Donaldson Adds FootprintsTo Downflo® Oval 1 LineThree smaller footprints 1-1, 2-2 and 3-3 are now available in the Donaldson® Torit® Downflo® Oval 1 line of dust collectors offered by Minneapolis-based Donaldson Co. Inc., a provider of filtration systems and replacement parts.The new systems use Donaldson Torits patented oval-shaped cartridge filter technology, which increases collection capacity by up to 25 percent over conventional round-cartridge technology. In addition, the new collectors are easy to operate, quiet and easily moved.August 2002
Army Explores Wired Textiles
Army Explores Wired TextilesThe U.S. Army Soldier Systems Center Individual Protection Directorate, Natick, Mass., and the Objective Force Warrior Technology Program Office, Communications and Electronics Command, Fort Monmouth, N.J., are developing techniques to produce textiles containing fiber optics and electric wires for use in lightweight, non-bulky, high-tech battlefield gear. Research partners include military, academic and private organizations. Projects include: integrating invisible antennae into fabric vests; developing a connector system for use in a fabric-based bus or conventional cables; exploring alternative components for flat body conformal connectors and cables; and developing a soft switch fabric for use in a fiber keyboard as part of the Land Warrior soldier control unit. Photonics Laboratories Inc. and Philadelphia Universitys School of Textiles and Materials Technology, both in Philadelphia, are developing techniques to weave or knit wires and optical fibers directly into fabric. Clemson Universitys Clemson Apparel Research, Pendleton, S.C., is using stitchless seam technologies to entrap fiber optics and conductors, and provide electronic networks within and between battlefield apparel components.August 2002
Strength And Uncertainty
G
iven all that has been heaped on the U.S. textile industry in the last year, it’s a
relief to see signs of strength. Spinners, weavers and others note their companies are sold out,
and are participating in the much-reported “work through” during the summer holidays — all
reminiscent of better times.
Industry insiders point out there may be less competition by numbers — acknowledging plant
closings of the last year — but the remaining companies are the really tough competitors. As one
executive remarked, “These are the guys who made it through, and they are not about to take a rest.
If anything, the competition is tougher, and capacity is becoming an issue.”
With signs of relief due to a weaker dollar, strong consumer spending and low inventories,
this may be the beginning of a bit of a run for the industry.
Capital spending is still soft — it’s easy to see this period as an opportunity to enjoy
some positive cash flow and hold off on investment for a while.
But some machinery suppliers see a different picture. Machinery sales are strong for some of
the larger global suppliers, many of which also felt the sting of last year’s plant closings. Much
of their capacity is sold, so delivery times are longer than you might expect. Some suppliers are
adding capacity in Asia to better service and support that market, and note service contracts are
purchased as part of package deals rather than on an “on call” basis common with U.S. mills.
The U.S. market for textile equipment is significant, but it is not the growth or volume
market offered today by Asia. Suppliers are quick to emphasize they fully support U.S. mills, and
the United States continues to have significant sales value. However, machinery suppliers are
facing pressure to compete for their share of growth in China while maintaining sales and service
to U.S. mills.
If you assume better times are ahead, it’s important to realize the U.S. textile industry
will be competing with those machines very soon. Hopefully, U.S. capital spending will pick up to
ensure productivity and product quality to meet the challenge of imports.
But there’s more to it than that — the industry must start to aggressively market and brand
its products; invest in building the network of apparel sourcing managers, and the traditional
textile industry and apparel contractors; demonstrate the viability of U.S. manufacturing to the
financial markets; and push the envelope in nontraditional textile markets.
Sounds like a tall order under normal circumstances, but keep in mind — the remaining
companies are the really tough competitors.
August 2002
Cotton Incorporated Reorganizes Global Marketing Division
New York, August 1, 2002 Positioning itself to better service decision makers in an industry that
has become more global, and to more effectively reach an increasingly discerning consumer, Cotton
Incorporated is reorganizing its Global Product Marketing Division.Effective immediately, the
companys Global Product Marketing Division in the Western Hemisphere will consist of two
departments: Americas Mill Marketing and Brand Marketing.Mike Tyndall, previously senior director
of Global Product Marketing, will now hold the position of senior director of Americas Mill
Marketing. Tyndall will be responsible for strengthening Cotton Incorporateds support of the U.S.
textile industry, as well as the companys activities in Latin America and Canada. He will continue
to report to Dean Turner, senior vice president, Global Product Marketing.Dennis Horstman,
previously manager, Global Product Marketing, has been promoted to director, Brand Marketing.
