Dow Reichhold, SSI Enter Partnership

Research Triangle Park, N.C.-based Dow Reichhold Specialty Latex LLC has teamed with
Sustainable Solutions Inc. (SSI), Wagoner, Okla., to develop and market products that use
regenerated leather

and other post-industrial waste.
The partnership involves SSI’s SmartStreams™ system that processes manufacturing
waste for use in such applications as furniture upholstery and automotive seating; and Dow
Reichhold’s refinement of the process through advanced latex binder chemistry and its access to
development resources.

“SSI, with our support, is showing manufacturers that good environmental stewardship
can be very profitable,” said Galen Hatfield, vice president, development, Dow Reichhold. “
Together, we are developing products from post-industrial waste streams that are of the same — or
better — quality as those produced via traditional processes.”

The companies already have
produced three branded products: Dilusso™, a leather-like composite rollgood
produced from sustainable materials and regenerated leather; Thermold™, a nonwoven with
thermo-molding properties; and UrbanWood™, made from shipping pallets and other materials.


September/October 2007

Textile-Focused Software Solutions




computerY

ou don’t have to look hard to find a textile professional who has a horror story to tell
about a software solution gone wrong in a textile company. Planning gone awry, product tracking
off-track, dealing with roll goods, a round peg in a square hole in some programs, non-textile
language for basic textile processes, the never-ending implementation — and the list goes on. Some
of the pitfalls arise from the technology, while others arise from the process — what is needed,
who has the right solutions, and how can they be implemented without putting your company out of
business?

By the same token,

Textile World
has observed many companies that view their systems from a variety of vendors as a major
part of their success — often linking basic manufacturing information seamlessly across a global
supply chain. One past

TW
Innovation Award winner even confided that the company had decided to support its global
operation from its stateside headquarters because of the level of confidence it had achieved with
its systems.



Seven Steps



To understand how any textile company could hedge its bets for a successful
implementation, TW met with John Blasman Sr. and John Blasman Jr., two members of the family team
behind Cambridge, Ontario-based JOMAR SOFTCORP International Inc., for some hints based on JOMAR’s
textile experiences. The team also includes Software Development Manager Mark J. Blasman; and
Marianne K. Blasman and Paul E. Blasman, both heavily involved with project management. JOMAR
provides a broad range of scalable solutions for small companies to global enterprises and has
experience in traditional textile manufacturing, apparel applications, floor covering, polymer
formulation, performance yarn and fabrics, and more, drilling down to the process level for tasks
such as formulation and recipe management.

“JOMAR uses a seven-step process to effect a positive outcome, but realistically,
most of these steps would benefit any company considering enterprise or e-business solutions,” said
JOMAR CEO John C. Blasman Sr. “Initially, the company must assess its priorities. This step is the
jumping-off point and sets the groundwork for looking for and evaluating appropriate solutions,
whether it is enterprise, e-business or traditional manufacturing solutions. It also establishes
where it is with current systems. Will these need to be integrated or replaced?

“Secondly, the company needs to allocate knowledgeable people and build a project
team. Putting the right people on the team is challenging for all involved, particularly when they
have many responsibilities, but the right people can make or break the process.”

The Blasmans stress that making sure the team has the breadth of business and
systems knowledge, regardless of company size, is important. However, making sure the members can
commit the time necessary is also a major factor.

“The third step might not be available with all vendors,“ Blasman Sr. said, “but
this is when we do a conference room pilot.” He went on to explain that the pilot is the process of
matching individual business needs with the software products, and decisions are made regarding
necessary scope and functionality. In the end, a project implementation plan is created.

“Once the pilot is complete, we have a real handle on the expectations of the
project,” said President John A. Blasman Jr. “The fourth step is setting up the project
implementation and focusing on a priority-based execution. With this in mind, we use the JOMAR
hosting facilities to allow the team a broad selection of platforms. This allows the team to use
the solutions they are interested in prior to execution.” This fifth step gives team members
flexibility in verifying the choices made as well as the fit with priority-based execution, he
added.

