The Woolmark Co., Australia, has published results of a global, independent survey commissioned by
the company. The survey reveals a high degree of retailer confidence and trust in the Woolmark
branding program. The relevance and power of the Woolmark brand, according to the company, is vital
in todays climate of constant textile innovation.
December 2001
While the textile industry has been going through tough times recently, cycles of good and
bad times are not unique to the industry. Over the long run, every industry has its ups and downs.
So, when tough times hit, why do some firms weather the storm and come out stronger, while others
are casualties At least part of the answer to this critical question has become more evident over
the last two decades. The “secret” to success in good and bad times, across a wide range of
industries, lies in large measure in having a strong corporate culture that ensures the flow of
ever-higher-quality products and services.Defining Corporate CultureWhat is corporate culture Many
different definitions of corporate culture have been offered over the years. At the heart of all
these definitions, however, are two important ideas. First, corporate culture speaks to “how” the
firm has decided to do business. Second, corporate culture, expressed through the core values of a
firm, helps to explain “why” the business should exist, not just from the owners’ perspective, but
for everyone who has a stake in the well-being of the firm.How does corporate culture impact the
quality of products and services produced by a firm and, therefore, its capacity to survive There
are three key ways that culture impacts this relationship. First, as noted above, firms vary in
“how” they like to do business, and these choices make a significant difference in the quality of a
firm’s products and services from year to year. The first widely recognized evidence about this
relationship came out in the early 1980s, when Thomas Peters and Robert H. Waterman published their
bestseller book, In Search of Excellence. In looking closely at many consistently profitable,
high-growth firms across several industries, they discovered that all these companies had a
remarkably similar way of doing business that enhanced their reputation as quality providers.
Specifically, they all shared, in large measure, eight common ways of conducting business: a bias
for taking action rather than overanalyzing issues; a drive to get close to customers; the
willingness to grant employees sufficient autonomy to explore new entrepreneurial opportunities; a
quest to improve productivity by investing in their people; hands-on, value-driven styles of
management; a preference for sticking to businesses they knew how to run; creation of simple
structures and operating with a lean staff; and the granting of operational autonomy at the shop
floor while retaining control over the values of the firm at large.
Core Values Impact Quality And LongevityThe second way corporate culture impacts quality and
longevity was only discovered during the past decade. This connection has to do with understanding
“why” an organization should exist at all. More precisely, in a landmark study that compared the
small handful of high-quality companies that had existed for over 100 years – like DuPont –
compared to the millions that go out of business during the first 20 to 30 years of life, the only
consistent differentiating factor was the nature of the core values that were held as being of
primary importance to the firm. Specifically, when a company is aimed primarily at maximizing
short-term economic gains, it is a high-risk candidate for failure because there is always the
temptation to sacrifice long-term quality for near-term profits. In contrast, when a firm places
primary importance on “changing with the times,” so that a community can be created of individuals
who know who they are and why they hold in common certain values – such as continuously improving
the quality of their products and services – the prospects for long-term survival increase
exponentially
(See “Chas. W. HouseandSons – Striving For Quality,” below).The third way corporate
culture impacts quality and the likelihood of long-term survival stems from the value an
organization places on building systems that both reflect the organization’s core values and are
designed to help ensure the firm will last for the long haul. All of the long-lived organizations
that have been studied to date have placed great importance on this kind of investment in quality
improvement. In contrast, when organizations are “built to flip,” as occurred with many of the
dot.com firms created during the past decade, the end result is less pleasant. What systems need to
be built for a firm to continually enhance the quality of its products and services Research over
the past decade indicates that while many systems can be created, there are four that clearly stand
out as most useful in impacting a firm’s ability to survive and thrive. These systems focus on:
building a deep strategic planning process; creating an intense customer focus that permeates the
organization; enhancing the capacity of a firm to develop its people; and expanding the
organization’s commitment to recognize and reward the efforts of all employees.ConclusionsIn
summary, if you want to make it through these challenging times and thrive over the long term, look
to your corporate culture. Knowing how to improve the quality of your products and services is not
