March/April 2006

Atlanta-based

Interface Inc.
’s Interface Fabrics division’s Insight™ Terratex® bio-based environmental panel fabric
for Rockville Centre, N.Y.-based Carnegie Fabrics was named one of the 2005 BuildingGreen Top-10
products by Brattleboro, Vt.-based publishers BuildingGreen Inc. Additionally, Interface’s Bentley
Prince Street carpet brand has received ISO 9001 Quality Standard and 14001 Environmental Standard
certifications.


Graphic Parts International Inc.
, Chicago, has redesigned its website,
www.gpiparts.com, to feature more products, information and
photos.


The Astrup Co.
, Cleveland, has added 17 Sunbrella® brand solid color choices to its Fabric ZipStrip®
channel trim line for awnings.

New York City-based

KnollTextiles
recently became the exclusive contract distributor for Japan-based Toray Industries Inc.’s
Ultrasuede® fabrics in the United States.


ultrauede


Ultrasuede® from Toray




Covington Industries Inc.
has moved its headquarters to: 386 Park Ave. South, 18th Floor, New York City, N.Y.
10016-8804. The company’s main telephone and fax numbers are unchanged.

To clearly establish its identity, Gainesville, Ga.-based

Piedmont Logistics LLC
has changed its trade name to Clarity. There have been no management or ownership
changes.

Effective February 1,

Degussa Corp.
, Parsippany, N.J., has instituted a 6-percent price increase for all AEROSIL® fumed
silica grades, AEROXIDE® fumed metal oxides and AERODISP® dispersions sold in North America.


Spindelfabrik Suessen GmbH
, Germany, has launched its new homepage at www.suessen.com and
www.spindelfabrik.de.


The Textile Museum
, Washington, has unveiled TextileMuse, an on-line, searchable catalog of its Arthur D.
Jenkins Library of Textile Arts, at
www.textilemuseum.org/textilemuse.html.

West Conshohocken, Pa.-based

ASTM International
has included ASTM D5587, Standard Test Method for Tearing Strength of Fabrics by
Trapezoid Procedure, in its Textiles Proficiency Testing Program.


The Fiber Society
, Raleigh, N.C., is accepting submissions for the student research paper competition,
held in conjunction with the society’s 2006 Fall Conference at the University of Tennessee,
Knoxville, Tenn., October 10-12. To submit papers, contact Dominique C. Adolphe,
dominique.adolphe@uha.fr.

The Milan-based

Association of Italian Textile Machinery Manufacturers (ACIMIT)
has updated its website, www.acimit.it, to feature association and textile industry news,
exhibition and event information, a newly refurbished members and forum area, an e-directory in
five languages of ACIMIT’s member companies, and a section developed with Italy-based SACE S.p.A.
and SACE BT. The site currently is available in English and Italian and soon will be available in
Chinese.


Karl Mayer Textilmaschinenfabrik GmbH
, Germany, now offers a multiblock warp knitting training program in German and English
through its Karl Mayer Trainings Centre. Additionally, the company soon will redesign its website,
www.karlmayer.de, to offer information about the company, its products, and warp knitting and
preparation; and news about the industry, trade fairs and events.


Concept III Textiles
, Red Bank, N.J., has created a Fabric Library database with current, new and prototype
fabrics on its revamped website,
www.conceptiii.com. Users can search the library by
feature, and then print or save fabric details as a PDF or in their personal, password-protected
site area.


concept



Cary, N.C.-based

Association of the Nonwoven Fabrics Industry (INDA)
has published a report titled “Analysis: North American Wipes Industry (2005-2010).”
Additionally, INDA and the International Association Serving the Nonwovens and Related Industries
(EDANA), Brussels, have teamed to create “Harmonized Standard Test Methods for the Nonwovens
Industry,” a combined edition of 80-plus North American/European nonwoven test standards and
methods.

Chicago-based

Atlas Material Testing Technology LLC
’s Atlas Weathering Services Group division reports it has added 10 services at no
additional cost to every test program. The services include Web-based information access, and
expert advice and data.



March/April 2006

Yarn Makers Fear DR-CAFTA Ruling

US yarn spinners are concerned that a recently announced US Department of Commerce (DOC) ruling
will endanger the yarn-forward rule of origin in the Dominican Republic-Central America Free Trade
Agreement (DR-CAFTA). The controversy arises from the use of compacted yarn manufactured primarily
in Asia and the ring-spun yarns made in the United States.

Under the Commercial Availability Provision of DR-CAFTA, inputs from nonparticipating countries
can be used in apparel if it is determined that fabrics, yarn or fibers are not available in
commercial quantities in a timely manner in the United States. The procedures announced by the DOC
establish criteria for requests, responses and rebuttal information with respect to short
supply.

Members of the Washington-based National Council of Textile Organizations (NCTO) are not at all
happy with the regulations, charging that they will open the door to Asian yarns when comparable
products are available in the United States. NCTO President Cass Johnson says the decision lacks
sound judgment, objectivity, and is in defiance of the evidence presented for review by US yarn
spinners.

The ruling stems from a case brought by eight major US yarn producers who contend compacted
yarns from Asia should not be eligible for duty-free treatment under DR-CAFTA. On March 14, the DOC
ruled against the yarn spinners petition. Johnson contends that by doing so, the DOC has set a
precedent that threatens a significant provision in the DR-CAFTA, adding that this has troubling
implications.

March 1, 2006

Material World Miami Beach: Sourcing Hub


M
aterial World again will bring sewn products manufacturers and suppliers together Tuesday
through Thursday, April 4-6, 2006, at the Miami Beach Convention Center, Miami Beach, Fla., for its
eighth sourcing exposition in seven years in the Miami area.

As it has every spring since 2003, Material World Miami Beach will collocate with Technology
Solutions, a conference and exposition presenting information technology (IT) to enable the sewn
products industry. Both events are produced and managed by Urban Expositions, Marietta, Ga.;
sponsored by the American Apparel and Footwear Association (AAFA), Arlington, Va.; and endorsed by
the American Apparel Producers’ Network (AAPN), Atlanta, and the National Textile Association,
Boston.

Material World endorsers also include the Textile Distributors Association, New York City.

Material World will showcase sewn products contractors and manufacturers; apparel and home
furnishings fabric; trim; yarn; components; full-package providers; and freight forwarding,
financial, color and trend, and forecasting services; as well as publications, associations and
educational institutions. Attendees will include company leaders, sourcing and product development
executives, IT personnel, logistics and supply-chain service providers, and contractors from
throughout the sewn-products supply chain.

 
MatWorldGlobeBig

Material World and Technology
Solutions are expected to draw 400 exhibitors from more than 25 countries, largely from the Western
Hemisphere. Textile and trade promotion organizations from countries including Costa Rica,
Nicaragua, the Dominican Republic, Colombia, Peru, Guatemala, El Salvador and Honduras will host
pavilions to present sourcing opportunities in those countries. Another pavilion will promote
products and services offered by Asian countries. A special AAPN Aisle will host a group of AAPN’s
expected 50 member exhibitors.