“The sixth step involves testing and preparing the switch to new systems,” Blasman
Sr. said. “If a client and vendor have worked well together, this is the moment of truth.”<
/font>


“We don’t want to oversimplify the process,” Blasman Jr. added. “Each of these steps
is necessary and takes hard work. But the reality is that the solutions available today and the
experience level that is available with very specific system solutions make this much more
approachable than early solutions for the textile industry. We really have come a great distance
with that.”




Refine And Improve



The final step at the completion of the project, according to the Blasmans, is a
post-audit of the implementation and systems in order to improve and refine the software solutions.
“The relationship of the client and vendor really doesn’t end there,” Blasman Jr. said. “
Manufacturers should make sure they feel comfortable with the relationship. The vendor must stay
abreast of changes in the products and technologies as well as the changing needs of the clients.
The technology is just part of the story. A good solutions provider needs to be willing to
understand the client’s business and the challenges they face to be successful.”


September/October 2007

Consumer Product Recalls Prompt Product Visibility Questions



H
istorically, textile and apparel product recalls have been related to issues with flame
retardancy or small objects that can become loose and pose choking hazards for small children. In
comparison to consumer products in general, such recalls have been few and far between.

But the spate of recent consumer product recalls has prompted more than a few yarn
spinners to ponder the potential impact on manufacturing of heightened consumer awareness about
product safety issues. In recent years, numerous headlines have warned about contaminated lettuce,
peanuts, pet food, chocolate and more; as well as unsafe product ingredients, such as lead-based
paint in children’s toys.

As a result, many consumer product manufacturers are starting to respond to
increasing demand for accurate and complete product information at every stage of the supply chain.
Some yarn spinners say it’s just a matter of time before the textile industry also must address
these issues.

“It’s coming,” said one yarn spinner about potential consumer demand for complete
manufacturing visibility. “The focus of people right now seems to be mostly on food products, but
you can see that extending to other sectors. Just recently, there were toy recalls because of
potentially hazardous chemicals. Consumers want accountability from those who make and distribute
the products they buy and consume. They want to know not only who makes the product, but who makes
the various ingredients and add-ons. They want to know where and how products are stored and how
they are distributed.”



Lack Of Standards

Of particular note is the number of recent recalls of products originating from
China. Toothpaste containing ethylene glycol — the primary ingredient in antifreeze — and popular
Thomas the Tank Engine toys containing lead-based paint were recalled.

“I think people ought to be concerned about some of these products,” said one
spinner. “There seems to be a lack of control and standards that can create significant public
risk.”

“People are beginning to think about [the lack of standards], but the Chinese
government seems to shrug it off,” said another spinner. “I remember sitting at a trade meeting
with a delegation of very senior representatives from the Chinese textile industry before the
safeguards issue came up. I told them I didn’t think our government would allow products to be
imported without safeguards. They didn’t believe it and got up and stomped out of the meeting. And
now, they still don’t believe there will be a backlash at some point. People are looking at dyed
children’s clothes and such and beginning to wonder what the heck could be there.”



Long-Term Results

 
The long-term result, these spinners say, will be increased consumer scrutiny and
pressure from retailers to properly document all stages of product manufacturing. “People will want
to know what chemicals are in the products we make,” said one dyer. “And they will want some degree
of assurance that controls are in place to ensure products are safe.”

“I think manufacturing visibility is a bigger issue in Europe right now than in the
United States,” said a sourcing agent for a Southeastern retailer. “But I think it is something
that is going to affect most manufacturers at some point. Right now, it is the retailers who are in
the driver’s seat. They are looking at the concerns of the consumer and beginning to demand
across-the-board accountability from their suppliers. They want to know that you have, or are
developing, processes that can trace products back to their humblest origins and identify
everything that happens to the product along the way. In the case of a cotton textile
product,

it starts with the cotton farmer and the chemicals used in growing the cotton. Then,
it goes to how the cotton is stored, transported and processed. At the manufacturing stage, it is a
question of chemical additives, product attributes and manufacturing quality.”