enough. Everyone in your organization must believe and act on this value. So, review and improve
“how” you are doing business. Reflect on and make it clear to employees, customers, shareholders,
and the community “why” you should be in business. Then, enhance or build the systems that will
take your firm to the next level.Chas W. HouseandSons – Striving for QualityChas. W. HouseandSons
Inc., located in the quaint New England village of Unionville, Conn., provides a good example of
how a strong culture can help a firm win in good times and bad. Founded in 1867, over the last
several decades, the company has emerged as a leader in the U.S. market for high-quality woolen and
wool-blend woven felt applications.What is the secret of the firm’s success According to Matt
Bristow, CEO, its longevity is the result of adherence to a basic cultural value that “We are
survivors,” who will change with the times, combined with a prudent set of business practices aimed
at always striving to produce higher quality products and services for their customers. More
precisely, according to Bristow, who bought the firm in 1995 after a distinguished career at The
Stanley Works, its success stems from a culture that is “a blend of long-standing values combined
with the reality of today’s globally competitive marketplace.” In addition, the firm’s ability to
remain in the fight today and do battle tomorrow depends on several key business practices that
reflect its culture: strategic planning, customer focus, as well as developing and recognizing its
employees.HouseandSons’ strategy is based on two key fundamental principals. First, focus on
maintaining and enhancing the firm’s core manufacturing competencies. Second, always be in a
position to make choices around what actions can preserve or strengthen the firm’s leadership
position in its markets. So, for example, when the casino gaming and billiard markets began
changing dramatically over the past five years due to a surge of imports and man-made fibers, the
firm responded by introducing a blend of imported products that could meet or exceed the high
quality standards of home-grown products. This decision was based on the recognition that the firm
could add value to the imported product by performing finishing operations that meet or exceed
market specifications. At the same time, being open to importing allowed the company to explore
opportunities to expand its total product offering by selling other products it did not make.
Another key to the company’s long-standing success has been the concerted drive to establish and
maintain close contact with its customers. For example, the company has actively combined the
efforts of its textile technical and sales engineers to work in unison with its customers’
engineering and product-design staff as a way to identify opportunities to become problem solvers
as well as to improve long-term relationships.
By adhering to basic cultural values, Chas W. HouseandSons Inc. has emerged as a leader in
the U.S. market for high-quality woolen and wool blend woven felt applications.The third key
component of HouseandSons’ business culture is to proactively seek ways to develop and recognize
its employees to the greatest extent possible. To this end, the company provides competitive
industry salaries and a profit-sharing plan, and routinely holds employee-recognition and
communication meetings. Beyond these basics, however, the company has also moved to promote a
culture of greater engagement and accountability by flattening the organization. This has occurred
through the elimination of the position of plant superintendent and similar changes in the sales
and marketing and administrative support areas. At the same time, recognizing employee
contributions has remained a top priority. For instance, in 1996, the company made a key hire of a
textile engineer that allowed it to develop an international sourcing capability. This employee has
since become head of the firm’s textile engineering function. Thus, as new challenges arise, the
company’s leadership, first-line supervisors, and employees can more effectively implement new
business plans through faster product development and a commitment to become ever more
customer-focused.
Editors note: James W. Fairfield-Sonn operates his own consulting practice and is also a
tenured associate professor of management at the University of Hartford, Conn. Fairfield-Sonn
teaches courses in process management and leadership and was voted outstanding teacher of the year
in 1999.His first book, Corporate Culture and the Quality Organization, published by Quorum Books,
focuses on identifying the core activities that are essential to the success of any quality
enhancement effort and how to make them happen in a company or organization.
December 2001
Ken Mills Engineering Ltd., United Kingdom, now offers a Rotary Product Separator (RPS) that can be
applied to any pneumatic conveying system to improve throughputs in production. Applications
include synthetics, wool, cotton fibers, shredded paper and more.The separators mechanically
driven, rotating perforated drum contains internal and external ducts that are sealed to the drum
with long-lasting plastic. The design allows the material to have an even feed.The single-fan
condenser separates under negative pressure, removing product from the airstream and evenly
distributing material.The 5-by-4-by-2.66-foot machine provides a near dust-free environment,
eliminating the need to pass material through a product fan, according to the company.