Miami has long been considered an
important trading hub — its spokes radiating out to every market in the Western Hemisphere and
beyond. This central location makes it attractive as the perennial site for Material World’s spring
edition, which alternates with a fall show in New York City — scheduled this year to be held
September 26-28 at the Jacob K. Javits Convention Center — that draws a significant contingent of
European and Asian participants.

“The Miami Beach show was the original Material World, and this year’s edition is heading
towards being the largest so far,” said Tim von Gal, executive vice president, Urban Expositions. “
The show continues to grow and has a strong appeal to companies in the Americas and the Caribbean,
but it also is beginning to get a great deal of attention from Asia.”


Educational Programs

A full schedule of educational
programs will accompany Material World and Technology Solutions.

On Tuesday morning, the Material World Headliner Breakfast Program, AAFA’s Executive
Sourcing Summit — sponsored by American & Efird Inc., Mt. Holly, N.C.; and SAP America Inc.,
Newtown Square, Pa. — will feature an executive panel comprised of Wilbur Ross, chairman and CEO,
WL Ross & Co. LLC, New York City, and chairman, International Textile Group, Greensboro, N.C.;
Henry Tan, president and CEO, Luen Thai Holdings Ltd., Hong Kong; Tom Travis, managing partner,
Sandler, Travis & Rosenberg PA, Miami; and Bob Zane, senior vice president, Liz Claiborne Inc.,
New York City. Kevin M. Burke, president and CEO, AAFA, will moderate the program, which will cover
future global sourcing and regulatory developments, managing business under the latest US-China
textile trade agreement, short- and long-term growth strategies, possibilities for duty relief,
counterfeiting and other topics. Admission to this program is $100 for advance registration or $150
on-site.

Logistics will be in the spotlight on Wednesday morning, when AAFA’s Supplier & Resource
Division will present “When Logistics Goes Strategic! Advanced Practices in Enterprise Logistics.”
Rick Ludolph, president, Productive Solutions LLC, Los Angeles, will moderate the program, which
will use case studies to show how businesses can integrate logistics activities throughout their
operations to improve global product delivery to the point of consumption, highlighting the use of
technology to reduce costs and increase flexibility related to transportation, distribution,
compliance and finance. Admission is $50 in advance or $75 on-site.

Steve Lamar, senior vice president, AAFA, will moderate two discussions offered as part of
Material World’s line-up: On Wednesday afternoon, AAFA will present “Managing Restricted Substances
Lists,” with input from industry and testing experts about staying abreast of governmental,
regulatory agency and customer requirements related to potentially harmful substances.

On Thursday morning, AAFA and Cotton Incorporated, Cary, N.C., will present “What a
Cotton-Picking Mess!” — a discussion of issues related to US subsidies paid to domestic cotton
growers and solutions to problems caused by any future changes in the cotton program. Admission for
each program is $50 in advance or $75 on-site.

 
MatWorldFab
Fabric, trim and yarn will be among productsand services presented at Material
World.

To round out Material World’s
educational programs, Cotton Incorporated; Pantone Inc., Carlstadt, N.J.; and Promostyl, Paris,
variously will present fashion trend and color forecasts. These programs will be free.

Other Material World offerings include the Home Furnishings Showcase and the Spring/Summer
2007 Color/Trend Pavilion. The trend pavilion is organized with cooperation from WGSN-Worth Global
Style Network, London.

Technology Solutions programs will include free-of-charge vendor-sponsored presentations,
case studies and other programs that will highlight IT solutions for sourcing, enterprise resource
planning logistics management and other operations. Presenters include Business Management Systems
Inc., Fair Lawn, N.J., and OptiTex™ USA, New York City; Computer Generated Solutions Inc., New York
City; Geac Computer Corp. Ltd., Waltham, Mass.; Gerber Technology, Tolland, Conn.; Jomar Softcorp
International Inc., Canada; Lectra, Paris; New Generation Computing, Miami Lakes, Fla.; PTC,
Needham, Mass.; and TUKATECH Inc., Los Angeles.

“With the continued expansion of global operations and changing manufacturing sectors,
technology plays one of the pivotal roles in a successful supply chain,” said AAFA’s Burke. “
Through Technology Solutions, we are providing an important venue for industry decision makers to
interface with state-of-the-art resources through programming and the exhibition ….”


All About Networking

“Material World has proven to be one
of the most important networking events in our industry,” said Sue Strickland, executive director,
AAPN, which was the first apparel organization to endorse the show, in 2001.

AAPN’s Sourcing Executive Roundtable and Reception on Monday, April 3, at Casa Casuarina in
Miami Beach will provide networking opportunities for AAPN members and invited sourcing executives
from brands and private label retailers. “Our Sourcing Executive Roundtable each year gives us a
year’s worth of work leading to the next,” said Mike Todaro, AAPN’s managing director, touting
Material World as “the ultimate event for hundreds of our members.”

For more information about Material World and Technology Solutions, contact (800) 318-2238
or (678) 285-3976; Material World: inquiry@material-world.com,
www.material-world.com; Technology
Solutions: info@techsolutionsexpo.com,
www.techsolutionsexpo.com.


March/April 2006

Dickson Unveils Humidity, Temperature Monitors

Dickson Co., Addison, Ill., reports
its new TH8 and KT8 lines of 8-inch chart recorders offer 84-percent more readable area than 6-inch
charts, audio and visual alarms, footprints that are 41-percent smaller than previous models, and
dew point recording and display, among other features — all at a discounted price.

The TH8 Temperature/Humidity/Dew Point line for monitoring sensitive environments comprises
three models that feature highly accurate sensors and rugged enclosures with metal dial plates,
which can withstand frequent movement and industrial environments, according to the company. The
five-model KT8 Temperature line comes equipped with standardized, easy-to-replace remote
K-thermocouple probes.

Users can adjust instruments to record data for 24 hours, seven days or 31 days; define
certain traceable calibration methods; and display either temperature or humidity as
desired.


March/April 2006

Textile-Focused Shipping And Logistics


T
he process of moving textile products, whether raw components or finished product, has
undergone an evolution that reflects the pressures of globalization, the search for competitive
advantages and compliance with customer demands to tightly control inventories throughout the
supply chain. A short survey of providers reveals a range of firms, of different shapes and sizes,
that not only are interested in textiles, but also are focused on assisting textile firms to
capture the advantages offered by up-to-date shipping and logistics practices.


Eagle Global Logistics

Houston-based Eagle Global Logistics
(EGL) is working to ensure “flexibility, visibility and IT solutions from cut to finish,” according
to Fred Annunziata, vice president, sales, Latin America.

The company has approximately 11,000 employees and had total revenues of $3.2 billion in
2005, nearly $500 million of which was associated with the textile sector.

What are EGL’s strengths? “Global coverage with a strong expertise in fashion logistics and
providing visibility throughout the whole supply chain,” Annunziata said. “We are now dealing with
logistics folks who have a direct report to the CEO,” he said, pointing to the growing realization
that shipping and logistics are an increasingly critical part of a company’s success. On the
horizon, EGL sees purchase order management with a direct-to-store concept that bypasses the
distribution centers.

