profit indicator dropping substantially from levels prevailing just three years ago. The actual cost/shipment declines over this period fell from 89 to 75 percent in for basic mill products, from 78 to 56 percent for more highly fabricated products, and from near 100 to 70 percent for apparel. TW sees this trend continuing into 2016 when further small percentage declines are forecast. This is based on more than just wishful thinking. In the case of both cotton and man-made fibers, supply gluts should put some downward pressure on costs. In the labor sector, recently inked contracts suggest pay hikes also will remain quite restrained.

July/August 2015

J+J Flooring Earns Zero Waste To Landfill Certification

Dalton, Ga.-based J+J Flooring Group reports it is the first commercial flooring manufacturer to be certified as a Zero Waste to Landfill manufacturer by third-party certifier GreenCircle Certified LLC. The company worked to decrease the amount of waste it was sending to landfills over time, and in August 2014, stopped sending any waste directly to the landfill. Currently, the 2 percent of the company’s waste that cannot be effectively reused, recycled or repurposed is sent to energy-from-waste operator Covanta, which converts the waste into energy to provide steam power to the Redstone Arsenal U.S. Army garrison in Huntsville, Ala.

“Our focus on waste reduction and recycling over the past 20 years is what has allowed us to reach this significant milestone,” said Russ Delozier, director of sustainability, J+J Flooring Group. “It is the result of a common passion and drive between all J+J associates.”

July/August 2015

Cone Denim Joins BCI, Earns Oeko-Tex® Certification In China

Greensboro, N.C.-based Cone Denim®, is now a member of the Better Cotton Initiative (BCI) non-profit organization that promotes responsible global standards and links the complex cotton supply chain from farmers to retailers.

“Cone Denim promotes sustainability and responsible manufacturing in all of our operations, and we appreciate the opportunity to work with other members of the cotton supply chain to share best practices and work to continuously improve the production and sustainability of cotton, and grow the demand for Better Cotton,” said Steve Maggard, vice president, operations, planning and product development, Cone Denim.

Cone also reports its state-of-the-art Cone Denim Jiaxing (CDJ) plant in China has received Oeko-Tex® Standard 100 certification for certain denim products.

“Oeko-Tex certification provides our customers and ultimately the consumer an added level of confidence in CDJ’s fabrics,” said Kevin Reardon, vice president of sales, Cone Denim. “We maintain a commitment to responsible manufacturing throughout our global operations and continually look for ways to improve our sustainable practices and minimize our environmental footprint — while at the same time, pushing the limits of denim innovation and styling.”

July/August 2015

ITMA 2015: Milan Bound

Since 1951, the European Committee of Textile Machinery Manufacturers (CEMATEX) has organized what is generally regarded as the largest textile machinery show in the world. Held once every four years, ITMA has become a platform for emerging trends and innovative solutions, new knowledge and best practices, and establishing relationships with textile industry leaders. The next edition of the show will be held November 12-19 at the Fiera Milano Rho fairgrounds in Milan, Italy. Milan hosts ITMA for the fifth time since its inception at the now 17th edition of the show.

ITMA is owned by CEMATEX, and is organized in 2015 by Singapore-based MP Expositions Pte. Ltd.
 

ITMA 2015 will be held at the Fiera Milano Rho fairgrounds in Milan, Italy.

Strong Exhibitor Demand
ITMA 2011 in Barcelona, Spain, attracted 1,350 exhibitors from 45 countries; and more than 100,000 visitors from 138 countries. As of Textile World’s press time, organizers report 1,500 exhibitors from more than 47 economies have booked floor space at ITMA 2015.

Exhibitor demand for 2015 was strong early in the lead up to the show. So much so, organizers announced an additional hall more than a year before the show was scheduled to take place. “The demand for space has been very strong with applications still streaming in, and we have therefore added an eleventh hall to the show that will house the Fibre and Yarn, Research and Education, Colourants and Chemicals, Software and Recycling sectors,” said Charles Beauduin, president, CEMATEX.

“We are delighted with the strong take up of space at the show, which reinforces ITMA’s position as the world’s leading textile and garment manufacturing technologies exhibition,” said Eileen Ng, executive director, MP Expositions.
 

Click image to view ITMA exhibit chapters

What’s New?
Exhibits at ITMA 2015 will be divided into 19 categories (See Table 1). Chapter 9, featuring printing and digital printing machinery is new; the fiber and yarn chapter — Chapter 19 — has been expanded with a new sub-chapter on recycled fibers and yarns; and the dyestuffs/chemicals group, Chapter 15, has been rebranded as colourants and chemical auxiliaries for the textile industry.

