By Peggy Whaley, Carpet Editor Covering New Ground
The Carpet and Rug Institute takes proactive road to tout carpets benefits, correct
misconceptions. The Carpet and Rug Institute (CRI) plans to significantly tear down
barriers to profitability and growth in the carpet and rug industry by using the resources of its
enthusiastic, well-positioned staff and expertise from member companies, CRI President Werner Braun
said during the Dalton, Ga.-based organizations annual membership meeting.CRI is a new
organization, a proactive advocacy organization, Braun said. He called attention to the various
changes that have been made in the association and said CRI is seeking support of all allies and
advocating messages that are scientifically based to win buy-in from adversaries.Specific messages
will be shared with members for their use and the targeting of specific audiences from consumers to
commercial end-use segments.

CRIs five-branched pentaskelion logo (shown right, in a tufted carpet used in the lobby at
CRIs Dalton headquarters), represents five aspects of the carpet and rug industry: creativity,
technology, enterprise, quality and integrity.Carpet, Clean and Dry deals with care for the
building industry and care for carpet. Green Carpet, Its Not Just a Color refers to the industrys
move toward sustainability. Carpet for Cleaner Air revolves around volatile organic compounds
(VOCs), carbon dioxide and allergens. Carpet Makes the Grade in Schools focuses on carpet as the
educated choice for the total learning environment in the education market. Carpet, It Softens the
Impactdirects messages toward healthcare markets. Carpet, It Just Feels Better refers to the
overall comfort of carpet.The 2001 Joe Smrekar Memorial award was given posthumously to Dr. Eugene
P. Willimon. Better known in the industry as Rusty, Willimon was the general manager at Milliken
Carpet, LaGrange, Ga. The award was presented to his family. In accepting the award, Mrs. Willimon
said, My husband always put God and family first. Its the best legacy one can leave behind. She
challenged the businessmen present to do the same. Environmental Initiatives

Frank Hurd, CFO and vice president, CRI, emphasized the importance of the associations Carpet
America Recovery Effort (CARE)
(See CarpetandRug News, TW, this issue). We are anticipating our efforts in this area will
result in the reduction of 40 percent in carpet taken to landfills, he stated. This ambitious goal
will be achieved, according to Hurd, by converting carpet waste into useful energy and product. We
are looking at waste energy, steam, and electricity, and were exploring the possibility of using
cement kilns. We want to make sure we have the right recycling technology. This is a lot of carpet
and a much better alternative than putting used carpet in a landfill and letting it sit there for
50 years, Hurd said.Hurd is also director of government and association relations. He announced
procedures, ongoing and enhanced, to monitor legislative and regulatory issues in every state and
in the federal government. He also said that this information will allow CRI to react before issues
become crises.CRI reported that Matthew Realff, Ph.D., professor of engineering, Georgia Institute
of Technology, Atlanta, provided a correlation showing that the energy reduction reported by the
carpet industry is equivalant to the annual emissions of 226,000 cars. Braun responded, Its great
to see that the reduction of energy use in this industry is essentially equivalent to parking more
than a quarter of a million cars. Carpet manufacturers have made, and are continuing to make,
strides in energy conservation while focusing on creating high-performance products for the benefit
of customers. They are leaving environmental footprints for the value of future generations.At the
annual meeting, a number of CRI directors reported on the status of current association programs.
Ken McIntosh, health, environment and technical director, said papers will be ready to submit to
the Ninth International Indoor Air Quality meeting in June. Paper topics include maintaining the
indoor environment, the quality of the air, and comfort issues in the environment.Steve Phillips,
director of customer satisfaction, reported on media outreach, including efforts to implement
immediate electronic correspondence and increase use of CRIs website for communications to members
and the media.Charlott Coker, director of human resources and electronic advocacy, announced the
launch of new navigation capabilities and a new look for CRIs website, www.carpet-rug.com. Joan
Seelaus, electronic advocacy manager, will manage a workgroup created across all focus
areas. President’s Perspective