How far will manufacturers have to go to make sure the products they deliver have
visibility built in to their processes?

“The consumer will ultimately get what he or she wants,” said one spinner. “I think
we’ve got some time before this issue hits the textile industry full force. Right now, people are
more concerned that the food they eat is safe. But at some point, the textile industry is going to
have to deal with it.”


September/October 2007

Powerful Presentations Depend On Proper Material, Pattern Of Delivery



I
n the last issue, the power of presentations as a marketing tool was discussed.
Presentations come in all types and word counts — from the 30-second elevator speech given when
someone asks what your company does to an hour-long educational seminar at an industry
conference.

Before one can organize a presentation, material must be chosen. The real charge is
choosing what not to use, because there’s always more material than one could ever present in the
time allotted. As discussed last month, a common pitfall is trying to cram too much information
into a single presentation.

“Presentations For Dummies” is one in the “For Dummies” book series, and a great
reference for those who don’t have a lot of presentation experience. It’s also a good refresher for
those who are looking for ways to be more effective speakers. A memorable presentation depends on
two critical areas — choosing the right material and selecting the right pattern of delivery. Here
are a few tips to help you pick the material to make your point:

•      
Use a variety of materials. A variety of materials makes your presentation more
interesting and increases the odds that each member of the audience will find something to
remember. Anecdotes, statistics, quotes and real-life examples all are excellent ways to help your
audience retain your presentation points.

•      
Keep the audience in mind. Analyzing your audience before you stand before them is
the best way to choose your material and a good way to prevent disaster. You don’t want to talk
down to your audience; neither do you want to talk above their heads. Understand what they already
know and what they need to know.

•      
Have some material in reserve. Always have an extra example, statistic or anecdote
at the ready. You want to be prepared should you need another example to explain your point. Extra
material also is handy for the question and answer session afterwards.

Now that you have your material, it’s time to organize it into a presentation that
follows a pattern. Studies show that messages are better understood and interpreted when presented
in a pattern. Here are some common patterns used when crafting presentations:

•      
Chronological: A presentation organized in

a past/present/future pattern is easy to follow. This pattern works well, for
example, when talking about a series of events in the life of a company or new product
development.

•      
Problem/Solution: With this pattern, you simply state a problem and offer a
solution or competing solutions.

•      
Cause/Effect: This pattern works well with scientific presentations. It also is a
great pattern to use when talking about profits or losses and what led to them.

•      
Theory/Practice: This pattern works well when discussing a topic that didn’t quite
work out as planned. What sounds good in theory doesn’t always pan out in practice, and this
pattern is a good one to use when revealing the gap.

•      
Catch Phrase or Cliché: For example: “Actions speak louder than words. While we
talk a lot about creating a corporate culture of empowered employees, our actions say otherwise.”&
amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; lt; /font>

•      
Break Down A Quote: For example, “Advertising Guru David Ogilvy said, ‘If it doesn’p
p p p p p p p p p ; o t sell, it isn’t creative.’ Let’s look at that quote. Does it apply only to
our marketing campaigns or to our product lines, as well?”

•      
Divide A Word: Use a word such as “PROFITS” and break it down with each letter
representing


a point in your presentation. For example, “Today we’re talking about PROFIT. P
stands for Product. The first factor in realizing our Profit potential is our Product.”

•      
Physical Location: This pattern works well when talking about happenings in
various locations, such as multiple manufacturing facilities, varying geographic sales markets or
different target markets for your product lines.

•      
Topical: This pattern organizes information on a single topic into a logical,
common-sense arrangement. This pattern works well for sales training or any other single-topic
presentation.


September/October 2007

MWNY Organizers Tout Global Participation, Educational Seminars

Material World New York (MWNY) will return to the Jacob K. Javits Convention Center
in New York City September 25-27 for three days of exhibits and educational programs related to
fabric and trim, sourcing, technology and trends for the sewn products industry.