Horstman will be responsible for strengthening Cotton Incorporateds influence on national and
private label brands in the U.S, which have been identified as the critical link to todays
consumer. The department will focus on reaching branded product management to assist with their
product needs, both from a development and a sourcing viewpoint. Horstman will also report to
Turner.The two departments will continue to coordinate activities with the companys research and
consumer marketing divisions, as well as its global operations covering Europe and Asia.Cotton
Incorporated, funded by U.S. growers of upland cotton and importers of cotton and cotton textile
products, is the research and marketing company representing upland cotton, the number one selling
fiber in the world.
Gaumer Offers New Vaporizer IDH Duct Heater
Gaumer Offers NewVaporizer, IDH Duct HeaterA new vaporizer from Houston-based Gaumer Process Heaters is designed for use in process industries that use large amounts of heat at high temperatures and low operating pressures. The vaporizer maintains recirculating fluids as high as 750°F, achieving high heat-transfer rates and close temperature control when using the vapor from these fluids.The company also has introduced a line of IDH high-temperature duct heaters for use in dryer, rotary-gravure press and heat-treating applications. The heaters use heavy-duty incoloy heating elements to achieve air temperatures up to 800°F. Other features include a stainless-steel frame, potted terminals and a moisture-resistant terminal housing.August 2002
Demand Remains Reasonably Strong
M
odest mill improvement continues. Indeed, industry output is now running ahead of a year
ago for the first time in 2 1/2 years.
Zero in on broadwoven fabrics, and the figures are even more encouraging, with first-quarter
2002 activity running better than 7 percent above the previous quarter. And all fabric subgroups
except wool are sharing in the gain. A still-firming economy — bolstered by falling fuel prices,
low interest rates and high home tags — also should help in the months ahead.
These plus factors will more than offset the downward pressure of current Wall Street
turmoil. Not surprisingly, most economists remain optimistic.
A new Wall Street Journal survey of 55 top analysts puts 2002 gross domestic product (GDP)
growth at 3.5 percent. And profits, despite all the recent Wall Street financial deceits, should
continue to improve.
All this, in turn, would seem to assure more mill pickup — enough to push textile output up
another 1 percent by year’s end.
New Positive: 2000-2010 Projections
A just-released Bureau of Labor Statistics (BLS) long-term forecast also is encouraging. The
agency sees average annual textile output gains of 1 percent over the current decade.
That’s a welcome change from the declines of recent quarters. And better-than-average
performances are seen for both the knitting mill and carpet subgroups (up 1.7 percent and 1.2
percent annually). Equally upbeat are the 1.3-percent annual gains expected for apparel.
In short, BLS analysts aren’t buying all the recent gloom-and-doom textile forecasts. The
same study also suggests good news on the productivity front.
Compare projected declines in employment with the expected production advances, and overall
textile productivity could fare even better — with the estimated annual gain put at near 4 percent.
Prices Remain Sluggish
On a somewhat less rosy note, prices continue to present some problems as competition puts a
lid
on meaningful increases. To be sure, declines of the past year or two are over. But that’s
about it.
Overall mill averages, for example, are still running about 1 percent under year-ago levels.
Equally significantly, these quotes are no higher than they were three years ago — in sharp
contrast to continuing increases in the general inflation level over the same period.
Nor is all this likely to change very soon — and for several reasons. For one, lower-priced
imports are still coming in at an impressive clip. Other price-rise inhibitors would have to
include competitive pressure from downstream manufacturers and retailers who are unable to boost
their own tags and from continuing excess capacity.
On this latter score, overall mill operating rates remain in the low 77-percent range — a
far cry from the more than 91-percent peak hit back in 1994.
Profit Data Are Revised
Worth noting for those tracking industry trends: Profit figures have been reclassified to
reflect the ongoing shift from the old Standard Industrial Classification (SIC) system to the new
North American Industry Classification System (NAICS). This had previously been done for shipments
and inventories.
One problem: Comparisons with earlier times won’t be all that easy.
Nevertheless, there’s some good news here. Fourth-quarter 2001 figures show the industry
eked out a small 0.7-percent return on sales. For 2001 as a whole, this margin figure was put at
0.4 percent — reversing the negative 0.6-percent reading of 2000. Yearly comparisons for profits as
a percent of stockholders’ equity are even more favorable — 3.3 percent for 2001 versus a negative
2.8 percent in 2000.
Fiber Costs Edge Higher
But further earnings gains could be hard to come by because of competitive pressures and
somewhat higher fiber costs.
On the latter score, raw cotton is now near 40 cents per pound — up from the 30 cents per
pound lows of late last year. Blame it on forecasts for only a 17.8-million-bale domestic 2002/2003
crop year — down 2.5 million bales from 2002/2001. Foreign crops are also expected to be lower.