December 2001
New FOL Inc., a subsidiary of Omaha, Neb.-based Berkshire Hathaway Inc., will acquire Bowling
Green, Ky.-based Fruit of the Loom Ltd.s basic apparel business operations for a purchase price of
$835 million.Weve agreed to buy Fruit of the Loom for two major reasons: the strength of the brand
and the managerial talent of John B. Holland, said Warren E. Buffett, chairman, Berkshire Hathaway.
Holland is COO of Fruit of the Loom.New FOL will assume post-petition liabilities and certain
specified pre-petition liabilities of the business.Fruit of the Loom is currently operating as a
debtor-in-possession pursuant to its Chapter 11 bankruptcy filing pending before the United States
Bankruptcy Court for the District of Delaware. Proceeds from the sale will be distributed to
creditors pursuant to Fruit of the Looms plan of reorganization.Berkshires acquisition will
complete the companys tremendous operational turnaround and pave the way for emergence from Chapter
11, said Holland.The companies expect to close the transaction in the first quarter of 2002.
December 2001
Neenah, Wis.-based Webex Inc. now offers three lightweight, low-inertia rolls to increase
web-handling performance by running wider, lighter webs with low tensions or minimal wraps at
higher speeds.The companys FeatherLight carbon fiber composite idler weighs one-third of standard
idlers, accomodates 1.2 times the load-bearing capacity and possesses the lowest inertia ratings of
any idler, states Webex.UltraLight aluminum idlers weigh 2.8 times less than the standard and have
breakaway torques as low as 0.2 ounces per inch. The companys LightWeight aluminum idlers are half
the roll weight and wall thickness of the standard.
December 2001
The nonwovens industry is using a greater diversity of processes and materials to meet the demands
of its market segments. This statement is supported by the fact that, at the Nonwovens Technical
Conference (INTC) in September – sponsored by the Association of the Nonwoven Fabrics Industry
(INDA), Cary, N.C., and the Technical Association for the PulpandPaper Industry (TAPPI)
International, Norcross, Ga. – the largest concentration of process technology papers focused on
the meltblowing of polymers. Additionally, there were a number of presentations on hydroentangling
and spunbonding. Virtually every process in nonwovens – with the exception of stitchbonding – was
extensively covered.The abundance of such dissertations on process technologies reveals a number of
trends within the industry, such as the growing use of bicomponent fibers. As well, it seems there
is a tendency to use a wider range of polymers and technology combinations to develop new nonwoven
products. Furthermore, there is much stronger interest in nonwoven research and development by
academia, evidenced by the fact that more than one-third of the papers presented at the Baltimore
conference were from colleges and universities.The lead-off paper at the conference was prepared
and presented by Dr. D.K. Smith, principal, Smith JohnsonandAssociates, Salt Lake City. His review
covered U.S. patent activities by company, country and process technology from the years 1996
through 2000. These 403 patents were examined and classified according to the claims and were
assigned to a specific nonwoven technology
(See Figure 2).
Meltblowing TechnologyMeltblown nonwovens now play a key role in the nonwovens
business, finding use in products ranging from diapers, surgical wraps, protective clothing,
filtration and spill-control procedures.Such products and applications have obviously come a long
way since Van A. Wente of the Naval Research Laboratory, Washington, first produced meltblown
microdenier fibers from organic polymers more than 35 years ago. Meltblowing of polypropylene and
other polymers was further advanced by Dr. Robert Buntin and his associates at Esso Research (now
Exxon) Laboratories in Baytown, Texas, in the mid-1960s and early 1970s.An important development in
the recent history of bicomponent meltblown technology was discussed by John G. McCulloch and John
Hagewood, Ph.D., of Hills Inc., West Melbourne, Fla. Hills installed a 20-inch bicomponent
meltblowing die, which was incorporated in the pack of the Hills spunbond bicomponent pilot line.To
date, Hills has demonstrated the production of the following types of bicomponent meltblown
products:meltblown sheath/core 50/50 polyethylene (PE)/polypropylene (PP);meltblown side/side split
fibers PE/PP;meltblown side/side trilobal poly(butylene terephthalate) (PBT)/PP;meltblown
sheath/core 10/90 PE/PP; andsegmented pie poly(ethylene terephthalate) (PET)/nylon 6.Product
possibilities for bicomponent meltblown nonwovens include:respirators;heat and moisture exchangers
for medical uses;improved filtration media;formation of filter and wicking rods by in-line pellets
to rods process;radiation-resistant medical fabrics;artificial leather starting