Event organizers Urban Expositions, Atlanta, and Arlington, Va.-based American
Apparel & Footwear Association (AAFA) expect 400 companies from 38 countries to show their
products and services. At least 14 special pavilions will display the offerings of specific
countries and regions in Africa, Asia and Latin America.

MWNY’s Trend Pavilion will spotlight apparel and home furnishings fabric, trim and
color trends for Autumn/Winter 2008. A matchmaking service, Ultimate Sourcing Solution: Global
MatchMaking @ Material World New York, will help attendees locate sourcing opportunities to meet
their needs.

Show organizers do not publish expected visitor numbers, but, said Tim von Gal,
president, Material World, “we’ve been blown away with how many really significant private label
retailers have signed on to participate in the matchmaking, and also to attend the show in
general.” Target and Macy’s are two retailers he mentioned.

This year’s event will highlight five key areas: Eco-Friendly; Performance; Product
Lifecycle Management (PLM); Design Technology Solutions; and Home Furnishings Fabrics. Exhibitors
engaged in these areas will display icons indicating their particular focus, and the educational
program will include seminars relating to each of these areas as well as to trends and supply chain
issues.

Seminars of special note include AAFA’s headliner event on Tuesday, September
25.  “People, Planet, and Profit: Reaching for the Pinnacle of Environmental Sustainability”
will examine the environmental, social and profit aspects of sustainability as they relate to the
success of some leading companies.

On Wednesday, September 26, AAFA’s Supplier Resource Committee will present “Winning
Product Lifecycle Management [PLM] Strategies — Achieving Speed, Visibility and Control,” a look at
how PLM can help companies make their operations “cheaper, faster, better.”

On Thursday, September 27, AAFA and The Doneger Group, New
York City, will offer “Changing Trends in Trending,” led by David Wolfe, creative
director, Doneger Creative Services, who will discuss how the fashion system is adapting to the
ever-changing retail environment and consumer culture.



September/October 2007

Unifi Reorganization Efforts Continue

A shake-up at Greensboro, N.C.-based textured yarn producer Unifi Inc. continues
following the report of continuing losses for the fourth quarter (Q4) and fiscal year (FY) ending
June 24, 2007; the naming of board member Stephen Wener as chairman and acting CEO, replacing Brian
R. Parke, who was terminated; and the news of plans to close its Kinston, N.C., partially oriented
yarn production facility
(See “Unifi Names New Chairman, Reports Q4 Losses, Announces Plant Closing,”

www.
TextileWorld.com


, August 7, 2007).

In the wake of the resignation of six board members, Unifi’s Board of Directors
named two new members: George R. Perkins Jr., chairman and CEO of Frontier Spinning Mills Inc., and
a former Unifi executive; and G. Alfred Webster, retired, also a former company executive and
director. The board also named William M. Sams as independent “Lead Director.” Perkins and Webster
will fill key committee vacancies, returning Unifi to compliance with New York Stock Exchange
listing requirements.

The effects of offshore competition for both Unifi and some of its customers have
contributed significantly to the company’s financial woes. Unifi cited that competition as a reason
for its decision to close the Kinston facility, as it has in previous such decisions.

The Q4 and FY 2007 losses included bad debt charges related to receivables owed by
upholstery fabrics manufacturers Joan Fabrics Corp. and Quaker Fabrics Corp., which likewise have
been severely impacted by offshore competition, and have liquidated or are preparing to liquidate
their assets.

To further reduce costs, Unifi will restructure functions of certain corporate staff
and manufacturing support, eliminating 25 jobs and, combined with previous cuts, reducing costs by
$9 million annually.

“It is imperative that we continue to match our support costs to the size of our
current business … while maintaining world-class service, product innovation, and quality to
successfully compete in our market and reach our goals,” said COO and CFO William Lowe.