There are a number of messages CRI wants to convey to the buying public, Braun told Textile
World. One of those messages is mildew and that can almost be a national hysteria. The word
moldaphobia comes to mind when you see people bulldozing houses because it has mold in it. So why
is CRI interested in it Braun explains: A lot of people see mold on carpet and immediately say
theres a problem with the carpet, lets rip out the carpet. This is a truly misguided judgment. If
you have mold on your carpet, its not because you have a problem with your carpet, its because your
house or office has uncontrolled moisture problems. Taking out the carpet is addressing the carpet,
not the problem. You still have a house or building with mold and mildew. The answer is in the
message, Carpet, Clean and Dry.Another important message for the industry, noted Braun, is
environmental performance. This industry has a real right to be proud of our environmental
performance it has been working for the last 10 to 15 years on reducing our consumption of energy
per square yard. Some things that highlight this [lower energy consumption] the best are the
reduction of water consumption and the release of carbon dioxide.Carpet in the school environment
is extremely significant, he said. We believe that carpet is a very important element in a healthy
learning environment from many different perspectives. Its comfortable underfoot teachers applaud
carpet. It causes less stress on the feet, causes fewer problems with varicose veins and its
sound-suppressive. With carpet, a classroom is not nearly so noisy the teacher can be heard easier.
Additionally, he said carpet can sometimes prevent injuries during falls. If someone does fall,
chances of being hurt are a lot less on a carpet surface. We believe carpet creates the opportunity
to improve the quality of air in schools as well as in the home.Some people just dont understand
and will maintain that allergens or dust go into the carpet and feel thats a bad thing. But our
data tells us the opposite because if its in the carpet, its not in the air you are breathing. Its
not getting into your eyes and allowing you to have an allergic reaction. Braun said its better to
have dust in the carpet than in the air. If dust should be in the carpet, he said, there is a
green-label vacuum available to remove it. Through the green label program, CRI plans to test
vacuums to see how effective they are in getting stuff out of the carpet. The stuff stays contained
in the vacuum and can be disposed of outside the home or office. The filter-like properties of the
carpet can be refreshed, and in addition, he continued, youre removing that stuff from the house
and office.CRI And Its President, Werner BraunHeadquartered in Dalton, Ga. the heart of carpet
manufacturing in the United States CRI is the national trade assocation representing the carpet and
rug industry. According to 1999 statistics, 80 percent of all carpet manufactured in the United
States is produced within a 65-mile-radius of Dalton.CRIs membership consists of manufacturers, as
well as suppliers of raw materials and services to the industry.Policy is determined by a Board of
Directors composed of CEOs from member companies. Policy is implemented by a full-time professional
staff. CRI members and staff are committed to facilitating cooperative solutions to all industry
challenges.Werner Heinz Braun assumed the helm of the organization in 2000. After obtaining a
bachelor of science in chemistry from St. Edward University, Austin, Texas, Braun began a career
with Dow Chemical Co., Midland, Mich., that would span more than 30 years. Brauns extensive
background in the chemical industry also includes work with environmental issues and public policy
advocacy, which he plans to draw upon in order to usher in a new era at CRI one that will see the
organization at the forefront of the carpet industry with new, more proactive policies and
initiatives.