CEMATEX launched a new award initiative for the 17th edition of the show. The ITMA Sustainable Innovation Award 2015 honors “outstanding industry members and students for their contributions to the sustainable development of the global textile and garment industry,” according to CEMATEX. The Industry Excellence Award will be presented to a textile and/or apparel manufacturer who has leveraged technology to manufacture in a sustainable manner. The Research and Innovation Excellence Award, which is open to current post-graduate part- or full-time students attending an ITMA 2015 Research & Innovation organization, will be presented to two winners — one in the Masters category, and one in the Doctorate category.

Finalists, chosen from the entries submitted by ITMA 2015 exhibitors, will be announced August 3. Winners will receive their awards at an awards ceremony and gala dinner November 12.

Conferences, Education
Outside of a packed exhibit show floor, visitors to ITMA 2015 have the opportunity to participate in a variety of educational and networking events. Associated and collocated events include the World Textile Summit 2015, Textile Colourant and Chemical Leaders Forum, Nonwovens Forum at ITMA, Speakers Platform at Research & Innovation Pavilion, and the Digital Textile Conference. See TW’s September/October 2015 issue for more information about these events.

Visitor Incentive
Organizers are offering an early bird registration discount. All visitors who register before October 15 may purchase a one-day pass for 40 euros and an eight-day pass for 80 euros. “We would like to encourage our visitors to plan their trip early and purchase their ITMA 2015 badge online now to avoid long queues at the registration areas,” said Ng. “The early bird rates are up to 50-percent lower than the onsite rates.”

The show is open to visitors November 12-18 from 10 a.m. until 7 p.m. each day. On November 19, the show opens at 10 a.m. and closes at 4 p.m.

About Milan
Located in the northwestern section of the Po Valley, Milan is the second-largest city in Italy with a population of approximately 1.3 million. The city is the main financial, industrial and commercial center of Italy, housing the Borsa Italiana — Italy’s main stock exchange — and the headquarters of major banks and corporations.
The city has a long history as a fashion, clothing and textile producer and is widely recognized as one of the world’s fashion capitals, making it the perfect backdrop for a textile machinery trade show.

Famous must-see sights while in Milan include the Duomo di Milano, La Scala, and Leonardo da Vinci’s The Last Supper mural.

The Duomo di Milano,— or Milan Cathedral — took nearly six centuries to build. It is the largest church in Italy and the fifth largest in the world. The Duomo is dedicated to St. Mary of the Nativity and acts as the seat of the Archbishop of Milan.
 

Duomo di Milano, Italy’s largest church.

Teatro alla Scala, or La Scala as it’s more commonly known, is an opera house opened in 1778. Throughout its history, many great operatic artists and singers have appeared at the venue, which is still considered one of the leading opera and ballet theatres in the world. The La Scala Theatre Chorus, La Scala Theatre Ballet and La Scala Theatre Orchestra are all housed at the opera house.

For ITMA visitors interested in a little shopping during their time in Milan, the Galleria Vittorio Emanuele II is a can’t miss stop. This four-story double arcade connecting the Duomo and La Scala, is one of the world’s oldest shopping malls built between 1865 and 1877. Today, the arcade features a variety of luxury retailers, restaurants, cafés and bars.
 


 
Vittorio Emanuele II shopping arcade

The Last Supper, da Vinci’s late 15th century mural, can be found in the refectory of the Convent of Santa Maria delle Grazie in Milan. The painting has seen better days after enduring repeated damage, years of neglect and various restoration attempts over time, but it is still a very popular tourist attraction.
 

Top: Santa Maria delle Grazie church (photograph courtesy of Marcin Bialek), which houses The Last Supper by Leonardo da Vinci (bottom)

Traveling around Milan is easy thanks to the city’s extensive transportation system comprising an underground metro, trams, buses, link lines and taxis. The underground lines offer cheap and quick movement around the city, and bus routes follow the four metro lines M1, M2, M3, M4 as well as the most popular routes between the city center and outskirts. Bus service also runs all night on Friday and Saturday nights.
 

For more information about ITMA 2015, visit itma2015.com. Textile World will continue its pre-show coverage in the September/October 2015 issue complete with an A-Z exhibitor list and show floor plan.

July/August 2015

ITMF Conference Moves Stateside

After two years in China, this year’s ITMF Annual Conference, organized by the Switzerland-based International Textile Manufacturers Federation (ITMF), will move to San Francisco. The theme for the conference, to be held September 10-12, 2015, is “Intelligent and Responsible Production from Raw Material to Final Consumer — The Mission of the Global Textile Industry.”