September/October 2007

Springs Global’s Bowles Retires

Crandall Close Bowles, co-chairman and co-CEO of Brazil-based home textiles
manufacturer Springs Global Participações S.A., has retired following the company’s initial public
offering (IPO) on the Brazilian stock exchange, which raised more than $300 million.

As part of the IPO, the Close family sold nearly
75 percent of its 19.6-percent stake in the company, and now holds some 5 percent of
the company’s stock. Bowles continues to serve on Springs Global’s Board of Directors, while
Co-chairman and Co-CEO Josué Gomes da Silva has assumed sole responsibility in those
positions.

Springs Global was formed in 2006 when Springs Industries Inc., Fort Mill, S.C., and
its Brazil-based supplier, Coteminas S.A., merged to leverage Coteminas’ low-cost manufacturing
platform in Latin America with Springs’ distribution channels, brands and customers. Going forward,
the company plans to form strategic alliances or acquire operations in Europe and Asia, including
production facilities in Asia.

“This is the right time for me to retire. We are beginning a new phase of our
history as a global company,” Bowles said, noting that the Coteminas merger has helped “stabilize
the company amid a difficult industry environment and position it for profitable future growth.”&
amp; amp; amp; lt; /font>

Bowles said the transfer of US bedding and towel production capacity to Brazil is
almost complete, and the company is “well positioned to source and produce product in China and
Mexico.” The company closed its last South Carolina bedding manufacturing operations at the end of
August, but it still operates seven US-based bedding, towel and bath rug manufacturing facilities,
and it is keeping its US headquarters in Fort Mill.

Expressing “mixed feelings”  regarding the transition of the company, which was
family-operated for 120 years, Bowles said: “[A]s it became increasingly difficult to manufacture
competitively in the US, the decision to close plants

and eliminate jobs, though painful, was inevitable. …
I am proud that we maintained good jobs with competitive benefits for this area for
as long as possible, and I am grateful to all our current and former employees for their commitment
and positive attitudes.”


September/October 2007

Concordia Receives $250,000 From Slater Technology Fund

Concordia Manufacturing LLC, Coventry, R.I., a producer of fiber-based materials for
biomedical, industrial and consumer applications, has received $250,000 from the Slater Technology
Fund, a Providence, R.I.-based state-backed venture capital fund that provides seed capital for
state-based ventures. The funding is part of an initial $1.5 million in equity financing the
company will use to expand facilities and provide working capital for its growing biomedical
products business.

The 87-year-old company began its biomedical thrust in 2003, aided by an initial
$100,000 from Slater. In 2005, Concordia acquired Mansfield, Mass.-based Albany International
Research Co.’s biomedical assets related to the manufacture of nonwoven scaffolds for tissue
engineering and launched its BIOFELT™ needlepunched 3-D felt bioabsorbable scaffolds

for regenerative medicine applications, again with Slater funding — this timein the amount of $150,000. Other investments in Concordia’s biomedical business have
come from shareholders, including members of the company’s founding Boghossian family.

The biomedical activities now comprise close to 30 percent of Concordia’s total
business, about triple the volume of late 2005, said Randal W. Spencer, president and CEO. “We’ve
developed new products, including one coming out in about a month and another in early 2008,” he
said. “We have a number of other products in clinical trials — in addition to arteries, we have a
product going into bladders, another in heart valves. We’re also supporting some major research
developments at top universities.”

Expansion plans call for at least a tripling of Concordia’s clean room space and a
quadrupling of what Spencer called its “medical manufacturing space — not quite a clean room, but a
controlled environment.”



September/October 2007

Going Green Or Terribly Toxic


I
t is a bit of a perfect storm. Just as US consumers seem to be perking up with interests
in going green, they are alarmed that the products they buy might be delivering more than they
asked for — and not in a good way. It is great news that consumers are thinking about how things
are made and with what they are made. However, a recent rash of recalls and troubling environmental
news from China has shaken their confidence.