When asked what stands out about EGL, Annunziata replied with a four-point answer:

• A single-source, industry-specific multimodal service package streamlines logistics
management, reduces administrative burden.

• Reliable, time-definite service worldwide supports quality, product-deliverability goals.

• Cost-effective rates and flexible routing maximize service needs at the lowest cost.

• The total supply chain is visible.

Delivering on factors like these enables service providers to assist textile clients with
the type of service demanded throughout the supply chain.

“EGL teams help customers realize the potential of today’s global marketplace,” Annunziata
said, “by improving and customizing the processes of their supply chain and maximizing its
efficiency with cost-effective services.”


Customs And Trade Services

Shipping and logistics involve much
more than moving freight. Take a look at Miami-based Customs and Trade Services Inc. (CTS), which
has 100 employees focused on textiles and approximately 90 percent of its annual revenues coming
from textile and apparel activities.

Norman Gelber, president, sees CTS’ people making the difference. “Our people know our
customers, and our customers know our people. Most of our staff has been with us for 10 or more
years,” Gelber said. “We handle the biggest and the best of the apparel producers. We have always
kept our customers informed of all changes before they happen. We have the most knowledgeable,
experienced people providing the highest level of service available in our industry. We know
textiles and apparel. We know where it is made and how it needs to be moved.”

How can a company like CTS make a difference? “One company bought a factory in a Caribbean
country and quickly realized that it did not know how to proceed. We educated the staff, advised on
equipment purchases, and made sure they knew how to ship their goods,” Gelber said. “Today, they
tell all who will listen, that they would not be in business were it not for CTS.”

When it comes to the industry’s effectiveness in leveraging logistics, Gelber said: “Too
many companies still do not understand the need to have a trained staff and to work with a customs
broker and freight forwarder who knows how to help train that staff and to partner with them to
achieve the best logistics results. Some companies still think they pay their people to produce
apparel and they do not need anyone on their staff who knows anything about shipping.”

What is next for CTS? “We will continue to provide our level of service to the apparel
industry, but we will also continue to diversify,” Gelber explained. “We will grow our business
with the Far East and with nonapparel companies. We continue to hope the apparel industry will
survive and grow.”


Pre-Positioning With Crowley

With $200 million of its $1.1 billion
total annual revenues associated with textiles, Oakland, Calif., and Jacksonville, Fla.-based
Crowley Maritime Corp., Crowley Logistics Inc. and Crowley Liner Services are dedicated to the
textile industry.

“Logistics and speed to market are where the action is today,” said Don Hire, director,
business development, Crowley Logistics. “We have a strong presence in the Latin American market —
more than 45 years of continuous service in Central America — and we really understand the
competitive factor speed-to-market logistics brings to textiles and apparel.”

 
ShipCrowley
Crowley Logistics operates four free zone warehousesand three bonded warehouses in Latin
America.

Regarding addressing changing needs
in the marketplace, Hire said: “We operate four free zone warehouse/DC [distribution center]
facilities and three bonded warehouse facilities in Latin America. This allows vendors to
pre-position inventory of raw materials and supplies close to the needle for manufacturing.
Additionally, these facilities provide the opportunity for consolidation, direct shipments and DC
bypass programs.“

With more than 3,000 employees and 114 years in business, Crowley is focused on the future. “
We look toward continued growth in regional transportation within Latin America,“ Hire added. “We
expect increased movements of raw material from Asia to Latin America, greater need for warehouse
and DC service within the region and continued growth in the direct shipment, DC bypass
programs


Meeting Textiles Challenges With Seaboard Marine


There certainly has been a strong
initiative among major shipping and logistics companies to capture the growing market of
international textile shipping. United Parcel Service, DHL and FedEx all have made overtures to the
industry to be primary suppliers of much more than delivery services. Firms like Crowley Logistics,
Maersk Inc. and Seaboard Marine Ltd. all have made efforts to participate in the textile industry
by offering value-added services that make a difference.

Seaboard Marine, a division of Shawnee Mission, Kan.-based Seaboard Corp., is an ocean
transportation company that provides direct, regular service between the United States and Central
and South America and the Caribbean Basin.

Wanda Velez-Fernandez, account executive, Seaboard Marine, sees it this way: “We are
entering a new era in cargo management. We were very familiar in the past with a market
characterized by the absence of regulation, a gradual improvement of services rendered, lower rates
and overall availability of services provided. Nevertheless, in the past year, we have experienced
the opposite: capacity constraints; increases in fuel costs and vessel chartering agreements; a
rise in drivers’ costs; a decrease in availability of truckers due to shortages affecting the
intermodal capacity to perform; and a dramatic increase of equipment demand.

“By 2020, US freight volume is estimated to increase by 70 percent, according to US
Department of Transportation statistics,” Velez-Fernandez said. “Additionally, a rise in the demand
for rail, air and ocean transport also is anticipated to outgrow the supply for at least the next
two years. Due to these changes in the nation’s transportation infrastructure, the textile industry
has been forced to quickly adapt to meet the supply/demand changes encountered.”

How does the industry cope? Velez-Fernandez offered this assessment: “Transportation leaders
must now be completely well-rounded on numerous matters such as regulation of the railroads, motor
carriers, airlines and ocean; intermediaries to include brokers, forwarders and 3PLs [third-party
logistics providers]; multimodal shipping; principles of contract law for transportation; liability
for loss and damage; cargo insurance; importing and exporting; international laws and treaties; and
hazardous materials laws and regulations, in order to efficiently comply to the elaborate web that
has been knitted around our industry.

Unfortunately, many transportation executives do not have all the tools to respond to the
pressures of the market. However, partnering with companies such as Seaboard Marine will alleviate
many of these unnecessary stresses of our current market environment.”

Seaboard has more than 5,000 domestic employees and more than 4,000 additional employees
within its Latin American and African operations.

“At Seaboard, we have an entire division dedicated to oversee the apparel/textiles cargoes,”
Velez-Fernandez said. “With an innovative system that centers around an extensive network of
offices and facilities throughout the United States, Central America, South America and the
Caribbean, we are ideally suited to expedite your shipments everywhere.

“The apparel/textile division within Seaboard Marine, known as the 807 Division, was created
with the vision and the needs of the apparel industry in mind,” Velez-Fernandez said. “It’s a
one-stop shop of boutique services, time sensitivity, proactive expertise, personalized service and
seamless link in the supply chain. We believe in developing coalitions and strong cohesion between
all parties involved in the supply chain.”

Serving clients such as Gildan Activewear Inc., Oxford Industries Inc., Jockey International
and Gear for Sports Inc., Seaboard’s commitment is more than apparent. “Above all,” Velez-Fernandez
added, “we are committed to the apparel industry as well as the countries we service, as it is our
main interest to build trust and reliability among your supply chain partners.”







Maersk: Truly Global

With US headquarters in Madison,
N.J., and global headquarters in Copenhagen, Denmark, Maersk is a leading firm in ocean
transportation as well as a broad range of logistics services.