Wang Tiankai, president, China National Textile and Apparel Council (CNTAC), was elected ITMF president at last year’s conference in Beijing. The upcoming San Francisco conference will be Wang’s first conference as the ITMF president. Textile World spoke with Wang about the conference, the ITMF and the global textile industry outlook.
 


 

TW: The 2015 ITMF Annual Conference will take place in San Francisco in September. What do you expect from the conference?
Wang: I hope that the 2015 ITMF Annual Conference will serve firstly as a forum for discussion of matters within the common interest and concern of textile companies, and secondly to be a neutral meeting ground for world textile associations to exchange information on matters affecting their textile industries and discuss how to make a change.

TW: Why should the delegates come to San Francisco?
Wang: The ITMF Annual Conference takes place in the United States during a period when significant investments in new textile machinery can be observed for the first time in a decade. According to ITMF’s statistics, investments in new cotton-spinning facilities have seen significant increases in recent years. In addition, the United States also is one of the leading markets for technical textiles, both as a producer and consumer of technical textiles. Since the conference takes place in the United States, a special focus will be on textile production in the Americas. The conference offers the unique possibility to listen to experts on matters important to the industry, to exchange expertise and best practices and to network with colleagues from around the world in a pleasant and stimulating atmosphere.
 

Wang Tiankai, ITMF president

TW: What are the main issues the conference will address?
Wang: The focus will be on intelligent and responsible production along the entire textile value chain from fibers to retail. In other words, participants will discuss how value addition of textiles can be increased, while at the same time producing in a socially, environmentally and economically responsible way.

Reasons To Become ITMF President
TW: What were the reasons to become ITMF president?
Wang: Firstly, ITMF is one of the oldest international organizations for the world’s textile industry. Members of ITMF, including textile manufacturers, associations and organizations allied to the industry, are from the major countries and regions of the world, representing the whole industrial chain and more than 80 percent of the world’s total fiber consumption. ITMF plays an important role in textile resources integration, international cooperation and division of labor, and win-win development. In the era of globalization and interdependence, textile players of the world have good reason to give attention to this 110-year-old international organization and the change it brings to the global textile economy.

Secondly, China is one of the largest and leading textile players in the world. The country’s textile industry is entering a crucial period of transition, and facing challenges from both home and abroad. The instability and uncertainty of the world economy, as well as China’s macro-economic policy favoring a slowdown in growth, makes it urgent to solve the chronic structural problems of China’s textile industry. Restructuring and upgrading is the fundamental task of the industry to get acclimatized to the economic new normal. In the process, it is necessary to strengthen dialogue and cooperation, and share opportunity and responsibility with other countries.

Thirdly, CNTAC, as a national organization, is dedicated to advancing industrial restructuring and upgrading, representing and protecting the interest of China’s textile industry and textile manufacturers, assisting the government in industry regulation, and promoting the sustained development of the industry. As CNTAC president, I am honored and obligated to shoulder the responsibility as ITMF president. With my grasp of the macro trends of the industry, my inclusive leadership, my achievements in the textile arena and my experience of heading large enterprises, I will donate the workable strategies and my intelligence to help ITMF to achieve further and better development so as to live up to global textile industry’s expectations and trusts.

Personal Life
Wang is 69 years old, married and has one son. Outside of work life, his hobbies are reading and sports.

TW: What is your professional background?
Wang: I received a graduate degree from the China Textile University, now known as the Donghua University, in 1969. I worked in Shaanxi for 22 years, contributing to the substantial progress in Shaanxi’s industrial and enterprises management and technology. I have been devoted to China’s textile industry since 1992 in roles including director of Science and Technology, Department of Ministry of Textile Industry; director of Planning Department of China Textile General Association; and deputy director-general of China Textile Industry Bureau, promoting the economic strategic adjustment of the industry. Since 2000, I have focused on the supervision and strategic reform of state-owned enterprises. I was the chairman of State-Owned Key Enterprises Supervision Committee (vice minister); and managing director and chairman of China Hi-Tech Group Corp. I was vice president of CNTAC from 2008 until November 2011. I also was member of the 11th CPPCC National Committee.

As the president of CNTAC since November 2011, I have been committed to comprehensively deepening reform and transforming development to guide China’s textile industry into a more competitive and sustainable industry.

TW: What are your targets as ITMF president?
Wang: There are targets in the philosophy, orientation, mechanism and operation.

In philosophy, I wish to promote the connectivity, win-win cooperation and harmonious development of the world’s textile industries.

With regards to orientation, I hope to further consolidate the active role of ITMF in textile resources integration, international cooperation and division of labor, win-win development, the evolution of the industrial chain, and building a global textile community of shared destiny.

