Recognizing The Power Of Resilience


A
 t first blush, you ask yourself what could be different about Glen Raven Inc. – what sets
it apart from its peers? Why are these people energized in an industry full of upheaval? What is
this attitude that permeates the organization, from CEO to research and development and throughout
operations? Inside a company celebrating its 125th year in business, with a strong family legacy
and a strong sense of place – these things, while extremely important, are not at the heart of what
makes Glen Raven tick.

After interviewing many involved with various aspects of Glen Raven’s day-to-day operations,
the overriding impression is of a lack of entitlement, a lack of ego that says, “We know the right
way,” and a lack of fear at a time when the textile industry is full of concern. When Allen E. Gant
Jr., CEO, said to

Textile World
 , “Don’t talk to me, talk to them [Glen Raven’s associates] – they make Glen Raven
successful,” one has to wonder, is that a proud CEO or someone who really is pointing you to the
true story?

The people of Glen Raven are definitely the true story, and their success is in their ability
to work in an organization stripped bare of the politics and obstacles that have burdened so many
great companies. Gone are the barrier between makers and sellers, the struggle for control of
assets, and the conflict between information marketers bring into the company and the agenda of the
status quo.

Gant tipped his hand when he pointed to a Harvard Business Review article titled “The Quest
for Resilience,” by Gary Hamel and Liisa Välikangas, and the impact Hamel had as a consultant to
the company. In short, Hamel promotes the idea of building an organization that is resilient, an
organization that prospers based on its ability to constantly readjust to turbulent times. Hamel’s
research points to a shift in business strategy – one that can no longer rely on the momentum of
sheer corporation size, a strategy that is constantly anticipating and adjusting to “secular trends
that can permanently impair the earning power of a core business.”

The catch is to embrace the culture of change with what Hamel calls “zero trauma.” In short,
Hamel writes, “The goal is a strategy that is forever morphing, forever conforming itself to
emerging opportunities and incipient trends.” He speaks of a company making its future rather than
defending its past. Zero trauma comes into play with the idea that “the goal is a company where
revolutionary change happens in lightning-quick, evolutionary steps – with no calamitous surprises,
no convulsive reorganizations, no colossal write-offs, and no indiscriminate, across-the-board
layoffs. In a truly resilient organization, there is plenty of excitement, but there is no trauma.”
Maybe that’s why Glen Raven’s associates have such positive attitudes.

grhq
Glen Raven Inc. began operations in 1880 as Altamahaw Mills, with management staying in
dormitory-like quarters during the week and traveling by horse and carriage to spend weekends with
their families.


The Four Challenges


Hamel writes in “The Quest for Resilience” that there are four challenges to becoming
resilient:

• Cognitive Challenge: A company must become entirely free of denial, nostalgia and
arrogance. It must be deeply conscious of what’s changing and perpetually willing to consider how
those changes are likely to affect its current success.

• Strategic Challenge: Resilience requires alternatives, as well as awareness – the ability
to create a plethora of new options as compelling alternatives to strategies that are dying out.

• Political Challenge: An organization must be able to divert resources from yesterday’s
products and programs to tomorrow’s. This doesn’t mean funding flights of fancy; it means building
an ability to support a broad portfolio of breakout experiments with necessary capital and talent.

• Ideological Challenge: Few organizations challenge the doctrine of optimization. But
optimizing a business model that is slowly becoming irrelevant can’t secure a company’s future. If
renewal is to become continuous and opportunity-driven, rather than episodic and crisis-driven,
companies will need to embrace a creed that extends beyond operational excellence and flawless
execution.

Hamel closes the article by writing: “Any company that can make sense of its environment,
generate strategic options, and realign its resources faster than its rivals will enjoy a decisive
advantage. This is the essence of resilience. And it will prove to be the ultimate competitive
advantage in the age of turbulence – when companies are being challenged to change more profoundly,
and more rapidly, than ever before.”

glenovation
Left to right: Leib Oehmig, director of the GlenOvation program; Dave Swers, Wendy Miller,
Hal Hunnicutt, Patti Bates and Steve Hundgen, winners; and CEO Allen E. Gant Jr.


GlenOvation


“We were so taken with the idea that we hired Gary Hamel to come to Glen Raven and spend a
long time with us. Gary Hamel is chairman of the [Woodside, Calif.-based] Woodside Institute, where
they research innovation,” Gant said.

This investment started a new openness at Glen Raven that prioritizes and rewards innovation
throughout the company.