materials;cylindrical filter elements; andnanofibers.In further meltblown developments, the
Textiles and Nonwovens Development Center (TANDEC) at the University of Tennessee (UT), Knoxville,
Tenn., is playing an increasingly important role in research and development for meltblowing
processing and the development of meltblown products. In its research, TANDEC took a look at
multi-hole meltblowing lines operating at commercial speeds. According to Randall Bresee, Ph.D., a
UT professor, measurements were obtained on-line at various locations between the die and
collector, as well as off-line from webs. On-line measurements include fiber speed, fiber
acceleration, fiber diameter, fiber temperature and air speed. Off-line measurements include
birefringence, fiber entanglement, fiber orientation and differential scanning calorimetry. These
experimental measurements provide a basis for gaining a greater understanding of the meltblowing
process.Furthermore, TANDEC, in combination with the Ian Carson Shell Coordination Centre S.A. and
Shell Chemical Co., Houston, presented an overview of the development and characterization of
poly(trimethylene terephthalate) (PTT)-based bicomponent meltblown nonwovens. In this study,
PTT-based monocomponent (mono) and bicomponent (bico) webs were produced on Germany-based
Reifenhers Reicofil® bicomponent meltblown line at TANDEC. Thermal and flow properties of PTT were
first examined using differential scanning calorimetry and melt indexer for an effective
experimental design through the Surface Response Methodology (SRM). The processability of meltblown
in a wide range of operating temperatures was investigated.Melt temperature, melt throughput, air
temperature, air-flow rate and distance of collector to die (DCD) were considered as primary
process-control variables. The webs produced, both mono and bico, with polypropylene were
characterized for fiber diameter, bulk density, air permeability, hydrostatic head, tensile
properties and heat shrinkage.Non-round and curly or twisted fibers were observed in the bico
PP/PTT webs by a scanning electron microscope. It was found that the PTT grade studied is quite
suitable for the meltblown process. The PTT/PP-based bico webs showed enhanced barrier properties
and heat resistance.TANDEC also presented, along with the Natick Soldier Center, Natick, Mass., a
study on the process properties of meltblowing polyurethane for military protective apparel
garments. The objective of this work was to develop materials that are stretchable, conformable and
breathable; and have the required barrier protection against biological and chemical agents. The
method chosen to achieve these properties was by meltblowing thermoplastic urethane (Noveon Estane®
58227) on the 6-inch meltblowing line at TANDEC.Three promising processing conditions that were
evaluated produced air and water vapor transport properties that were comparable to those of
Gore-Tex® breathable materials.Spunbound Technology
Spunbond technology is now being practiced throughout the world, thanks to the availability
of turnkey processing units. Polypropylene is still the major polymer used for spunbonded fabrics,
but a wider range of polymers is now being used for the development of specialty products. Bico
fiber technology is now being utilized for both spunbonded and meltblown nonwovens.The focus has
been on spinnable resins, according to Hans GeorgGeus, research and development manager, Reifenher
GmbHandCo. The characteristics of these fiber grades are relatively low viscosity, significantly
high melt stability, excellent purity and homogeneity, as well as a narrow molecular weight
distribution.Use of polyolefins, polyamides and polyesters has become common in the industry.
Within this range of resins, there is the potential to use variations such as copolymers,
terpolymers and blends with materials such as polyolefins and oligomeric materials. Some of the
required properties in combining resinous materials can be found in Figure 3.The shear viscosity
and an elongational viscosity at the given temperature are the most important properties. Other
important items are: the degree of thermal stabilization; the degree of solubility in the second
polymer; crystallization and crystallization speed; and, last but not least, the MFR of the various
polymers.The melt temperature for each polymer can be set differently, until the polymers are fed
into the bico system. Then the two materials are jointly passed through only one temperature. In
practice, this is not a limitation, because the difference between the two set temperatures cannot
continue to be very large, as the temperature of the two polymers will equalize to some degree. The
two major types of processes for making spunbonds are the open systems and the closed systems (See
Figure 4). The most commonly used closed system is the Reicofil III System.