For mechanism, I aim to make a virtue out of the tripartite administrative structure of ITMF — directors meeting, management meeting and board meeting — and establish an effective supervision system to ensure the efficiency, openness and transparency of ITMF’s decisions.

In in the area of operations, I hope to reduce running costs and enhance efficiency so as to better serve ITMF members.

To realize these targets, we first must perform thorough in-depth research work and study world textile industry trends and movements. The ITMF Secretariat will make use of the data and statistics resources to publish each year an exclusive development report that enables ITMF members to have an overall understanding of the global textile industrial chain.

Secondly, ITMF must expand its membership. While increasing corporate members, ITMF needs more associate members that can also introduce good, reliable companies as corporate members. ITMF pays attention to the common interest and concern of textile companies, but also provides the platform through which textile associations cooperate at the international level.

The third way ITMF will realize these targets is through information sharing and exchange. ITMF will improve its capability in information resources development, management and utilization; establish a regular information sharing mechanism; keep abreast of information requirements of ITMF members; and improve date integration and analysis to ensure the availability and authority of ITMF data.

The final way ITMF will reach its goals is through greater communication and cooperation opportunities for members. The ITMF Annual Conference will help members understand each other and enhance mutual trust. Combination of ITMF meetings and activities with international textile-related exhibitions and fairs, will be encouraged so that members of different countries and regions can communicate with each other and explore business cooperation. ITMF also will help and support the efforts of advancing industrial technical progress and standardization, which will benefit its members as well as the development of the global textile industry.

TW: Were your expectations met so far, and do you see improvements?
Wang: So far, I am glad to see the influence and cohesiveness of ITMF is getting stronger. We have three countries expressing their wish to host the 2016 Annual Conference. Since October 2014, 25 new members — including companies and associations — have joined ITMF, of which 18 companies and one cotton association are from China. Also, the ITMF Secretariat has issued six newsletters and received feedback and pertinent comments from ITMF members.

Also, some work is still in progress such as the Global Textile Industry Development Report, expected to be edited and published within the year.
 

Attendees at the last ITMF conference held in Beijing

Current Market Situation
TW: How do you see the current market situation for the global textile industry in general?
Wang: In recent years, global fiber consumption has continued to grow, but the world market affected by the financial crisis remains in slow recovery. Some characteristics of the market situation are worthy of attention. Firstly, consumer demand growth is sluggish. According to the World Trade Organization, the average annual growth of global textile and apparel exports increased 4.5 percent from 2009 to 2013, which was 2.7-percentage points lower  compared to exports from 2001 to 2008. As a result, countries with similar structure of textile industrial chain are facing intense market competition. On the other hand, the highly competitive market system impels the innovation-driven production and development of the world’s textile industries.

Secondly, the world market structure is diversified. Emerging economies, including China, display market dynamics and great potential; while the economic recovery of developed countries, including the United States, has accelerated over the past two years. This allows countries to explore a worldwide textile and apparel trade.

Thirdly, national policies have an impact on the world market situation. Monetary policies of some countries — like actively devaluing domestic currency — are effective to boost exports, but also adverse to import demand and international competition. Increasing regional economic integration facilitates free trade within the region, but its impact on the openness of the world market remains an issue to observe.

Given the complicated market situation, the world’s textile industry needs to make proper adjustments, keep track of market trends and movements, and expand markets in a reasonable way. Moreover, dialogue and cooperation with other countries are important to complement each other’s advantages and achieve win-win outcomes. It also helps to keep a stable market and trade environment, which favors the sound development of the global textile industry.

TW: And how do you see the current situation for the textile industry in China?
Wang: With China’s economy entering the new normal, the country is experiencing a slow-down in economic growth and in-depth economic restructuring. Increasing domestic consumption makes a larger contribution to the national economy, and growth in the retail sales of consumer goods remains above 12 percent.

Supporting factors of increasing domestic consumption include stable social employment, expansion of urbanization and rapid development of new business models. Income of rural and urban residents continues to go up faster than gross domestic product growth, which lays a firm foundation for increasing consumption. Urban population reached 54.8 percent of the total in 2014. Income of rural residents shows higher growth than income of urban residents, indicating the urban-rural gap is narrowing. The emerging of e-commerce stimulates people’s passion to spend. Online retail sales of consumer goods increased rapidly by more than 50 percent.

Thanks to the increasing domestic market demand, China’s textile and apparel industry maintains stable growth. Retail sales of clothing products keep an increase above 1.5 percent, and growth of online retail sales exceeds 30 percent. Meanwhile, domestic demand for textile and apparel products shows some new characteristics. Firstly, the era of mass consumption seems to have come to an end, and we are entering an era of elite consumption characterized by the pursuit of more personalized, diversified and fashionable products. Secondly, the consumption model is changing. Online sales make shopping easier and will offer online tailoring and interactive shopping experiences in the future. Thirdly, technical textile products are in good demand and widely used in infrastructure construction, medical care and environment protection. Also, the increasing demand for fibers and high-end equipment, makes it necessary to strengthen cooperation with other counties.