“We brought 400 of our best brains into one room with Gary Hamel. Then we narrowed that down
to our general managers group of about 20. Then we narrowed that down to our executive group. And
by the way, on that first day, we asked people, if they had $25,000, how would they spend it to
improve the company? And to start that day off, I called on five people – they didn’t know it [in
advance] – they didn’t know who was going to get called on; they didn’t even know I was going to do
it,” Gant continued. “And so to start the meeting off, I asked, ‘Hal Hunnicutt, if you had $25,000,
what would you do?’ He stood up and said, ‘I would ….’ I wrote a check for $25,000 and handed it
to him. I did that with five people. And we invested $125,000 that day, that morning.”

That was the beginning of Glen Raven’s GlenOvation program – an internal program designed to
involve every associate in the innovation process. Early in its launch, the Glen Raven GlenOvation
program received more than 80 submissions.

“What it did was open people’s eyes to the fact that we are serious,” Gant said. “People
would ask, ‘What is innovation?’ Innovation is the ability for people to open their brains and
unshackle them. You don’t have a P&L statement to worry about; you don’t have this to worry
about; you don’t have anything to worry about except what is the best idea that I can come up with
that will improve this company. And when you do that, people start to open up.”


Removing The Filters


John Coates, director of research and development, Glen Raven Custom Fabrics LLC, was in on
the development of GlenOvation. “I believe it is absolutely critical – it’s wonderful,” Coates
said. “We need to pull ideas from everyone in this company. Every one of our employees has had an
idea at some point about how to make something better. I don’t care if that is a product or process
– we want those ideas. Ideas normally get filtered. Part of GlenOvation is removing those filters.
You submit ideas to the review team, made up of members from across the globe. That group decides,
‘Hey, this could be something.’ That group has a budget. If they think you need $5,000 or $50,000
to get started, that group makes the decision and we are off and running. It is that easy.”

“Considering the response that we have had from our associates, we are confident that Glen
Raven’s vision for furthering an innovative spirit is well underway,” said Leib Oehmig, vice
president, industrial sales and logistics; assistant general manager, Custom Fabrics; and director
of the GlenOvation program. “We have seen tremendous commitment from our associates around the
world, and we are now funding several new ideas that have great potential in their intended
markets. As we continue to nurture these ideas and have market success, we feel the momentum will
continue to grow in support of GlenOvation.

“Glen Raven has always been leery of adopting the latest business and engineering program of
the day,” Oehmig said. “I feel that Glen Raven has established a great deal of credibility with its
associates, and coupled with the commitment that is being demonstrated by Glen Raven’s leadership,
it appears that Glen Raven has avoided this perception. Of course, Glen Raven must continue to
demonstrate its commitment in order to maintain a high level of credibility with its associates. I
think GlenOvation is creating an environment in which Glen Raven associates are looking deeper into
markets where we may be able to add value in ways that have not been pursued in the past.

“Some of the most intriguing ideas that have been generated through GlenOvation have nothing
to do with creating new products; instead [they involve] taking a very different view of adding
value,” Oehmig added. “One of Mr. Gant’s challenges to Glen Raven associates has been to think much
broader than our current core markets, and much deeper than our current products and services.”

“In the end, all we’ve got is brainpower,” Gant said. “Our executive job is to open those
brains up.”

“Understand that we have not discovered the Holy Grail, but instead have unlocked yet another
powerful process that will help us to be successful in this turbulent world we live in,” Gant
added. “If we work hard enough and make innovation a way of life as a culture, the future may be
brighter.

“We must always be fearful in knowing that poor judgment, slow performance and missed steps
will foul even the best of opportunities. This world is less forgiving today and has a habit of
keeping you humble.”

June 2005

US And Europe Address Chinese Import Surge


T
 o address the problem of rapidly growing Chinese textile and apparel imports, government
officials in the United States and Europe are employing the safeguard mechanism that China agreed
to as a condition of its admission to the World Trade Organization (WTO).

China strongly opposes what is happening, and textile industry leaders see the safeguards, at
best, as stopgap measures. The safeguard mechanism provides for temporary import quotas if it can
be demonstrated that imports are disrupting or threatening to disrupt markets. No less than 25
safeguard petitions are in various stages of consideration by the US Committee for the
Implementation of Textile Agreements, and the European Union is considering petitions for
safeguards on nine product categories. Under the safeguard provisions, import quotas may be
considered on a year-to-year basis until 2008.

While US textile manufacturers are pleased with the progress of the safeguard effort, they do
not view safeguards as a satisfactory long-term solution to what they see as an ultimate takeover
of US import markets by China, and maybe two or three other nations.