Bico NonwovensBico products from filament lines are usually produced from side/side,
core/sheath or segmented pie filaments. The different cross sections of these filaments determine
fabric properties. In addition to these properties, the filament shape and cross section need to be
considered. Spunlaced NonwovensThe production of spunlaced nonwovens has practically doubled
between 1995 and 2000, and quadrupled between 1985 and 2000, according to Alfred Watzl of
Germany-based Fleissner GmbHandCo. Spunlace enjoys the highest growth rate of any nonwoven
(See Figure 5).Some spunlaced products can be used directly after they are hydroentangled
and dried, but many fabrics can be enhanced by further processing. Additional processing that can
be applied to spunlaced fabrics includes: impregnation with chemical binders; finishing with
chemicals; dyeing or printing; and thermofusion or heat-setting.An example of a spunlaced line with
fiber opening, blending and two cards is shown in Figure 1. Such a production line can be further
enhanced by adding additional processing lines in-line. Fleissner can supply all of the major
components of a spunlaced line, from hydroentangling through dyeing and finishing.Watzl further
discussed bonding and finishing with chemical binders and chemicals. Chemical binding comprises at
least two steps: first, the binder is applied; then, the bonding process is triggered by a thermal
treatment. Maximum strength in a nonwoven is achieved when all fiber-crossing points are bonded in
a point-shaped form fit. A wide range of additives can be incorporated in the binder systems,
including thickeners, softeners, colorants and flame-retardant (FR) agents.A range of application
methods for applying binders, colorants or other finishing agents includes foaming, spraying and
various wet-application techniques. Special techniques such as print bonding are also employed. In
hot-air bonding, spunlaced nonwovens with increased strength and pilling resistance can be made by
incorporating bico fibers in the blend and thermofusing the lower-melting fiber component by hot
air in single- or multi-drum dryers. This method of bonding nonwovens eliminates the buildup of
binders in the unit, a common occurrence when using chemical binders.Heat-setting can be done in a
hot-air drum dryer when improved fabric dimensional stability is required. Heat-setting is
important when processing polyester fabrics for some applications, such as coating.
Combining Nonwoven TechnologiesFrance-based Rieter Perfojet is the only nonwoven
machinery producer that makes equipment both for spunlaced and spunbonded nonwovens, according to
Daniel Feroe, area sales manager, and Frederic Noelle, research and development manager. The two
Reiter Perfojet executives discussed how spunlace and spunbond technology can be combined to make
an improved wiping fabric.Rieter Perfojet, in its Jetlace® 3000 machine, has raised the efficiency
of hydroentanglement technology by improved design of the internal chambers within the injector
body. The design of the new 400-bar injector allows for a uniform and turbulence-free flow of water
within the injector body, enabling a more efficient water jet created by the flow of water through
the injector strip.
Editors Note: The complete set of papers presented at the INTC 2001 conference can be obtained
from INTC 2001, INDA/TAPPI, P.O. Box 1288, Cary, N.C. 27512-1228. Copies of the papers are
available in written form or on CD-ROM.
December 2001
Cotton Incorporated, Cary, N.C., has named
Dr. Roy G. Cantrell
vice president of agricultural research. Cantrell will succeed
Dr. William Lalor
, who recently retired.
The
Carpet and Rug Institute (CRI), Dalton, Ga., announced
Joan Seelaus
has joined the organization as an electronic advocacy expert.
Seelaus
Springs Industries Inc., Fort Mill, S.C., has named
Kenneth E. Kutcher
executive vice president and CFO; and
Ted Matthews
vice president, corporate communications.
Steven Hoffman
has joined
WestPoint Stevens Inc., West Point, Ga., in the newly created position of vice
president, licenses.
The
American Yarn Spinners Association Inc. (AYSA), Gastonia, N.C., has elected the
following officers:
Charles L. Little
, Mount Vernon Mills, president;
Michael S. Hubbard
, executive vice president and secretary;
James W. Chesnutt
, National Spinning Co. Inc., first vice president;
Stephen G. Dobbins
, Carolina Mills Inc., second vice president; and
Fred A. Jackson
, American & Efird Inc., treasurer. Named to AYSA’s Board of Directors were:
Jerry Rowland
, National Textiles LLC;
Howell Newton
, Trio Manufacturing Co.;
Charles J. Buie, Jr.