Overall, the huge Chinese domestic market and new characteristics of domestic demand provides opportunity and impose higher requirements on the world’s textile industries. The Chinese government is making all-out efforts to comprehensively push forward national reform so as to further open the Chinese market and diversify industrial structures. China’s textile industry is pursuing a more comprehensive cooperative partnership with other countries to jointly boost the domestic market.
 

For more information about the ITMF Annual Conference 2015, including the conference program, visit itmf.org.

July/August 2015

Yarn Market: Orders Strong; Capacity Expanding

By Jim Phillips, Yarn Market Editor

Orders for yarn continued to be strong in early July across virtually every segment. Open-end yarns are moving well and the demand for ring-spun yarns is such that buyers are struggling to locate product.

“Ring-spun yarns are hard to find right now, as they have been for quite some time,” said one yarn broker. “Ring spun seems to be in short supply everywhere, not just in the United States. If you need a large position with quick delivery, I wish you luck, because I think it is going to be hard to get large quantities anytime soon, unless you have a lot of leverage. We have reached the point where, when times are good, as they have been for the past year or more, we have pretty much maxed out our ring-spun production capacity. I think this provides us with an opportunity for sustained growth in the U.S. yarn industry that we haven’t seen in decades. For the first time in recent memory, the business sector is growing again. New plants are being built and others expanded. Providing our government doesn’t derail us through unfavorable trade agreements, I believe we are going to see manufacturing of textiles, in general, and yarn, in particular, see substantial growth in the United States.”

Technology, Service Driving Growth
Added a Southeastern spinner: “When you look at the advantages the U.S. industry has, it is no surprise that it is beginning to grow again. We have more technology, better production processes, faster delivery and more attentive customer service than any industry in any country. Our customers who have come back, after experimenting in Asia, tell us that no one can match our service and delivery, and that we are much more competitive on price than a lot of people think.”

In terms of textile exports, the United States trails only China and India in supplying yarn and fabric to the rest of the world. In 2013, textile exports totaled nearly $13 billion. But what has been even more encouraging is the increasing affinity of U.S. consumers for domestic products. “A lot of programs coming back are a result of customers who continue to see their costs in Asia go up while their service goes down. With reduced transportation and inventory costs, it is beginning to make more sense for many companies to return their programs to the United States. But a big part, as well, is being driven by consumers, who pay increasing attention such things as sustainability, traceability and transparency.”

As a result of this increased demand, after seeing more than 650 textile plants close from 1997 to 2009, the industry is once again on the move, and numerous sources agree. Organizations in countries around the world are in the process of building or expanding textile facilities in the United States, with activity in Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Virginia.

Just recently, it was revealed by several sources that Nan Ya Plastics Corp. is planning an expansion of its staple capacity at the company’s Lake City, S.C., plant. The expansion is reported to include a new spin line with approximately 40 million to 50 million pounds of capacity. The new line will be able to run a range of deniers and is expected to be operational in the second half of 2016. This will be the first new virgin spin line installed in the United States in more than 10 years. Products made at the South Carolina plant include polyester chip for the textile and bottle/sheet industries, polyester staple fiber and polyester continuous filament yarns including POY, DTY, FDY, and HOY As with many yarns and fibers, polyester staple demand has been both strong and steady over the past year, prompting the Nan Ya expansion.

Cotton Prices Remain Unchanged
Cotton prices have remained stable over much of the past year. As of June 25, quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets measured by the USDA averaged 62.47 cents per pound, up from 62.39 cents the previous week, but substantially lower the 77.72 cents reported for the corresponding period a year ago.

July/August 2015

IFAI: California Dreaming

The Roseville, Minn.-based Industrial Fabrics Association International (IFAI) is returning to its roots to host IFAI Expo 2015 — featuring Specialty Fabrics, Advanced Textiles, and Shade and Weather Protection — which will be held October 7-9, 2015, in Anaheim, Calif. For the upcoming edition of the event, show organizers decided to move away from multiple Expo brand names and have returned to the industry-known IFAI Expo name. The expo continues to service all aspects of the industry, and features segments targeted to specific markets including:

  • Specialty fabrics — covering tents, awnings, fabric graphics and marine applications; 
  • Advanced textiles — covering roll goods, nonwovens, fibers, nanotechnology, smart textiles and medical applications; and
  • Shade and weather protection (new in 2015) — covering end products such as retractable awning systems, shade structures, canopies and other weather solutions.