“We are truly global — as are our customers” said Brian Moore, sales. “Maersk has its own
proprietary offices in virtually every apparel-producing nation in the world. We prefer to control
our own operations as much as possible and, thereby, the merchandise our customers entrust us with.
Apparel sourcing can shift dramatically, and our customers appreciate the fact that they do not
have to get involved with a new service provider every time they source from a new country.”

When asked about the type of client Maersk serves, Moore said: ”In the apparel and textile
arena, we provide services to a wide array of clients from the largest retailers to the smallest
family-owned apparel wholesalers. Because there is no one-size-fits-all in the logistics business,
we work closely with our clients to provide the level of service that they require, from the simple
to the very sophisticated.”
With US headquarters in Madison,
N.J., and global headquarters in Copenhagen, Denmark, Maersk is a leading firm in ocean
transportation as well as a broad range of logistics services.

“We are truly global — as are our customers” said Brian Moore, sales. “Maersk has its own
proprietary offices in virtually every apparel-producing nation in the world. We prefer to control
our own operations as much as possible and, thereby, the merchandise our customers entrust us with.
Apparel sourcing can shift dramatically, and our customers appreciate the fact that they do not
have to get involved with a new service provider every time they source from a new country.”

When asked about the type of client Maersk serves, Moore said: ”In the apparel and textile
arena, we provide services to a wide array of clients from the largest retailers to the smallest
family-owned apparel wholesalers. Because there is no one-size-fits-all in the logistics business,
we work closely with our clients to provide the level of service that they require, from the simple
to the very sophisticated.”

The smart companies that will be the eventual winners in the apparel industry are those who
look beyond the transactional and into the strategic,” Moore said. “They link themselves together
with their vendors and logistics suppliers to avoid costly duplication, and take costs out of the
system while accelerating their merchandise through the chain. The winners have realized they
needed to put emphasis on the logistics portion of their business.

“The full-package nature of the apparel business today may take some time out of the actual
production cycle, but the trade-off is that production is further away from the end-user. In order
to ensure there is a reduction in the time required from design to delivery, each portion of the
chain must be analyzed carefully; and to prevent a silo mentality, there needs to be an officer who
holds responsibility for all facets of the process,” he continued.

In terms of the future, Moore said: “We see opportunities to grow in all facets of our
business. The core business of moving containers will grow according to the market, as will the
amount of new vessel capacity and services that we start. Growth within the value-added services of
logistics, warehousing, brokerage, air freight and trucking will expand at a greater rate, as those
are areas where the customers have expressed strong interest in development, and they see the
possibility to spend a few dollars to save a lot.”

 

ShipMaersk

 


Maersk, a leading company in the field of ocean transportation, provides tailored services
to all its customers from large retailers to small, family-owned businesses.








FedEx Does More Than Deliver


The textiles and apparel industries face complexity like never before,” said John Wilkins,
apparel, footwear and textiles consultant, Memphis, Tenn.-based FedEx. With more than 250,000
employees and contractors worldwide, and revenues of $29.4 billion in fiscal year 2005, FedEx
offers a textile solution.

“FedEx has invested heavily in technologies that provide our customers access to the
information they need with services like FedEx InSight and Global Trade Manager. The ongoing
movement of goods around the globe creates challenges such as lab dips and sample rolls being held
in customs, total landed costs that constantly change as companies modify their sourcing base and
the risk of discovering that a new contractor might be on a denied parties list,” Wilkins said.

“FedEx also works with shippers to implement powerful enterprise-wide shipping management
systems on dedicated servers. These systems can provide electronic data interchange capabilities,
centralized shipping account management and control, electronic billing and accounting control; and
can apply business rules to different kinds of shipments for different scenarios so that shippers
within a company do not use services they do not need,” Wilkins said. “These systems can often be
integrated with a company’s own product-data-management systems and other warehouse-management
systems,” he continued.

“The apparel business is much more complex than ever before, but FedEx has the expertise and
resources to help our customers navigate global commerce,” Wilkins added. “FedEx is the largest
customs broker in North America and works with our customers to help them understand US customs and
regulatory agencies.

“For example, through FedEx Trade Networks Trade & Customs Advisory Services, we help our
customers take actions to avoid customs delays and improve their supply chains with programs that
guide them through the C-TPAT [Customs Trade Partnership Against Terrorism] audit and certification
process. Throughout the entire process, our visibility tools provide easy-to-access information for
our customers to see where their inventory is at all times.”

In terms of creative solutions, Wilkins said: “We developed a system for a large vertical
retailer that allows the retailer the ability to replenish goods direct-to-store from overseas
without having to pass through a domestic distribution center. Goods that are shelf-ready are
tendered to FedEx overseas, are electronically consolidated, and are then electronically entered
into the United States as a single entry — prior to the goods actually arriving. When the goods
have entered, they are then moved into the domestic Express network and delivered to stores all
around the country.

“This system was developed to allow the retailer to postpone allocations until the last
possible minute in order to distribute goods to the stores where color sell-throughs or weather are
having an impact on specific SKUs,” Wilkins said. “The retailer can keep inventories in check —
consider four days from factory to store in this scenario versus three to four weeks on the water,
maximize margins through better allocations and decrease stock-outs.”

When asked if the textile industry is leveraging the logistics successfully to be faster,
better, cheaper, Wilkins replied: “‘Faster, better, cheaper’ are crucial concepts to the textile
industry, but it is equally crucial to think about those concepts in a very comprehensive way. ‘
Cheaper’ can mean smaller checks to the transportation provider, reduced inventory-carrying costs
or reduced markdowns based on a faster replenishment system.

“At FedEx, we would like to see more companies in the industry approach transportation from
the standpoint of how it can help grow a business and how it can help impact other lines on the
profit and loss [P&L] statement like markdowns, interest charges and the top sales line. For
example, an appropriate transportation strategy can help a company enter a new geographic market
without having to invest in additional DCs. A number of best-in-class companies have taken this
approach, but more should follow. A key to this approach lies in spending time understanding how
transportation and speed fit into a company’s unique supply chain, P&L and balance sheet.”


ShipFedEx



FedEx Trade Networks helps customers of all sizes solve the intricacies of shipping goods
globally through customs brokerage, international freight forwarding and trade facilitation
solutions.
  





Future Challenges
Listening to the responses from some of the key players in textiles-related
shipping and logistics clarifies the need for partnering and collaboration. The scope of services,
ability to coordinate movement and visibility provided by today’s solutions are making a difference
for textile firms, both large and small. With increased efficiencies, there are increased
expectations throughout the textile supply chain to know, understand and utilize the services
available.

As Wilkins at FedEx said: “The industry still has a lot of upside potential in leveraging
transportation. Too often, some companies still appear to approach transportation tactically or as
a commodity purchase.”


