Increased Consumer Spending, Surge In Business Investment Fuel Continued Expansion


T
he U.S. economy is still running strong as it enters the tenth year of expansion. Real
GDP grew in the first quarter at an annual rate of 5.4 percent on top of the blistering 7.3-percent
gain in the fourth quarter.

Consumer expenditures shot up 8.3 percent at an annual rate, after rising 5.9 percent in the
fourth quarter. Business fixed investment shot up 21.2 percent, following a modest 2.9-percent
increase the previous quarter. Investment in business equipment and software surged 23.7 percent,
while spending on residential structures rose 13.4 percent. Only inventory investment was sharply
down in the first quarter, which subtracted 1.4 percentage points from GDP growth.

The latest reports indicate that the U.S. economy, with part of the first-quarter strength
arising from a mild winter coupled with the latest increase in interest rates by one-half of a
percentage point in the second quarter, can be expected to slow down. This would come as a welcome
development in light of the Federal Reserve’s concern about inflationary pressures. Nevertheless,
another rate hike is likely to occur in early July.

The producer price index for finished goods declined 0.3 percent in April, after rising by
1.0 percent in March and February. The decline was due to a sharp 4.1-percent drop in energy
prices, which rose 5.8 percent in March and 5.2 percent in February.

Consumer prices were flat in April after surging 0.7 percent in March and 0.5 percent in
February. The core inflation was up 0.2 percent.


Industrial Production Picks Up The Pace; Business Sales Surge


Industrial production has picked up speed in the last two months after slowing down in
February. Output grew 0.9 percent in April and gained 0.7 percent in March. This was the strongest
gain since August 1998.

Factory output also rose 0.8 percent with most industries registering gains. Utility output
rebounded 2.8 percent.

Housing starts bounced up 2.8 percent in April to an annual rate of 1.663 million, partially
offsetting the 11.2-percent drop in March.

Construction of single-family homes edged up 0.3 percent to 1.329 million. Multifamily units
rebounded 14.0 percent to 0.334 million after taking a 41.2-percent dive in March.

Housing construction was 6.5 percent stronger than last year, but the rise in interest rates
will bring new construction down.

The U.S. trade deficit widened in March to a record $30.18 billion, up from $28.71 billion
in February. Exports rose 2.9 percent led by capital goods and industrial supplies, while imports
rose 3.4 percent as oil prices surged.

Business sales surged 1.2 percent in March after rising 0.4 percent in February. Meanwhile,
inventories grew 0.3 percent. As a result, the inventories-to-sales ratio slipped to 1.31 from 1.32
before.


Greige Fabric Prices Rebound;  Finished Fabrics, Synthetic
Fibers Prices Advance



Results for textiles and apparel were mixed. Textile output edged up 0.1 percent in April
following a strong 1.2 percent gain in March. The operating rate for textiles mirrored the output
pattern, staying flat at 84.3 percent.

Sales by textile manufacturers took a 1.2-percent dive in March, while inventories rose 0.6
percent. Thus, the inventory-to-sales ratio climbed to 1.57 from 1.54 in February.

The industry’s payrolls slipped 0.1 percent in April. The volatile jobless rate for textile
mill workers came down to 5.4 percent from 6.0 percent in March.

Retail sales fell 0.2 percent in April after rising 0.5 percent in March. Furniture stores
took in 0.3 percent more than the month before. Apparel and accessory store sales turned down 0.9
percent in April after surging 1.6 percent in March.

Producer prices of textiles and apparel rebounded 0.2 percent in April to erase a
0.2-percent decline in March. Prices rebounded 1.6 percent for greige fabrics, advanced 0.8 percent
for finished fabrics and moved up 0.7 percent for synthetic fibers.

Prices were unchanged for processed yarns and threads, and for home furnishings.