The expo features a show floor with an anticipated 400 exhibitors, equipment demonstrations, an Advanced Textiles Testing Booth, the IFAI Tech Stop, IFAI Membership Lounge, educational sessions, Fabric Sourcing Center, an updated ShowStoppers competition, new Disaster Relief and Preparedness displays, and the IFAI Awards and Keynote Presentation, among other activities.
 


 

Schedule Changes, New Additions
The show floor will open later than past expo participants may be used to (see schedule) to free show hours from competition with classroom education sessions. “Our participants have indicated that they no longer want education and exhibit hall competing for their time, and in turn, want them in a cooperative fashion,” said Jessica Miller, director of education and events. “Thus, this year, the show floor hours will be exclusive with various opportunities from quick, small discussions throughout the show floor. For example, the IFAI Expo 2015 will host Campfire Sessions each day of the show floor. The sessions run 30 minutes in length, and will be deep-dive on a variety of topics from general business management to division-specific education.”

“In light of the success and positive feedback we received last year regarding the Equipment Workshops, this year we have refined the schedule, engaged more exhibitors to host workshops and are increasing the number of attendees per workshop session,” said Miller. “Workshops will take place on the show floor Wednesday and Thursday mornings prior to exhibit hall opening, and attendees will have access to all workshops.”

As in past years, IFAI Expo will showcase new and innovative ideas in the ShowStoppers 2015 area, which highlights the latest products in the following categories: Fabrics, fibers and films; Chemicals, coatings and compounds; Hardware, findings and accessories; Equipment and tools; Services to manufacturers; and End products. Winners will be announced during an awards ceremony the first evening of the show.

The Fabric Sourcing Center is a convenient hub for expo visitors to view and locate hundreds of exhibitor materials. Samples are organized into the following categories: outdoor fabrics; indoor performance fabrics; industrial; safety and protective; mil-spec; sport; and apparel.

This year, IFAI will introduce several new features to the show floor. The Advanced Textiles area will feature an Advanced Textiles Testing Booth. “The testing booth will introduce attendees to the key players in the testing arena, while also allowing participants to understand what test methods are appropriate for various materials and at which point of the production process necessary tests should take place,” said Miller. “Education programming will support and prepare attendees for making the most of the testing booth onsite and working with testing laboratories through the production cycle.”

In addition, a new Disaster Mitigation and Response Display will focus on exhibitor products that aid in disaster mitigation.

IFAI IAA And Keynote Presentation
On Thursday morning, IFAI hosts the IFAI International Achievement Awards (IAA) and keynote presentation. The IAA is an annual competition designed to “promote awareness of the specialty fabrics used in thousands of products and applications ranging in size and shape,” according to IFAI. Winners — chosen by a group of industry experts, architects, design professionals and editors — are evaluated based on design, complexity, workmanship, uniqueness and function. The “Outstanding Achievement Award” and “Award of Excellence” winners will be showcased at IFAI Expo 2015.

The keynote speaker is Erik Weihenmayer, an athlete, adventurer, author and activist. “We are very excited about bringing Erik Weihenmayer, the only blind person to reach the summit of Mount Everest, as the keynote at IFAI Expo in Anaheim,” said Mary Hennessy, president and CEO, IFAI. “Erik’s message about overcoming adversity through teamwork is inspirational, and for the first time, the keynote address is open to all attendees, no exceptions.”
 

For more information about IFAI Expo 2015, visit ifaiexpo2015.com

July/August 2015

From The Editor: L.A.’s Apparel Industry At Risk?

By Jim Borneman, Editor In Chief

Mike Todaro — managing director of the Atlanta-based Americas Apparel Producers’ Network (AAPN) — is known for many things, but his prolific emailing truly stands out. Similar to clipping services of old, Mike identifies “in-the-news” items that fit the interests of AAPN members ranging from textiles and apparel to business issues and future trends.

This month, two articles shared by Todaro stood out in stark contrast. One, from the Wall Street Journal (WSJ), titled “Los Angeles’ Garment Industry Frets Over Pay Hike,” highlighted the future challenges of a $15 minimum wage by 2020. The other article, “A World Without Work” by Derek Thompson and published on theatlantic.com, is an extensive look at the future of work and the effect of automation and other trends affecting the future of manufacturing jobs and more.

The WSJ piece noted that Los Angeles has a significant apparel-manufacturing base with an estimated 45,000 workers, which has been fairly level since 2001. “The Los Angeles Metro area employs twice as many manufacturing workers as the Chicago or Detroit regions, with better than one in eight of them in Los Angeles County working in the apparel industry,” reported the WSJ.