But, cotton quotes are still under a year ago, with few signs of any big spike, as the
projected domestic carryover remains at nearly double that of the 1999/2000 low. There’s also been
some firming in man-mades. But here, too, hikes have been modest — with polyester staple remaining
well under year-ago levels.
August 2002
Pollution Standard Causes Problems For Textiles
The Environmental Protection Agency’s (EPA) proposed standard covering toxic air pollutant
emissions is not likely to sit very well with U.S. textile manufacturers. The long-awaited
standard, as currently proposed, could have a major impact on virtually all dyeing and finishing
operations as the government moves toward its goal of achieving Maximum Achievable Control
Technology. The proposed standard would make significant revisions in the way dyeing and finishing
operations calculate the amount of hazardous air pollutants they release into the air.
At present, textile plants are permitted to calculate the fraction of organic hazardous air
pollutants they believe are actually emitted from water solutions. Under the proposed rule,
companies would have to assume that 100 percent of the organic hazardous materials entering a plant
are in fact emitted into the air.
Once the permissible levels of hazardous emissions are exceeded, companies must either
change the finishing materials they are using or modify their emissions controls, something that
could prove quite costly.
Textile manufacturers attending a recent EPA briefing on the proposed standard raised a
number of concerns about the effect of the standard. They were particularly concerned about the
permissible emission levels and the fact that the measuring period does not take into consideration
seasonal changes or product mix changes.
As is always the case with such regulations, the comment period will drag on for some time,
but textile companies need to let the EPA know of their concerns.
Flammability Regulations Overhaul Proposed
The staff of the Consumer Product Safety Commission (CPSC) is proposing a major overhaul of
its standards under the Flammable Fabrics Act, saying that the 50-year-old regulations are out of
step with today’s products and current cleaning and care practices.
In calling for an Advance Notice of Proposed Rulemaking, the CPSC said numerous new
technologies, products and modern equipment have been developed since the original standard was
issued in 1953. The staff is particularly interested in how its test methods might be updated to
reflect modern technologies, new products and consumer practices.
A Federal Register notice will seek information from the fiber, textile and apparel
industries, safety and health organizations, and other interested parties to help determine the
best ways to bring the standards up to date.
Textile Rules Of Origin Under Attack
India, which has long been a thorn in the side of the U.S. textile industry, has launched an
attack on the U.S. textile country of origin rules, and the World Trade Organization (WTO) has
agreed to consider India’s complaint. India has never liked the country of origin rules, which are
basically designed to police textile and apparel quota agreements and prevent illegal
transshipments of products made in Third World countries.
In its complaint to the WTO, the government of India contends the rules of origin
incorporated in the U.S. Trade Development Act of 2000 are “extraordinarily complex” and are
applied in an inconsistent fashion, and, therefore, are illegal under the WTO’s trade regulations.
The basis for India’s complaint is that the criteria for determining the country of origin
of silk products such as neckties and scarves are different from those for cotton and wool
products, and other types of wearing apparel and made-up goods. U.S. trade officials say the U.S.
rules are practical and make common sense, and are consistent with WTO regulations.
They believe the Indian complaint eventually will be turned down. However, if India should
prevail, the complaint could have a major impact on the worldwide U.S. textile and apparel import
quota system, which remains in effect until 2005.
Industry Fears Erosion Of Customs Inspections
U.S. textile industry officials are afraid the Customs Service’s efforts to combat textile
and apparel import fraud could become a casualty in the war on terrorism.
In testimony before the House Ways & Means Committee, the American Textile Manufacturers
Institute (ATMI) warned that the “essential mission” of the Customs Service could be weakened if
that agency is transferred to the new Department of Homeland Security.
Pointing out that illegal imports of textiles and apparel amount to “billions of dollars
each year,” ATMI said: “Any redeployment of Customs’ assets from the Department of the Treasury to
a newly-created cabinet-level Department of Homeland Security must not in any way diminish or
impair Customs’ ability to investigate, detect and interdict illicit textile and apparel trade.”
In recent years, Customs enforcement of textile and apparel imports has suffered as that
agency devoted more of its resources to the war on drugs. The Bush administration has made a firm
commitment to step up textile apparel fraud enforcement, but that effort could get lost in the
shuffle at the new homeland security agency.