For years, the US consumer seemed uninterested — T-shirts were just T-shirts, toys
were just toys, dog food was just dog food and even fish were just fish. One rarely considered the
safety of toothpaste, and the current contaminations chillingly harken back to the Tylenol
cyanide-tampering scare of 1982.

US consumers are used to these types of negative events being handled as Johnson
& Johnson handled the Tylenol crisis — that company set the bar for crisis management. J&J
immediately ceased production, recalled 31 million bottles of Tylenol at a cost of more than $100
million, and sent a team of researchers and scientists to get to the source of the tampering.
J&J was vocal in the media about the dangers of the product and initiated the use of
tamper-resistant packaging. Within months, the company regained its market share and may have
earned a stronger following due to the integrity it demonstrated to the US consumer.

Looking at the fiasco of toys decorated with lead paint and Chinese-made tires that
were supposedly not made to original specification, there is clearly an additional challenge here.
Who stands up and owns the problem? Is it the retailer? The importer? The brand? The
manufacturer?

J&J was able to stand up and own the problem, resolve it and move on. That may
not be possible here. Recently, the Chinese government announced a four-month “special war” to
raise product quality. According to reports in the China Daily newspaper, eight categories of
products are involved. Vice Premier Wu Yi, who recently was appointed to head

a Cabinet-level panel on food safety and quality control, was quoted as saying, “
This is a special war to protect the safety and interests of the general public, as well as a war
to safeguard the made-in-China label and the country’s image.” That announcement came the same week
The Wall Street Journal ran an

article detailing river pollution in China under the header “Ravaged Rivers” and
titled “China Pays Steep Price As Textile Exports Boom — Suppliers to US Stores Accused of Dumping
Dyes To Slash Their Costs.” The story details Hong Kong-based Fountain Set’s 230-acre Dongguan Fuan
textile campus, which it states is responsible for 6 percent of the world supply of cotton knits
and is accused of dumping 20,000 tons of contaminated water into a nearby river each day.

The US has had its share of environmental problems, but US manufacturing has come a
long way. If how it is made and what it is made of matters to US consumers, and big retail is going
to hang its hat on going green — then the opportunity to promote “made green in the USA” would ring
loud and clear. Just maybe, T-shirts aren’t just T-shirts, toys aren’t just toys, dog food isn’t
just dog food, and even fish aren’t just fish.



September/October 2007

Outlast Partners With Select Comfort Beds, Introduces New Coating

Outlast Technologies Inc., a Boulder, Colo.-based developer of phase-change materials (PCMs) and
applications, has partnered with Minneapolis-based Select Comfort Corp. for the inclusion of
Outlast® temperature-regulating technology in Select Comfort’s Sleep Number 9000 line of beds.

The bed’s pillowtop incorporates Outlast Adaptive Comfort® material to help reduce swings in
temperature. The bed also is covered in bouclé yarn, which transfers moisture and vapor away from
the sleeper while enhancing the capabilities of the Outlast material in the pillowtop.

“Taking a systemic approach to Outlast technology has been a concept we’ve advocated for
years,” said Guy Eckert, vice president, Outlast. “Select Comfort embraced this by adding mattress
pads and pillows with Outlast technology to its mattress collection. By layering Outlast technology
into the sleep system, they can now offer a solution for everyone from normal sleepers in search of
a more comfortable night’s sleep to thermally incompatible couples to women experiencing symptoms
associated with [menopause].”

In other company news, Outlast has developed its Matrix Infusion Coating application process
that finely prints an advanced formulation of Outlast microencapsulated PCMs onto flat fabric. The
process enables a business to cost-effectively add temperature regulation to fabrics already in
their product lines, according to Outlast.

The new coating can be used on almost any fabric, and is especially suitable for the active,
casual and sportswear markets that use polyester and compression fabrics. “It is the perfect
application for activewear,” said Mark Hartmann, technical director, Outlast. “It gives the
temperature regulation benefits of Outlast technology and the wicking capabilities of polyester. It
is like having a backup system for your active needs.”



September 5, 2007

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