ARLINGTON, Va. — September 8, 2011 — Ahead of President Barack Obama’s major speech on his plan to
reverse our nation’s high unemployment rate and rebuild our struggling economy, the American
Apparel & Footwear Association (AAFA) today submitted a strategy for White House consideration
that will create and sustain well-paying jobs for hardworking Americans within the U.S. apparel and
footwear industry. This strategy includes reforming the government procurement process, opening
markets to meet ever-changing business challenges, reducing regulatory burdens that hinder
innovation, and acting on other measures that will drive American competitiveness in an
increasingly complicated global environment.

“The U.S. apparel and footwear industry is a driver of jobs,” said AAFA President and CEO
Kevin M. Burke. “All around the country, our industry offers some of the world’s most diverse and
well-paying employment opportunities. While we’re always looking to grow that employment base,
sometimes we need Washington to develop timely new policies to keep us competitive worldwide.”

“We have identified four simple themes that, if quickly acted upon, will generate jobs here
at home within our industry,” Burke said. “By improving the way the Department of Defense procures
military uniforms and footwear, opening global markets, eliminating burdensome regulations, and
smartly reforming the tax code, the U.S. apparel and footwear industry will be able to support our
more than one million current U.S. jobs, as well as find opportunities to grow that number.”

Like many industries, the U.S. apparel and footwear industry faces unprecedented challenges
as a result of the weakened economy. During a downturn, consumers tend to cut back on the purchase
of new clothing and footwear. While the industry continues to weather this economic storm, AAFA has
highlighted a number of legal, regulatory, and other governmental challenges that if resolved,
would empower this industry to offer better goods for lower prices, expand the industry’s customer
base and create jobs here in the United States.

Department of Defense Procurement Reform

Each year, the U.S. military spends more than $2 billion on uniforms, camouflage, gear, and
combat footwear for U.S. servicemen and women. Under the Berry Amendment, which requires that all
combat apparel and footwear worn by troops be completely produced within the United States, the
U.S. apparel and footwear manufacturing base has the privilege of outfitting American servicemen
and women. In recent years, however, domestic manufacturers have lost significant market share
because of unfair preferences to federally-incarcerated inmates through a government-run
corporation known as Federal Prison Industries. As it pertains to the procurement of DOD Clothing
& Textiles, FPI’s preference needs to be limited so as to provide more jobs and opportunities
for the U.S. domestic manufacturing base.

Restart the Trade Agenda

Our strategy calls for reductions in barriers to two-way trade and broad openings of global
markets in a way that recognizes and embraces our 21st century business model. In order for our
industry to grow, we must be able to reach customers that live outside our borders. While the
United States accounts for one-quarter of the world’s apparel and footwear sales at retail, we
represent just five percent of the world’s population. Getting unfettered access to 95 percent of
the world is critical to our continued success. This includes finally passing pending free trade
agreements with Colombia, Panama, and South Korea, along with the successful conclusion to the
Trans-Pacific Partnership negotiations and swift action on the
Affordable Footwear Act (H.R.2697/S. 1069), the
Save Our Industries Act (H.R. 2387/S. 1244) and the
U.S. Optimal Use of Trade to Develop Outerwear and Outdoor Recreation Act (US OUTDOOR Act,
H.R. 2071/S. 704).



Consumer Product Safety Reform

AAFA’s job creation strategy also includes the elimination of burdensome or unnecessary
regulations that strangle productivity, prohibit efficiency, and unfairly penalize some sectors of
our industry. With the passage of the
Consumer Safety Product Safety Improvement Act of 2007 (CPSIA), the product safety profile
of our industry has been raised. At the same time, regulations under the CPSIA have caused
considerable economic damage, especially to small businesses, as companies have had to understand
and implement costly and redundant regulations. Moreover, a number of these regulations and
requirements have done little to improve the safety of products being offered in the marketplace.

Ensure Smart Tax Reform

Keeping Americans employed by competitive U.S. apparel and footwear companies
requires that any tax reforms be mounted in a careful and smart manner. Calls to close specific
“tax loopholes” may sound appealing but if not done as part of a comprehensive review of taxes, it
can lead to unintended consequences, including the laying off of workers.