June 2000

More Than Just A Name

The Superior Companies, consisting of Superior Fabrics Inc. and Superior Shade and Blind Co.
Inc., Pompano Beach, Fla., have seen tremendous growth since moving their operations from New York
to Florida in the 1980s. While the company made its name with interior blinds, the last decade saw
the fabric side of the company expand dramatically. Superior is a completely vertically integrated
facility with warping, carding, knitting, dyeing, finishing and foam coating all done on-site. The
company produces products that are exported globally to Canada, Mexico, the Caribbean, Central and
South America, Europe, Singapore, Korea and China.Superior was founded in 1895. Today it is run by
the Fryburg family, with Robert Fryburg serving as president of Superior Fabrics and David Fryburg
as president of Superior Shade and Blind. While the two divisions are run separately, corporate
decisions are made jointly by the Fryburgs.Window DressingIn 1972, Superior manufactured only
window shades in an 8,000-square-foot facility in Harlem, N.Y. The company then moved to a
36,000-square-foot facility in Manhattan. While in Manhattan, Superior brought colors and styles to
the window shade industry that had not previously been available. In the late 1970s, the company
began manufacturing vertical blinds and rode its wave of success into the 1980s.The company moved
to its current location in 1984. An increased demand for stitch-bonded fabric started in 1985, due
to its ability to be easily dyed. Superiors first line of stitch-bonded fabric was available in 86
colors. Today, the company produces more than 600 different colors and styles.New MarketsSuperior
Fabrics began as an in-house operation to supply 100-percent polyester greige fabric to its
Superior Shade and Blind division. By 1987, the company began looking outside its operation to sell
its greige fabric, first supplying the mattress ticking market by selling directly to
converters.The next few years saw Superior enter new markets, which meant producing new products as
well. The company now supplies stitch-bonded print-cloth and ticking fabric to the shoe industry as
well as roofing, outdoor furniture, industrial fabrics and window treatments markets.The Superior
Shade and Blind division sells to fabricators along with manufacturing horizontal and vertical
blinds for its own shipment directly to its customers.The increase in its product line caused
Superior to begin a 120,000-square-foot expansion in 1999. The new expansion provides additional
space for nonwoven, knitting and warp tricot-knitting equipment.Superior also has a dyeing and
finishing division. The new facility gives the company four buildings on the premises three of
which are Superior Fabrics related.The company now has more than 400,000 square feet in
manufacturing and warehousing space. The most recent addition allows for a more ergonomic layout
and increased inventory space a key element to keeping its customers satisfied.”We are very loyal
to our customers,” said Robert Fryburg. “And our customers are in turn very loyal to us.”To
Superior, relationships are the key to good business. The companys production and shipping plans
are built around that principle. The company has an EDI with its trading partners, and all of its
shipping and billing are on-line. This includes linked on-line shipping information with UPS, of
which Superior is one of the largest customers in Florida.On The Production Floor

Located in the new manufacturing facility is a mix of both new and older machines. One step
the company took in ensuring maximum life from its older machinery was performing preventative
maintenance and rebuilding components, such as the bearings on all machines, before reinstalling
them in the new facility. This maintenance allows Superior to maximize efficiency and create a
better product for its customers.The company purchased a new HDB card with a built-in metal
detection device. The company also retrofitted other cards with metal detection devices. According
to the company, the HBD card is running almost twice as fast as other cards.A recently purchased
OCTIR line is also in place. The line has carding and crosslapping. One of its biggest advantages
is its on-line com-munication capability with the manufacturer, Octir Deutschland GmbH, Germany, so
technicians can evaluate and diagnose any problems that might occur with the line. This expedites
any repairs that might be needed, thus reducing downtime.Also running in the plant is a
Hollingsworth double doffer and crosslapper and a line by Tomaja. All needlepunching is done on
Dilo needle looms.The next step in manufacturing stitch-bonded greige fabric is knitting. Superior
uses 80 high-speed Liba knitting machines to stitch-bond the fabric. The stitch-bonding not only
gives strength to the fabric, but also a style and design. All take-up is done on Alexco
equipment.Superior has the capability to add many different finishes to its products. These range
from foam or vinyl backing in order to add strength and insulative properties to window treatments,
fire-retardants and water-resistant coatings. For these processes, Superior uses Menzel frames.
Masrob frames, which can be by-passed when not in use, are used for foam-coating applications.The
Superior Shade division can slit more than 150,000 yards of fabric for its blinds a day on a
Midland slitter. Superior Shade cuts and sews its blinds, taking them from fabric to die-stamped
metal to assembly to packaging. This allows Superior to ship its products to retail stores,
distribution centers or directly to customers.According to Robert Fryburg, the company is also
manufacturing roll-good fabrics for diverse markets.Concern For Customers