Thompson’s piece, on the other hand, faces the fact that the future of labor is on the verge of major change. Machines are smarter than ever, and they rarely make mistakes and never call in sick. Which makes one think, “Is it possible to automate apparel manufacturing?” The short answer is yes.

Those who attended the Synthetic Yarn and Fiber Association’s last meeting may have seen Softwear Automation Inc.’s Senior Vice President William T. Lockhart give a presentation titled “Robotic Innovations in Sewn Products.” Through industry collaboration and a series of significant grants, Softwear Automation is making great strides towards commercializing robotic technology that can reliably and accurately cut and sew garment. For a look at the technology in action, please see the product section of softwearautomation.com.

One has to wonder if raising the base pay rate by 50 percent over a five-year period — from $9 to $15 per hour — will hasten two outcomes — advance the development of automation and force work-place relocation.

The WSJ quotes Brian Zuckerman, CEO of contract apparel manufacturer 5 Thread Factory — a company that has outgrown its floor space twice in three years — with a direct answer to the wage hike question, “The simple answer to this whole conversation is we’re out of the city of L.A.”

The Board of Labor Statistics reported apparel manufacturing average hourly earnings of $16.88 in March 2015 with 36.8 average weekly hours. The earnings ranged from an average $9.29 per hour for sewing machine operators to $18.25 for supervisors and managers.

On the automation front, the spinning sector has reduced the labor cost component and increased productivity of today’s spinning mills such that the sector is attracting foreign direct invest to build new plants in the United States.

At $15 per hour, be careful what you wish for.

July/August 2015

The Rupp Report: What Is Happening To Chinese Cotton?

A few times over recent months, The Rupp Report has informed readers about the stock situation with the 10 million tons of cotton in Chinese warehouses. Cotton has undergone a kind of rollercoaster over the past two months. It is now time to take a look at the current ups and downs of cotton. Details in this Rupp Report are based on information from United Kingdom-based cotton trader Plexus Cotton Ltd.
 
According to the Plexus Cotton Market Report dated April 30, 2015: “NY futures continued to rally this week, as July gained 243 points to close at 67.88 cents, while December added 150 points to close at 66.64 cents. July futures pushed through long-term resistance this week, leaving behind the “double-top” that had formed in late February and early April and posting the highest close since September 12. … For the current season we now have commitments of 10.9 million statistical bales, of which 7.5 million bales have already been exported, while for the 2015-16 season, total sales amount to 1.1 million bales so far. If one looks at the U.S. balance sheet, there is a supply at 18.75 million statistical bales, of which 10.9 million bales have so far been committed for export and a further 3.65 million bales are going to domestic mills.”
 
One week later in its Market Report dated May 7, Plexus reported: “NY futures reversed course this week, as July dropped 225 points to close at 65.53 cents, while December fell 121 points to close at 65.43 cents. … Shipments of 419,800 running bales were the bright spot in today’s report, as they were about twice the weekly amount needed to reach the USDA estimate of 10.7 million statistical bales. Total commitments for the current season are still at 10.9 million statistical bales, of which 7.9 million bales have now been exported.”
 
Expectations For U.S. Crops
In the May 7 report, Plexus reported: “Next week, on May 12, the USDA will issue its first set of numbers for the 2015-16 marketing year. Expectations are for a U.S. crop of around 13.5-14.0 million bales and a world crop of around 107-108 million bales, which would amount to a reduction of around 10 percent from this season. Since China will account for a large part of this reduction, the numbers to watch out for in regards to price direction are the ROW (rest of the world) production surplus and Chinese imports.”
 
“In the current season we had a ROW production surplus of 13.2 million bales, of which China absorbs only 7.5 million bales via imports, which is why ROW ending stocks are increasing by nearly 6 million bales. Therefore, with Chinese imports expected to drop to just 5.5 million bales next season, the ROW production surplus needs to be at or below this number in order to prevent a further increase in ending stocks,” reported Plexus.
 
“Based on the latest USDA numbers one should see only minor changes in inventory levels outside of China,” said Plexus in its Market Report dated June 4, 2015. “Although the ROW production surplus is going to be considerably smaller than last season, so are Chinese imports, and since these two numbers are expected to cancel each other out, there will be virtually no change in ROW ending stocks.”
 
Continuing in the June 4 report, Plexus reported: “US export sales for the week ending May 28 were 161,400 running bales for both marketing years, whereof 107,600 bales were for June/July shipment and 53,600 running bales were for August onwards. There were still 16 different markets participating, with Vietnam and Turkey leading the way. Shipments were once again excellent at 309,100 running bales. Total commitments for the season have now reached 11.3 million statistical bales, whereof 9.3 million have already been exported. Considering the amount of sales and the pace of shipments, it is almost a given that the USDA will have to raise its current export estimate of 10.7 million bales, possibly by as much as 0.5 million bales.”
 
