Day International Group Inc., Dayton, Ohio, has announced the completion of its acquisition of the
textile products operations of Armstrong World Industries Inc., Lancaster, Pa.Day International
will continue to market a variety of items for the spinning industry.The sale of the textile
products business enables us to focus more of our resources on our core operations, which we feel
leads to greater value for our shareholders, said George A. Lorch, chairman and CEO,
Armstrong.”We’re very proud of our TPO (textile products operations) people and the position of
leadership they have attained within their industry. We appreciate the loyalty and support from all
the TPO employees and customers.”Dennis Wolters, president and CEO, Day International, said: “This
acquisition strengthens our worldwide textile operations providing us with a broader range of
products while continuing to provide value-added service to our customers.”

December 1999

While improvements were evident, questions remain about the show’s future. The
Textile Supplies and Services Expo (TSSE), which ran from October 19 to 21, at the Palmetto Expo
Center, Greenville, S.C., saw an increased number of attendees from 1998, although the numbers were
not has high as was hoped.The reaction of many exhibitors was positive, as many felt the contacts
they did make at the show could possibly lead to sales.According to J. Robert Ellis, president and
director, Textile Hall Corp., there were 1,705 attendees at the three-day show. This was a 41.5-
percent increase from last years Textile Industry SuppliesandServices Exhibition and Conference
(TISSEC), which had 1,205 attendees. While this was a noticeable increase, it fell well below the
3,000 attendees the show had hoped to draw.I was disappointed in the number of attendees, although
it was up about 40 percent over last year, said Ellis. Most exhibitors I talked with seemed to have
a good show although some said otherwise.Impressions from the exhibitors were mixed. Many felt that
the number of quality attendees was much higher than the previous show. We looked at it as a
positive show. We found some new leads and customers, said Mark Reese, vice president of sales,
Lawson Hemphill. The quality of the attendees was excellent; there were a lot of decision-makers at
the show. I would say we probably have 30 percent more leads at this show than the last one.Also
making good contacts and customers at TSSE was Lois Foster, Kellett Enterprises: I had no problem
with the show. The people that came by the booth had quality visits.Many exhibitors also sited the
improved show hours, which this year ran from 8:30 a.m. to 4:30 p.m., as another positive change
that allowed more people to attend the show. The traffic was better this year than last year and
the quality was better. Tuesday was good, but Wednesday and Thursday were slow, said Jeff Davis,
Alexander Machine. I would really like to see this show make it.For many of the smaller companies,
the TSSE show was an opportunity to show products and services that were not at the larger shows
such as ITMA 99.We felt like it was a good small show, said Steve Haygood, Briggs and Shaffner. I
thought the organizers did a good job promoting the show. We hated to see that it wasnt more
excepted by the industry though.There were some concerns over the show, many hinging on timing and
attendance. This years TSSE show fell not only in an ITMA year, but also within a few weeks of
other larger shows such as Bobbin Americas, in Atlanta, and the IFAI Expo, in San Diego.A concern
that resonated throughout many of the exhibitors was with the number of shows this year, combined
with the current state of the textile industry, many companies could not afford to

December 1999

Sustainable development can be defined as building value without impacting the opportunities of
future generations to do the same. Sounds a bit like the Golden Rule and, in essence, it is. Future
generations will be pleased if we leave them a clean natural environment, opportunities for
development and a future vision for their children. Corporations are looking at the benefits of the
triple bottom line of profits, environment and community, as equally important in building
long-term value. Sustainable PhilosophyThe philosophy of sustainability that has been
developing since the 1960s is based on the idea that environmental stewardship and total quality
management are one in the same. Integration of all business processes into one unified vision of
success, comes as our information driven world produces better tools to measure and observe the
effects of change on ever larger systems.When our businesses become more like nature, operational
losses move closer toward zero. This maximizes efficiency, which in turn increases profits. Seems
simple, but its not. From A Textile Point Of ViewThe textile industry is one that has great
opportunities to build truly sustainable value. Visionary textile com-panies are designing their
businesses to thrive in a dynamic market that will con-tinue to grow with a population of informed
and savvy consumers.