Superior Fabrics success is based largely on its customer service. The Fryburgs feel that
building and maintaining relationships with customers over the years has directly attributed to the
companys success.”We try to set ourselves apart by our service,” Robert Fryburg said. “We take
great pride in the quality and service we provide. We dont try to have the lowest price we deliver
price and service with quality work.”One of the areas that Superior excels in is its on-time
delivery. The company maintains records of the products it has shipped to customers in the past in
order to anticipate future deliveries. If a shipment is delayed, Superior calls the customer ahead
of time to inform them of the delay. However, a delay is the exception.”When something goes out of
here, it goes out of here on time,” Robert Fryburg said.After the sale, service also sets Superior
apart. The company ships some of its products directly to the consumer, so its customer service
department handles any customer questions. “Our customer service department handles our ready-made
blind questions if there is a problem,” Robert Fryburg said. “We put a high priority on the quality
of all our work. Our rate of refusal throughout the company is not even 0.5 percent of
sales.”Customers that buy the companys stitch-bonded greige fabric also get the same support. If a
customer calls with a question, the call will be returned.”I make it a priority that all calls are
returned,” Robert Fryburg said. “If someone calls me and I cant get back to them, then I will have
someone here call them.”The numerous awards won by the company over the past few years for its
customer service further attest to Superiors commitment to its customers. The company knows that
going out of the way to help its clients gives the customer that extra trust that jobs are done
right at Superior.

June 2000

Unifi Forms Alliance With DuPont Adds To Worldwide Production Base

Unifi Inc., Greensboro, N.C., and DuPont, Wilmington, Del., have announced their intention to form
a manufacturing alliance in the United States to produce polyester filament yarn. The alliance will
optimize the companies partially oriented yarn (POY) manufacturing facilities, increase
productivity and improve product quality. The alliance will only involve production.Under the terms
of the agreement, DuPont and Unifi will cooperatively run their polyester filament manufacturing
facilities, with a combined capacity of 800 million pounds, as a single unit, with DuPont managing
the production planning and scheduling. According to the companies, production will be realigned
among DuPonts Dacron® polyester filament plants in Kinston and Wilmington, N.C., and Unifis plant
in Yadkinville, N.C., to take advantage of the unique capabilities of each site.DuPonts Dacron POY
business and Unifis textured yarn business will remain separate entities.Unifi also recently
announced its acquisition of Intex Yarns Ltd., Manchester, England, giving Unifi high-quality
package dyeing capabilities in Europe. Intex will be renamed Unifi Dyed Yarns Ltd.According to
Unifi, the new company enhances its flexibility to adjust to evolving market needs and represents
an ongoing commitment to provide customers worldwide with a broader range of specialized products.
The acquisition gives Unifi 4,000 tons of dye capacity annually.”Our goal is to establish Unifi as
a high-quality supplier of dyed yarns throughout Europe,” said Brian Parke, Unifi CEO. “The
acquisition is a logical addition to our yarn production facility in Letterkenny, Ireland, and
allows us to offer our European customers a unique advantage in the marketplace.”Unifi plans to
upgrade the plant over the next 18 to 24 months. All employees will remain with the new company.

June 2000

People

PeopleRodney J. Merriweather, global brand manager for DuPont Dacron®, Micromattique and Supriva®
brands has been promoted and takes over the global brand management responsibilities for the
CoolMax®, CoolMax® Alta and Thermolite® brands from Dana B. McCauley, who has been promoted to
e-commerce venture manager for the DuPont Polyester Enterprise.Both will be based in the companys
Wilmington, Del., headquarters.