Industry Job Outlook

Jobs in the U.S. apparel and footwear industry are well-paying jobs. In a survey conducted
earlier this year by AAFA and industry staffing agency 24 Seven, Inc., the median salary for the
U.S. apparel and footwear industry – from designers to sales floor representatives and everyone in
between – was found to be about $70,000 per year. Even in the face of the recession, this salary
figure is up 7.7 percent since 2009. In addition, the education level of the industry continues to
climb, job satisfaction remains steady, and the employment outlook is optimistic.

“Now is the time to harness the optimistic employment outlook for our industry and seek ways
to grow our employment numbers,” said Burke. “Whether it is a manufacturing job or a supply chain
job, every job is important, and we need to be working toward that end.”

To read AAFA’s September 7, 2011 strategy for job creation within the U.S. apparel and
footwear industry, please visit the AAFA Web site,
www.apparelandfootwear.org.

Posted on September 13, 2011

Source: AAFA

WASHINGTON — September 8, 2011 — The National Retail Federation today welcomed House passage of
legislation that would extend the United States’ largest duty-free trade program for developing
nations, and expressed hope that the vote will clear the way for additional trade bills.

“This program is a win-win for both participating nations and the United States,” NRF Senior
Vice President for Government Relations David French said. “It provides economic and employment
opportunities in many poor and developing countries around the world. And by allowing U.S.
companies to import goods without paying import taxes, it increases competitiveness here at home
and helps American businesses contribute to U.S. economic growth and job creation. Eliminating
tariffs helps retailers provide consumers with products they need at prices they can afford, but it
also lets manufacturers obtain component parts at lower costs. Either way, America wins.”

“Passage of this bill is further evidence that Congress is becoming more fully engaged on
trade and wants to break down the trade barriers that have hampered economic growth for far too
long,” French said. “As an industry that supports one in four U.S. jobs and contributes nearly 20
percent of GDP, we hope this is a sign that we will see action on free trade agreements and other
important trade initiatives soon.”

H.R. 2832, sponsored by Ways and Means Committee Chairman Dave Camp, R-Mich., passed the
House on a voice vote Wednesday evening. The measure would extend the Generalized System of
Preferences, which expired at the beginning of this year, through July 31, 2013. The extension
would be retroactive, and companies would be reimbursed for import duties paid since January. The
measure now goes to the Senate.

The 35-year-old GSP program provides duty-free treatment or reduced duties for a wide variety
of products from about 130 countries around the world. Doing so saves retailers millions of dollars
annually that would otherwise have to be passed on to consumers in higher prices.

As the world’s largest retail trade association and the voice of retail worldwide, NRF’s
global membership includes retailers of all sizes, formats and channels of distribution as well as
chain restaurants and industry partners from the United States and more than 45 countries abroad.
In the United States, NRF represents an industry that includes more than 3.6 million establishments
and which directly and indirectly accounts for 42 million jobs – one in four U.S. jobs. The total
U.S. GDP impact of retail is $2.5 trillion annually, and retail is a daily barometer of the health
of the nation’s economy.

Posted on September 13, 2011

Source: NRF

Here is the next of the previews of exhibitors at ITMA 2011 in Barcelona, Spain. In this issue, the
Rupp Report is looking at Switzerland-based Jakob Müller AG, Frick, a leading supplier of narrow
weaving machinery. The Rupp Report contacted Eduard Strebel, manager, marketing communications,
posing the same questions as in the previous reports.

Global Activities And Markets

The family-owned company, founded in 1887, has evolved from a traditional company to a
globally active enterprise with production sites in Switzerland, Germany, the Czech Republic, China
and India. The production program includes machines for woven and warp-knitted ribbons, belts and
other narrow fabrics.

Jakob Müller also maintains offices for sales and services around the globe — in the United
States, Canada, Mexico, Brazil, Japan, China, Hong Kong, India and Germany. Almost 100 percent of
the machinery produced is exported — to be precise, it’s 99 percent. “Sales are quite even across
the whole portfolio. We have no top seller at the moment,” Strebel said. He claims that Jakob
Müller is the market leader in various segments of the narrow fabrics industry.

And how does Strebel judge the current market situation? “Well, we have mixed emotions, and
for the time being, we are carefully observing the situation. The circumstances in the global
economy are somewhat insecure and even more severe for us as a Swiss machinery manufacturer due to
the extremely strong Swiss franc,” he said.