Werner Braun stands with promotional posters featuring CRIs new scientifically-based
messages, created to win over carpet adversaries.
For more information, contact CRI (706) 278-3176; fax (706) 278-8835;
www.carpet-rug.com.New CRI DirectorsElected to the Board of Directors with terms to expire in
2003:Richard Bierie,Mannington MillsMac Bridger,CollinsandAikman Floorcoverings Inc.Mike
Derderian,Royalty Carpet MillsMike Gallman,Blue Ridge Carpet MillsCharles Kennedy,Gulistan
CarpetJim McCallum,Burlington IndustriesJulian Saul,Shaw IndustriesAssociate Members:Brad
Hill,SolutiaWalt Hubbard,BASFMike Lawrence,HoneywellElected to the Boards Executive Committtee with
terms to expire in 2002:Carl Boukaert,Beaulieu GroupMac Bridger,CollinsandAikman Floorcoverings
Inc.Dan Frierson,The Dixie GroupJeff Lorberbaum,Mohawk IndustriesBob Shaw,Shaw IndustriesJohn
Swift, (Treasurer)Mohawk IndustriesBrad Hill,SolutiaElected to the Board of Directors with terms to
expire in 2003:Richard Bierie,Mannington MillsMac Bridger,CollinsandAikman Floorcoverings Inc.Mike
Derderian,Royalty Carpet MillsMike Gallman,Blue Ridge Carpet MillsCharles Kennedy,Gulistan
CarpetJim McCallum,Burlington IndustriesJulian Saul,Shaw IndustriesAssociate Members:Brad
Hill,SolutiaWalt Hubbard,BASFMike Lawrence,HoneywellElected to the Boards Executive Committtee with
terms to expire in 2002:Carl Boukaert,Beaulieu GroupMac Bridger,CollinsandAikman Floorcoverings
Inc.Dan Frierson,The Dixie GroupJeff Lorberbaum,Mohawk IndustriesBob Shaw,Shaw IndustriesJohn
Swift, (Treasurer)Mohawk IndustriesBrad Hill,Solutia
February 2002