The consensus is that if shipping and logistics solutions have not been leveraged, the
affected company is inadvertently falling behind, for no other reason than not understanding and
prioritizing shipping solutions. “Creative strategies,” said Seaboard Marine’s Velez-Fernandez, “
are now becoming a day-to-day experience when it comes to making transportation decisions affecting
the supply chain management and logistics.”

That is another area where the textile industry must innovate and collaborate in order to
stay relevant in a global marketplace.



March/April 2006

Patent No 7,000,000 And Counting


V
irtually every speech on globalization these days seems to peg innovation and education
as solutions to the United States’ competitiveness problem. Given current trade policies that
support low prices versus a sustainable manufacturing base framed by fair trade policies, there is
good news on the innovation front from the United States Patent and Trademark Office (USPTO).

Recently, the USPTO issued patent No. 7 million to DuPont senior researcher John P. O’Brien.
The patent was granted for “polysaccharide fibers” and a process for their production. According to
the USPTO, the fibers have cotton-like properties, are biodegradable and are useful in textile
applications.

Just when you think the world is out of big ideas, the progression of patents tells a
different story. As the USPTO points out, it took 75 years to get from patent No. 1, issued in
1836, to patent No. 1 million in 1911 — issued for a tubeless vehicle tire.

On April 30, 1935, patent No. 2 million was issued for a vehicle wheel to increase the safety
and longevity of pneumatic tires — 24 years to progress 1 million patents.

Patent No. 3 million was issued Sept. 12, 1961 to a General Electric Co. inventor for an
automated system that translated letters, numbers and symbols to data processing code — 26 years to
progress another 1 million patents.

Patent No. 4 million was issued 15 years later on Dec. 28, 1976, for an asphalt aggregate
recycling process.

A little more than 14 years later, on March 19, 1991, patent No. 5 million was issued to a
University of Florida inventor for a more efficient way to produce fuel ethanol.

Less than nine years later, on Dec. 7, 1999, patent No. 6 million was issued to 3Com Corp.’s
Palm Computing for its HotSync® technology.

And now, just a little more than six years after that, patent No. 7 million has been issued
to DuPont’s O’Brien — from 6 million to 7 million patents in less than one-tenth the time it took
to achieve those first million starting back in 1836.

By all appearances, the US creation of patentable innovations seems to be gaining speed.
Could this be the engine economists rally around? It might also be one reason the buying cycles for
technology and major capital investment seem to be contracting. A new, more productive technology
is just around the corner. Invest when you can — invest when you have to.

Dealing with the chaos created by global change isn’t new — but it does seem intensified. On
the one hand, participating in the global supply chain seems imperative. On the other, who could
possibly factor in the effects of a bird flu or Danish cartoons?

For now, and for much of past industrial history, innovation is a powerful engine that is
accelerating. It was refreshing to see patent No. 7 million go to a fiber producer — and there are
many innovations yet to be cracked.

March/April 2006

Product Development Powerhouse


C
otton Incorporated recently welcomed executives from Switzerland-based Rieter Textile
Systems to its world headquarters in Cary, N.C., to celebrate the two companies’ more than 25-year
relationship.

Since 1979, Cotton Incorporated and Rieter have collaborated on research efforts regarding
fiber selection and process optimization to produce high-quality, 100-percent cotton and
cotton-rich yarns. Over the last three years, Fiber Processing Research, a division of Textile
Research and Implementation at Cotton Incorporated, has completed an intensive modernization of its
laboratory at the Cary facility.

“For a long time, Rieter spinning
equipment has been part of Cotton Incorporated’s research laboratory,” said Dr. Martin Folini, CEO,
Rieter Textile Systems, during a reception at the research center.


“Then, in 2004, Cotton Incorporated
decided on a major modernization of its research center. A prime focus was put on the new spinning
processes, namely compact spinning.”

According to Rieter, the modernization program includes:

• blow-room preparatory machines;

• C 60 card;

• RSB draw frame;

• E 62 comber and UNIlap E32;

• F 11 speed frame;

• K 44 ring-spinning frame (compact spinning); and

• R 40 rotorspinner.


 
CotRieHead
Cotton Incorporateds world headquarters in Cary, N.C. – site of the recently modernized
laboratory

Rieter representatives said they are
proud the leading company in the field of cotton research and marketing selected Rieter to supply
equipment to its laboratory.

“Today, a complete spinning production line, which represents Rieter’s state-of-the-art
technology in short-staple spinning, is now in place in this research laboratory,” Folini said.

“It has been an exciting opportunity for Cotton Incorporated to work with Rieter, the only
major machinery manufacturer with ‘whole mill’ capabilities,” said J. Berrye Worsham, president and
CEO, Cotton Incorporated. “We are proud to be able to showcase both companies’ significance in the
global textile arena. In doing so, we hope to continue to grow our relationship with Rieter, and
also seek to attract other important technology partners.”

During his visit, Folini, along with other representatives from Rieter Textile Systems,
toured Cotton Incorporated’s research center and attended presentations outlining its research,
marketing and strategic planning divisions.


A Step Forward For Customers Worldwide

“Ladies and gentlemen, it’s an
extraordinary day for Rieter to participate here at the inauguration of Rieter’s new machinery in
your research laboratory,” Folini said, addressing the gathering. “It’s a great honor and a
privilege for me to deliver here the best wishes and regards of my company. Rieter Spun Yarn
Systems is extremely proud to have been selected for the realization of this future-oriented
research center.

“We are convinced that the cooperation between Cotton Incorporated — the world’s leading
cotton research and marketing company — and Rieter as the innovative supplier of complete spinning
systems, will lead to further improvements and innovations in the processing of cotton. This
research laboratory will therefore be instrumental for the mutual benefit of the two partners.

“For us, this installation of an additional Rieter process line at the Cotton Incorporated
base in Cary represents a major step forward towards fulfilling the needs of our common customers
all over the world. Identical trials can be run here as in Switzerland. Customers will largely
benefit from this opportunity, as new cotton fibers will be perfectly adapted to the needs of the
various spinning processes, being rotor-spun, ring-spun standard and compacted, combed and carded.

“Likewise, the fine-tuning of the spinning processes, with regard to choice of spinning
components, machine settings and definition of spinning schedule, will henceforth be much more
target-oriented,” Folini said.

 
CotRieGrp
(Left to right): J. Berrye Worsham, Cotton Incorporated; Ueli K. Schmid, Rieter Corp.; Dr.
Martin Folini, Rieter Textile Systems; David M. Clapp, Cotton Incorporated; Heiner Eberli, Rieter
Textile Systems; Donald L. Bailey, Cotton Incorporated; Dean B. Turner, Cotton Incorporated; and
Charles H. Chewning, Cotton Incorporated, gathered to celebrate the updated capabilities at Cotton
Incorporated’s Fiber Processing Research laboratory.

“The Cotton Incorporated-Rieter
partnership is an attempt to look at the customer’s problem as ‘one.’ It is a win-win situation for
all, especially the customers, who can now look forward to enhanced performance of cotton fibers on
Rieter machines. The joint efforts by the two companies will undoubtedly go a long way in improving
the operational efficiency of spinners,” he continued.