They do not like the idea of continuing to petition year-to-year, and product
category-by-product category, to limit imports from China. The textile industry’s ultimate goal
would be the negotiation of a longer-term comprehensive agreement, but that idea is not likely to
fly with textile and apparel importers or the US government – at least at this time.

Chinese trade officials have shown little support for either the safeguard approach or
anything of a more comprehensive nature, although there has been some evidence that US importers
are holding back orders with China because of the uncertainty created by the safeguards. The
Chinese contend that imposition of new quotas, temporary or otherwise, would run counter to the
WTO’s efforts to promote free trade.

“The reason the WTO members removed the quotas on January 1 was so that trade can be free,
and to go back and put more restrictions on trade is going against the free trade that everyone
wants,” a spokesman for the China National Textile Council was recently quoted as saying. The
spokesman added that new quotas should not be considered just months after lifting them, and he
argued the removal of quotas was in the best interests of textile and apparel consumers. He added
that because China’s products offer a “good value,” they should have free access to the world’s
markets.

wtologo_Copy


Manufacturing Industries Outline Trade Agenda

As a number of textile-related international trade issues come to the forefront with Congress
and government agencies both here and abroad, a coalition of manufacturing industries has issued a
wish list of actions it would like to see the US government take.

The coalition — made up of textile and apparel, tool and die, chemical, furniture, metal
products, packaging, lumber, luggage and other manufacturers — reports its agenda seeks to
establish trade policies and other measures that would “stabilize the US industrial base and create
American manufacturing jobs.” The proposals being promoted by the Washington-based American
Manufacturing Trade Action Coalition (AMTAC) call for a major overhaul of US trade policies and how
they are being carried out.

The ambitious agenda calls for taking a relatively new tack in an area where the US
government has paid little attention. The coalition suggests the government should focus on trade
agreements with countries whose consumers have the standard of living that permits them to purchase
US goods rather than concentrating on countries in Asia, Africa and the Americas that have a low
standard of living and little buying power.

The coalition is strongly opposed to free trade agreements that permit non-participating
countries to benefit from the tariff-free treatment of their goods, as has been the case with free
trade agreements negotiated by the United States in recent years.

The manufacturers advocate changing existing regulations to make non-market economies,
particularly China, subject to anti-dumping and countervailing duty penalties.

The coalition charges that by granting administration trade officials trade promotion
authority — whereby trade agreements cannot be amended — and giving China normal trade relations
status, Congress has given up its historic duty to regulate foreign trade.

Finally, the coalition calls on Congress to conduct an independent trade-impact study prior
to approving trade agreements and major trade bills.

According to AMTAC, enacting these procedures would be the best way to attack the US trade
deficit, which has grown to $4 trillion since 1990.


Legislation Targets Chinese Currency Imbalance

Pressure is growing from Congress and the Bush administration for China to do something about
its artificially pegged currency, which US manufacturing industries say amounts to as much as a
40-percent subsidy for China’s exports and higher prices for US goods in export markets. 

hunter
Representative Duncan Hunter, R-Calif.


Since 1995, China’s currency – the yuan – has been pegged at 8.28 yuan to the
dollar. Despite textile and other manufacturing industries’ long-standing calls for action, the
administration has pretty much kept its hands off the issue. However, President Bush recently said
the time has come for China to take some initial steps to bring its yuan into line with other
currencies. Treasury Secretary John Snow told a congressional committee that reform of China’s
currency is “one of the highest priorities for our international economic policy.”

Meantime, members of Congress are taking a much stronger stance. The Senate has taken a
preliminary vote, by a substantial margin of 67 to 33, on a measure that would impose a
27.5-percent surcharge on Chinese imports to the United States. Sponsors of the legislation have
been promised a final Senate vote before the August congressional recess. Similar legislation is
pending in the House.

One of the drawbacks of that approach is that it would result in higher costs to consumers of
imported goods such as apparel, and that is not likely to be popular. 

 

ryan
Representative Tim Ryan, D-Ohio

ryan

In addition, Reps. Duncan Hunter, R-Calif., and Tim Ryan, D-Ohio, have introduced legislation
that would address the issue in a different way.

Their bill would create a definition for “exchange-rate manipulation” so foreign governments’
undervaluation of currencies would be considered a “prohibited export subsidy.” It also would set
guidelines for the US International Trade Commission (ITC) to follow in determining whether
manipulation has occurred and what its impact is on US industry. The Hunter-Ryan bill also would
establish guidelines for procurement of products considered essential for national defense.