Striving for zero operational losses increases profits and also leaves a cleaner environment
for future generations.The textile industry has always been on the leading edge of changes. It was
the first industry to emerge from the cottage into factories, thus beginning the Industrial
Revolution. It is an industry that has always followed its sources of raw materials and developing
economies, seeking greater efficiencies and lower costs. The reasons for the migration of U.S.
textile manufacturing from the Northeast to the South was based on the proximity to the cotton crop
and the ready, low-cost labor after the Civil War.So the industry moves today, with whole segments
of textile production leaving the United States and following lower labor costs as the raw material
supply chain becomes global.The first indicators of the real value of designing textile businesses
based on the principals of sustainable development were seen in the 1990s. Polyester fleece fabrics
made from recycled soda bottles, organic cotton farming, low-impact dyeing and finishing with
process water recycling, dyeing with supercritical CO2 and carpet fibers and backing being recycled
are all movements toward a sustainable business model. Commerce itself is even being redefined.
Interface Inc., Atlanta, a forward- thinking textile company, believes that owning carpeting is not
necessary to achieve a floor covering that is clean and is always serviced. It is the function of
what is wanted, not the thing itself. Commerce is being designed to pay for function and utility.
Automobiles, clothes and computers provide function and utility. We do not need to own the thing to
get these services. This simple redesign of commerce produces opportunities to increase durability,
eliminate non-recycled raw materials and increases efficiency in design as things are produced that
are built to last forever.Burlington Chemical Co., Burlington, N.C., an ISO 9001 specialty chemical
manufacturer that serves the textile industry, adopted the principals of sustainable development
two years ago. It was decided to focus on these goals as a way to build value in the company over
the long term and to increase the ultimate efficiency of the company.Burlington Chemical believes
that value can be defined as:Value = Cost + Benefits;Benefits = Efficient control of
complexity.Using these two equations, it is easy to see that when there are no benefits, costs or
price is the only factor that drives value. Controlling complexity as a benefit diminishes the cost
or price issues in the equation. The higher the benefit the less important the cost. Aiding In
The ControlIt was decided in 1987 that a class of surfactants call Alkyl Phenol Ethoxylates (APEs)
were indicated in foaming and aquatic toxicity problems. There were known alternatives based on
proven safer chemistry, but were a bit more expensive. Burlington Chemical decided as a policy not
to use these APE products to remove one variable from the aquatic toxicity issues facing its
customers. This has saved the company and its customers millions of dollars in environmental costs
by taking the simple natural solution of using less toxic materials when available.BurcoCare a
product stewardship testing program produces biodegrad-ability, aquatic toxicity and biomass
toxicity data on all Burco® products. This readily available information controls the complexity of
information gathering and questions concerning chemistry.Burco SA-200 is the first reactive dyeing
alkali to be manufactured directly from CO2 sequestered from the atmosphere. Tons of this
greenhouse gas was converted in a product used in textile dyeing using a patented technique that
mimics the actions of corals and plants. It is the first true liquid carbonate dyeing alkali. The
majority of the Burco products from synthesis are based on vegetable derived chemistries and have
high yields producing little or no toxic by-products.Rehance®, a new printing process, has been
developed to replace plastisol printing of textiles. This eliminates PVC and phthalates from
decorated textiles and reduces the weight of the prints by 200+ percent. It is a breathable,
durable and iron able screen-printing technique that builds value in cellulose textiles.At
Burlington Chemical, more than 80 percent of all its shipping containers are recycled. Trees are
planted each year to use the CO2 produced by driving company transports. Programs in recycling and
reuse of resources are active throughout the company. A Smart Tank virtual inventory
management system using ERP software is controlling inventory costs and cash flows for customers.
Managing information is managing complexity and building value. Also, Health/Safety and
Environmental Affairs and the ISO Quality group were merged within the company.

Visionary textile companies are designing its businesses to thrive in a dynamic market
containing informed and savvy consumers. Gaining MomentumThe efforts of organizations
worldwide to define sustainable value, thus improving the efficiency of commerce and sustaining
society are gaining momentum. It is not the program of the week or the newest hot topic out of
business schools, but a way to build continuous value for the stakeholders of corporations by
mimicking the efficiency of nature.Nature is a system that has millions of years of continuous
improvement as evolution and is the best model that we have for true efficiency. The value of
building corporate goals based on producing smarter products that contain less stuff, can enable a
higher quality of life for everyone. The textile industry is at a crossroads. The opportunities to
build value in apparel, commercial and industrial textiles are great when viewed within the context
of the principals of sustainable development.