, Charles Craft Inc.;
W. Ralph Jones III
, Jones Companies Ltd.;
Allen Barwick
, Shuford Mills Inc.; and
Marshall Cooper
, Harriet & Henderson Yarns Inc. Named to the Board of Directors and to the Executive
Committee were:
Mark B. Kent
, The Kent Manufacturing Co.;
Anderson D. Warlick
, Parkdale Mills Inc.; and
Bruce Lanier, Jr.
, Wehadkee Yarn Mills Inc.
Fairlawn, Ohio-based
Omnova Solutions Inc., has given its 2000 Technology Award to
Bernard North
,
Rick Bishop
and
Mark Mussman
from the company’s Chester, S.C., facility. The team developed Sequapel®, a fluoropolymer
repellent system unique to Omnova. The Technology Award recognizes exemplary technology-based
contributions by technical-, product- and market-development associates.
Bayer Corp, Pittsburgh, has announced a reorganization of senior management within
Bayer Dorlastan®, its global spandex business. Appointments include:
Werner W. Nahl
, vice president, global Dorlastan marketing and sales;
Neal Tonks
, vice president, global Dorlastan manufacturing;
Rolf Dietmar-Viehoever
, director, sales and marketing; and
James Heslep
, vice president, Dorlastan sales and marketing.
Dr. Michael Radermacher
will remain head of the global Dorlastan business.
Degussa Corp., Parsippany, N.J., has named
Helio Takahashi
director of manufacturing within the bleaching and water chemicals business unit.
Takahashi
The
Textured Yarn Association of America Inc. (TYAA), Gastonia, N.C., has elected the
following officers for 2001-2002:
Robert Howell
, Dillon Yarn Corp., president;
Tony Dotson
, KoSa, first vice president, technical;
Richard White
, Milliken & Company, second vice president, technical;
Jim McBride
, Cognis Corp., vice president, membership;
Mark Hubbard
, Wellman Inc., vice president, publicity, publications and archives;
Jerry Eskew
, Day International, vice president, conventions.
Jerry King
, Milliken & Company, will continue to serve as executive secretary. Board members for
the new term comprise:
Chas Scott
, Unifi Inc.;
Tommy George
, Spectrum Textured Yarns;
Adam Watson
, BASF; and
Ulrik Frodermann
, American Barmag Corp.
Pittsfield, Mass.-based
Pittsfield Plastics Engineering Inc. & Precision Spools Inc. has promoted
Thomas W. Walker
to president and CEO, and
Stephen McCuin
to vice president, operations. The company has elected
Bruce Lev
to the Board of Directors and appointed
Duncan Cooper
, vice chairman, Board of Directors.
William (Sam) Parris
has been promoted to vice president, sales, and elected to the Board of Directors.
Tappahannock, Va.-based
H. Warshow & Sons Inc. has promoted
Pete McBride
to vice president, manufacturing.
McBride
The
Screenprinting & Graphic Imaging Association International (SGIA), Fairfax,
Va., has conferred its highest honor — the 2001 Howard Parmele Award — to
Mark Coudray
, Serigraphic Designs Inc., San Luis Obispo, Calif.
November 2001
F
or years we heard “If it ain’t broke, don’t fix it” from managers and, in fact, from most
people working in textile manufacturing. This attitude might seem all right when things are going
well and there is not much to worry about. Costs are in line, revenues are increasing, margins are
good. Not much to worry about, and it’s easy to get comfortable.
But with plants closing and business almost at a standstill, one wonders, “What went wrong?”
or “Why are things like they are?” Could it be that the old “If it ain’t broke, don’t fix it”
mentality contributed to the present state of business in the global marketplace?
Too Comfortable?
Hindsight is always much better than foresight, so one can probably say that it did contribute,
somewhat, to where the industry is today. When comfortable, it is easy to accept the “If it ain’t
broke, don’t fix it” philosophy. Keep trucking along, doing as always, don’t change it. But this
attitude is very dangerous.
Not only is it dangerous for spinners, knitters and weavers, it is dangerous in other
industries as well — steel, automotive, machinery, computers and, more recently, airport security.