August 2002
Quality Fabric Of The Month: Not To Be Outdone
Determined to surpass its Asian competition in the global marketplace, Tuscarora Yarns Inc., a Mount Pleasant, N.C.-based spinner of custom specialty yarns, has patented two processes to
produce heather, mélange and mock-twist yarns in 100-percent cotton to superior quality standards. Tuscarora’s Five Star Brand combed cotton ring-spun (RS) and open-end (OE) yarns are found in
apparel from major design houses and upper-end retailers.The company sells its yarn domestically and abroad, primarily in the Caribbean Basin Initiative (CBI) and North America Free Trade Agreement (NAFTA) regions, said Peter J. Hegarty, global vice president of sales and marketing, Tuscarora, and president, American Textile Export Co. (AMTEC), an export/import company in which Tuscarora holds the majority interest. Tuscarora’s foray into global markets brought it face-to-face with the high-quality heather yarns spun in Asia and prompted the development of Five Star Brand yarns as a competitive alternative.
Five Star Brand heathers are seen in apparel from top designers and upper-end
retailers.
produce heather, mélange and mock-twist yarns in 100-percent cotton to superior quality standards. Tuscarora’s Five Star Brand combed cotton ring-spun (RS) and open-end (OE) yarns are found in
apparel from major design houses and upper-end retailers.The company sells its yarn domestically and abroad, primarily in the Caribbean Basin Initiative (CBI) and North America Free Trade Agreement (NAFTA) regions, said Peter J. Hegarty, global vice president of sales and marketing, Tuscarora, and president, American Textile Export Co. (AMTEC), an export/import company in which Tuscarora holds the majority interest. Tuscarora’s foray into global markets brought it face-to-face with the high-quality heather yarns spun in Asia and prompted the development of Five Star Brand yarns as a competitive alternative.
“This truly world-class product was created by American ingenuity, innovation and resourcefulness, and we’re extremely proud of it,” said Bud Willis, Tuscarora’s president.
Five Star Brand heathers are seen in apparel from top designers and upper-end
retailers.
A combination of special combing and spinning techniques produces a very supple yarn that is comparable to mercerized yarn, but not as pricey, according to Willis. The yarns are going largely into knits, but they are beginning to be seen in wovens as well. The fabrics are very smooth and lustrous, with a cashmere-like hand and homogenous color created by a more “intimate” blending than is seen in mercerized yarns.
Typically, heather yarns tend to appear somewhat gray, but, Hegarty explained, “We are producing more and more color in heathers, and some take on almost a fluorescent appearance.” He noted the vast array of colors in heathers now seen in certain top designers’ lines. The process is used as well to spin an impressionistic mélange yarn that is a very smooth blend of several colors.
Hegarty noted in particular the uniqueness of the Five Star Brand fully combed OE yarn. “ Very few spinners can offer a fully combed open-end product,” he said.
Tuscarora works closely with apparel and fabric manufacturers to develop customized colors and fiber blends. The company’s research and development laboratory, a mini-factory in itself, can match a customer’s color standard and return a submit within 24 hours. Once the specifications have been met, Tuscarora can deliver the final RS product in five to six weeks, and OE in three to four weeks.
Combining this collaborative relationship and customization capabilities with its experience in export markets, Tuscarora strives to offer added value to its customers as they develop new product lines.
For more information about Five Star Brand combed cotton yarns, contact Peter J. Hegarty (800) 849-6527.
August 2002
Milliken Finishing Plant Installs Quickwash System
Milliken Finishing PlantInstalls Quickwash SystemMillikenandCompanys Magnolia Finishing Plant in
Blacksburg, S.C., has installed a Quickwash Plus unit for shrink testing of fabric samples. The
Quickwash Plus machine manufactured by Raitech Inc., Charlotte, N.C. is a tabletop unit that washes
and dries a variety of sample fabrics much faster than traditional methods.Debbie Blanton, senior
operator, said, What used to take 14 hours, we now have gotten down to 15 minutes. We can do
process checks while production is going, so it really eliminates quality problems. Blanton said
the lab plans to expand use of the unit to include colorfastness testing.
August 2002
Culp To Be Included In Russell 2000 Index
Culp To Be IncludedIn Russell 2000 IndexCulp Inc., High Point, N.C., a manufacturer of upholstery
fabric for furniture and mattress ticking for bedding, has been selected on a preliminary basis for
inclusion in the Russell 2000 Market Index.More than $200 billion is invested in funds that rely on
Russells U.S. indexes as investment models. We are very pleased that our shares have been selected
to be added to this prominent stock market index, said Culp CEO Robert G. Culp III. We believe
inclusion in the Russell 2000 Index should increase investor interest in Culp, and thereby enhance
the marketability of our shares.The Russell 2000 Market Index is one of 21 U.S. equity indexes
published by the investment firm Frank Russell Co., Tacoma, Wash. Russells indexes are widely
regarded as an important measure of stock market activity.
August 2002