The bill states that if the ITC concludes market disruption has occurred, and the secretary
of defense determines the domestic industry’s articles are critical to the US defense industrial
base, the Defense Department may not procure the Chinese imports in question.

Even if none of this legislation is ultimately enacted, it sends a strong message to China and
gives the administration a stronger hand in dealing with the issue.

June 2005

ApparelMagic™ Software Offers E-Commerce Tool

Murphy & Associates, Glendale, Calif., has integrated an e-commerce solution into its suite of
ApparelMagic™ software.

“Unique to the industry, ApparelMagic provides companies with the power to sell to a
worldwide buying audience; link e-commerce with inventory, production and accounting; and
facilitate orders on the retail and wholesale levels – all in one simple, integrated solution,”
said John Murphy, president.

The tool enables users to create on-line showrooms that may be integrated into a company’s
website; and verify and make e-commerce transactions using shopping cart technology, on-line credit
card verification, and secure payment processing.

June 2005

China Captures Large Share Of Textile Trade

Textile and apparel imports from all sources showed a 10-percent growth in the first three months
after quotas were removed in January, with India and China capturing a big share of that growth.
Mexico, which at one time was the largest exporter to the United States, has fallen far behind
China which now is the largest exporter of textiles and apparel to the United States.

According to US Department of Commerce data, combined textile and apparel imports from China
in the first three months of this year were up by 48 percent from the previous year; and apparel
imports alone increased by 102 percent. There were triple digit increases in a number of product
categories, and in the case of cotton shirts and trousers they soared up by 1,000 percent. India
also has shown significant gains with a 24-percent increase in combined textiles and apparel and 30
percent in apparel alone.

Meanwhile, imports from Mexico, Canada, Hong Kong, South Korea and Sub-Sahara Africa were
among areas showing declines. However, there were some modest gains, around 8 percent, in trade
with the Caribbean Basin nations and Central America.The data seem to confirm fears by US textile
manufacturers and importers of textiles and apparel that China and perhaps one or two other
countries are likely to dominate trade in a quota free world.

By James A. Morrissey, Washington Correspondent

June 1, 2005

Nordson Adds CTL 4640 Coater To Labs

Nordson Corp., a Westlake, Ohio-based
dispensing equipment manufacturer, has installed new CTL 4640 coaters in its laboratories in
Dawsonville, Ga., and Germany. The new coaters, which can be used to coat or laminate a range of
substrates and composites, expand Nordson’s lab capabilities to enable its customers to conduct
controlled trials for nonwovens and web-coating applications, substrates and hot-melt adhesives.

The CTL 4640 runs at line speeds of up to 600 meters per minute and offers coating widths of
up to 350 millimeters. Features include: modular back plates and rollers that may be adjusted
according to substrate and web-path routing specifications; a graphical user interface that
replicates manufacturing conditions; and a state-of-the-art tension control system that allows
adjustment at any speed.

The coater is compatible with a number of Nordson’s contact and non-contact hot-melt
adhesive dispensing technologies including Speed-Coat® high-speed intermittent slot applicator;
EP51 slot applicator; and Universal™ applicators equipped with CF®, Control Coat®, Summit™,
SureWrap™, meltblown spray or bead nozzles.

The coater installed in Germany also includes contact BC40, EP series, Porous Coat® and
TrueCoat™ slot applicators; a non-contact curtain coat slot applicator; and a QuadCure™ system for
ultraviolet-curable hot-melt adhesives.


May 2, 2005

INVISTA Expands Antron Stain RESIST Offerings

Wichita, Kan.-based INVISTA Inc. has
expanded its Antron
® nylon carpet fiber with StainRESIST
™ fiber technology to include cut and tip shear applications, as well as loop
constructions. The new technology — which offers stain- and soil-resistance, as well as appearance
retention — is especially suitable for applications that call for a stain-resistant white dyeable
fiber, according to the company.


May 2, 2005

Ciba, Biosignal To Create New Anti-biofilm Products

Switzerland-based chemicals producer
Ciba Specialty Chemicals Inc. and Australia-based antibacterial technology solutions provider
Biosignal Ltd. have agreed to jointly develop new antimicrobial compounds for industrial and
consumer products using Biosignal’s anti-biofilm technology. Biosignal also conferred an exclusive
license to Ciba to use the technology for fiber, coating, plastic, paint and paper product
applications, among others.