ITMA Barcelona

Some 50 people comprise the team that will be at ITMA in Barcelona. “We expect about the same
number of visitors as in Munich four years ago — however, some will come from different markets
than in Germany,” Strebel said. “Furthermore, we expect some hesitation from the visitors as to
eagerness to invest in new machinery in view of the current market situation.”

Jakob Müller invited its global clientele using direct mail, among other means. Strebel
judges the cooperation with the organizers of the fair to be excellent. “And for once,” he said,
“the strong Swiss franc is an advantage for Swiss exhibitors; we pay our square meters in euros.”

The Future

What are Jakob Müller’s targets in the near future? “We want to extend our leadership as a
premium supplier for the ribbon and narrow fabrics industry,” Strebel said.

And how does he judge developments in the coming years? “There will be certainly an increased
price fight due to overcapacities in the markets,” Strebel said. “On top of that, and this is not a
secret, there is increased importance and awareness for technical textiles in Europe; and an
ongoing shift of apparel manufacturing to Turkey, India, Bangladesh, Vietnam and Latin America.”

September 6, 2011

Kings Mountain, N.C.-based Patrick Yarn Mills, a manufacturer of eco-friendly high-performance
industrial yarns, has installed a new solar power system — which it reports is one of the largest
privately owned solar power system in the North Carolina Piedmont region. Manufactured by Argand
Energy Solutions, the system produces 140,000 kilowatt hours of photovoltaic energy each year,
saving the equivalent of 11,310 gallons of gasoline or 234 barrels of oil — enough to power 14
average-sized houses. A grant from the NC Energy Office made the installation possible, and all of
the system’s major components qualified for funding under the “Buy American” provision of the
American Recovery and Reinvestment Act signed into law in 2009.

“We’re excited to be generating our own electricity from the sun,” said Gilbert Patrick,
president, Patrick Yarns. “We’ve been committed to sustainability for years, and this is another
step toward helping create a better planet for future generations and a better environment for our
community. It also provides customers with environmentally sound, Spun by the Sun™ solutions to
their textile requirements.”

The company prides itself on being an eco-friendly business and uses highly efficient
lighting and motors, produces no greenhouse gases and is working towards a goal of zero landfill
waste. Patrick Yarns also manufactures a line of eco-friendly textile yarns under the Earthspun®
brand.

A web application located at http://www.patrickyarns.com/monitor allows the public to see how
much electricity the solar power system is producing.

September 6, 2011

Kings Mountain, N.C.-based dobby and jacquard upholstery fabric producer Specialty Textiles Inc.
(STI) has announced an expansion that will include the addition of 32,000 square feet to its
current plant and 62 full-time jobs over the next three years. STI will add chenille yarn capacity
to capture additional sales in the mid-range and high-end segments of the residential upholstered
furniture industry.

“STI is a big proponent of manufacturing in the United States,” said John Kay, president,
STI. “With support from the State of North Carolina, Cleveland County and the City of Kings
Mountain, STI plans to grow our manufacturing footprint in North Carolina. America was built on
manufacturing and all the stakeholders at STI support our Governors’ efforts to increase
manufacturing in North Carolina.”

The $4.9 million investment cost is defrayed in part by a One North Carolina Fund grant in
the amount of $56,000. The fund offers financial assistance to businesses through local governments
to draw business projects to the state to boost economic activity and create jobs.

“The story of North Carolina’s business success lies in our ability to adapt and grow with
changing markets,” said Governor Bev Perdue. “With the support of the One North Carolina Fund, STI
will stay on the cutting edge of the textile industry.”

September 6, 2011

Israel-based Nilit Ltd. has announced plans to close a nylon 6,6 filament fiber production facility
in Oestringen, Germany, sometime during the second quarter of 2012. Nilit acquired the plant in
2006 when it purchased Invista’s European business, and it was expected to remain open after an
agreement was reached with the German Labor Union at the plant earlier this year
(See “
Nilit
To Expand Operations In Israel And China, Reaches Agreement With German Labor Union,” www.
TextileWorld.com, May 31, 2011).

Nilit cites the facility owner’s wish to exit the site, leaving the company with no access
to important services and utilities, as one reason factoring into the closure. Nilit remains
committed to the nylon 6,6 market, and will continue forward with its planned capacity expansion in
Israel and the start up of a new facility in China.

September 6, 2011