Will Reserve Cotton Be Released?
In the June 11 Market Report, Plexus reported: “NY futures came under renewed pressure, as July dropped 159 points to close at 63.53 cents, while December gave back 90 points to close at 64.38 cents. … Speaking at the ongoing Cotton Conference in Ningbo, a vice-director of the NDRC announced that a plan for the release of reserve cotton was forthcoming within the next ten days.
 
“If we look at China’s domestic market, we expect a 2015-16 crop of around 5.6 to 5.8 million tons and domestic mill use of 6.5 to 6.7 million tons (we consider the USDA estimate of 7.8 million tons unrealistic). In other words, we may be a production deficit in China of just around 1.0 million tons. However, China is expected to import some 1.2 million tons (0.9 million tons under the [World Trade Organization] quota and 0.3 million tons for the processing trade) next season, which would already cover the potential production gap. Therefore, how can China question remains: how can China fit in reserve sales under such a scenario?”
                                                                                                                 
Rotate Reserve Stocks
According to Plexus: “One possibility is for China to rotate reserve stocks, by buying a million tons of new crop cotton and then releasing some of its 3-4 year old stocks under an auction scheme. However, based on what we know today, there is no easy fix to reduce China’s massive stockpile. Even though China has started to bring its production down by focusing on Xinjiang and forcing Eastern Provinces to look for alternatives, mill use has started to slip as well as more and more mills are importing yarn made from cheaper foreign growths. China currently imports more than 2 million tons of yarn annually and this trend will likely continue as long as this price disparity between Chinese and foreign cotton exists.
 
“Although Chinese imports have shifted from cotton to cotton yarn in recent years, mainly due to quota restriction for cotton, China still imports well over 3 million tons of cotton and cotton yarn combined at the moment,” reported Plexus on June 11. “This makes it difficult for policymakers to get this big inventory monkey off their back and to make matters worse from a Chinese point of view, it underpins foreign mill use. This is the reason why we see the current situation in China as somewhat supportive to international prices.
 
“The most effective remedy to the Chinese predicament would be a narrowing of the price gap between Chinese and international prices. This would disincentivize imports, make Chinese mills more competitive, boost local mill use and eventually lead to destocking. Unfortunately, the current policies are not geared towards this outcome and unless there is a major crop problem somewhere else, we are likely to see no change to the status quo.”
 
Reading the Plexus Market Report dated June 18 reveals: “Traders continue to be uneasy regarding the impending Chinese Reserve Policy announcement, which some fear will lead to the dumping of reserve stocks on an already depressed local market. However, … we still think that this exercise will mainly serve to rotate reserve stocks, since the Chinese market isn’t in a position to absorb any sizeable amount of additional cotton. In other words, we will probably see the release of 3-4 year old inventory, sweetened with that of some imported US cotton, against which the Chinese Reserve and/or the Xinjiang PCC will accumulate current crop stocks.
 
“Of interest in this regard is the most recent data on Chinese and Vietnamese cotton imports. China imported another 750,000 statistical bales in May, bringing the 10-month total (August 2014 to May 2015) to 7.07 million bales. At this pace, China is likely to surpass the USDA’s recently increased import estimate of 8.0 million bales. Just five months ago, the USDA had Chinese imports still at 7.0 million bales. … The above statistics suggest that Chinese raw cotton and yarn imports are still going strong, which is why we are seeing mill use in China declining. Unless the Chinese government somehow manages to curb cotton and yarn imports, we don’t see much hope for a meaningful reduction in reserve stocks anytime soon.
 
Stable Cotton Consumption In China
According to the latest information from the Washington-based International Cotton Advisory Committee: “World cotton consumption in 2015-16 is forecast up 2 percent to 24.9 million tons. China’s consumption is expected to remain stable at 7.7 million tons, though its share of total world consumption will likely decline to 31 percent, which is the sixth consecutive season of reduction since 2009-10 when it accounted for 40 percent of world consumption. India’s mill use is projected up 3 percent to 5.4 million tons in 2015-16, accounting for 22 percent of world consumption.
 
“Strong demand from countries that rely on imports to support their spinning sector is expected to boost world trade in 2015-16 to 7.7 million tons. Imports outside of China are projected up 4 percent to 6.1 million tons, partially offsetting the 9 percent decline in Chinese imports to 1.6 million tons.”
 
July 14, 2015
 

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