June 2000

JERZEES To Invest 21 Million In Alabama Plants

JERZEES Activewear, Alexander City, Ala., a division of Russell Corp., has announced plans to spend
approximately $21 million on expansions and renovations of its textile operations in Wetumpka,
Sylacauga and Alexander City, Ala.The two-year plan to expand our Coosa River textile operations in
Wetumpka calls for us to spend $11 million in that facility alone, said Dean Riggs, vice president
of operations.By expanding our capacity to produce material at Coosa River, we are making the
operation more cost-effective and efficient. That is a crucial factor in JERZEES efforts to become
more aggressive in the marketplace and to grow our business. We have to ensure that our
manufacturing costs are in line with the prices we can charge for our products. The only way to
create any stability for our business and for our employees is to be the low-cost producer so we
can be competitive in our pricing and still make a profit as a business.Beginning last year, with
the conversion of our cutting and sewing operation in Sylacauga to a world-class textile facility,
we have invested $7 million in that plant with plans to spend approximately $1 million more, Riggs
said.We are now producing all of the white T-shirt material we use at Sylacauga and doing it in a
very cost-effective manner.In addition to the Coosa River and Sylacauga plants, JERZEES will spend
an additional $2.5 million to modernize knitting, dyeing, finishing and cutting equipment at its
Alexander City operations.

June 2000

Committed To Successful Independence

JandJ Industries Inc., Dalton, Ga., is committed to independence. According to Jim Jolly,
chairman and CEO: “Our whole focus is on our marketplace and is driven by a desire to meet the
needs of our customers. “We feel that this can best be done by remaining independent. This
independence permits us to be very flexible and quick on our feet as well as allowing us to work
with all of the various distribution systems currently in place.” Jolly feels this flexibility
serves the firm well and helps to deliver the very best in product and service to its customers.
Performance Objectives And LeadershipAnother key component supporting the firms independence is its
participation in training and development of leadership and succession within the company.
Management has continued to place more and more emphasis and commit more resources to training
within all levels of the organization. Along with the training and other resources, JandJs
leadership team shares a mutual vision. The company has set four key objectives for this year:
10-percent growth in volume, increased speed to the marketplace, elimination of barriers between
departments and leadership development. Management still holds the key to success or failure in
business. Whether fate drops an opportunity in your lap or hard work has paid off, it still takes
decision-making skills to continue prospering. JandJ has always had a strong leadership team, but
larger efforts to broaden and strengthen began in March 1999 with the promotion of Jim Bethel to
president and chief operating officer, along with the promotion of Bob Hubbs to vice president of
service and customer relations, and Louis Fordham to vice president of human resources. Those,
along with current officers Fran Brantley, vice president of products and planning; Lee Martin,
vice president of sales; Ray Moss, vice president of manufacturing; and David Jolly, vice president
of marketing and contract services, make up the top leadership team.”I am extremely proud of this
team and am gratified to serve with them,” Jolly said. “Our team represents a tremendous number of
years of experience as well as providing some youth and vitality for balance.” JandJ has also
embarked upon a program that is called Leadership 2000, where a core group of associates are
involved in a comprehensive leadership development program which will last through 2002.
Environmental Issues