In wide-ranging testimony submitted February 7th to the Senate Finance and House WaysandMeans
Committees, the American Textile Manufacturers Institute (ATMI) called on Congress and the Bush
Administration to make a number of changes to current trade policies in order to ensure equitable
treatment for the struggling U.S. textile industry. The two committees were holding hearings
February 6-7 on President Bushs trade agenda for 2002.The ATMI testimony noted that, at a similar
hearing exactly eleven months ago to the day, it had listed three basic principles which should
govern U.S. trade policy and trade agreements affecting textiles:1) trade agreements must be fair
and equitable to the domestic industry; 2) trade agreements must be enforceable; and 3) the U.S.
government must exhibit the will to enforce trade agreements.However, the association noted, while
its support for these principles has not changed since its testimony eleven months ago, “What has
changed since that date is that over 100 U.S. textile mills have closed and over 60,000 U.S.
textile workers have lost their jobs . Today, the U.S. textile industry is experiencing its worst
economic crisis since the Great Depression.” ATMI cited “an enormous and destructive increase in
the value of the dollar,” particularly against the currencies of Asian textile exporting countries,
as a major cause of the industrys woes. ATMI said, “The Administration should abandon its strong
dollar policy and move judiciously in concert with other countries to gradually bring the value of
the dollar down. This would have a more beneficial long-term impact on the entire U.S.
manufacturing sector, including textiles, than almost any other single step.”Turning to pending
trade issues, ATMI urged Congress and the Administration to fulfill the various commitments made to
textile state representatives during the debate over trade promotion authority, “without any
compromise or further delay. To do otherwise would be an unconscionable breach of trust and call
into question why textile state Members of Congress should allow the president to negotiate trade
agreements without maintaining Congress ability to modify the legislation implementing such
agreements.” ATMI also expressed concern that “the WTO Ministerial Declaration and other documents
agreed to in Doha by the U.S. and other WTO members will encourage Asian exporters to keep their
textile markets closed.” In its testimony, ATMI pointed out that, “the Doha agreement does not
prohibit India and other countries from continuing to hide behind protective barriers while
simultaneously enjoying far greater access, and seeking even greater access, to our markets at the
expense of U.S. textile jobs.”Regarding tariffs, ATMI said that it “continues to urge that the
United States adopt specific objectives and guidelines concerning U.S. textile and apparel tariffs.
These objectives must include freezing U.S. textile and apparel tariffs, and forcing Asian and
other countries to bring their tariffs down to U.S. levels and remove their non-tariff barriers
without delay.” Finally, ATMI reiterated its call for the United States government to “reject any
efforts to weaken U.S. trade laws” as part of the new round of global trade talks.On other issues,
ATMI urged that any Free Trade Agreement of the Americas “must be fair and beneficial to U.S.
textiles, it must have enforceable rules and the government must be willing to enforce those
rules.” It said, “The textile and apparel rules in an FTAA must have origin requirements that
prevent countries outside the agreement from becoming beneficiaries. The rules must also allow for
cross-country Customs verification and have reciprocal tariff phase-outs. Enforcement is key; each
time that free trade is expanded, the opportunity for goods from outside the free trade region to
enter illegally is expanded as well.”ATMI reminded the committees that the House-passed Andean
Trade Expansion Bill “would cost thousands of U.S. textile jobs at a time when our industry is
already reeling from its worst economic crisis since the 1930s.” The testimony highlighted the fact
that the bill would allow a huge amount (nearly one billion square meters equivalent by 2006) of
apparel made of regional instead of U.S. fabric to enter the U.S. duty-free, which would cause
further job losses in the U.S. textile industry. It also noted that, in a provision completely
unrelated to helping the Andean region, the measure would double the volume of Sub-Saharan apparel
that can be made from “regional” or third country fabric. ATMI pointed out that this would “benefit
Asian fabric and yarn producers and severely limit the possibility of U.S. textile exports to AGOA
countries and a meaningful economic partnership developing between U.S. textile producers and
African apparel makers.” Finally, with respect to a possible free trade agreement with various
Central American countries, ATMI said, “We question the need for beginning such negotiations less
than eighteen months after the Caribbean Basin Trade Partnership Act (CBTPA) went into effect. All
five of the nations identified by the U.S. Trade Representatives Office for possible inclusion in
these negotiations are CBTPA beneficiary nations. It would seem more prudent to allow apparel
manufacturers in these countries to continue to develop economic partnerships with U.S. textile
producers, as provided for under CBTPA, before rushing to establish new relationships and
rules.”For a copy of the February 7, 2002 ATMI congressional testimony, or more information on the
crisis in the U.S. textile industry, go to the ATMI website at www.atmi.org. EDITORS NOTE: ATMI is
the national trade association of the textile mill products industry with members engaged in the
manufacture of yarns, fabrics, home furnishings and other textile products. The U.S. textile
industry employs approximately 450,000 workers.

President Bush has granted Pakistan a significant increase in its apparel quotas in recognition of
Pakistans support of the U.S. anti-terrorist campaign. Following a meeting with Pakistani President
Musharraf on February 13, Bush said Pakistan has been a “key partner” in Operation Enduring
Freedom, and he promised that the U.S. and Pakistan will continue to strengthen their trade and
other economic ties. The U.S. textile industry strongly criticized the granting of additional
quotas to Pakistan, charging it was an “unwarranted concession at the expense of U.S. textile
production and jobs.” A fact sheet issued by the American Textile Manufacturers Institute (ATMI)
said that Pakistans exports to the United States have not been adversely affected by the conflict
in Afghanistan. It says that textile and apparel imports from Pakistan have increased by 7.2
percent since September 11 while imports from all sources are down 6.1percent. President Bush
agreed to offer Pakistan $142 million in additional “market access” in order to help offset some of
the problems the Pakistani industry and U.S. importers say Pakistan has been experiencing as a
result of the war in Afghanistan. As the war continued, many U.S. retailers and other importers cut
back or canceled orders for Pakistani goods, because of what they felt was uncertainty about
deliveries from the war zone.Under the agreement, Pakistan will be granted additional quota in
about a dozen apparel categories, including blouses, knit shirts, trousers, outer coats, underwear
and gloves. Because Pakistans quotas automatically increase by about 11percent per year, the three
year total of the increases will amount to more than $480 million. The U.S. Association of
Importers of Textiles and Apparel, which has been deeply concerned about the disruption of trade
from Pakistan, had sought considerably more in terms of liberalized quotas. USITAs vice president
for international and government relations, Julie K. Hughes, says the impact of the increases will
be “relatively minor” in the overall trade picture and the administration can justifiably say the
action will not hurt the domestic industry.