“Success in a competitive market can be achieved by adopting different strategies. One way
is to make the production cost-effective and economical so that the yarn price becomes a unique
selling proposition. Not only do the machines have to be highly productive, but also the
appropriate selection of cotton is of utmost importance. As Rieter has seen and experienced
throughout the world, the services of Cotton Incorporated have become the driving success factor
for using cotton,” Folini added.

CotRieCrys 
Rieter presented Cotton Incorporated with a crystal asa symbol of their long-standing
cooperation and partnership.


Symbol Of Cooperation And Partnership

At the end of his presentation,
Folini presented Worsham with a large crystal from Switzerland.

“I wish to reiterate the thanks of Rieter to Cotton Incorporated for the spirit that made
this happen,” Folini said. “I would like to offer this symbol to the research laboratory of Cotton
Incorporated. It is a symbol for Switzerland and its mountains, but also for purity, structure and
sustainability — a symbol for perfection stemming out of passion, of time and partnership. May it
also be a symbol for our cooperation and partnership, leading both companies to perfection and
leadership.”


March/April 2006

Reinventing Twitchell


S
taying on top of the manufacturing game often requires being the first to introduce a new
idea or product, making forays into new markets, and/or expanding in order to serve customers in
new locations. Following such a model, Dothan, Ala.-based Twitchell Corp. started out offering an
innovative product, expanded its product line to serve new markets and also expanded overseas to
serve customers that moved operations offshore. As it has grown, it has succeeded by identifying
high-growth market niches; developing innovative solutions in terms of performance, design and
environmental responsibility; and having a high degree of flexibility to provide well-designed,
durable products for a multitude of applications.

Today — with manufacturing bases in the United States and Asia and a global workforce of more
than 400 employees, and exporting 30 percent of its product to 35 countries worldwide — it boasts
$55 million in annual revenues. Its customers include global manufacturers of roller shades, pool
and patio furniture, awnings and screens, contract interior products, geotextiles, safety products,
automotive interiors and disposable operating room supplies; as well as the US military.

“Twitchell has a decades-long history of being a successful innovator in the field of outdoor
fabrics, textiles and yarns; and we’ve taken that and developed now into a real kind of product
development house,” said Jon Nash, CEO. “That’s where a lot of our future lies.”

Founded in 1922 by Earl Wagner Twitchell in Unionville, Conn., the company originally
manufactured woven paper products — the first in a string of industry firsts. The original product
line, Kanekraft™, today plays only a small part in its repertory.

 
TwitEarth
Twitchell’s Earthtex fully recyclable thermoplastic olefin yarn is used in Long Island
City, N.Y.-based MechoShade Systems Inc.’s EcoVeil solar shade cloth.

Twitchell Corp. moved to Dothan in 1954 and eventually made a transition to manufacturing its
current dominant product lines, beginning in 1968 with Textilene™ polyvinyl chloride (PVC)-coated
yarn products — another first for the industry.

“Twitchell has a history of reinventing itself as new markets develop,” said Jeff Register,
vice president, sales and marketing. “We began producing PVC-coated products during the 1960s and
became a major player in the outdoor furniture market, producing yarn and fabric for sling seating
and pool and patio furniture. In general, this was our major focus in the ‘90s and the early ‘00s.

“Textilene is our umbrella trade name for PVC-coated yarns,” Register said. “The yarns are
predominantly polyester, but the company is experimenting also with exotic core yarns such as
Vectran®, Spectra® and Kevlar®.”

The company also manufactures PVC extrusion-coated nylon, olefin and fiberglass yarns and
fabrics; hot-melt-coated fabrics using olefin-based resins; and thermoplastic olefin (TPO) yarns
and fabrics.


Expansion Into China

Creates Opportunities Back Home


As Twitchell’s customer base of pool and patio furniture manufacturers began to move to Asia to
take advantage of cost benefits, the company also moved to Asia to serve these customers. In 2001,
it set up a wholly owned subsidiary in Kaiping, China, to manufacture extruded wicker yarn and flat
strap that is handwoven onto chair frames.

As part of what Nash described as a three-pronged strategy, Twitchell also has set up joint
ventures and contracts with several leading manufacturers in Taiwan and China to produce fabrics
that are sold predominantly to outdoor furniture accounts. These relationships are beginning to
supplement the company’s specialty fabric sales. Twitchell continues to do all design work for
these fabrics in Dothan.

Today, 25 to 30 percent of Twitchell’s gross sales revenues come from products it makes in
Asia, Register said. “But, our move to Asia created capacity opportunities in Dothan, and we began
to reinvent ourselves again. Whereas in the ‘90s outdoor furniture was our major market, now it’s
contract interiors and specialty markets,” he explained, adding that these two markets now account
for more than 65 percent of sales.

In order to meet new product demands in these markets, the company has invested in new
equipment including wide-width weaving, beaming and extrusion machinery. It purchased 11 looms in
2005, and this year will install five more.

Nash noted the importance of innovation and product development to the continuation of
Twitchell’s domestic production.

“We’ve got to develop new, cutting-edge technologies that are appropriate for manufacture in
the United States. We watch the product life cycle very carefully as it goes from innovation and
our invention, to growth, to stability and ultimately to decline,” he said. “Some of the product
life cycles may be a couple of years long, and some may be several decades long, but we watch each
product as it goes through that life cycle and try to produce it in the appropriate place depending
on where it is in that life cycle.”


Earthtex

With the company’s growth in the contract market also came the development of Earthtex™ fully
recyclable, volatile-organic-compound-free TPO yarn and fabric, which has earned Charlottesville,
Va.-based McDonough Braungart Design Chemistry LLC’s Cradle to Cradle™ Silver-level certification
for eco-effective design and manufacture. The yarn is coated with the same olefin material as the
core, thereby allowing closed-loop recycling of the end-product at the end of its useful life into
new, virgin-quality product.

The first end-product made with Earthtex to reach the marketplace is Long Island City,
N.Y.-based MechoShade Systems Inc.’s EcoVeil™ solar shade cloth, introduced at NeoCon 2004. An
Earthtex wall covering has been developed in collaboration with Atlanta-based Interface Inc.’s
Interface Fabrics division and New York City-based Designtex. Register said that product will
receive a full launch at NeoCon 2006.

“Earthtex is a premium product and is priced competitively, but slightly higher than PVC
products. It is a very focused product for very specific applications. Companies like BP Oil and
Google have been among the first to grab it up,” Register said. Both companies installed EcoVeil
solar shade cloth at their corporate headquarters.

Register expects Earthtex will play an ever-larger role in Twitchell’s product strategy as
the company increases its involvement in the contract interiors market, where designers and
architects increasingly are specifying environmentally sustainable products. He also sees growth
opportunities in residential and consumer product segments.

“Our strategy is to partner with key players in key markets where Earthtex has significant
advantages,” Register said. In addition to the current solar shade and wall covering applications,
Twitchell is targeting floor covering, seating, panel fabric and automotive interior applications.