“In our business of calling on various specifiers of our product, we are dealing with the
most environmentally conscious group of people anywhere,” Jolly said. “We are continually quizzed
and pressed about our commitment to and role in environmental issues, and we certainly have many
different initiatives underway. “We have dramatically reduced our solid waste streams to the
landfill and are now delivering 16 percent as much solid waste as we did in 1992 when we initiated
this effort.” In recognition of these accomplishments, JandJ received the national Keep America
Beautiful award in 1996. The firm has also substantially reduced its environmental impact by
eliminating the hazardous waste generated from parts washers and by removing methanol from the
adhesive that is sold for glue-down applications.Continuing to work hard on its Buy Recycled
program, JandJ has increased the percentage of recycled items purchased dramatically year by year.
“Our solution-dyed nylon, Encore® SD Ultima®, is manufactured with a minimum recycled content of 15
percent,” Jolly said. “We continue to work with key suppliers to encourage their supply of recycled
content products.”In addition, JandJ is actively involved in the Georgia Pollution Prevention
Partners Program and with all of its fiber suppliers in recycling used carpet, thereby keeping
these products out of the landfill a major accomplishment. Increased VisibilityHistorically known
as the “quiet company” within the industry, JandJ decided there was a need to do a better job of
promoting the company and its products to the public. “We have embarked on a major program during
the past year to increase our advertising activity both with JandJ Commercial and with Invision
Carpet Systems,” Jolly said. “We have also performed a complete redo of our sample portfolios and
product presentations within each division. We are committed to being more involved with the public
relations aspect of our business.”The firm has always had a great public relations image within the
local community. “We have a very active leadership role in many civic, industry and church
organizations, but we have not had equal recognition and appreciation where our products are bought
and used,” Jolly said. “In my opinion, we have made great progress in this area and will continue
to do so.” Products And Marketing

JandJs largest market within both lines is the corporate office market. The firm enjoys an
ideal situation with the two lines in that they are very complementary rather than being in
conflict with each other.Invision is a beautifully styled, exciting, boutique-type product, whereas
JandJ Commercial represents one of the finest values across the board within the industry. Invision
price points begin where the JandJ Commercial price points end. This gives a very broad range,
meets the needs of customers and brings great synergy to people in the marketplace. “We continue to
invest in the machinery that gives us the necessary technology and capability as we continue to
serve a marketplace that demands more and more texture and pattern,” Jolly said. Machinery And
EquipmentTo continue its growth and prosperity as an independent within the carpet industry, it has
been necessary for JandJ to vertically integrate to the maximum extent and become as
self-sufficient as possible. Thus, the firm is involved in all steps of the manufacturing process
from fiber extrusion forward, with the exception of yarn spinning. A major expansion is being
completed in the twisting and heat-setting facility, which supplants any need for a yarn-spinning
plant. JandJ uses Card-Monroe Corp.s (CMC) latest technological achievement YARN-trONICS
(Computerized Yarn Control System). Unlike a typical scroll attachment, the system has rolls which
are accessible and spaced so that hands fit between, and the operator can thread in seconds. For a
typical 96-roll scroll, the YARN-trONICS has 672 fewer primary wear points than existing scroll
attachments. Controlled entirely by electronics, the system uses a programmed floppy disk for
transfer of pattern information to the computer. In fact, the system is user friendly for the
operator, mechanic, designer and management. A Bright FutureAs a leader in the industry, JandJ
provides customer-driven performance improvement solutions through quality consultation, products
and services. When the downstream distribution began three and a half years ago, a tremendous
amount of uncertainty existed with everyone. Specifiers and designers were caught in the middle
with making recommendations. But things always have a way of working out, and interestingly enough,
JandJs business during the past three years has been the best in its 43-year history. “We have been
fortunate to have been profitable in each of our 43 years, but the last three have been our
strongest by far,” said Jolly. “I dont know whether these distribution alignments by others have
helped our business, but they certainly havent hurt us.” This firm is one that generates profits
and cash flow, eliminates items that do not help the bottom line and diversifies only within the
companys core competencies. With a top-notch management team, proper training for key employees,
vertical integration, the right products and the ability to match customer demand with planned
production and inventories, the future does indeed look bright for JandJ.