David Spooner, former office manager and legislative director for Rep. Sue Myrick (R-NC), has been
named Special Textile Negotiator in the office of the U.S. Trade Representative. Spooner has the
strong support of the U.S. textile industry . In naming him to the post, U.S. Trade Representative
Robert B. Zoellick said Spooner will work with the U.S. textile and apparel industries to expand
their access to overseas markets and “help the industries as they adjust for the future.” He added:
“David Spooners experience on Capitol Hill and his knowledge of textile issues and textile
communities provide the UStr with an important and special perspective.”

Unifi, Jassin-O’RourkeSeminars Show CBI At WorkA series of seminars hosted by Unifi Inc.,
Greensboro, N.C., and New York City-based Jassin-ORourke Group LLC, and designed to help companies
understand how to profitably market the Caribbean Basin Initiative (CBI), recently took place in
Greensboro, New York City, the Dominican Republic, Honduras, El Salvador and Guatemala. U.S.
knitters, weavers and converters of polyester- and nylon-content fabrics, and CBI apparel
manufacturers learned how to better leverage CBI advantages through the supply chain.Michael
Delaney, senior vice president, Unifi, noted that 60,000 textile jobs have been lost due to a
consumption slowdown and import growth. However, U.S. textile market potential is getting bigger,
not smaller. The increase was 7 percent in 2001. Asias market share dropped 70 percent, while
market share from Mexico and CBI countries increased between 30 and 40 percent.Stewart Little,
senior vice president, Unifi, said apparel manufacturers and retailers have no conception of the
CBI advantages in cost and quick turnaround. Mary ORourke, managing director, Jassin-ORourke, said
the CBI can drive growth for companies through elimination of tariffs on textile apparel imports
that contain U.S.-manufactured fabrics and yarns. U.S. companies that leverage CBI advantages
through the supply chain can demonstrate to customers down stream an edge over Asian prices and
time-to-market.Turnaround time is faster from Honduras, ORourke pointed out. Retailers and
manufacturers can eliminate up to six weeks of lead time. With shorter order cycles and quick
replenishment of stock and reorder options, companies can carry decreased inventories.ORourke
stated the view that the domestic textile industry is commodity-oriented, requires large minimums
and long lead times is no longer true. There is also a misconception that Asian fabrics are
cheaper.Eight Caribbean countries represent 95 percent of the apparel business, each having its
special niche. Today, the experts agree, manufacturers and retailers must be shown how a
full-package apparel program is an economic advantage and a cost saver.
February 2002

Malden Mills Receives FundingLawrence, Mass.-based Malden Mills Industries Inc., which recently
filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, has received $20 million in
funding from its lenders to enable it to continue operating during the reorganization process.This
reorganization allows Malden Mills to emerge from the challenges we have faced since the
catastrophic fire that nearly destroyed our company in late 1995, said Aaron Feuerstein, president
and CEO, anticipating that the 95-year-old company will emerge as a stronger, more highly focused
and profitable company.Following the fire, Feuerstein immediately rebuilt the companys facilities
in Lawrence, continuing to pay his employees during the reconstruction. The new Polartec® building
was the first mill built in New England in more than a century.The company filed for reorganization
due to the cost of servicing bank debt, a sluggish retail market, high reconstruction costs and the
closing of its upholstery division following the fire. Maldens patented Polartec fabrics are used
for all outdoor activities and are the sole fabrics used in cold-weather gear for the U.S. Army,
Marine Corps and Special Operations Command.
January 2002