Specialty Markets

In the specialty arena, Twitchell manufactures upscale pool and patio products such as durable
wicker strap and yarns that look like natural fiber or leather. Other specialty areas include
outdoor screens, erosion-control products and super-strength hurricane screens.

“The rash of hurricanes, the change in intensity and the number of hurricane events has
really opened up a new marketplace, particularly on the Gulf Coast. We are developing several
products specifically for that new opportunity,” Register said. “The first is SuperScreen™, a
PVC-coated polyester screen that is approximately three times stronger than traditional fiberglass
screen. It has much better UV [ultraviolet] resistance and does not degrade in terms of strength
over time like fiberglass does. In some instances, trees have actually blown over on top of lanai
[pool enclosures], and the SuperScreen and lanai supported the tree. From both a strength and a
durability standpoint, it is vastly superior to the market norm. We provide a 10-year limited
warranty, while most fiberglass manufacturers provide at most one to two years if they provide
anything at all.”

 
TwitHurr
The CAT 5 Hurricane Netting System, offered by Frank L. Bennardo PE Inc., Boca Raton, Fla.,
protected this manufactured home on Hutchinson Island, Fla., when Hurricane Jeanne hit in 2004 with
winds exceeding 130 miles perhour. Only the exterior patio room sustained damage.

Twitchell products also are being sourced for beach restoration and levy reinforcement
projects along the Eastern Seaboard and the Gulf Coast. One product resembling a giant air mattress
filled with water and sand underlies the beach surface and prevents further erosion. Another
product, made with a bicolored Textilene mesh that blends with the sand color, forms a groin that
runs perpendicular to the shoreline into the water, preventing sand erosion parallel to the
shoreline.

Twitchell is collaborating with engineering firms to develop hurricane screens that have been
tested to withstand the impact of Category 5 winds and have passed Dade County, Fla., certification
for wind and projectile protection. It sees these screens as a viable soft alternative to aluminum
shutters.

Australia is a major market for Textilene for what Twitchell calls Awning with a View,
offered as Shadeview by Australia-based Imex Creative Products and as Vistaweave by Radins Agt Pty
Ltd., also based in Australia.

ldquo;Awnings there are different than what we think of here in the United States,” Register
explained, noting Australia’s drier climate, high UV intensity and skin cancer rates, and low angle
of the sun. “Awnings there are much lower to the ground and actually will cover up a large portion
of the window. A solid product would create a cave-like effect inside.

“Our Textilene product allows light to come through, and you can see out through it,” he
continued. “As long as it’s installed at an angle, 98 percent of the rain sheds off. But it also
allows a person inside to see out and allows some degree of light to come into the building,
creating a much more airy, open feel, while at the same time providing good shade. Most of these
products provide 90- to 98-percent UV protection.”

Register said Twitchell has modified the Awning with a View concept for a US Air Force
application.

“We worked with another company to create a solid PVC laminate on top of our awning material.
That laminate is extremely tough and durable and is used by the Air Force for fighter-jet
canopies,” he said. “Bases in the Florida Panhandle, New Orleans and Phoenix all use our product
exclusively. In a high wind, if a metal roof tears off, that could become a very hazardous
projectile. When a fabric tears off, its just a fabric and it rarely tears off. During Katrina last
year, the New Orleans base sustained 145-mile-per-hour winds. Less than 20 percent of the canopies
were damaged, and that damage was primarily due to flying debris.”

 
TwitOuter
TwitProTec
 
Advanced Coastal Technologies LLC, Dothan, Ala., uses Textilene fabric in its ProTecTube
beach restoration products. The outer-layer fabric is offered in colors to match the beach sand
within the project area.


Flexibility Serves Niche Markets

“Our niche orientation is not a feature of Coated Products alone, however,” Register added. “
We have our own olefin extrusion line, and we can produce a 50-pound or a 5,000-pound order of
olefin, which predominantly is consumed in-house. Most of our olefin products are sold into outdoor
furniture, and we have recently started working with consumer products including cut yardages for a
multitude of end-uses.”


Market Challenges

Nash spoke about the challenges
facing Twitchell, especially in the retail marketplace.

“One of the biggest challenges we face is the fact that the domestic retail market is driven
by such a ruthless sourcing model — which is not necessarily a bad thing, but it very definitely
drives you to different sorts of formulations in order to achieve the cost requirement for the
customer. So you’ve got to be very careful about exactly what you’re selling at any given time.”

While acknowledging the need to “stay on top of your game” when dealing with mass retailers,
Nash said, “We also work on how we can give a competitive advantage to the rest of the retail
marketplace — the market that is at the other end of the spectrum.” Speaking specifically about
outdoor furniture, Twitchell’s main retail market, he noted the “incredibly diverse market” in
which the mass retailer may sell a very inexpensive chair, while a smaller, specialty shop may
offer a much higher-priced chair.

“And the nice thing about that market is that it is so diverse and expanding,” Nash
concluded.


March/April 2006

Managing Expectations – Mills Are Wary


S
pinners describe running conditions all the way from full tilt to moderate and
strengthening. As usual, there is variation among the different end-use markets and spinning
technologies. A ring spinner notes he has been running full blast for a while.

A multisystem spinner has had to adjust capacity downward. “We scaled back our operations
somewhat last year,” he said. “We are running reasonably well with this new level of production.
One plant could use some more business, but it’s seasonably awkward for that plant to be full at
this time. We don’t want to bring the price down just to generate business.”

An open-end (OE) spinner is running at about 85-percent capacity versus running flat out this
time a year ago. A specialty ring spinner reports strengthening demand, and is adding capacity and
a new state-of-the-art Murata winder.


Pima In Demand

A ring spinner with significant Pima cotton production is enjoying excellent fiber quality and
powerful demand. “The cotton crop is probably the best I’ve seen in Pima,” he said. “The pricing is
probably below where we were a year ago, but it is starting to come back. Up until recently, no
retailer would even talk to you about increasing prices, but the yarn market is tight. We are
getting inquiries from people who haven’t called us in a long time.”

Another spinner is mildly optimistic. “We see enough business for us to make budget this
year, but that doesn’t mean it will be easy,” he said. “It will be a continual struggle on prices.
So we have to be circumspect about the market as we try to achieve our goals on pricing and product
simplification.”

A third spinner is seeing a slowdown in the upholstery fabric segment. “The housing market is
down; fewer homes are being bought and decorated,” he said. “Plus, consumers have to spend more on
their heating bills and gasoline. So, there is less money for apparel or towels.”


The Fiber Nickel And The Yarn Dime

Both man-made and cotton fiber prices are moving upward once more, putting the squeeze on
spinners. There appears to be no end to upward price pressure on the man-made side. Cotton has been
up and down — mostly up.

“The price of polyester is about to move up,” said one spinner. “Producers have been kind of
flaky in the last six months or so. They created a surcharge mechanism and adjusted it on a monthly
basis. Now they’re having a pure fiber price increase. We just lost a major acrylic producer —
Solutia. I see what is going on with the price of natural gas, oil and other inputs. I’m a little
concerned about inflation.”