Biofilms — bacterial colonies on a solid surface — can cause corrosion, material
degradation, contamination and fouling in industrial environments. Biosignal reports its
anti-biofilm technology interferes with bacteria’s signaling systems, which are used to create and
maintain biofilms. When used on a targeted surface, the anti-biofilm does not impact the
surrounding area; and since it does not kill the bacteria, bacterial resistance can be avoided,
according to the company. Biosignal based its protective, man-made coatings on a discovery that
eastern Australian seaweed Delicia pulchra uses natural chemicals called furanones to keep it
biofilm-free.

Ciba and Biosignal expected to begin development in May, and reported testing would occur at
both companies’ laboratories.

“This partnership with Biosignal complements our own research on antimicrobial technologies
and two other new partnerships in this field within the last year,” said Martin Riediker, chief
technology officer and executive committee member, Ciba. “We believe this collaboration offers an
opportunity to launch the first technology which acts directly on biofilms into some of our key
markets….”


May 2, 2005

Ahlstrom To Produce Glass Fiber In Russia

Finland-based high-performance fiber
manufacturer Ahlstrom Corp. will invest 38 million euros to build a glass-fiber-tissue production
facility in Russia.

“In recent years, we have been able to strengthen our global market position as a specialty
glass-fiber-tissue supplier, especially for the building- and composite-materials industries,” said
Jukka Moisio, president and CEO. “The building materials market in Russia is growing rapidly. To
further support the growth of our customers, we have now decided to invest in Russia.”

Operating under Ahlstrom’s Glass Nonwovens business unit of its FiberComposites division,
the new plant will be located approximately 120 kilometers northwest of Moscow. In its initial
phase, it will focus on specialty glass-fiber-tissue production using a new, state-of-the-art
production line. While it will serve primarily local markets, according to Tommi Björnman, senior
vice president, Glass Nonwovens, the plant also will accommodate other European and emerging
markets. It also will allow the company to ramp up its innovation program and support its
production base in Karhula, Finland.

The plant is expected to begin operation during the last quarter of 2007, ultimately
employing approximately 70 people. In later phases, the facility also will accomodate expansion of
other Ahlstrom businesses in Russia.


May 2, 2005

Avery Dennison Printer Systems Offers RFID Gen 2 Kit

Avery Dennison Printer Systems,
Philadelphia, reports its new Avery Dennison™ Basic Gen 2 Starter Kit features the components
companies in the apparel, footwear, packaging, distribution, retail and industrial markets need to
meet Gen 2 radio frequency identification (RFID) labeling requirements.

The kit’s Avery Dennison AP 5.4™ RFID Printer, which encodes and verifies RFID Gen 1 and Gen
2 chips, prints bar codes, copy and graphics on label surfaces, and detects nonconforming labels.
The included Windows®-compliant Label Management System software, featuring wizard-driven screens
and design tools, allows users to create or use preformatted RFID labels. A starter roll of RFID
carton/pallet labels, and technical support and on-site installation assistance from Avery Dennison
Printer Systems also are kit elements.

“The Basic Gen 2 Starter Kit is an economical solution for companies that must meet Gen 2
compliance mandates and have medium-duty label production requirements,” said Dan Williams,
marketing manager. “With the Gen 2 starter kit, even companies having little or no RFID labeling
experience can quickly get up to speed and initiate RFID Gen 2 labeling activities.”

Additionally, Avery Dennison Printer Systems has upgraded its Avery Dennison Industrial RFID
Starter Kit, which was released in early 2005, for Gen 2 operation.


May 2, 2005

Glenro, TRCM Consolidate Operations

Paterson, N.J.-based Glenro Inc. and
Maysville, Ky.-based TRCM have consolidated operations. The merged company now operates under the
name Glenro Inc., and Maysville manufacturing operations are now known as the TRCM Division of
Glenro Inc.

TRCM formerly was a contract manufacturer of hot air dryers, thermal oxidizers and flatbed
laminating machines designed, engineered and sold by Glenro. It now also manufactures some of
Glenro’s infrared heaters and ovens. In addition, it will continue to offer contract manufacturing
services for metal fabrications and laser-cut parts.

supplier_Copy_12

Glenro’s new TRCM Division manufactures flatbed

laminating machines, among other machinery.

Glenro’s Paterson location will house
the company’s engineering, laboratory, sales support, marketing, accounting and human resources
operations; in addition to a facility that will offer repair services for Northeastern and
Southeastern customers, and will construct developmental infrared heaters, dryers and ovens.

In other company news, Glenro is expanding its contract laminating services, which it
established after it began to offer flatbed laminating machines and complete flatbed laminating
production lines in 2000.


May 2005



 

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