It is dangerous because if you are comfortable, operate at the same level or stay where you are for
very long, losing is a near certainty. Competitors are smart. They will catch up. They may get
ahead, and catching up or regaining market share will be difficult.
So, if it ain’t broke, maybe you should break it and work like heck to make it better.
Cotton Prices Move Lower
Demand for U.S. cotton continues to be weak. Quotations for the base grade in the seven
designated markets averaged 32.71 cents per pound. A cotton supplier said, “Cotton prices will
continue to move a little lower. I expect this even though supply might be lower than earlier
estimates. Demand is soft. Many mills are trying to delay shipments of 2000 crop cotton, and a few
mills have cancelled some shipments. This really causes me a problem. On the other hand, a few
mills have fixed some cotton at 33 to 34 cents. So someone thinks that cotton prices are near the
bottom.”
Horizontal Integration Helps Shippers
It seems that many companies are moving from vertical integration (doing everything — yarn
manufacturing through product formation) to a more horizontal organization (doing only certain
things — spinning or weaving or knitting, etc.). During the past several months, the Yarn Market
has observed more and more of this change in company structure.
A weaver responded, “We are doing pretty well, better than most in our business. A couple of
keys are that our inventory is under control and we have very little debt.” When asked about
purchasing yarn, he said, “We look at cost. If it is more cost-effective to buy yarn, we will buy
yarn. We used to be vertically integrated, and today we are buying a lot of yarn and making less
in-house.”
Another weaver recently said, “Our business is going very well. We’re in several markets, and
our customers are doing okay. We recently purchased a plant that complements our business. Plans
are to bring this plant up to ‘state-of-the-art.’ Our investment strategies will determine the most
cost-effective way to do this. We’ll take a look at everything — opening room, card room, spinning
room, weave room, etc.
These areas and all options will be considered — including buying yarn. The goal is to make
money. Thus, the investment strategy directs you to put your money in areas that contribute most to
the bottom line. And that may lead us to buying yarn.”
A spinner said, “I’m glad this is happening.” I would be too. But spinners, beware, you had
better break it and fix it to improve it because your customers are doing and will continue to do
what is necessary to lower costs — including shopping offshore.
Feedback Welcomed
The Yarn Market welcomes your input. Call (864) 656-5962 or e-mail editor@textileindustries.com.
Your input is valued, and it will be addressed.
November 2001
Woolrich Inc., Woolrich, Pa., established in 1830, is the nation’s oldest, continuously operating apparel marketer and manufacturer. Specializing in men’s and women’s outerwear and accessories, the company recently developed TechnoWool™, a line of wool fabrics whose protective and comfort properties compare with those of other performance fabrics. The fabrics are woven at the company’s mill in Woolrich.
TechnoWool fabrics build on wool’s natural functions of moisture and vapor management, breathability, shape retention, insulation, air impermeability and water repellency, which result from the fiber’s structural features, including its protein basis, natural crimp, resiliency,
hollow core and scaly surface. Special techniques are employed to produce a tightly woven fabric having improved air impermeability and insulation and creating a comfortable microclimate next to the body, according to Woolrich.
The Products
TechnoWool is currently available in four styles, with other styles in development. TechnoWool X is a 16.3-ounce fabric designed for extreme outdoor activities including mountain climbing and backpacking. The crimped yarn creates loops in the tightly woven, textured fabric, which is sponged
to raise the nap. The fabric is wool blended with a bit of nylon to provide additional abrasion
resistance and durability.
Softness is the defining feature of the TechnoWool S series. Made from a blend of merino and lamb’s wool, the sponged and sheared 9-ounce fabrics are soft and drapeable, making them suitable for sportswear as well as outerwear, “casual, but a little bit more dressed up than fleece,”
according to Paula Kosmatka, product design director for Woolrich.
Other styles include the O series of “quiet,” sponged bouclé wool/nylon/polyester fabrics, which have added water and soil repellency and burr resistance for outdoor activities such as
hunting; and the W series of machine-washable wool/nylon fabrics. A wind-resistant laminate that combines a hydrophilic mesh and a collapsible, breathable cell membrane with TechnoWool X or S fabric will be introduced in early 2002. Also in the works are an X-series stretch wool with Lycra® and a washable wool fleece.