“Cotton is up from 51 cents per pound three months ago to 56 cents now,” said the OE spinner.
“It’s another nickel, and we can’t pass it on either. It’s a lot of pressure. The other side is
that people are wondering why the demand is as weak as it is.”

On the other side of the equation — yarn prices — spinners report mixed success in passing
rising costs along to retail. “We moved our prices up over the past several months,” said the
multisystem spinner. “We are working on a partnership basis with our vendors and customers more
than ever before. We are trying to understand each other’s pricing levels.”

“Yarn prices, you can’t raise them,” said the specialty ring spinner. “The customers are
still not ready for a price increase. We are suffering with this cotton cost. I could overcome it
with better running conditions. I don’t want to scare people away with higher prices.”


Under Armour® Model

Perhaps there is a way to escape the crushing price pressure of the yarn market. One mill
executive lauded Baltimore-based apparel maker Under Armour® for its branding, performance and
marketing savvy, to say nothing of its impressive share of shelf space in almost every US sporting
goods store.

“[C]ertain innovative manufacturers are managing to separate themselves from the pack by
having a different brand identity, a different product-development cycle or a different mentality,”
he said. “They are companies like Under Armour that have a product with benefits they can translate
in a few talking points. The only way the industry can grow is by being incredibly innovative.
Perhaps we can get a little more juice out of this orange.”


March/April 2006


Cotton By The Numbers


C
otton data, when analyzed over the five-year time series from the 2000-01 through 2004-05
marketing seasons, illustrate the global shifts in the development of cotton production and the
growth of the textile industry represented by cotton consumption. China, India, Pakistan, Turkey,
the United States and Brazil lead the world in both cotton production and consumption. But
significant markets for consumption, like Indonesia, Thailand, Mexico and Bangladesh, point to
growing usages not supported by domestic production.

In terms of exports, Uzbekistan is second to the United States in global cotton exports. The
Africa Franc Zone, Australia, Syria, Egypt, Turkmenistan, Tajikistan and Kazakhstan are not to be
ignored as significant suppliers some with the potential for developing a domestic consumption
base.

There is much more to the global cotton story than simply matching a country’s cotton
production with its cotton consumption. Cotton shipments span the globe, with cotton traded and
purchased to meet the quality and production needs of industry. Domestic production may not meet
the consumption criteria of a country, and imported cotton may be necessary to meet those demands.
However, growth rates of a country’s supply and consumption of cotton do shed some light on the
shift in both the global business of growing cotton and the global business of textiles.

Increasing consumption rates clearly illustrate the growth in the cotton sector of a
country’s textile industry. Increases in cotton production when there is a lack of domestic
consumption point to a country’s development as an exporter of cotton fiber.

Although some people may assume that a country’s economic development level may influence
whether the country is a cotton supplier or cotton consumer, this is an assumption not
substantiated by the data. Such an assumption is falsely based on the idea that agriculture and
manufacturing do not share at some level in the improvement associated with the development level
of the country. There are efficiencies in the consumption and production of cotton that dictate
activity levels in these separate yet linked industries.

A domestic supply of quality cotton is a competitive advantage for a domestic cotton textile
industry. The market factors facing this consumption, however, can negate that competitive
advantage. This is illustrated by the United States with falling consumption and a developed
country with rising production.

CotNumCot


The Top Four

China, India, Pakistan and Turkey collectively consumed 50.3 million 480-pound bales of cotton
in the 2000-01 marketing season, accounting for 54 percent of the total global consumption of 92.3
million bales for the season.

In 2004-05, with total global consumption rising to 108.7 million bales, these same four
countries represented 66 percent — a full two-thirds — of the global consumption of cotton.

On the supply side, China, India, Pakistan and Turkey collectively increased output from 48
percent, or 43 million bales, to 53 percent, or 63.5 million bales, of the total global cotton
supply during the measured period — from the 2000-01 season through the 2004-05 season.

Among these four countries, a roughly 20 million-bale growth in consumption was met with a
roughly equal 20 million-bale growth in supply.

cottonbynumbersjpeg



China, China, China…

US Department of Agriculture cotton data reinforce what one might expect about the growth of
China’s cotton consumption in the last five years. From the 2000-01 to the 2004-05 seasons, China’s
cotton consumption increased by 64 percent — from 23.5 million to 38.5 million bales.

In 2000-01, the country exceeded its domestic supply of cotton by 3.2 million bales. By the
end of the 2004-05 season, China out consumed its 29 million-bale domestic supply by 9.5 million
bales.

China is the world’s largest consumer and producer of cotton. Early figures for 2005-06 point
to continued expansion.





India Sees Increases In Consumption And Supply

India, like China, is another high-growth story, but with a twist. From the 2000-01 season
through the 2004-05 season, India increased its cotton consumption by 11 percent — from 13.5
million to 15 million bales.

In domestic supply, India made significant increases during the same five-year period,
increasing domestic supply of cotton by 8.1 million bales — from 10.9 million to 19 million bales —
a 74-percent increase in production.


Pakistan On The Move

Pakistan demonstrated even growth in the production and consumption of cotton. As the worlds
third-largest consumer of cotton, Pakistan increased cotton consumption by 33 percent from 8.1
million to 10.8 million bales from the 2000-01 season through the 2004-05 season.Over the same
period, Pakistan grew domestic production of cotton by 3.1 million bales, from 8.2 million to 11.3
million bales, or 38 percent.


Consumption And Supply Rise In Turkey

Expanding consumption of cotton by 35 percent, from 5.2 million to 7 million bales over the
measured period, Turkey is a net importer of cotton. Even though it increased domestic production
by 17 percent, from 3.6 million to 4.2 million bales, Turkey exceeded domestic supply by 1.6
million bales in 2000-01 and 2.8 million bales in 2004-05.


US Consumption Declines, Supply Increases

As the fifth-largest cotton consumer and the second-largest cotton producer, the United
States has a unique position in the world of cotton. US cotton consumption has fallen by 25
percent, from 8.9 million bales in 2000-01 to 6.7 million bales in 2004-05.

Cotton production in the United States is up over the same period by 35 percent, from 17.2
million bales to 23.3 million bales. Over the measured period, the United States has gone from a
consumption level that represents 52 percent of domestic production to 29 percent of domestic
production. The United States also has shifted from third place in global consumption to fifth,
after Pakistan and Turkey.




Brazil:

Level Consumption, Increasing Supply


Brazil has had level consumption over the measured period, using 4.2 million bales of cotton.
Domestic supply has increased from 4.3 million to 5.9 million bales, so while consumption is flat,
domestic supply has risen 37 percent.


The Future

As economies continue to develop, the rising appetite for consumer goods should bode well for
the future of cotton. Innovations related to both the growth and the consumption of cotton continue
to expand the possibilities for this ancient fiber. Textile manufacturing systems continue to
advance, creating the necessary flexibility to increase quality as well as yield. Textile finishes
show promise in providing consumers with durability, performance and aesthetics, which aid in the
marketing of cotton products and satisfy the demands of a growing marketplace.

March/April 2006

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