June 2000

Schlafhorst And Zinser Present New Products Showroom

In recognition of the importance of the North American textile market, Schlafhorst Inc. (SI)
recently held an open house to promote the use of a new working showroom, located in Charlotte,
N.C., for its present and potential customers. This facility is equipped with the latest technical
and technological innovations that Schlafhorst and Zinser, both members of the Swiss Saurer Textile
Group, have to offer. It is available to customers every working day of the year and allows the use
of the equipment in a hands-on working environment to meet all customer needs. The showroom
features the latest machine generations of Schlafhorst and Zinser. For example, it displays in full
working order the SE 11 spinbox on the Autocoro for open-end spinning, and the Autoconer 338 V for
automatic winding in a linked execution to the ring-spinning machine.Examples of the Zinser
products are the Model 670 roving frame with the new RO-WE-CLEAN, an integrated bobbin changer and
bobbin stripper for the automated roving bobbin transport systems, linked to a Model 350
ring-spinning machine. These products provide the basis for completing spinning and winding trials
across the wide spectrum of textile applications, as often requested by SI customers.Heinz
Bachmann, presidentandCEO of Saurer Textile Group, promoted “closer to the customers” as a global
goal for Saurer. Aided by representatives and sales branches in all textile centers of the world,
Schlafhorst, Zinser and the other members of the group are dedicated to realizing that goal in the
most effective way. Bachmann emphasized that Saurers Textile Division represents market leadership
in automatic rotor spinning, automatic winding, automated ring spinning, and roving machines. The
recent merger and integration of Barmag into the Saurer Group incorporates another leader, namely a
well-recognized machinery manufacturer into the textile filament sector.As a member of this global
network, Schlafhorst Inc., based in Charlotte, N.C., has the task to provide important information,
sales and service support throughout North America. The company is currently working closely with
its affiliate Schlafhorst de Mexico and the worldwide Saurer organization, with specific focus on
the emerging Mexican market.

June 2000

New Software Eliminates Guesswork Over Thread Color

SofTeam USA, Baltimore, recently announced the addition of a Thread Color Wizard to its highly
acclaimed Punto for Windows and Punto for Mac embroidery software. According to the company, this
first-of-its-kind thread-matching capability allows designers to create designs on their computers
and then match the colors they see on-screen to actual threads eliminating the guesswork over
choosing thread colors and enabling designers to achieve exactly the look they want.After creating
a design, users choose the colors and then select the Wizards match feature from the floating
pallet. All of the colors chosen will change to the closest thread in the chosen thread library. As
a result, designers get the look they want, and companies save time and money.The Thread Color
Wizard integrates the databases of 15 popular thread libraries, including Madeira and
Robinson-Anton. Software users can also import their own thread databases.

June 2000

Glen Raven Mills Adopts New Name Logo

Glen Raven Mills Inc., Glen Raven, N.C., has dropped the Mills from its name to become Glen Raven
Inc., a name which, according to the company, emphasizes its increasing global strength in
marketing and sales, in addition to a long-standing reputation as a leading manufacturing
company.The name Glen Raven Mills gave the impression of a manufacturing-focused company, said
Allen Gant Jr., president. While manufacturing is obviously an essential component of our company,
we have evolved into a much broader marketing and sales organization operating on a global basis.
Its time for a new name and a contemporary logo that better represent our company.The company has
also done some restructuring, with Glen Raven Inc. as a holding company, and each of the companys
operating divisions restructured as wholly owned subsidiaries.

June 2000

Cotton39 S Share Of Apparel Market Highest In 30 Years

Cotton’s Share Of ApparelMarket Highest In 30 YearsAccording to consumer data furnished by NPD
Group, cottons share of the apparel market reached 59.7 percent in 1999, a half-point increase from
1998 and its highest level in more than 30 years.The data said cottons share of mens apparel
increased for the 21st consecutive year. By fiber weight, mens apparel accounted for 36.8 percent
of sales in 1999. Denim jeans, underwear, slacks, shorts, pajamas and socks registered share gains
and contributed to cottons 76-percent market share of mens apparel.Cottons share of womens apparel,
the largest segment of the apparel market, increased to 48.6 percent in 1999, a 0.4-percent gain
over last year. Total shirts and blouses, the largest apparel category, has a 9.4-percent increase
in total cotton sales and finished the year with a 65.5-percent cotton share.

June 2000

Sponsors