Garments made from TechnoWool appeal to consumers who prefer natural fibers over man-made. “ Wool looks nicer and is more classic,” Kosmatka said. In addition, she said, wool is an eco-friendly, renewable resource that is free of dependence on petroleum resources.
For more information about TechnoWool™, contact Woolrich Inc., (800) 995-1299.
November 2001
Terror Attacks Contribute To Economic Woes
The latest economic reports indicate a faltering U.S. economy that slid into recession in the
third quarter of this year. The unprecedented, vicious terrorist attacks on September 11
accelerated the downfall, as consumer anxiety rose and normal spending patterns were disrupted.
With increased security, consumer confidence is likely to be restored in the near future, and the
economy will rebound. Nonetheless, a recession is now unavoidable as consumer spending weakens
further due to widespread employment losses and the slashing of business capital spending budgets
continues.
In September, the U.S. economy lost 199,000 non-farm jobs, the largest decline since February
1991. The loss included 93,000 factory jobs. September 11 events had minimal impact on employment
counts due to timing and the underlying assumptions. The impact on payrolls will be more evident in
October’s results. The September jobless rate was unchanged at 4.9 percent.
The Producer Price Index for finished goods rose 0.4 percent in September. Energy prices
jumped 0.9 percent, while food prices rose 0.2 percent. Excluding food and energy, the price index
was up 0.3 percent.
Consumer prices increased 0.4 percent in August, largely driven by apparel and energy costs.
Energy costs soared 2.6 percent. The core inflation rose 0.2 percent.
Trade Deficit Narrows
The U.S. trade deficit of goods and services narrowed in August to $27.11 billion from $29.17
billion in July and was the lowest level in 19 months. Exports — led by industrial supplies;
automotive products; and food, feeds and beverages — rose by 1.0 percent to $84.46 billion. Imports
declined 1.1 percent to $111.57 billion. Industrial production fell 1.0 percent in September. This
was the 12th consecutive monthly decline. Factory output fell 1.1 percent.
In the third quarter, industrial output plunged 6.2 percent at an annual rate, on top of
declines of 4.4 percent in the second quarter and 6.8 percent in the first quarter. Output fell
across all industries except for motor vehicles and parts, and lumber and products.
The operating rate of industrial capacity dipped to 75.5 percent in September and was the
lowest since June of 1983.
Housing starts rose 1.7 percent in September to an annual rate of 1.574 million units, but
declined 7.0 percent at an annual rate in the third quarter. Single-family units rose 0.6 percent
to 1.268 million.
Business sales edged up 0.1 percent
in August, while business inventories were drawn down 0.1 percent — the smallest drop in seven
months and a positive sign. As a result, the August inventory-to-sales ratio was left intact at
1.42.
Textile Mill Jobless Rates Decline Despite Job Cuts
Textile and apparel payrolls fell 0.9 percent in September, but the volatile jobless rate for
textile mill workers eased to 7.3 percent from 8.2 percent in August.
Textile output decreased 0.9 percent in September and tumbled 14.4 percent at an annual rate
in the third quarter — off 14.5 percent from a year ago. The utilization rate for textiles dropped
to 71.0 percent of capacity.
Shipments by textile producers declined 1.5 percent in August, while inventories were reduced
by 0.5 percent, causing the inventory-to-sales ratio to move up to 1.68 from 1.66.
Retail and food services sales collapsed 2.4 percent in September, as consumers avoided the
shopping malls after the terrorist attacks, while motor vehicle sales slumped 4.6 percent.
Excluding autos, retail sales were down 2.1 percent. Sales were up 3.0 percent at gasoline
stations, 0.8 percent at health and personal care stores and 0.4 percent at food and beverage
stores. Sales fell 0.4 percent for general merchandise, 1.5 percent for furniture and home
furnishings, 2.2 percent for building materials and hardware, and 5.9 percent for apparel and
accessories.
Producer prices of textiles and apparel edged down 0.1 percent in September. Prices rebounded
0.7 percent for synthetic fibers and 0.2 percent for finished fabrics. Prices retreated 0.7 percent
for greige fabrics, 0.4 percent for processed yarns and threads, 0.3 percent for carpets and 0.2
percent for home furnishings.
November 2001