DuPont, Wilmington, Del., has announced that it has realigned its management structures and
resources of its Lycra® business by end-use segment rather than by region.According to the company,
that realignment will enable its global position to be leveraged in ways that benefit both DuPont
and its customers in local markets around the world.This reorganization will upgrade our global
supply and sourcing capabilities, as well as our ability to observe and respond to market trends
and customer needs, said Steve McCracken, president of Lycra and vice president of DuPont.We will
be better able to utilize our global strengths to bring greater advantages locally. Ultimately,
that means being able to deliver enhanced value and create new growth opportunities for us and our
customers.The company expects direct and downstream customers to benefit from improved service,
enhanced technical and marketing support and greater access to global trade connections.As a result
of this realignment, our customers will be able to take fuller advantage of out extensive resources
and be better positioned to meet the fast-growing consumer demand for the kind of enhancement that
Lycra brings to cloths, McCracken said.DuPont also announced that it formally opened its latest
Lycra plant in Singapore. This S$170-million plant uses the most advanced technology for Lycra
production.

December 1999

 

January 1, 2000. While it is arguable as to whether or not it is the actual beginning of the
next millennium or whether that honor is bestowed to January 1, 2001, when the clock strikes
midnight on January 1 millions if not billions of people will be filled with at least a small sense
of fear.Why Y2K should answer at least part of that question. While its effect will remain unknown
for several months to come, there are other issues that will also have far-reaching effects.Some
events, such as the next presidential election are widely known, while others are taking place with
relative obscurity. These events may vary in impact, but taking a closer look at how they will
effect you and your company might be a wise idea. Open Broader ProvisionAn issue that could
have a major impact on the textile industry is the NAFTA provision opening U.S. borders to trucks
from Mexico and Canada. These trucks are currently allowed to be within 3 to 20 miles of the border
for commercial purposes. The economic impact of this provision is uncertain. What is certain is
that the concern over safety, as well as the lack of federal truck inspectors, has forced the
government to re-think whether or not to open borders on January 1.Published reports have stated
that of the 3.9 million trucks that entered the United States from Mexico in 1998, approximately 45
percent failed U.S. inspection. Of the 5.8 million trucks from Canada, 17 percent failed
inspection.The lack of stringent safety requirements by Mexico, and to a lesser degree Canada, will
place an increased burden on U.S. border inspectors, who were able to inspect only 0.6 percent of
trucks crossing the border in 1998. Internet And E-CommerceThe expanding Internet, which has
changed almost every facet of American life, will continue to have a staggering influence on
business and government. E-commerce is creating increased competition in manufacturer-to-consumer
and business-to-business purchasing.As a current television commercial states, 16 million people
get on the Internet for the first time every day. Drawbacks to the Internet and e-commerce, such as
computer viruses, hackers and lawsuits will hinder, but not impede its expediential
growth. Bills Effecting IndustryIn the textile industry, the Caribbean Basin Trade Enhancement
Act and African Growth and Opportunity Act (also known as the sub-Saharan Act), will have
long-reaching effects if finalized by Congress.Another bill that will have a lesser effect on
industry is the Computer Equipment Common Sense Depreciation Act. This act states that any computer
or peripheral equipment used in manufacturing can be depreciated over two years rather than five
years. This bill goes into effect January 1, 2000. Uncertain Financial MarketsThere is some
question as to the state of the financial markets in the days leading up to, and the days
following, the first of the year. Many experts believe that the financial markets will be not only
be thin, but also quite volatile in price fluctuation from about December 31, 1999 to January 7,
2000. This effect on stocks, bonds and other securities is directly linked to the unknown effect of
the Y2K bug on the computer systems that control financial and government
institutions. Jublilee 2000Jubilee 2000 is a proposal to “forgive” the debt of the world’s 40
poorest countries on January 1,2000. Lawmakers say that while its cost will be almost unfelt by the
average American (about $1.20 a year for three years) it has the potential to save approximately
20,000 lives a day in these countries. This debt relief proposal is currently being debated in
Congress. Stay InformedThe key to staying ahead of the business curve is staying well
informed. As more information is made available, managing it becomes even more crucial. It is
crucial to not get blind-sided by important issues in the year 2000.
(For more on these issues, see ATI, January 2000).

December 1999